Will Fulton Financial (USA Stocks:FULT) continue to add value to private investors?

Fulton Financial currently holds $2.58 billion in liabilities, with a Debt to Equity (D/E) ratio of 0.18. This may indicate that Fulton Financial isn't fully leveraging its borrowing potential. By cross-verifying the current analyst consensus on Fulton Financial, our trading advice tool can evaluate the company's growth potential in the present economic cycle.

Main Takeaways

Fulton Financial's current Price to Earnings (P/E) ratio stands at 13.75X, which is relatively lower compared to the industry average, indicating that the stock is undervalued. Furthermore, the company's robust net assets of $27.69B underscore its financial stability, making it an attractive investment opportunity ahead of the next earnings call.
Published over a week ago
View all stories for Fulton Financial | View All Stories
Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.

Reviewed by Michael Smolkin

Fulton Financial Corporation, a notable player in the Financial Services sector, specifically in the domestic banking industry, has been showing promising signs of growth that investors should not overlook. With a current valuation of $4.67 billion and total revenue of $1.5 billion, the company has demonstrated a robust operating margin of 35.46% and a profit margin of 27.66%. This profitability is further underscored by a net income of $284.3 million, a clear indication of the company's financial health. Despite the impressive figures, Fulton Financial's stock is currently undervalued with a Price to Book ratio of 0.94X, which is lower than the industry average. This suggests that the stock is priced less than its book value, making it an attractive buy for value investors. Additionally, the company's forward PE ratio stands at 10.15, further indicating that the stock is undervalued based on its future earnings. With the next earnings call on the horizon, now is an opportune time to capitalize on Fulton Financial's growth potential. The company's strong return on equity of 10.65% and return on assets of 1.04% highlight its efficiency in generating profits from its equity and assets. Moreover, the company's commitment to returning capital to shareholders is evident in its forward dividend rate of $0.68 and the last dividend paid of $0.64. In conclusion, Fulton Financial's strong financial performance, coupled with its undervalued stock price, presents a compelling investment opportunity. Investors are advised to consider this stock before the next earnings call to capitalize on its growth potential. Many investors are showing increased interest in the banking sector, making it an apt time to review Fulton Financial. This year could potentially be promising for Fulton Financial shareholders. Is the firm's valuation justified? I will assess Fulton Financial's valuation perspective to provide a clearer insight for those considering an investment.
We determine the current worth of Fulton Financial using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Fulton Financial based exclusively on its fundamental and basic technical indicators. By analyzing Fulton Financial's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Fulton Financial's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Fulton Financial. We calculate exposure to Fulton Financial's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Fulton Financial's related companies.

Fulton Financial Investment Alerts

Fulton investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Fulton Financial performance across your portfolios.Please check all investment alerts for Fulton

Fulton Financial Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare Fulton value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Fulton Financial competition to find correlations between indicators driving the intrinsic value of Fulton.

Fulton Financial Gross Profit

Fulton Financial Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Fulton Financial previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Fulton Financial Gross Profit growth over the last 10 years. Please check Fulton Financial's gross profit and other fundamental indicators for more details.

An Additional Perspective On Fulton Financial

Fulton Financial reported the previous year's revenue of 1.5 B. Net Income was 284.28 M with profit before overhead, payroll, taxes, and interest of 980.14 M.

Margins Breakdown

Fulton profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Fulton Financial itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Fulton Financial profit margins.
0.24
Operating Profit Margin
0.28
Net Profit Margin
0.36
Pretax Profit Margin
Pretax Profit Margin0.36
Operating Profit Margin0.24
Net Profit Margin0.28
Gross Profit Margin1.1
Fulton Financial Price To Sales Ratio is comparatively stable at the moment. Fulton Financial Market Cap is comparatively stable at the moment. Additionally, Fulton Financial Ptb Ratio is comparatively stable at the moment. Fulton Financial Price To Sales Ratio is comparatively stable at the moment.
Fulton Financial Market Cap is increasing over the last 5 years. The newest value of Fulton Financial Market Cap is 2,610,206,018. Additionally, Fulton Financial Ptb Ratio is comparatively stable at the moment. Every cloud has a silver lining, and for investors, Fulton Financial's growth potential could be just that. Despite a challenging market environment, Fulton Financial's operating income of $377.2M and net income of $284.28M demonstrate its resilience. With a book value of $15.67 per share and a forward dividend rate of 0.68, the bank's fundamentals remain strong. The company's shares, currently trading at a price-to-book ratio of 0.94X, are undervalued, offering an attractive entry point for investors. With the next earnings call on the horizon, now is the opportune time to capitalize on Fulton Financial's growth potential. .

Our take on Fulton Financial small drop

Fulton Financial Corporation's stock recently saw a slight dip, with a standard deviation of 1.87, indicating moderate volatility. This dispersion of returns around its mean may concern some investors, but it can also create strategic trading opportunities. Given Fulton Financial's robust fundamentals and strong market position, this minor drop could present a potential entry point for long-term investors. The company's stock exhibits low volatility, with a skewness of 0.3 and kurtosis of 0.81. Understanding market volatility trends can help investors time their market entry. Using volatility indicators properly allows traders to gauge Fulton Financial's stock risk against market volatility during both bullish and bearish trends.
The increased volatility in bear markets can impact Fulton Financial's stock price and stress investors as they see their share value decrease, often prompting portfolio rebalancing. In light of Fulton Financial's recent reset of over 2 percent, the analyst overall consensus recommends a 'Hold' on the stock. With a valuation market value of $14.45, it aligns closely with the valuation real value of $14.25. This suggests that the stock is fairly valued and there may not be significant upside potential in the near term. The analyst target price estimated value stands at $13.57, with the highest and lowest estimated target prices being $15.06 and $12.35 respectively. Given these factors, investors should maintain their current positions but remain vigilant for any significant changes in the company's financial performance as the fiscal year ends in December. .

Building efficient market-beating portfolios requires time, education, and a lot of computing power!

The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.

Try AI Portfolio Architect

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Rifka Kats do not own shares of Fulton Financial. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com