GuruFocus Manual of Stocks™  |  Dec 06, 2021
People's United Financial Inc (NAS:PBCT)
www.gurufocus.com/stock/NAS:PBCT
People's United Financial Inc (NAS:PBCT)
[1]
Fairly Valued[5]$ 17.00
Banks - Banks - Regional
Market Cap: $ 7,276 Mil
People's United Financial Inc is a bank holding company. It provides commercial banking, retail and business banking, and wealth management services to individual, corporate and municipal customers.
Valuation Rank
Score: 7 /10CurrentIndustry MedianHistorical Median
PE Ratio11.1110.5718.01
Forward P/E12.8910.64N/A
PB Ratio0.961.010.95
PS Ratio3.762.833.66
P/FCF6.746.0114.55
Shiller P/E15.1313.4823.33
PEG Ratio4.271.4113.72
Valuation Analysis
% of Price
Tangible Book11.0465
Median PS Value16.6398
Price17.00
Graham Number19.49115
DCF (Earnings Based)29.81175
DCF (FCF Based)49.47291
Dividend & Ownership
Dividend Yield(ttm) %4.28
Dividend Yield(forward) %4.29
Payout1.04
Dividend Growth(5y) %1.5
Yield on Cost(5y) %4.61
Continuous Div. since1995
Insider Ownership %1.54
Institution Ownership %56.81
Financial Strength
Score: 4 /10CurrentIndustry MedianHistorical Median
Cash-to-Debt5.182.100.42
Equity-to-Asset0.120.100.12
Piotroski F-Score466
Profitability Rank
Score: 5 /10CurrentIndustry MedianHistorical Median
Net Margin %16.1627.1420.33
ROE %3.839.685.49
ROA %0.490.940.73
Growth (Per Share)
10 Yr5 Yr1 Yr
Revenue Growth (%)4.42.31.6
EPS w/o NRI Growth (%)9-4.4-61.4
Free Cash Flow Growth (%)9.14.5332.6
Book Value Growth (%)1.82.6-0.2
Quarterly
Sep20Dec20Mar21Jun21Sep21
Revenue493485481480471
Net Income145-145145171140
EPS0.340.490.330.390.32
Revenue (YoY) %8.31-4.3-7.56-3.09-4.43
Net Income (YoY) %7.03-205.7510.8189.99-3.39
EPS (YoY) %3.0358.061085.71-5.88
Warning Signs
SEVEREFinancial Strength: Poor
MEDIUMDividend Payout Ratio: Too high
Good Signs
GOODBeneish M-Score: Unlikely manipulator
GOODInterest Coverage: Comfortable
Insider Trades
InsiderPositionDateTradesCur. Shares
Powlus Lee CSr Ex VP & Chie05/21/21-7253155600
Rosato R DavidSr EVP and CFO05/18/21-15209129338
Herron Mark FExecutive Vice 05/13/21-400028245
Carter George PDirector05/04/21-10000193685
Tengel Jeffrey JPresident04/28/21-61075186266
Norton David KSr Ex VP & Chie04/26/21-148315129773
Franklin JerryDirector04/26/21-700095514
Walters Kirk WSr Executive Vi01/19/21-25000319908
Walters Kirk WSr Executive Vi01/07/21-25000319908
As of 12-06-2021
* All financial numbers are in millions except for per share data, ratios and percentage change.
Gain % SP500 %
1W-4.60-1.21
1M-8.50-2.43
3M5.220.40
6M-9.468.98
YTD37.1022.46
1Y37.5325.39
3Y4.0919.60
5Y2.0017.70
10Y6.6715.98
20.15
5.32
9.51
8M
3.8M
2011201220132014201520162017201820192020CurrentPerformance
14.4213.6615.6115.5916.852019.6920.1517.916.7619.62Highest Stock Price
10.5611.3412.3213.8213.9913.6416.0713.813.949.5112.56Lowest Stock Price
45943998452145564890598063585444739754197276Market Cap
348.7338.4312298.3300.4304332.9351.7397.2422.6424.8Shares Outstanding-Diluted
23.3616.7920.4318.0718.7821.0419.2811.1913.3126.3911.11PE Ratio
0.880.790.990.981.031.221.140.870.960.740.96PB Ratio
3.673.283.833.653.84.484.283.173.642.743.76PS Ratio
3.554.196.845.536.87.416.615.036.161.720.5EV-to-Revenue
2011201220132014201520162017201820192020TTMPer Share Data
3.53.693.944.164.254.334.374.564.644.724.53Revenue per Share
0.550.720.740.840.860.920.971.291.270.491.53Earnings per Share
0.381.270.950.990.830.971.721.430.441.892.52Free Cash Flow per Share
0.630.640.650.660.670.680.690.70.710.720.73Dividends per Share
8.518.738.168.438.738.928.879.0810.0910.7611.04Tangible Book per Share
16.8717.7318.9419.9719.9117.217.0817.5817.4217.3616.63Median PS Value
10.2611.8911.6612.621313.5913.9116.2316.9810.8919.49Graham Number
2011201220132014201520162017201820192020TTMIncome Statement
12211249.11230.31242.11275.31314.91453.41602.41843.41992.61916.2Revenue
63.749.243.740.633.436.6263028.3155.8-27.6Credit Losses Provision
829830.6839841.5860.6868.8960.3996.11162.71211.11199.5Total Noninterest Expense
285.4369.3347.6380.6390.5409.5467.1576.3652.4348.6467.2Pretax Income
192.4245.3232.4251.7260.1281337.2468.1520.4219.6309.7Net Income
15.819.618.920.320.421.423.229.228.21116.2Net Margin %
4.13.83.232.82.82.93.1332.9Net Interest Margin-Bank %
3.74.84.85.45.55.65.97.472.63.8ROE %
0.70.90.70.70.70.70.8110.40.5ROA %
2011201220132014201520162017201820192020Sep21Balance Sheet
780.9601.4474.41013.7715.3614.1882.6932716.64091.48133.6Cash & Equivalents
191.6137.7134.3138.5150.6163.7223.4196207.8246.9--Total Receivables
2755830324332143599738947406104445347877585906309263673Total Assets
26.1905.434602026.232002835.42756.92342.33105.6556.9--Short-Term Debt & CLO
493932.9909.913001296.91291.21126.99691326.11297.71569Long-Term Debt & CLO
2234325286286453136434215354683863441343506435548955890Total Liabilities
5215.45038.84568.44633.14731.65141.95819.96533.97947.27602.87783Total Stockholders Equity
5215.45038.84568.44633.14731.65141.95819.96533.97947.27602.87783Total Equity
2011201220132014201520162017201820192020TTMCashflow Statement
174.4513.6379.4350328.3336603589.3240.8842.91100.7Cash Flow from Operations
-281-2902.8-3302.7-2210.3-3347.2-1753.4-693.5-0.4-310.5-13183290.4Cash Flow from Investing
-249.8-222.3-461.1-3-3.2-3.4-3.4-2.5-4.5-306.1-2.2Repurchase of Stock
-412.32028.32653-987.4618.2-247.9-799.5-1002.4326.5-4007.2-259.8Net Issuance of Debt
-672209.72796.32399.62720.51316.2359-539.5-61.33917.42687.1Cash Flow from Financing
-173.6-179.5-127539.3-298.4-101.2268.549.4-1313442.37078.2Net Change in Cash
-43.3-84.2-84-53.5-80.3-42.4-29-87.9-67.7-45.8-33.3Capital Expenditure
131.1429.4295.4296.5248293.6574501.4173.1797.11067.4Free Cash Flow
Competitor
TickerCompanyFinancial
Strength
Profitability
Rank
Market Cap
($M)
PE RatioPS RatioNet
Margin %
ROA %ROE %
NYSE:CFRCullen/Frost Bankers Inc567,97318.965.8931.750.979.83
NAS:PBCTPeople's United Financial Inc457,27611.113.7616.160.493.83
NAS:FFINFirst Financial Bankshares Inc267,21131.4314.5846.461.9713.70
NYSE:PBProsperity Bancshares Inc556,61512.555.9847.611.518.53
NAS:GBCIGlacier Bancorp Inc456,15216.796.7740.261.6113.62
GuruFocus Manual of Stocks™  |  Dec 06, 2021
People's United Financial Inc (NAS:PBCT)
www.gurufocus.com/stock/NAS:PBCT

Financial Strength[2] (Quarterly data, as of Sep. 2021) : Fair (4/10)

0
1
2
3
4
5
6
7
8
9

Cash-to-Debt : 5.18

Cash-to-Debt Ratio measures the financial strength of a company. It is calculated as a company's cash, cash equivalents, and marketable securities divide by its debt. A high ratio indicates that a company is better able to pay back its debt, and is thus able to take on more debt if necessary.


Equity-to-Asset : 0.12

Equity-to-Asset ratio is calculated as total stockholders equity divided by its total assets. Equity-to-Asset ratio can vary greatly across different industries, as they have different capital structure. A company with smaller Equity-to-Asset ratio (more leveraged) may have higher ROE % because of the leverage.


Debt-to-Equity : 0.20

A high Debt-to-Equity ratio generally means that a company has been aggressive in financing its growth with debt.


Piotroski F-Score : 4

The Piotroski F-Score is used to determine the strength of a firm's financial position, with 9 being the best and 0 being the worst.

0
1
2
3
4
5
6
7
8
9


WACC : 7.34% vs ROIC : N/A%

The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets. Return on invested capital (ROIC) measures how well a company generates cash flow relative to the capital it has invested in its business.


Dividend Yield : 4.15%

Dividend yield is a way to measure how much cash flow you are getting for each dollar invested in an equity position.

GuruFocus Manual of Stocks™  |  Dec 06, 2021
People's United Financial Inc (NAS:PBCT)
www.gurufocus.com/stock/NAS:PBCT

Profitability[3] (Annual data, as of Dec. 2020) : Fair (5/10)

0
1
2
3
4
5
6
7
8
9

Revenue : $471 Mil vs Net Income : $140 Mil

Revenue is the amount of money that a company actually receives during a specific period, including discounts and deductions for returned merchandise. Net Income is a company's total profit. Net income is calculated by taking revenues and adjusting for the cost of doing business, depreciation, interest, taxes and other expenses.


Cash & Equivalents : $8,134 Mil vs Long-Term Debt* : $1,569 Mil

Cash & equivalents are the most liquid assets on the balance sheet. Cash equivalents are assets that are readily convertible into cash. Long-Term Debt* consists of loans and obligations lasting over one year.


Net Margin % : 29.68%

Net margin % measures the percentage of revenue remaining after all operating expenses, interest, taxes, etc have been deducted from a company's total revenue. Net Margin % is calculated as Net Income divided by its Revenue.


EPS without NRI : $0.32

Earnings Per Share without Non-Recurring Items is the amount of earnings without non-recurring items per outstanding share of the company's stock. In calculating earnings per share without non-recurring items, the dividends of preferred stocks and Non Operating Income need to subtracted from the total net income first.


Dividends per Share : $0.18

Dividends per Share is the amount of dividends that the shareholders of a company receive on a per-share basis. It is calculated using the total dividends paid out to shareholders over one fiscal year and the number of shares outstanding.


Free Cash Flow per Share : $0.57

Free Cash flow per Share is the amount of Free cash flow per outstanding share of the company's stock.

GuruFocus Manual of Stocks™  |  Dec 06, 2021
People's United Financial Inc (NAS:PBCT)
www.gurufocus.com/stock/NAS:PBCT

Valuation (Quarterly data, as of Sep. 2021)

These valuation metrics should give you a sense of reasonable prices, but be careful with them. Always seek to understand why a valuation is changing over time.


Valuation Chart (Current stock price : $17.00)


PE Ratio without NRI : 11.42

The price-to-earnings ratio can be affected by Non Operating Income such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than regular PE Ratio.


PB Ratio : 0.99

The price-to-book ratio measures the valuation of the stock relative to the underlying asset of the company.


PS Ratio : 3.86

The price-to-sales ratio is a valuation ratio that compares a company’s stock price to its revenues. The price-to-sales ratio is an indicator of the value placed on each dollar of a company’s sales or revenues.


Price-to-Free-Cash-Flow : 6.93

Price-to-free-cash-flow is very similar to the valuation metric of price-to-operating-cash-flow but is considered a more exact measure, owing to the fact that it uses free cash flow, which subtracts capital expenditures from a company's total operating cash flow, thereby reflecting the actual cash flow available to fund non-asset-related growth.


EV-to-Revenue : 0.60

Enterprise value of a company divided by its trailing 12 months revenue.

GuruFocus Manual of Stocks™  |  Dec 06, 2021
People's United Financial Inc (NAS:PBCT)
www.gurufocus.com/stock/NAS:PBCT

Valuation Bands

In these charts the 10-year valuation bands of the price-to-earnings ratio (PE Ratio), price-to-book ratio (PB Ratio), price-to-sales ratio (PS Ratio) and price-to-operating-cash-flow ratio (POCF) are drawn together with the historical stock prices. For example, the upper line of the PE band is where the stock price would have been if it were always traded at the maximum PE ratio of the past 10 years. The lower line of the PE band is where the stock price would have been if it were always traded at the lowest PE ratio of the past 10 years. It is always better if the stock price is close to the lower line, which indicates a lower valuation.


Historical Price and PE Band


Historical Price and PS Band


Historical Price and PB Band


Historical Price and Price-to-Operating-Cash-Flow (POCF) Band

GuruFocus Manual of Stocks™  |  Dec 06, 2021
People's United Financial Inc (NAS:PBCT)
www.gurufocus.com/stock/NAS:PBCT

Warning Signs

GuruFocus conducted a thorough checkup using a checklist of 32 items that cover the areas of financial strength, profitability, growth, and valuation of each company. The purpose of Warning Signs is to warn you that the company may have red flags in certain areas, helping to avoid overlooking them. These warning signs do not necessarily mean you should not invest in the stock. But you should be aware of them before you invest.


Severe Warning Signs

Financial Strength : Poor

People's United Financial Inc displays poor financial strength. Usually this is caused by too much debt for the company.

Good Signs

Beneish M-Score : Unlikely manipulator

Beneish M-Score -2.64 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

Interest Coverage : Comfortable

Ben Graham prefers companies interest coverage is at least 5. People's United Financial Inc has enough cash to cover all of its debt. Its financial situation is stable.

Revenue per Share : Consistent growth

People's United Financial Inc has shown predictable revenue and earnings growth.

Medium Warning Signs

Dividend Payout Ratio : Too high

If a company dividend payout ratio is too high, its dividend may not be sustainable. The dividend payout ratio of People's United Financial Inc is 1.04, which seems too high.

PS Ratio : Close to 3-year high

People's United Financial Inc stock PS Ratio (=3.76) is close to 3-year high of 4.17
GuruFocus Manual of Stocks™  |  Dec 06, 2021
People's United Financial Inc (NAS:PBCT)
www.gurufocus.com/stock/NAS:PBCT

Competitive Comparison


5 Year Price Change Comparison


Financial Strength

CompanyFinancial StrengthCash-to-DebtEquity-to-AssetDebt-to-EquityInterest CoveragePiotroski F-ScoreAltman Z-ScoreBeneish M-ScoreWACC %ROIC %
NYSE:CFRCullen/Frost Bankers Inc5/1068.950.090.05N/A60.00-2.4710.58N/A
NYSE:CMAComerica Inc4/108.320.080.36N/A60.00-2.407.44N/A
NAS:GBCIGlacier Bancorp Inc4/102.100.110.07N/A50.00-2.607.16N/A
NAS:PBCTPeople's United Financial Inc4/105.180.120.20N/A40.00-2.647.34N/A
NAS:SBNYSignature Bank4/108.270.070.45N/A50.00-2.1812.31N/A
NAS:ZIONZions Bancorp NA4/109.840.090.13N/A60.00-3.719.75N/A
NAS:FFINFirst Financial Bankshares Inc2/100.870.140.37N/A40.00-6.996.86N/A
NYSE:NYCBNew York Community Bancorp Inc2/100.170.122.14N/A60.00-2.204.33N/A
NAS:TFSLTFS Financial Corp2/100.160.121.78N/A60.00-2.624.05N/A

Profitability

CompanyProfitability RankOperating
Margin %
Net Margin %ROE %ROA %Price-to-Free-Cash-FlowROC (Joel Greenblatt) %3-Year Revenue Growth %3-Year EBITDA Growth %3-Year EPS w/o NRI Growth %
NYSE:CFRCullen/Frost Bankers Inc6/10N/A31.759.830.9714.52N/A7.10N/A-2.50
NAS:FFINFirst Financial Bankshares Inc6/10N/A46.4613.701.9722.38N/A11.60N/A16.00
NAS:SBNYSignature Bank6/10N/A44.2712.370.9634.44N/A8.80N/A11.80
NYSE:CMAComerica Inc5/10N/A42.3713.951.2933.74N/A6.60N/A-7.60
NAS:GBCIGlacier Bancorp Inc5/10N/A40.2613.621.6110.89N/A11.90N/A23.30
NAS:PBCTPeople's United Financial Inc5/10N/A16.163.830.496.74N/A2.60N/A-20.40
NAS:TFSLTFS Financial Corp5/10N/A28.234.690.5661.33N/A-1.90N/A-1.10
NAS:ZIONZions Bancorp NA5/10N/A41.5914.721.4323.39N/A10.60N/A5.10
NYSE:NYCBNew York Community Bancorp Inc4/10N/A47.658.691.1233.73N/A-3.70N/A4.30

Valuation

CompanyPE RatioPB RatioPS RatioPrice-to-Intrinsic-Value-Projected-FCFPrice-to-Intrinsic-Value-DCF (Earnings Based)Price-to-Median-PS-ValuePrice-to-Peter-Lynch-Fair-ValuePrice-to-Graham-NumberEarnings Yield (Joel Greenblatt) %Forward Rate of Return (Yacktman) %
NAS:ZIONZions Bancorp NA8.731.323.500.720.001.281.250.77N/A12.66
NYSE:NYCBNew York Community Bancorp Inc9.410.874.180.570.000.880.000.76N/A12.47
NYSE:CMAComerica Inc10.061.454.210.690.001.191.860.84N/A12.32
NAS:PBCTPeople's United Financial Inc11.110.963.760.640.571.020.000.87N/A11.59
NAS:GBCIGlacier Bancorp Inc16.792.226.771.000.421.131.291.47N/A18.64
NYSE:CFRCullen/Frost Bankers Inc18.961.885.890.931.131.302.091.37N/A15.24
NAS:SBNYSignature Bank21.922.419.341.250.741.531.691.53N/A17.23
NAS:FFINFirst Financial Bankshares Inc31.434.1314.581.821.391.621.952.66N/A18.94
NAS:TFSLTFS Financial Corp62.172.9217.502.210.001.180.002.85N/A2.23
GuruFocus Manual of Stocks™  |  Dec 06, 2021
People's United Financial Inc (NAS:PBCT)
www.gurufocus.com/stock/NAS:PBCT

Peter Lynch Chart[4]

GuruFocus Manual of Stocks™  |  Dec 06, 2021
People's United Financial Inc (NAS:PBCT)
www.gurufocus.com/stock/NAS:PBCT

Per Share Data



Per Share Data

Dec05
Dec06
Dec07
Dec08
Dec09
Dec10
Dec11
Dec12
Dec13
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
TTM Fiscal Period
1.83
1.75
2.3
2.85
2.67
2.73
3.5
3.69
3.94
4.16
4.25
4.33
4.37
4.56
4.64
4.72
4.53
Revenue per Share
0.46
0.41
0.52
0.41
0.3
0.23
0.55
0.72
0.74
0.84
0.86
0.92
0.97
1.29
1.27
0.49
1.53
Earnings per Share (Diluted)
0.42
0.4
0.52
0.41
0.3
0.23
0.55
0.72
0.74
0.84
0.86
0.92
0.97
1.29
1.27
0.49
1.53
EPS without NRI
0.4
0.41
0.38
0.6
0.14
0.28
-0.05
0.89
0.53
0.73
0.56
0.56
1.14
1.16
0.17
-0.55
1.58
Owner Earnings per Share (TTM)
0.28
0.08
0.4
0.53
0.13
0.42
0.38
1.27
0.95
0.99
0.83
0.97
1.72
1.43
0.44
1.89
2.52
Free Cash Flow per Share
0.35
0.21
0.62
0.68
0.31
0.64
0.5
1.52
1.22
1.17
1.09
1.11
1.81
1.68
0.61
2
2.6
Operating Cash Flow per Share
1.32
1.16
0.99
0.99
9.91
1.01
2.18
1.82
1.59
3.38
2.36
1.99
2.6
2.47
1.64
9.76
19.01
Cash per Share
0.41
0.46
0.52
0.58
0.61
0.62
0.63
0.64
0.65
0.66
0.67
0.68
0.69
0.7
0.71
0.72
0.73
Dividends per Share
4.33
4.51
14.9
14.86
14.79
14.91
14.59
15.24
15.28
15.44
15.63
15.86
16.4
16.67
17.6
17.56
17.62
Book Value per Share
3.98
4.15
14.55
10.45
10.39
9.31
8.51
8.73
8.16
8.43
8.73
8.92
8.87
9.08
10.09
10.76
11.04
Tangible Book per Share
0.45
0.22
0.22
1.06
0.57
1.97
1.45
5.56
14.62
11.08
14.85
13.36
11.42
8.78
10.13
4.43
3.67
Total Debt per Share
14.79
21.25
17.8
17.83
16.7
14.01
12.85
12.09
15.12
15.18
16.15
19.36
18.7
14.43
16.9
12.93
17
Month End Stock Price

Ratios

Dec05
Dec06
Dec07
Dec08
Dec09
Dec10
Dec11
Dec12
Dec13
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
TTM Fiscal Period
11.02
9.44
5.16
2.87
1.97
1.56
3.66
4.76
4.81
5.44
5.53
5.64
5.89
7.35
6.99
2.64
3.83
ROE %
3.23
2
4.34
2.39
1.74
1.66
4.16
6.03
4.86
5.55
5.37
4.62
5.17
8.45
7.28
3.57
3.99
ROE % Adjusted to Book Value
1.27
1.15
1.23
0.82
0.49
0.36
0.73
0.85
0.73
0.73
0.69
0.71
0.79
1.01
0.98
0.36
0.49
ROA %
12.07
10.26
5.35
3.45
2.8
2.36
6.07
8.24
8.68
10.08
10.01
9.86
10.31
13.1
12.15
4.37
6.16
Return-on-Tangible-Equity
1.28
1.16
1.24
0.86
0.53
0.39
0.79
0.92
0.78
0.77
0.74
0.75
0.84
1.08
1.04
0.38
0.52
Return-on-Tangible-Asset
8.88
7.84
9.89
6.94
6.31
6.01
5.93
7.21
6.7
4.43
4.47
6.02
6.4
8.96
10.69
7.76
7.34
WACC %
77.77
201
337
129
67.26
29.26
21.25
9.01
3.73
3.08
3.5
3.6
5.04
8.9
12.11
7.61
7.27
Effective Interest Rate on Debt %
3.72
3.92
4.41
4.26
3.52
3.79
4.1
3.75
3.21
3.01
2.83
2.76
2.93
3.05
3.02
3.03
2.94
Net Interest Margin (Bank Only) %
25.25
23.41
22.2
14.66
11.42
8.56
15.76
19.64
18.89
20.26
20.4
21.37
23.2
29.21
28.23
11.02
16.16
Net Margin %
15.19
4.76
17.54
18.53
4.74
15.35
10.74
34.38
24.01
23.87
19.45
22.33
39.49
31.29
9.39
40
55.7
FCF Margin %
0.1
0.05
0.02
0.07
0.04
0.13
0.1
0.37
0.96
0.72
0.95
0.8
0.67
0.51
0.56
0.24
0.2
Debt-to-Equity
0.12
0.13
0.33
0.26
0.24
0.21
0.19
0.17
0.14
0.13
0.12
0.13
0.13
0.14
0.14
0.12
0.12
Equity-to-Asset
0.01
0.01
0.01
0.02
0.01
0.03
0.02
0.06
0.13
0.09
0.12
0.1
0.09
0.07
0.08
0.03
0.03
Debt-to-Asset
0.88
0.88
0.67
0.74
0.76
0.79
0.81
0.83
0.86
0.87
0.88
0.87
0.87
0.86
0.86
0.88
0.88
Liabilities-to-Assets
0.05
0.05
0.06
0.06
0.04
0.04
0.05
0.04
0.04
0.04
0.03
0.03
0.03
0.04
0.04
0.03
0.03
Asset Turnover
0.96
1.16
1
1.42
2.03
2.69
1.14
0.89
0.88
0.78
0.78
0.74
0.71
0.54
0.56
1.46
1.04
Dividend Payout Ratio
0.04
0.07
0.09
0.05
0.07
0.08
0.04
0.07
0.07
0.04
0.06
0.03
0.02
0.06
0.04
0.02
0.02
Capex-to-Revenue
* All financial numbers are in millions except for per share data, ratios and percentage change. When Return-on-Tangible-Equity displays Neg. E, it means the the tangible equity is negative.
GuruFocus Manual of Stocks™  |  Dec 06, 2021
People's United Financial Inc (NAS:PBCT)
www.gurufocus.com/stock/NAS:PBCT

Financial Satement



Income Statement

Dec05
Dec06
Dec07
Dec08
Dec09
Dec10
Dec11
Dec12
Dec13
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
TTM Fiscal Period
508
582
707
917
767
824
1042
1035
1004
1031
1069
1127
1302
1556
1881
1815
1639
  Interest Income
-138
-200
-220
-281
-190
-130
-129
-106
-116
-119
-137
-155
-202
-320
-469
-239
-119
  Interest Expense
370
382
487
636
577
694
913
929
889
912
932
972
1101
1236
1412
1576
1520
Net Interest Income (for Banks)
173
147
185
304
309
270
308
320
342
330
343
343
353
366
431
417
396
Non Interest Income
543
530
672
940
886
964
1221
1249
1230
1242
1275
1315
1453
1602
1843
1993
1916
Revenue
8.6
3.4
8
26.2
57
60
63.7
49.2
43.7
40.6
33.4
36.6
26
30
28.3
156
-27.6
Credit Losses Provision
196
203
216
369
372
418
489
516
529
547
556
571
635
678
754
783
782
Selling, General, & Admin. Expense
149
144
224
304
311
325
340
314
311
295
304
297
325
318
409
428
418
Other Noninterest Expense
344
347
439
673
683
743
829
831
839
842
861
869
960
996
1163
1211
1200
Total Noninterest Expense
--
--
--
36.5
2
38.6
42.9
--
--
-20.6
-9.2
--
--
--
--
277
-75.9
SpecialCharges
--
--
--
--
0
--
--
0
0
0
--
-0
-0
-0
--
--
-353
Other Income (Expense)
190
180
225
205
144
122
285
369
348
381
391
410
467
576
652
349
467
Pre-Tax Income
-64.1
-57.8
-75.5
-67
-43.1
-39.5
-93
-124
-115
-129
-130
-129
-130
-108
-132
-129
-158
Tax Provision
33.74
32.2
33.6
32.71
29.87
32.38
32.59
33.58
33.14
33.87
33.39
31.38
27.81
18.77
20.23
37.01
33.71
Tax Rate %
126
122
149
138
101
82.5
192
245
232
252
260
281
337
468
520
220
310
Net Income (Continuing Operations)
11.2
2.3
--
--
--
--
--
--
--
--
--
--
--
--
--
--
-- Net Income (Discontinued Operations)
137
124
149
138
101
82.5
192
245
232
252
260
281
337
468
520
220
310
Net Income
25.25
23.41
22.2
14.66
11.42
8.56
15.76
19.64
18.89
20.26
20.4
21.37
23.2
29.21
28.23
11.02
16.16
Net Margin %
--
--
--
--
--
--
--
--
--
--
--
1.8
14.1
14.1
14.1
14.1
14.1
Preferred Dividends
0.46
0.42
0.52
0.41
0.3
0.23
0.55
0.72
0.74
0.84
0.86
0.92
0.98
1.3
1.28
0.49
1.55
EPS (Basic)
0.46
0.41
0.52
0.41
0.3
0.23
0.55
0.72
0.74
0.84
0.86
0.92
0.97
1.29
1.27
0.49
1.53
EPS (Diluted)
297
302
292
330
332
353
349
338
312
298
300
304
333
352
397
423
425
Shares Outstanding (Diluted Average)
22.8
23.4
25.5
61.3
65.7
73.2
65
65.9
66.5
64.4
63.2
60.5
69.1
58.1
74.2
84.2
82.2
Depreciation, Depletion and Amortization

Cashflow Statement

Dec05
Dec06
Dec07
Dec08
Dec09
Dec10
Dec11
Dec12
Dec13
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
TTM Fiscal Period
137
124
151
138
101
82.5
192
245
232
252
260
281
337
468
520
220
310
Net Income From Continuing Operations
22.8
23.4
25.5
61.3
65.7
73.2
65
65.9
66.5
64.4
63.2
60.5
69.1
58.1
74.2
84.2
82.2
Depreciation, Depletion and Amortization
-6.2
-55.9
-37.6
34.6
-74.6
3
-226
39
-76.8
-37.2
-90.9
-104
36.7
-40.2
-465
-487
326
Change In Working Capital
2.7
33.8
-5.7
-15.4
-14.6
-7.8
60.1
44.8
15.5
6.7
14.1
3.7
25.8
1.9
14.3
-18.7
-- Deferred Tax
--
--
--
22.1
24.7
30.8
28.1
19.3
18.8
20
22.5
20.7
26.2
28.6
30.6
30.5
32.7
Stock Based Compensation
--
--
--
19.3
--
--
--
--
--
--
--
--
--
--
--
353
-- Asset Impairment Charge
-51.8
-63.2
48.5
-34.6
1.1
43.8
54.8
99.3
123
44.4
59.3
74
108
72.8
66.5
662
351
Cash Flow from Others
105
62.1
181
225
104
226
174
514
379
350
328
336
603
589
241
843
1101
Cash Flow from Operations
-22.1
-36.9
-63.5
-50.9
-61.5
-77.5
-43.3
-84.2
-84
-53.5
-80.3
-42.4
-29
-87.9
-67.7
-45.8
-33.3
Purchase Of Property, Plant, Equipment
--
--
--
--
8.8
--
--
--
--
--
--
--
--
--
--
--
-- Sale Of Property, Plant, Equipment
--
--
--
-784
-16.2
-189
--
--
--
--
--
--
--
--
--
--
-- Purchase Of Business
--
--
--
--
--
--
147
--
--
--
--
--
--
6.2
519
115
-- Sale Of Business
-242
-582
-525
-3132
-1651
-2670
-1446
-2658
-1374
-1131
-2570
-1999
-2184
-1134
-1086
-2806
-4118
Purchase Of Investment
926
1896
107
2264
2693
1221
1829
918
939
1290
1153
1690
1989
967
1104
1572
1705
Sale Of Investment
-861
-806
449
516
-103
71.3
-767
-1079
-2784
-2316
-1850
-1401
-470
249
-780
-153
5737
Cash From Other Investing Activities
-199
472
-32.3
-1186
871
-1644
-281
-2903
-3303
-2210
-3347
-1753
-694
-0.4
-311
-1318
3290
Cash Flow from Investing
15.3
5.6
2996
--
-2.4
-198
-250
-222
-461
-3
-3.2
-3.4
-3.4
-2.5
-4.5
-306
-2.2
Repurchase of Stock
--
--
--
--
--
--
--
--
--
--
--
244
--
--
--
--
-- Net Issuance of Preferred Stock
--
--
--
48.7
0.7
322
21.4
2129
2709
394
620
--
--
--
648
--
33.6
  Issuance of Debt
-59.4
-334
-4.1
-4.7
-29.9
-937
-434
-101
-56.1
-1382
-1.3
-248
-800
-1002
-321
-4007
-293
  Payments of Debt
-59.4
-334
-4.1
44
-29.2
-615
-412
2028
2653
-987
618
-248
-800
-1002
327
-4007
-260
Net Issuance of Debt
-52.4
-60
-131
-194
-204
-218
-221
-218
-205
-197
-201
-208
-242
-258
-289
-318
-320
Cash Flow for Dividends
281
--
-194
-789
1195
-13.4
816
622
809
3587
2307
1531
1404
723
-94.4
8549
3269
Other Financing
185
-389
2666
-939
960
-1045
-67
2210
2796
2400
2721
1316
359
-540
-61.3
3917
2687
Cash Flow from Financing
90.3
145
2816
-1900
1934
-2464
-174
-180
-127
539
-298
-101
269
49.4
-131
3442
7078
Net Change in Cash
-22.1
-36.9
-63.5
-50.9
-61.5
-77.5
-43.3
-84.2
-84
-53.5
-80.3
-42.4
-29
-87.9
-67.7
-45.8
-33.3
Capital Expenditure
82.5
25.2
118
174
42
148
131
429
295
297
248
294
574
501
173
797
1067
Free Cash Flow
* All financial numbers are in millions except for per share data, ratios and percentage change.
GuruFocus Manual of Stocks™  |  Dec 06, 2021
People's United Financial Inc (NAS:PBCT)
www.gurufocus.com/stock/NAS:PBCT

Financial Satement


Balance Sheet

Dec05
Dec06
Dec07
Dec08
Dec09
Dec10
Dec11
Dec12
Dec13
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
TTM Fiscal Period
392
344
296
345
3418
355
781
601
474
1014
715
614
883
932
717
4091
8134
Cash and cash equivalents
25
--
428
1139
400
520
--
--
--
100
--
--
--
--
--
--
-- Money Market Investments
8573
9372
8950
14566
14234
17416
20538
21853
24448
26646
28459
29848
32612
35279
44173
43964
39536
  Gross Loan
-75
-74
-72.7
-158
-173
-173
-183
-188
-188
-198
-211
-229
-234
-240
-247
-425
-352
  Allowance For Loans And Lease Losses
8498
9298
8877
14408
14061
17244
20355
21665
24261
26448
28248
29619
32378
35038
43927
43539
39183
Net Loan
1395
302
3150
1871
871
3570
2872
4608
4871
4856
6164
6442
6752
6956
7478
8954
10187
Securities & Investments
--
--
--
--
--
--
119
113
113
117
124
134
155
165
156
202
--   Accounts Receivable
--
--
--
--
--
--
72.9
25
21.6
21.1
26.3
29.9
68.7
31.4
51.7
44.7
--   Other Current Receivables
--
--
--
--
--
--
192
138
134
139
151
164
223
196
208
247
-- Total Receivables
149
137
157
262
265
325
447
476
488
459
452
421
419
456
776
678
250
Property, Plant and Equipment
106
105
104
1536
1515
1962
2174
2154
2127
2103
2088
2142
2560
2866
3285
2851
2817
Intangible Assets
--
--
--
1262
1262
1723
1951
1955
1955
1955
1959
1993
2411
2686
3066
2681
2681
  Goodwill
368
501
543
607
728
1062
737
683
858
880
1130
1207
1239
1433
2200
2733
3102
Other Assets for Banks
10933
10687
13555
20168
21257
25037
27558
30324
33214
35997
38947
40610
44453
47877
58590
63092
63673
Total Assets
9083
9083
8881
14269
15446
17933
20816
21751
22557
26138
28417
29861
33056
36159
43590
52138
52871
Total Deposits
--
--
--
--
--
--
208
123
115
107
91.7
115
144
143
126
94.7
-- Accounts Payable & Accrued Expense
43.5
--
--
--
--
--
26.1
905
3460
2026
3200
2835
2757
2342
3106
557
-- Short-Term Debt & Capital Lease Obligation
90.1
65.3
65.4
368
197
691
493
933
910
1300
1297
1291
1127
969
1326
1298
1569
Long-Term Debt & Capital Lease Obligation
0.1
0.05
0.02
0.07
0.04
0.13
0.1
0.37
0.96
0.72
0.95
0.8
0.67
0.51
0.56
0.24
0.2
Debt-to-Equity
428
199
163
356
514
1194
800
1574
1603
1793
1209
1365
1549
1730
2495
1402
1449
Other Liabilities for Banks
9644
9347
9109
14994
16157
19818
22343
25286
28645
31364
34215
35468
38634
41343
50643
55489
55890
Total Liabilities
142
142
3
3.5
3.5
3.7
3.9
3.9
3.9
3.9
3.9
4
4.4
4.7
5.3
5.3
5.4
Common Stock
--
--
--
--
--
--
--
--
--
--
--
244
244
244
244
244
244
Preferred Stock
998
1062
1080
1021
915
773
735
756
779
827
881
949
1040
1285
1513
1364
1575
Retained Earnings
-26.9
-48
-228
-75.4
-74.8
-99
-95.8
-96.9
-155
-168
-177
-195
-182
-257
-167
-89.2
-177
Accumulated other comprehensive income (loss)
176
183
3643
4485
4511
4979
5247
5261
5277
5291
5338
5446
6012
6549
7639
7664
7715
Additional Paid-In Capital
--
--
-51.8
-57.9
-58.6
-249
-494
-712
-1170
-1162
-1162
-1162
-1162
-1162
-1165
-1469
-1469
Treasury Stock
--
--
--
-202
-195
-188
-181
-174
-166
-159
-152
-145
-137
-130
-123
-116
-110
Other Stockholders Equity
1289
1340
4445
5174
5101
5219
5215
5039
4568
4633
4732
5142
5820
6534
7947
7603
7783
Total Stockholders Equity
1289
1340
4445
5174
5101
5219
5215
5039
4568
4633
4732
5142
5820
6534
7947
7603
7783
Total Equity
0.12
0.13
0.33
0.26
0.24
0.21
0.19
0.17
0.14
0.13
0.12
0.13
0.13
0.14
0.14
0.12
0.12
Equity-to-Asset
* All financial numbers are in millions except for per share data, ratios and percentage change.
GuruFocus Manual of Stocks™  |  Dec 06, 2021
People's United Financial Inc (NAS:PBCT)
www.gurufocus.com/stock/NAS:PBCT

Valuation Ratios



Valuation Ratios

Dec05
Dec06
Dec07
Dec08
Dec09
Dec10
Dec11
Dec12
Dec13
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
TTM Fiscal Period
32.01
51.83
34.23
43.49
55.67
60.91
23.36
16.79
20.43
18.07
18.78
21.04
19.28
11.19
13.31
26.39
11.11
PE Ratio
34.88
53.13
34.23
43.49
55.67
60.91
23.36
16.79
20.43
18.07
18.78
21.04
19.28
11.19
13.31
26.39
11.11
PE Ratio without NRI
36.61
52.08
46.72
29.97
123
49.51
--
13.65
28.69
20.82
28.69
34.82
16.48
12.45
97.13
--
10.79
Price-to-Owner-Earnings
3.41
4.72
1.19
1.2
1.13
0.94
0.88
0.79
0.99
0.98
1.03
1.22
1.14
0.87
0.96
0.74
0.96
PB Ratio
3.72
5.12
1.22
1.71
1.61
1.51
1.51
1.39
1.85
1.8
1.85
2.17
2.11
1.59
1.67
1.2
1.54
Price-to-Tangible-Book
53.2
256
44.17
33.77
133
33.36
34.18
9.53
15.97
15.27
19.55
20.04
10.85
10.12
38.76
6.86
6.74
Price-to-Free-Cash-Flow
42.02
104
28.66
26.14
53.7
21.89
25.7
7.96
12.43
12.94
14.78
17.52
10.33
8.61
27.89
6.48
6.54
Price-to-Operating-Cash-Flow
8.09
12.13
7.74
6.26
6.26
5.12
3.67
3.28
3.83
3.65
3.8
4.48
4.28
3.17
3.64
2.74
3.76
PS Ratio
--
--
--
--
--
--
1.91
336
35.22
19.86
18.23
15.14
12.68
6.54
5.39
9.2
4.27
PEG Ratio
7.62
11.4
7.56
6.63
2.87
5.43
3.55
4.19
6.84
5.53
6.8
7.41
6.61
5.03
6.16
1.72
0.5
EV-to-Revenue
3.2
4.13
5.76
5.65
-0.08
0.77
15.1
4.55
4.75
5.57
6.2
6.45
7.27
9.8
8.84
12.79
11.59
Forward Rate of Return (Yacktman) %
24.01
34.24
28.56
30.68
31.94
27.69
23.76
20.23
23.7
23.6
25.6
29.33
26.94
18.3
18.81
12.71
15.13
Shiller PE Ratio
2.75
2.17
2.91
3.27
3.65
4.41
4.89
5.28
4.29
4.33
4.14
3.5
3.68
4.83
4.19
5.55
4.28
Dividend Yield %

Valuation and Quality

Dec05
Dec06
Dec07
Dec08
Dec09
Dec10
Dec11
Dec12
Dec13
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
TTM Fiscal Period
4398
6319
5310
6209
5762
4904
4594
3998
4521
4556
4890
5980
6358
5444
7397
5419
7276
Market Cap
4140
6040
5079
6232
2540
5239
4332
5235
8416
6868
8672
9737
9603
8068
11356
3426
956
Enterprise Value
14.79
21.25
17.8
17.83
16.7
14.01
12.85
12.09
15.12
15.18
16.15
19.36
18.7
14.43
16.9
12.93
17
Month End Stock Price
-31.11
-30.28
-29.54
-42.07
-36.92
-53.9
-52.69
-60.94
-80.14
-87.83
-95.68
-98.56
-102
-98.83
-106
-111
-97.01
Net Cash per Share
-31.11
-30.28
-29.54
-42.07
-36.92
-53.9
-52.44
-60.68
-79.86
-87.53
-95.37
-99.02
-102
-99.15
-106
-111
-97.58
Net-Net Working Capital
12.65
11.76
20.85
22.73
21.04
14.53
15.05
16.95
19.26
20.95
20.99
21.96
23.3
23.26
22.6
24.14
26.74
Intrinsic Value: Projected FCF
4.77
0.76
5.61
9.53
11.87
13.02
16.87
17.73
18.94
19.97
19.91
17.2
17.08
17.58
17.42
17.36
16.63
Median PS Value
--
--
--
--
--
--
6.84
--
--
--
--
--
--
--
--
--
-- Peter Lynch Fair Value
6.16
6.11
13.05
9.82
8.38
6.94
10.26
11.89
11.66
12.62
13
13.59
13.91
16.23
16.98
10.89
19.49
Graham Number
0.41
0.46
-0.16
-1.18
8.27
-0.91
7.24
8.41
-0.88
3.77
0.56
0.9
-1.03
0.68
-1.58
15.92
29.1
Earnings Power Value (EPV)
5
6
8
4
4
4
7
6
5
5
5
6
8
8
4
5
4
Piotroski F-Score
-2.17
-2.7
1.03
-3.12
-2.45
-3.01
-2.2
-3.06
-2.84
-2.37
-2.51
-2.38
-2.33
-2.33
-2.47
-2.12
-2.64
Beneish M-Score
0.1
0.1
0.39
0.38
0.09
0.26
0.2
0.23
0.28
0.21
0.24
0.22
0.22
0.2
0.24
0.09
0.02
Scaled Net Operating Assets
2.12
-3.84
--
5.45
-4.11
6
1.08
8.69
9.5
5.87
8.42
4.18
0.96
-0.25
1.01
1.1
-6.41
Sloan Ratio %
15.89
21.58
21.89
21.75
18.29
17
14.42
13.66
15.61
15.59
16.85
20
19.69
20.15
17.9
16.76
19.62
Highest Stock Price
11.67
14.4
14.99
14.58
14.94
12.23
10.56
11.34
12.32
13.82
13.99
13.64
16.07
13.8
13.94
9.51
12.56
Lowest Stock Price
-0.53
--
-0.32
-16.74
0.93
-1.45
-2.14
7.5
9.59
-0.37
-0.9
-2.01
-10.07
-10.97
-16.01
4.25
-2.1
Shares Buyback Ratio %
-0.35
-0.09
-56.42
--
0.04
4.04
5.44
5.56
10.2
0.07
0.07
0.06
0.05
0.05
0.06
5.65
0.03
Buyback Yield %
13.04
-4.21
31.22
23.88
-6.39
2.55
28.09
5.4
6.83
5.6
1.95
1.88
0.95
4.35
1.87
1.59
-4.73
YoY Rev. per Sh. Growth
-31.56
-11.26
26.83
-21.15
-26.83
-23.33
139
30.91
2.78
13.51
2.38
6.98
5.43
32.99
-1.55
-61.42
31.9
YoY EPS Growth
297
295
291
329
332
353
349
338
312
298
300
303
330
348
394
420
421
Shares Outstanding (Basic Average)
297
297
298
348
345
350
358
331
299
300
303
309
340
377
438
419
428
Shares Outstanding (EOP)
0.46
0.45
0.44
0.31
0.08
0.2
0.46
0.83
0.82
0.62
0.6
0.97
0.98
1.33
1.47
1.23
1.12
Beta
04/13/07
04/13/07
02/29/08
03/02/09
03/01/10
03/01/11
02/29/12
03/01/13
03/03/14
03/02/15
02/29/16
03/01/17
03/01/18
03/01/19
03/02/20
01/22/21
  Filing Date
04/13/07
02/29/08
03/02/09
03/01/11
03/01/11
03/01/13
03/03/14
03/02/15
02/29/16
03/01/17
03/01/18
03/01/19
03/02/20
03/01/21
03/01/21
03/01/21
  Restated Filing Date
01/21/11
01/19/12
01/17/13
01/16/14
01/15/15
01/21/16
01/19/17
01/18/18
01/17/19
01/16/20
01/21/21
  Earnings Release Date
--
--
22600
--
21250
21300
21400
20900
19700
18900
18100
17300
17300
18300
24100
--
-- Number of Shareholders
3166
2861
2856
4754
4534
5198
5477
5442
5429
5397
5139
5173
5584
5920
6499
5987
5987
Number of Employees
* All financial numbers are in millions except for per share data, ratios and percentage change.
GuruFocus Manual of Stocks™  |  Dec 06, 2021
People's United Financial Inc (NAS:PBCT)
www.gurufocus.com/stock/NAS:PBCT

Explanation

1. Predictability Rank

GuruFocus Predictability Rank is a proprietary ranking of the consistency of a business. We rank the predictability of companies based on the consistency of their revenue per share and EBITDA (earnings before interest, tax, depreciation and amortization) per share over the past 10 fiscal years. Our study found that there is a strong correlation between the stock performance and the predictability of a business. Over the long term, companies with higher predictability also have better stock performance.

The rank is from 1-star to 5-star, with 5-star as the best.

2. Financial Strength

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

  1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
  2. Debt to revenue ratio. The lower, the better.
  3. Altman Z-Score.

The rank is from 1 to 10, with 10 as the highest.

A Financial Strength rank of 8 or above indicates good financial strength; between 4-7 indicates fair financial strength; 3 or below means poor financial strength.

3. Profitability Rank

GuruFocus Profitability Rank indicates how profitable a company is and how likely it is that the company's business will stay that way. It is based on these factors:

  1. Operating Margin %.
  2. Piotroski F-Score.
  3. Trend of the Operating Margin percentage (five-year average). A company with an uptrend in profit margin will have a higher rank.
  4. Consistency of the profitability.
  5. Predictability Rank.

The rank is from 1 to 10, with 10 as the highest.

A Profitability Rank of 8 or above indicates good profitability; between 4-7 indicates fair profitability; 3 or below means poor profitability.

4. Peter Lynch Chart

In Peter Lynch's excellent book, "One Up on Wall Street," he used many charts to illustrate the valuation of stocks. “A quick way to tell if a stock is overpriced is to compare the price line to the earnings line. If you bought familiar growth companies – such as Shoney’s, The Limited, or Marriott – when the stock price fell well below the earnings line, and sold them when the stock price rose dramatically above it, the chances are you’d do pretty well.”

The original Peter Lynch Chart does have limitations due to the right side price scale is pre-set at 15 times the earnings scale on the left side. When the stock price and earnings line coincide, the price-to-earnings ratio is always 15 times. Instead of using the fixed PE Ratio of 15, our approach is using 15-year historical median PE without NRI Ratio for each stock.

The Peter Lynch Chart with earnings line at median PE without NRI ratio works well for the companies with steady growth and earnings trends, or the stalwarts, as coined by Lynch. These companies tend to be found in sectors such as consumer staples, healthcare, and utilities, where the consumption of the product or service is relatively independent of economic conditions. It does not work well with the sectors that are cyclical: industrials, chemicals, durable goods, and so forth.

5. GF Value

Based on the relationship between the current stock price and the GF Value, GuruFocus provides the following 6 evaluations:

  1. Possible Value Trap, Think Twice
  2. Significantly Overvalued
  3. Modestly Overvalued
  4. Fairly Valued
  5. Modestly Undervalued
  6. Significantly Undervalued
There is only a sufficient margin of safety when the stock is undervalued.

Disclaimer

GuruFocus.com is not operated by a broker, a dealer, or a registered investment adviser. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The gurus may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. The gurus listed in this website are not affiliated with GuruFocus.com, LLC. Stock quotes provided by InterActive Data. Fundamental company data provided by Morningstar, updated daily.