Capitalcube gives Umpqua Holdings Corp. a score of 36.
Our analysis is based on comparing Umpqua Holdings Corp. with the following peers – Zions Bancorporation, Banner Corporation, Heritage Financial Corporation, Western Alliance Bancorporation, CVB Financial Corp., First Republic Bank, Tokyo Electron Ltd. Unsponsored ADR, Bank of Marin Bancorp, Pacific Continental Corporation and Columbia Banking System, Inc. (ZION-US, BANR-US, HFWA-US, WAL-US, CVBF-US, FRC-US, TOELY-US, BMRC-US, PCBK-US and COLB-US).
Umpqua Holdings Corp. has a fundamental score of 36 and has a relative valuation of NEUTRAL.
- It trades at a lower Price/Book multiple (0.95) than its peer median (1.65).
- The market expects UMPQ-US‘s earnings to grow at about the same rate as its chosen peers and also does not seem to expect much improvement in its below peer median returns.
- UMPQ-US‘s relative capital efficiency and net profit margins are both around the median level.
- Compared with its chosen peers, the company’s annual revenues and earnings change at a slower rate, implying a lack of strategic focus and/or lack of execution success.
- UMPQ-US‘s return on equity currently and over the past five years has trailed the peer median and suggests the company might be operationally challenged relative to its peers.
- While UMPQ-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 70.76% is around peer median suggesting that UMPQ-US‘s lending operations does not benefit from any differentiating pricing advantage. In addition, UMPQ-US‘s pre-tax margin of 31.06% 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 29.24% versus peer median of 18.81% — suggests that UMPQ-US‘s operating margins are likely to be less volatile. In addition, UMPQ-US‘s proportion of overhead costs (i.e. non interest expense/total revenues) of 64.16x is around peer median — suggesting no cost advantage on fee-based overhead operations.
Quadrant label definitions. Hover to know more
Umpqua Holdings Corp. operates as a bank holding company and provides banking and financial services. It engages in the business of commercial and retail banking and the delivery of retail brokerage services. The company operates in two segments: Community Banking and Home Lending. The Community Banking segment offers loan and deposit products to its business and retail customers in its primary market areas. The Home Lending segment operates as a division of the Bank, originates, sells and services residential mortgage loans. It offers loans, checking, overdraft services, debit cards, online banking and credit cards. The company was founded in March 1999 and is headquartered in Portland, OR.