At the moment, the debt-to-equity of People’s United Financial, Inc. (NASDAQ:PBCT) is high, standing at 86.00, a figure that is higher than the 57.62 average recorded by the industry. This means that the company is currently holding a debt level at 31.96 B.
Even though there was a rise of 8.20 M in revenue, the company failed to succeed in outperforming the industry average of 7.64%. For the most recent quarter, the net income has jumped by 390.00 M. This strength in their income has affected them and thus increased their earnings to $89.50 M. The 14.98% yoy growth of PBCT’s revenue has gone up that of the industry average by -4.18%. For the past 12 months, People’s United Financial, Inc. revenue has gone up by 19.16%. The sustained growth in their revenue has helped boost their earnings per share.
In the fiscal year 2018, People’s United Financial, Inc. overcame its bottom line by hitting earning $26 per share compared to the $4 in 2017.
The 12-month return on equity has significantly fallen to 7.50 in comparison to the same data for other companies in the same industry. This shows that there is a major weakness within the organization over the past one year. Comparing them to other companies in the industry and the overall Financial sector, the industry average is 16.94 while 16.43 is of the sector.
Also, looking at the price to cash flow of the company and the industry average, the 12.57 ratio of the stock is lower than the industry’s 17.03.
People’s United Financial, Inc. (NASDAQ:PBCT) has a price-to-earnings ratio of 13.09 which is lower than the 18.60 industry average at the moment. This shows whether the company has what it takes to effectively turn the revenue into profit.
The company’s ROA is 0.99 when compared to 2.67 for the stocks operating in the same industry. This can be attributed to the strength recorded in the net income produced by total assets. Comparing it to other companies in the sector, People’s United Financial, Inc. ROE is above 16.43 that of both the sector average.
The operating profit margin for People’s United Financial, Inc. (PBCT) is 35.87%, a figure which is considered to be strong. It has gone 41.97 from the 30.48 over the past 5 years. In addition to this, their operating margin is -6.1 lower than the industry average.
The net profit margin which stood at 20.71 on average in the past 5 years has jumped to 27.87 in the last 12 months. Added to that, this ratio has missed the industry net margin that stands at 33.03.
Analysts meanwhile rate People’s United Financial, Inc. (NASDAQ:PBCT) as a buy. Still some above discussed indicators of the $5.55B company show strength while others show weakness. There is little evidence at the moment to justify the expectation of the PBCT shares to either perform positively or negatively when compared to other stocks. The primary strengths of People’s United Financial, Inc. can be witnessed in its increased revenue, growing earnings per share, higher return on equity, increased operating cash and high net margin. Subsequently, financial analysis have also identified some weak areas that includes high debt, relatively high P/E ratio, lower return on assets and low net margin.