FCF  First Commonwealth Financial C...

Exchange

NYSE

Sector

Finance

Industry

Major Banks

Market Cap.

1.11B

Current Price

$12.51
-0.075 (-0.596%)

Book Price

$8.67
Overvalued by 30.68%
Financial Institution

Company Metrics

  • P/E 17.638
  • P/S 4.413
  • P/B 1.47
  • EPS 0.709
  • Dividend 0.32 / 2.55%
  • Avg. Vol. 425,200.00
  • Shares 88.76M
  • Market Cap. 1.11B

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 Financial (FCF) Given Daily Coverage Optimism Score of 0.10
The Cerbat Gem - 19 hours ago
First Commonwealth Financial logo Media coverage about First Commonwealth Financial (NYSE:FCF) has been trending somewhat positive on Friday, according to AlphaOne Sentiment.
First Commonwealth Financial (FCF) Earning Somewhat Positive Press Coverage ... - Chaffey Breeze
American Century Companies Inc. Boosts Stake in First Commonwealth Financial (FCF) - Sports Perspectives
First Commonwealth Financial (FCF) Plans $0.08 Quarterly Dividend
The Cerbat Gem - May 25, 2017
First Commonwealth Financial logo First Commonwealth Financial (NYSE:FCF) declared a quarterly dividend on Tuesday, April 25th.
UBS Asset Management Americas Inc. Decreases Position in First Commonwealth ... - BNB Daily (blog)
Norges Bank Takes Position in First Commonwealth Financial (FCF) - Sports Perspectives
First Commonwealth Financial (FCF) Receives Average Recommendation of "Hold ...
The Cerbat Gem - May 20, 2017
First Commonwealth Financial logo First Commonwealth Financial (NYSE:FCF) has received an average rating of “Hold” from the six research firms that are presently covering the company.
Brokerages Set First Commonwealth Financial (FCF) Target Price at $8.71 - Sports Perspectives
The First Commonwealth Financial (FCF) Earning Somewhat Positive Media ... - BangaloreWeekly
First Commonwealth Financial Corp PA Sells 432 Shares of General Electric ...
Sports Perspectives - 4 hours ago
General Electric Company logo First Commonwealth Financial Corp PA cut its stake in shares of General Electric Company (NYSE:GE) by 0.9% during the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission ...
First Commonwealth touts its 'branches of the future'
Lehigh Valley Business - May 22, 2017
“We are converting the word 'branch' to 'financial center' because we really want a branch to be a financial hub,” said Tricia C. Szurgot, chief marketing and retail officer for First Commonwealth. “It all comes down to wanting to be more convenient to ...
First Commonwealth Financial (FCF) Lowered to Hold at Zacks Investment Research
BNB Daily (blog) - May 22, 2017
Zacks Investment Research downgraded shares of First Commonwealth Financial (NYSE:FCF) from a buy rating to a hold rating in a report issued on Tuesday.
Bart E. Johnson Buys 3267 Shares of First Commonwealth Financial (FCF) Stock - Sports Perspectives
Stock Returns: Peoples Bancorp Inc (NASDAQ:PEBO) is Beating First Commonwealth ...
CML News - May 7, 2017
This is a snapshot to compare the stock returns for First Commonwealth Financial Corporation (NYSE:FCF) versus Peoples Bancorp Inc (NASDAQ:PEBO) .
First Commonwealth Financial (FCF) Lowered to Speculative Buy at Canaccord Genuity - The Cerbat Gem
First Commonwealth Financial (FCF) Rating Lowered to Speculative Buy at ... - Sports Perspectives
AT&T Inc. (T) Position Lowered by First Commonwealth Financial Corp PA
The Cerbat Gem - May 20, 2017
AT&T logo First Commonwealth Financial Corp PA lowered its position in AT&T Inc. (NYSE:T) by 0.5% during the fourth quarter, according to its most recent filing with the SEC.
First Commonwealth Financial (FCF) Receives Media Sentiment Rating of 0.10
The Cerbat Gem - May 15, 2017
First Commonwealth Financial logo News coverage about First Commonwealth Financial (NYSE:FCF) has trended somewhat positive on Monday, Alpha One Sentiment reports.
First Commonwealth Financial Corporation versus Pacific Continental ... - CML News
The $76.82 Million in Sales Expected for First Commonwealth Financial (FCF ... - BangaloreWeekly
First Commonwealth Financial (FCF) Given Consensus Recommendation of “Buy” by ...
The Cerbat Gem - May 10, 2017
First Commonwealth Financial logo First Commonwealth Financial (NYSE:FCF) has been given an average rating of “Buy” by the six research firms that are currently covering the company.
First Commonwealth Financial (FCF) Director Stephen Reid Purchases 30000 Shares - Sports Perspectives
Canaccord Genuity Gives First Commonwealth Financial FCF Price Target With ... - UK Market News
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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