Univest Of Pennsylvania (UVSP) AI Stock Analysis

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Univest Of Pennsylvania

(NASDAQ:UVSP)

72Outperform

Univest of Pennsylvania has a solid financial foundation with strong revenue growth and profitability, supported by positive market momentum. However, challenges remain in managing operating margins and liabilities. The stock is reasonably valued, with mixed earnings outlooks highlighting both strengths in net interest margins and dividends, alongside concerns around non-interest income and deposits.

Univest Of Pennsylvania (UVSP) vs. S&P 500 (SPY)

Market Cap

$883.73M

Dividend Yield2.75%

Average Volume (3M)126.05K

Price to Earnings (P/E)11.5

Beta (1Y)0.97

Revenue Growth7.16%

EPS Growth12.20%

CountryUS

Employees892

SectorFinancial

Sector Strength84

IndustryBanks - Regional

Share Statistics

EPS (TTM)0.77

Shares Outstanding28,880,154

10 Day Avg. Volume120,066

30 Day Avg. Volume126,049

Financial Highlights & Ratios

PEG Ratio3.63

Price to Book (P/B)0.97

Price to Sales (P/S)0.00

P/FCF Ratio10.49

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$32.00

Price Target Upside4.58% Upside

Rating ConsensusHold

Number of Analyst Covering2

Univest Of Pennsylvania Business Overview & Revenue Model

Company DescriptionUnivest Financial Corporation, operating under the ticker UVSP, is a regional financial services company based in Pennsylvania. It provides a range of financial solutions, including commercial and consumer banking, mortgage banking, investment management, and insurance services. Univest primarily serves individuals, businesses, municipalities, and nonprofit organizations in Pennsylvania and surrounding states.

How the Company Makes MoneyUnivest makes money through a diversified revenue model that includes interest income from loans and deposits, fees from banking services, investment management fees, and commissions from insurance products. The company's key revenue streams include interest income generated from its portfolio of commercial and consumer loans, as well as income from securities investments. Additionally, Univest earns non-interest income through service fees attached to its deposit accounts, mortgage banking activities, and transaction processing. The wealth management and insurance divisions contribute further by offering investment advisory services and a range of insurance products, respectively. Strategic partnerships with local businesses and community organizations enhance Univest's market presence and customer base, contributing to its overall financial performance.

Univest Of Pennsylvania Financial Statement Overview

Summary

Univest of Pennsylvania exhibits strong revenue growth, robust profit margins, and effective cash flow conversion. However, it faces challenges with operating margin volatility and increasing liabilities, which need to be addressed for sustained financial health.

Income Statement

Positive

Univest of Pennsylvania shows a strong revenue growth trajectory with a significant increase from 2023 to TTM 2025. Gross and net profit margins are robust, indicating efficiency in operations and cost management. However, fluctuating EBIT and EBITDA margins suggest some volatility in operating performance.

Balance Sheet

Positive

The company maintains a healthy equity base with a moderate debt-to-equity ratio, indicating a relatively stable financial structure. The equity ratio is consistent, suggesting prudent asset management, but a slight increase in liabilities could pose future risks.

Cash Flow

Positive

Operating cash flow is consistently positive, supporting net income effectively. However, the free cash flow growth rate is inconsistent, reflecting potential volatility in cash management. The cash flow to net income ratios are favorable, indicating good cash conversion efficiency.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
349.91M	299.23M	286.05M	296.18M	271.61M	252.69M
	Gross Profit
403.40M	299.23M	286.05M	296.18M	271.61M	252.69M
	EBIT
74.64M	95.30M	0.00	133.26M	114.33M	56.90M
	EBITDA
48.50M	0.00	1.35M	-2.28M	119.97M	-2.23M
	Net Income Common Stockholders
78.02M	75.93M	71.10M	78.12M	91.80M	46.92M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
425.42M	210.11M	249.80M	503.06M	1.21B	438.50M
	Total Assets
4.61B	8.13B	7.78B	7.22B	7.12B	6.34B
	Total Debt
466.51M	405.75M	493.61M	473.55M	227.33M	331.20M
	Net Debt
417.88M	191.67M	243.81M	320.75M	-662.82M	111.35M
	Total Liabilities
4.01B	7.24B	6.94B	6.45B	6.35B	5.64B
	Stockholders Equity
606.72M	887.30M	839.21M	776.50M	773.79M	692.47M
Cash Flow		Free Cash Flow
82.84M	72.00M	83.02M	104.23M	96.46M	47.43M
	Operating Cash Flow
78.67M	75.11M	89.74M	109.45M	102.34M	51.18M
	Investing Cash Flow
-261.52M	-259.74M	-454.44M	-897.61M	-126.78M	-867.39M
	Financing Cash Flow
136.74M	263.68M	461.69M	50.81M	694.73M	910.94M

Univest Of Pennsylvania Technical Analysis

Technical Analysis Sentiment

Positive

Last Price30.60

Price Trends

50DMA

28.52

Positive

100DMA

29.05

Positive

200DMA

28.60

Positive

Market Momentum

MACD

0.74

Negative

RSI

58.71

Neutral

STOCH

38.45

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UVSP, the sentiment is Positive. The current price of 30.6 is above the 20-day moving average (MA) of 30.07, above the 50-day MA of 28.52, and above the 200-day MA of 28.60, indicating a bullish trend. The MACD of 0.74 indicates Negative momentum. The RSI at 58.71 is Neutral, neither overbought nor oversold. The STOCH value of 38.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UVSP.

Univest Of Pennsylvania Risk Analysis

Univest Of Pennsylvania disclosed 40 risk factors in its most recent earnings report. Univest Of Pennsylvania reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Univest Of Pennsylvania Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AMAL	76 Outperform	$932.68M	9.04	15.41%	1.64%	10.80%	10.48%
FMBH	75 Outperform	$884.47M	10.96	9.65%	2.58%	10.25%	8.73%
SBSI	73 Outperform	$889.80M	10.12	11.03%	4.89%	9.34%	8.12%
UVSP	72 Outperform	$883.73M	11.48	8.93%	2.75%	7.16%	12.20%
BHRB	70 Outperform	$863.26M	16.39	10.71%	3.75%	181.68%	28.77%
HFWA	69 Neutral	$814.44M	16.10	5.95%	3.89%	9.12%	11.62%
Sector *	64 Neutral	$12.82B	9.87	7.67%	17000.34%	12.39%	-5.85%

* Financial Sector Average

Performance Comparison

UVSP

Univest Of Pennsylvania

29.99

8.09

36.94%

HFWA

Heritage Financial

23.15

5.21

29.04%

SBSI

Southside Bancshares

29.37

3.00

11.38%

FMBH

First Mid-Illinois Bancshares

35.83

3.98

12.50%

AMAL

Amalgamated Bank

31.11

5.94

23.60%

BHRB

Burke & Herbert Bank & Company

57.53

9.84

20.63%

Univest Of Pennsylvania Earnings Call Summary

Earnings Call Date:Apr 23, 2025

(Q1-2025)

% Change Since: 8.36%|

Next Earnings Date:Jul 23, 2025

Earnings Call Sentiment Neutral

The earnings call for Univest Financial Corporation presented a mixed outlook. Key achievements included a strong start to the fiscal year, improved net interest margin, and an increase in dividends, reflecting a positive operational performance. However, challenges were noted in the form of decreased non-interest income and deposit levels, and a provision for credit losses, which could indicate future challenges. Despite these issues, the company remains optimistic about navigating the uncertain economic environment.

Q1-2025 Updates

Positive Updates

Solid Start to Fiscal Year 2025

Univest Financial Corporation reported net income of $22.4 million for the first quarter, or $0.77 per share, indicating a strong start to the fiscal year despite economic uncertainties.

Improved Net Interest Margin

The net interest margin improved to 3.09% during the quarter from 2.88% in the previous quarter, reflecting better loan pricing discipline.

Increase in Quarterly Dividend

The Board of Directors announced a $0.01 increase in the quarterly dividend to $0.22 per share.

Continued Share Repurchases

Univest repurchased 221,760 shares of stock during the quarter and plans to continue share buybacks.

Strong Credit Quality

Credit quality remained strong with non-performing assets to total assets at 43 basis points and net charge-offs low at 10 basis points annualized.

Negative Updates

Decrease in Non-Interest Income

Non-interest income decreased by $3.2 million or 12.4% compared to the first quarter of 2024, primarily due to non-recurring gains in the prior year.

Deposit Decrease

Deposits decreased by $100.8 million during the quarter, attributed predominantly to the seasonal decline of public funds deposits.

Provision for Credit Losses

A provision for credit losses of $2.3 million was recorded during the quarter, indicating potential future concerns in credit quality.

Decreased Contingent Income in Insurance

Contingent income in the insurance line decreased by $700,000 compared to the first quarter of 2024.

Company Guidance

During the Univest Financial Corporation's first quarter 2025 earnings call, several key metrics and guidance points were highlighted. The company reported net income of $22.4 million, or $0.77 per share, despite economic uncertainties. Loan growth was modest, with net growth of $6.5 million, impacted by larger payoffs, while deposits decreased by $100.8 million due to a seasonal decline in public funds. The net interest margin (NIM) improved to 3.09%, up from 2.88% in the previous quarter, with core NIM excluding excess liquidity at 3.12%. Non-performing assets to total assets increased slightly to 43 basis points, and net charge-offs remained low at 10 basis points annualized. The company recorded a provision for credit losses of $2.3 million, maintaining a coverage ratio of 1.28%. Non-interest income decreased by 12.4% compared to the prior year, while noninterest expense decreased by 1.5%. The board announced a $0.01 increase in the quarterly dividend to $0.22 per share, and 221,760 shares were repurchased. Guidance for 2025 remains consistent, with fee income growth expected in the 4% to 6% range. The company targets a loan-to-deposit ratio of 95% to 105% over time, and potential stock buybacks will be considered based on excess capital and regulatory capital projections.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.