FCF  First Commonwealth Financial C...

Exchange

NYSE

Sector

Finance

Industry

Major Banks

Market Cap.

1.30B

Current Price

$13.38
+0.10 (+0.75%)

Book Price

$8.67
Overvalued by 35.22%
Financial Institution

Company Metrics

  • P/E 18.90
  • P/S 4.66
  • P/B 1.47
  • EPS 0.71
  • Dividend 0.32 / 2.39 %
  • Avg. Vol. 438,845.00
  • Shares 97.16M
  • Market Cap. 1.30B

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 adds small business, SBA vets
Pittsburgh Business Times - Jun 28, 2017
The company has hired David Entsminger as senior vice president, small business solutions leader, executing the bank's small business strategy across Pennsylvania and Ohio.
Huber returns to First Commonwealth in newly created post
Pittsburgh Business Times - Aug 21, 2017
It is a return for Huber, who had worked at First Commonwealth (NYSE:FCF) from 2006 to 2010, first as a financial solutions center manager and then as a business banking officer.
Somewhat Favorable News Coverage Somewhat Unlikely to Affect First ...
The Ledger Gazette - 1 hour ago
First Commonwealth Financial Corporation logo Press coverage about First Commonwealth Financial Corporation (NYSE:FCF) has trended somewhat positive recently, according to Accern Sentiment.
First Commonwealth Financial Corporation (NYSE:FCF) Rating Increased to Buy at ... - Week Herald
EPS for First Commonwealth Financial (FCF) Expected At $0.20; Comerica Bank ... - UtahHerald.com
First Commonwealth Financial Corporation (FCF) Price Target Lowered to C$3.75 ...
The Ledger Gazette - Aug 31, 2017
First Commonwealth Financial Corporation logo First Commonwealth Financial Corporation (NYSE:FCF) had its price objective decreased by Raymond James Financial, Inc. from C$4.50 to C$3.75 in a report released on Wednesday.
First Commonwealth Financial Corp's (NYSE:FCF) Sentiment is 1.6 - Finance News Daily
First Commonwealth Financial Corporation (FCF) Moves Lower on Volume Spike for ...
Equities.com - Sep 18, 2017
First Commonwealth Financial Corporation (FCF) traded on unusually high volume on Sep. 18, as the stock lost 0.3% to close at $13.09.
First Commonwealth Financial Corporation (NYSE:FCF) Earning Somewhat Favorable ... - The Ledger Gazette
Marshall Wace North America LP Takes $2.73 Million Position in First ... - Dispatch Tribunal
First Commonwealth Financial Corporation (FCF) Moves Higher on Volume Spike ...
Equities.com - Sep 11, 2017
First Commonwealth Financial Corporation (FCF) traded on unusually high volume on Sep. 11, as the stock gained 1.95% to close at $12.52.
First Commonwealth Financial Corporation (NYSE:FCF) Lowered to “Hold” at Zacks ... - The Ledger Gazette
First Commonwealth Financial Co (NYSE:FCF) Sees Heavy Trading Volume with 612K ... - Modern Readers
Price Alert: First Commonwealth Financial Corporation (NYSE:FCF) Stock Nears ...
CML News - Sep 21, 2017
Price Alert: First Commonwealth Financial Corporation (NYSE:FCF) has now crossed into technical strength -- watch the technical oscillators for momentum gaps.
Insider Buying: First Commonwealth Financial Corporation (FCF) Director ...
The Ledger Gazette - Sep 4, 2017
First Commonwealth Financial Corporation logo First Commonwealth Financial Corporation (NYSE:FCF) Director James Geral Bell acquired 6,000 shares of First Commonwealth Financial Corporation stock in a transaction that occurred on Friday, September ...
Royal Bank Of Canada Reaffirms Buy Rating for First Commonwealth Financial ... - Week Herald
This is what analysts have to say about First Commonwealth Financial (NYSE:FCF ... - WeeklyHub
First Commonwealth Financial Corporation (NYSE:FCF) Upgraded to Buy by Zacks ...
The Ledger Gazette - Sep 13, 2017
First Commonwealth Financial Corporation logo First Commonwealth Financial Corporation (NYSE:FCF) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report released on Tuesday, September 5th.
First Commonwealth Financial Corporation (NYSE:FCF) Earns Daily Media ... - StockNewsTimes
First Commonwealth Financial Corporation (NYSE:FCF) Downgraded to “Hold” at ... - Week Herald
Financial Comparison: First Commonwealth Financial Corporation (FCF) vs ...
The Ledger Gazette - Sep 17, 2017
First Commonwealth Financial Corporation (NYSE: FCF) and Capital City Bank Group (NASDAQ:CCBG) are both small-cap finance companies, but which is the better business?
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
20122013201420152016
Free Cash Flow - - - - -
divided by
Invested Capital 6.00B 6.21B 6.36B 6.57B 6.68B
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 $6.51 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20122013201420152016
Net Income 41.95M 41.48M 44.45M 50.14M 59.59M
divided by
Stockholders' Equity 746.01M 711.70M 716.15M 719.55M 749.93M
Return on Equity 5.62% 5.83% 6.21% 6.97% 7.95%

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
2007200820092010201120122013201420152016
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
2007200820092010201120122013201420152016
Retained Earnings 319.25M 309.95M 278.89M 291.49M 294.06M 315.61M 334.75M 353.03M 378.08M 412.76M
Retained Earnings Growth - -2.91% -10.02% 4.52% 0.88% 7.33% 6.06% 5.46% 7.10% 9.17%

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
2007200820092010201120122013201420152016
Net Income 46.25M 43.09M -20.06M 22.98M 15.27M 41.95M 41.48M 44.45M 50.14M 59.59M
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
2007200820092010201120122013201420152016
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
2007200820092010201120122013201420152016
Capital Expenditure - - - - - - - - - -
divided by
Net Income 46.25M 43.09M -20.06M 22.98M 15.27M 41.95M 41.48M 44.45M 50.14M 59.59M
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
2007200820092010201120122013201420152016
Dividend Paid 49.55M 49.38M 29.68M 5.31M 12.56M 18.76M 22.34M 26.17M 25.09M 24.91M
divided by
Shares Outstanding 72.97M 74.58M 84.59M 93.20M 104.70M 103.89M 97.03M 93.11M 89.36M 88.85M
Dividend Paid Per Share 0.68 0.66 0.35 0.06 0.12 0.18 0.23 0.28 0.28 0.28
Price at Year End 9.52 11.56 4.45 7.09 5.23 6.73 8.85 9.33 9.18 14.18
Dividend Yield 7.13% 5.73% 7.88% 0.80% 2.29% 2.68% 2.60% 3.01% 3.06% 1.98%

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
2007200820092010201120122013201420152016
Shares Outstanding 72.97M 74.58M 84.59M 93.20M 104.70M 103.89M 97.03M 93.11M 89.36M 88.85M
Stock Bought Back - -2.16% -11.83% -9.24% -10.98% 0.78% 7.07% 4.20% 4.21% 0.57%
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