People’s Utah Bancorp – Value Analysis (NASDAQ:PUB) : August 7, 2017

Capitalcube gives People’s Utah Bancorp a score of 64.

Our analysis is based on comparing People’s Utah Bancorp with the following peers – Mid Penn Bancorp, Inc., MidWestOne Financial Group, Inc., Marquette National Corporation and Malaga Financial Corporation (MPB-US, MOFG-US, MNAT-US and MLGF-US).

Fundamental Overview

People’s Utah Bancorp has a fundamental score of 64 and has a relative valuation of OVERVALUED.

Fundamental Score

Company Overview

  • It currently trades at a Price/Book ratio of (2.07).
  • The market expects PUB-US to grow at about the same rate as the peers and to maintain the median returns it currently generates.
  • PUB-US has relatively high profit margins while operating with median capital turns.
  • 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.
  • PUB-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.
  • PUB-US‘s revenue growth in recent years and current P/E ratio are both around their respective peer medians suggesting that historical performance and long-term growth expectations for the company are largely in sync.
  • The company is likely overinvesting in a business with only median returns.

Drivers of Margin

  • PUB-US‘s pre-tax margin suggests relatively low operating costs.
  • The company’s net interest income (net interest income/total revenues) of 80.88% is around peer median suggesting that PUB-US‘s lending operations does not benefit from any differentiating pricing advantage. However, PUB-US‘s pre-tax margin is more than the peer median (43.49% compared to 26.77%) suggesting relatively low operating costs.
  • The company’s proportion of fee based income (i.e. non interest income/total revenues) of 19.12% is around peer median. In addition, PUB-US‘s proportion of overhead costs (i.e. non interest expense/total revenues) of 54.76x is also 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

People’s Utah Bancorp operates as a bank holding company. It operates through its holly-owned banking subsidiaries, Bank of American Fork and Lewiston State Bank, which provides banking and related services to locally-owned businesses, professional firms, real estate developers, residential home builders, high net-worth individuals, investors,and other customers. The company was founded in 1998 and is headquartered in American Fork, UT.