People’s Utah Bancorp – Value Analysis (NASDAQ:PUB) : November 24, 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., MainStreet Bancshares, Inc. and Marquette National Corporation (MPB-US, MOFG-US, MNSB-US and MNAT-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 (2.27).
  • PUB-US‘s operating performance is relatively good compared to its peers. The market currently does not expect high earnings growth relative to its peers but seems to expect the company to maintain its relatively high rates of return.
  • PUB-US has relatively high profit margins while operating with median capital turns.
  • Changes in the company’s annual revenue and earnings are around the median among its peers.
  • Over the last five years, PUB-US‘s return on equity has improved from median to better than the median among its peers, suggesting the company has found relative operating advantages.
  • 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’s equity capital investment seems appropriate for a business with peer 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 82.08% 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 (41.85% compared to 25.87%) suggesting relatively low operating costs.
  • The company’s proportion of fee based income (i.e. non interest income/total revenues) of 17.92% is around peer median. However, PUB-US‘s proportion of overhead costs (i.e. non interest expense/total revenues) is less than peer median (55.27x compared to 70.32x) — suggesting relatively low 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.