FCF  First Commonwealth Financial C...

Exchange

NYSE

Sector

Finance

Industry

Major Banks

Market Cap.

1.25B

Current Price

$14.05
-0.18 (-1.26%)

Book Price

$8.34
Overvalued by 40.61%
Financial Institution

Company Metrics

  • P/E 20.97
  • P/S 5.18
  • P/B 1.69
  • EPS 0.67
  • Dividend 0.32 / 2.25 %
  • Avg. Vol. 347,010.00
  • Shares 88.97M
  • Market Cap. 1.25B

Company Description

First Commonwealth Financial Corporation operates as the holding company for First Commonwealth Bank that provides consumer and commercial banking services to individuals and small and mid-sized businesses in central and western Pennsylvania. The company offers personal checking accounts, interest-earning checking accounts, savings accounts, health savings accounts, insured money market accounts, ... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

First Commonwealth to cut one-third of Ohio bank's staff
Pittsburgh Business Times - Feb 15, 2017
First Commonwealth Financial Corp. expects to complete its $106 million purchase of DCB Financial Corp. on April 3 and has timed the first of two rounds of job cuts to begin when the deal closes, according to Columbus Business First, a sister publication.
First Commonwealth Financial Corp Buys Qualcomm, Voya Financial, News, Sells ...
Nasdaq - Feb 17, 2017
First Commonwealth Financial Corp initiated holdings in Voya Financial Inc. The purchase prices were between $28.88 and $41, with an estimated average price of $35.25.
First Commonwealth Financial's (FCF) CEO Mike Price on Q4 2016 Results ...
Seeking Alpha - Jan 26, 2017
Good day and welcome to the First Commonwealth Financial Corporation Fourth Quarter 2016 Earnings Release Conference Call and Webcast.
First Commonwealth Financial posts 4Q profit - Yahoo Finance
First Commonwealth Financial Hikes Quarterly Dividend - Quick Facts - Nasdaq
First Commonwealth closes Ohio deal
Pittsburgh Business Times - Dec 5, 2016
First Commonwealth Financial Corp. on Monday completed its acquisition of 13 former FirstMerit Bank branches in Canton and Ashtabula, Ohio.
13 former FirstMerit Bank branches in Stark, Ashtabula now First Commonwealth - Akron Beacon Journal (blog)
First Commonwealth Financial Corporation Receives Regulatory Approval for DCB ...
Yahoo Finance - Jan 23, 2017
INDIANA, PA and LEWIS CENTER, OH--(Marketwired - January 23, 2017) - First Commonwealth Financial Corporation (FCF) ("First Commonwealth") and DCB Financial Corp (OTC PINK: DCBF) ("DCB Financial") today announced the receipt of all required ...
First Commonwealth gets approval to buy Delaware County Bank parent - Columbus Dispatch
First Commonwealth hires EVP for consumer, small business lending
Pittsburgh Business Times - Dec 21, 2016
First Commonwealth Financial Corp. has hired Jeff Rosen as executive vice president/consumer and small business lending, a newly created post at its banking subsidiary.
First Commonwealth buying Ohio bank for $106M
Pittsburgh Business Times - Oct 3, 2016
First Commonwealth Financial Corp. on Monday announced its third Ohio deal in less than two years and second in two months.
DCB Financial (DCBF), First Commonwealth Financial (FCF) Enter Merger Agreement - StreetInsider.com
First Commonwealth in Pa. to Buy DCB Financial in Ohio - American Banker
Stock Returns: First Commonwealth Financial Corporation (NYSE:FCF) is Beating ...
CML News - 5 hours ago
This is a snapshot to compare the stock returns for First Commonwealth Financial Corporation (NYSE:FCF) versus Park National Corporation (AMEX:PRK) .
The Snow Capital Management LP Buys 14297 Shares of First Commonwealth ... - DailyQuint
First Commonwealth Financial Corporation (FCF) Given Average Recommendation of ... - Sports Perspectives
First Commonwealth Financial (FCF) Unit to Acquire FirstMerit Bank Branches
StreetInsider.com - Jul 27, 2016
First Commonwealth Financial Corporation (NYSE: FCF) announced that its banking subsidiary, First Commonwealth Bank ("First Commonwealth"), has signed a definitive agreement to acquire 13 branches in Canton and Ashtabula, Ohio, with $735 million of ...
First Commonwealth to buy former FirstMerit banks in Stark - Canton Repository
FirstMerit to sell 13 branches in Ohio to First Commonwealth Bank - Crain's Detroit Business
First Commonwealth Financial Corporation Expands Its Columbus, Ohio Footprint ...
Yahoo Finance - Oct 3, 2016
INDIANA, PA and LEWIS CENTER, OH--(Marketwired - October 03, 2016) - First Commonwealth Financial Corporation ("First Commonwealth") (FCF) and DCB Financial Corp ("DCB Financial") (OTC PINK: DCBF) today jointly announced the signing of a ...
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for FCF to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate FCF's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

Poor Cash Return on Invested Capital over the past 5 years

FCF has been unable to consistently generate sufficient returns from its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

FCF has only created $- of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20112012201320142015
Free Cash Flow - - - - -
divided by
Invested Capital 5.84B 6.00B 6.21B 6.36B 6.57B
Cash ROIC - - - - -

Poor Return on Equity over the past 5 years

FCF has shown an inability to deliver strong results for shareholders. This could be due to poor management, FCF operating in a highly competitive industry, or having a weak business in general.

FCF has only generated $5.33 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20112012201320142015
Net Income 15.27M 41.95M 41.48M 44.45M 50.14M
divided by
Stockholders' Equity 758.54M 746.01M 711.70M 716.15M 719.55M
Return on Equity 2.01% 5.62% 5.83% 6.21% 6.97%

Poor Business Performance over the past 10 years

FCF's inability to produce positive free cash flow for the majority of the past 10 years is concerning. It should be a red flag, since this company does not have a track record of delivering results for shareholders. This could be due to poor management or the nature of its business.

FCF has been losing money for the majority of the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Free Cash Flow - - - - - - - - - -

Low or No Reinvestment of Profits over the past 10 years

FCF has either been retaining a small amount of their earnings or has done so inconsistently. A lack of consistency could be due to FCF operating at a loss or them having such a strong economic moat they feel comfortable spending profits on growth. Be wary of future prospects and if applicable, inspect the moat's sustainability.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Retained Earnings 322.42M 319.25M 309.95M 278.89M 291.49M 294.06M 315.61M 334.75M 353.03M 378.08M
Retained Earnings Growth - -0.98% -2.91% -10.02% 4.52% 0.88% 7.33% 6.06% 5.46% 7.10%

Highly Competitive Industry over the past 10 years

It's likely that FCF is in an industry with low barriers to entry, spurring high competition. If Gross Margins are at least satisfactory, it's likely FCF invests heavily in R&D and Sales, General & Administrative expenses.

Only $- of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Net Income 52.95M 46.25M 43.09M -20.06M 22.98M 15.27M 41.95M 41.48M 44.45M 50.14M
divided by
Revenue - - - - - - - - - -
Net Profit Margin - - - - - - - - - -

Weak Pricing Power over the past 10 years

FCF is likely in a highly competitive industry, due to low barriers to entry. It's because of this, that FCF has been unable to raise prices and increase their profitability. This puts them in a poor position if inflation becomes an issue, as they would struggle to pass higher costs onto consumers.

Only $- of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Gross Profit - - - - - - - - - -
divided by
Revenue - - - - - - - - - -
Gross Margin - - - - - - - - - -

Low Capital Intensity over the past 10 years

FCF has consistently used a small portion of their Net Income buying new equipment or investing in new facilities. This indicates that FCF may require minimal investment to stay competitive. This leaves them with extra money to spend on growing their business and potentially buying back stock.

-% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Capital Expenditure - - - - - - - - - -
divided by
Net Income 52.95M 46.25M 43.09M -20.06M 22.98M 15.27M 41.95M 41.48M 44.45M 50.14M
Capital Expenditure Ratio - - - - - - - - - -

Very Strong Dividend History over the past 10 years

FCF has consistently distributed a dividend for at least the past 10 years. Such a long dividend history suggests FCF is very established in its market and that its dividend distribution is likely to continue for a significant period of time.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Dividend Paid 48.51M 49.55M 49.38M 29.68M 5.31M 12.56M 18.76M 22.34M 26.17M 25.09M
divided by
Shares Outstanding 71.13M 72.97M 74.58M 84.59M 93.20M 104.70M 103.89M 97.03M 93.11M 89.36M
Dividend Paid Per Share 0.68 0.68 0.66 0.35 0.06 0.12 0.18 0.23 0.28 0.28
Price at Year End 11.24 9.52 11.56 4.45 7.09 5.23 6.73 8.85 9.33 9.18
Dividend Yield 6.07% 7.13% 5.73% 7.88% 0.80% 2.29% 2.68% 2.60% 3.01% 3.06%

History of Stock Buybacks over the past 10 years

FCF has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Shares Outstanding 71.13M 72.97M 74.58M 84.59M 93.20M 104.70M 103.89M 97.03M 93.11M 89.36M
Stock Bought Back - -2.52% -2.16% -11.83% -9.24% -10.98% 0.78% 7.07% 4.20% 4.21%
Share your thoughts about FCF

Sign Up or Log In to start contributing!


Discussion

Nothing here yet. Be the first to post!