Peoples Bancorp, Inc. (Ohio) – Value Analysis (NASDAQ:PEBO) : December 19, 2017

Capitalcube gives Peoples Bancorp, Inc. (Ohio) a score of 57.

Our analysis is based on comparing Peoples Bancorp, Inc. (Ohio) with the following peers – First Financial Bancorp., Park National Corporation, Ohio Valley Banc Corp., United Bancshares, Inc., Farmers National Banc Corp., LCNB Corp., Old National Bancorp, Huntington Bancshares Incorporated, Ohio Legacy Corp and United Bancorp, Inc. (FFBC-US, PRK-US, OVBC-US, UBOH-US, FMNB-US, LCNB-US, ONB-US, HBAN-US, OLCB-US and UBCP-US).

Fundamental Overview

Peoples Bancorp, Inc. (Ohio) has a fundamental score of 57 and has a relative valuation of UNDERVALUED.

Fundamental Score

Company Overview

  • It’s current Price/Book of 1.35 is about median in its peer group.
  • The market expects PEBO-US to grow at about the same rate as the peers and to maintain the median returns it currently generates.
  • PEBO-US‘s relative capital efficiency and net profit margins are both around the median level.
  • Compared with its chosen peers, changes in the company’s annual earnings are better than the changes in its revenue, implying better than median cost control and/or some economies of scale.
  • PEBO-US‘s return on equity currently and over the past five years is around the peer median and suggest that it does not have any particular operational advantages versus peers.
  • While PEBO-US‘s revenues in recent years have grown faster than the peer median, the market gives the stock a P/E ratio that is around peer median suggesting that the market has some questions about the company’s long-term strategy.
  • The company’s equity capital investment program and to-date returns suggest that the company is likely making big bets on the future.

Drivers of Margin

  • Margins do not suggest any relative benefit from a pricing or an operating cost advantage.
  • The company’s net interest income (net interest income/total revenues) of 67.30% is around peer median suggesting that PEBO-US‘s lending operations does not benefit from any differentiating pricing advantage. In addition, PEBO-US‘s pre-tax margin of 32.53% is also around the peer median suggesting no operating cost advantage relative to peers.
  • The company’s comparatively healthy proportion of fee based income (i.e. non interest income/total revenues) of 32.70% versus peer median of 21.29% — suggests that PEBO-US‘s operating margins are likely to be less volatile. In addition, PEBO-US‘s proportion of overhead costs (i.e. non interest expense/total revenues) of 65.44x is around peer median — suggesting no cost advantage on fee-based overhead operations.
Drivers of Margins

Quadrant label definitions. Hover to know more

Differentiated; Low Cost, Differentiated; High Cost, Commodity; High Cost, Commodity; Low Cost

Company Profile

Peoples Bancorp, Inc. is a diversified financial products and services company, which makes available a complete line of banking, investment, insurance, and trust solutions. It products include demand deposit accounts, savings accounts, money market accounts and certificates of deposit; commercial, consumer and real estate mortgage loans; debit and automated teller machine cards. The company was founded in 1980 and is headquartered in Marietta, OH.