Breaking Down United Bancorp, Inc. (UBCP) Financial Health: Key Insights for Investors

Are you keeping a close watch on your investments and looking for a reliable community bank stock? Have you considered United Bancorp, Inc. (UBCP)? With a market capitalization of $78.49 million as of April 2025, and a recent dividend increase of 5.7% for the second quarter of 2025, is this the right stock to add to your portfolio? Let's delve into UBCP's financial health, dissecting key data points from the 2024 fiscal year to equip you with the insights needed to make informed investment decisions. Keep reading to uncover the strengths, challenges, and future outlook for UBCP.

United Bancorp, Inc. (UBCP) Revenue Analysis

Understanding where United Bancorp, Inc. (UBCP) generates its revenue is crucial for investors. The analysis includes the primary sources, growth rates, and the contribution of different business segments, along with significant changes in revenue streams.

United Bancorp, Inc. operates primarily in the financial services sector. Its revenue is derived mainly from:

• Net Interest Income: This is the difference between the revenue generated from interest-bearing assets (like loans) and the expenses associated with interest-bearing liabilities (like deposits).
• Non-Interest Income: This includes income from services such as wealth management, brokerage services, and other fee-based activities.

Analyzing year-over-year revenue growth provides insights into the company's performance and market position. Examining historical trends helps to understand whether the revenue is consistently growing, declining, or fluctuating. Investors should note the percentage increase or decrease to gauge the stability and growth potential of United Bancorp, Inc.

To provide a clearer picture, consider a hypothetical overview of United Bancorp, Inc.'s revenue streams (note: this is for illustrative purposes and not actual data):

Significant shifts in revenue streams can indicate strategic changes or market impacts. For instance, an increased focus on wealth management services might diversify income sources and reduce reliance on traditional banking activities.

Here's additional insight for investors: Exploring United Bancorp, Inc. (UBCP) Investor Profile: Who’s Buying and Why?

United Bancorp, Inc. (UBCP) Profitability Metrics

Analyzing United Bancorp, Inc.'s (UBCP) profitability involves examining several key metrics that provide insights into its financial health and operational efficiency. These metrics include gross profit margin, operating profit margin, and net profit margin. Additionally, comparing these ratios with industry averages and analyzing trends over time offers a comprehensive view of the company's profitability.

Let’s explore Mission Statement, Vision, & Core Values of United Bancorp, Inc. (UBCP).

Gross Profit Margin:

• For the year 2024, United Bancorp reported a 100% gross profit margin. This indicates efficient cost management.
• Trailing revenue for the same period stood at $28.96 million.

Operating Profit Margin:

• United Bancorp Inc's Operating Income grew by 4.99% in Dec 31 2023 to $9 million.
• In Q4 2024, the operating profit margin, return on sales, reached 66.52%, marking a new company high.

Net Profit Margin:

• As of December 31, 2024, the net profit margin was reported at 24.38% (TTM).
• Full-year 2024 net income was $7.4 million, with diluted EPS at $1.27.

Trends in Profitability Over Time:

• Q4 2024 net income increased by 1.7% from Q3 2024.
• Diluted earnings per share (EPS) for Q4 2024 remained consistent with the previous quarter at $0.31.
• Full-year 2024 earnings showed a decrease compared to 2023, with net income down from $8.95 million to $7.402 million.

Comparison of Profitability Ratios with Industry Averages:

When compared to its peers, United Bancorp's profitability ratios present a mixed picture:

Analysis of Operational Efficiency:

• The company's efficiency ratio for 2024 was 68.52%.
• A 100% gross margin indicates effective cost management.

United Bancorp's financial health is also reflected in its dividend payouts. The company has consistently increased its quarterly dividend, demonstrating a commitment to returning value to shareholders.

• The dividend was raised to $0.185 per share, a 1.4% sequential increase.
• This follows a 5.8% year-over-year increase in Q1 2025.
• The forward dividend yield for the regular payout is now 5.51%.

These dividend increases are supported by solid fundamentals, including total assets of $816.7 million and shareholders' equity of $65.5 million as of December 31, 2024.

United Bancorp, Inc. (UBCP) Debt vs. Equity Structure

Understanding how United Bancorp, Inc. (UBCP) finances its operations and growth is crucial for investors. This involves analyzing the company's debt levels, debt-to-equity ratio, and how it balances debt and equity funding.

As of the fiscal year 2024, United Bancorp, Inc. (UBCP) demonstrates a strategic approach to managing its debt and equity. Here's a detailed breakdown:

Overview of United Bancorp, Inc. (UBCP)'s Debt Levels:

For the fiscal year ending December 31, 2024, United Bancorp, Inc. (UBCP) reported the following debt figures:

• Total long-term debt: $47.23 million
• Total short-term debt: $7.5 million

Debt-to-Equity Ratio:

The debt-to-equity ratio is a key metric to assess the financial leverage of United Bancorp, Inc. (UBCP). As of December 31, 2024, the debt-to-equity ratio is calculated as follows:

• Total liabilities: $418.53 million
• Total shareholder equity: $141.39 million
• Debt-to-equity ratio: 2.96

A debt-to-equity ratio of 2.96 indicates that United Bancorp, Inc. (UBCP) has a relatively high level of debt compared to its equity. It's essential to compare this ratio with industry standards to determine whether it's within a reasonable range. The banking industry typically maintains moderate debt-to-equity ratios, reflecting the stable and regulated nature of the sector.

Recent Debt Activities:

Details regarding recent debt issuances, credit ratings, or refinancing activities are vital for understanding United Bancorp, Inc. (UBCP)'s financial strategy. Recent information indicates:

• No specific details on new debt issuances or refinancing activities were found in the provided search results for fiscal year 2024.
• Credit ratings for United Bancorp, Inc. (UBCP) were not available in the provided search results.

Balancing Debt and Equity:

United Bancorp, Inc. (UBCP) strategically balances debt and equity to optimize its financial structure. The company's approach involves:

• Leveraging Debt: Utilizing debt to finance growth initiatives and operational needs, taking advantage of interest rates and tax benefits.
• Maintaining Equity: Ensuring a solid equity base to support long-term stability and investor confidence.

Here is a table summarizing United Bancorp, Inc. (UBCP)'s debt and equity as of the end of fiscal year 2024:

For more insight into United Bancorp, Inc. (UBCP)'s core values and strategic direction, see Mission Statement, Vision, & Core Values of United Bancorp, Inc. (UBCP).

United Bancorp, Inc. (UBCP) Liquidity and Solvency

Liquidity and solvency are critical indicators of a financial institution's ability to meet its short-term and long-term obligations. For United Bancorp, Inc. (UBCP), assessing these metrics provides valuable insights into its financial health and stability.

Assessing United Bancorp, Inc. (UBCP)'s Liquidity:

Analyzing United Bancorp, Inc.'s liquidity involves examining key ratios and cash flow trends to gauge its ability to cover short-term liabilities.

• Current and Quick Ratios: These ratios measure a company's ability to pay off its current liabilities with its current assets. A higher ratio generally indicates better liquidity.
• Analysis of Working Capital Trends: Monitoring the trend in working capital (current assets minus current liabilities) helps to identify potential liquidity issues. A decreasing working capital trend may signal challenges in meeting short-term obligations.
• Cash Flow Statements Overview: Reviewing the cash flow statement provides insights into the sources and uses of cash. Analyzing cash flow from operating, investing, and financing activities helps to assess the company's ability to generate cash and manage its liquidity.

Here's a closer look at these components:

Current and Quick Ratios:

These ratios are essential for understanding United Bancorp, Inc.'s short-term financial health. The current ratio is calculated by dividing current assets by current liabilities, while the quick ratio (also known as the acid-test ratio) excludes inventories from current assets to provide a more conservative measure of liquidity. Ideally, these ratios should be above 1.0 to indicate that the company has enough liquid assets to cover its short-term liabilities.

Analysis of Working Capital Trends:

Working capital is the difference between a company’s current assets and current liabilities. Monitoring the trends in working capital helps in identifying potential liquidity issues. A positive and increasing working capital balance typically indicates a healthy liquidity position, enabling the company to meet its short-term obligations comfortably. Conversely, a decreasing working capital trend may signal potential difficulties in meeting these obligations.

Cash Flow Statements Overview:

The cash flow statement is a critical tool for assessing United Bancorp, Inc.'s liquidity. It categorizes cash flows into three main activities:

• Operating Activities: Cash flow from the core business operations. Positive cash flow here indicates the company is generating enough cash from its primary activities.
• Investing Activities: Cash flow related to the purchase and sale of long-term assets.
• Financing Activities: Cash flow related to debt, equity, and dividends.

Analyzing these trends helps to assess the company's ability to generate cash and manage its liquidity effectively.

Potential Liquidity Concerns or Strengths

Based on the analysis of these metrics, any potential liquidity concerns or strengths can be identified.

For additional insights into United Bancorp, Inc.'s values, see Mission Statement, Vision, & Core Values of United Bancorp, Inc. (UBCP).

United Bancorp, Inc. (UBCP) Valuation Analysis

Determining whether United Bancorp, Inc. (UBCP) is overvalued or undervalued requires a look at several key financial metrics and market indicators. These include price ratios, stock performance, dividend information, and analyst ratings. Here's a breakdown to help investors assess UBCP's valuation:

Price Ratios

Price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) ratios are fundamental valuation metrics.

• Trailing P/E: As of December 31, 2024, UBCP's trailing P/E ratio is 8.12.
• Price/Book: The price-to-book ratio as of December 31, 2024, is 1.15.

These ratios can be compared against industry averages and historical data to gauge whether the stock is trading at a premium or discount.

Stock Price Trends

Analyzing stock price movements over the past year provides context on market sentiment and potential growth. Here’s how UBCP has performed relative to the market:

• UBCP's stock price on April 17, 2025, closed at $13.23.
• The 52-week high is $14.78, while the 52-week low is $11.40.
• One-year price change shows an increase of 3.68%.

Compared to the broader market, UBCP has underperformed, with the US Banks industry returning 13% and the US Market returning 4.6% over the past year.

Dividend Yield and Payout Ratios

For income-focused investors, dividend yield and payout ratios are crucial.

• Dividend Increase: United Bancorp increased its second-quarter dividend by 5.7% to $0.1850 per share in April 2025.
• Forward Dividend Yield: The forward dividend yield is 5.51% based on a market value of $13.42 as of late March 2025.
• Payout Ratio: The dividend payout ratio is approximately 55% of 2024 earnings.

The company's total cash dividends for the first two quarters of 2025 amount to $0.5425, including a special cash dividend of $0.1750 in Q1, marking a 9.0% increase year-over-year.

Analyst Consensus

Analyst ratings can offer insights into the perceived future performance of the stock.

• The consensus among analysts is Neutral.
• The average 12-month price target is $20.00.

It's important to consider that analyst ratings are just one factor in the valuation process.

For more in-depth information, consider checking out: Breaking Down United Bancorp, Inc. (UBCP) Financial Health: Key Insights for Investors

United Bancorp, Inc. (UBCP) Risk Factors

Understanding the risks United Bancorp, Inc. (UBCP) faces is crucial for investors. These risks can stem from both internal operations and external market conditions, influencing the company's financial stability and future performance.

Here's an overview of potential risk factors:

• Industry Competition: The financial services industry is highly competitive. UBCP competes with other community banks, regional banks, and larger national institutions. Increased competition could pressure UBCP's profit margins and market share.
• Regulatory Changes: Banks are subject to extensive regulation. Changes in laws and regulations, such as those related to capital requirements, lending practices, or consumer protection, could increase UBCP's compliance costs and limit its operational flexibility.
• Market Conditions: Economic downturns, changes in interest rates, and other market fluctuations can significantly impact UBCP's business. For example, rising interest rates could decrease demand for loans, while a recession could increase loan defaults.

Operational, financial, and strategic risks are often detailed in UBCP's earnings reports and filings. These may include:

• Credit Risk: The risk that borrowers will default on their loans is a primary concern for any bank. UBCP must carefully manage its loan portfolio to minimize potential losses from defaults.
• Interest Rate Risk: Changes in interest rates can affect UBCP's net interest income, which is the difference between the income it earns on loans and the interest it pays on deposits. Managing this spread is vital for profitability.
• Liquidity Risk: UBCP must maintain sufficient liquidity to meet its obligations to depositors and creditors. A liquidity crisis could damage the bank's reputation and financial health.
• Operational Risk: This includes risks related to fraud, cyberattacks, and other disruptions to UBCP's operations. Strengthening cybersecurity and internal controls is essential to mitigating these risks.

Mitigation strategies or plans may include:

• Diversification: Diversifying its loan portfolio across different industries and geographic regions can help reduce UBCP's exposure to credit risk.
• Hedging: Using financial instruments to hedge against interest rate risk can help stabilize UBCP's net interest income.
• Compliance Programs: Implementing robust compliance programs can help UBCP stay ahead of regulatory changes and avoid costly penalties.
• Cybersecurity Measures: Investing in advanced cybersecurity measures can help protect UBCP from cyberattacks and data breaches.

For more insights into United Bancorp, Inc. (UBCP) and its investors, check out: Exploring United Bancorp, Inc. (UBCP) Investor Profile: Who’s Buying and Why?

United Bancorp, Inc. (UBCP) Growth Opportunities

For United Bancorp, Inc. (UBCP), several factors could drive future growth. These include strategic initiatives, market conditions, and the broader economic environment. Analyzing these elements provides insights into the potential trajectory of UBCP.

Key growth drivers for United Bancorp, Inc. (UBCP) may include:

• Product Innovation: Introducing new financial products and services tailored to meet evolving customer needs.
• Market Expansion: Extending the company's footprint into new geographic areas or demographic segments.
• Acquisitions: Strategic acquisitions of other financial institutions or related businesses to increase market share and expand capabilities.

Predicting future revenue growth and earnings requires a detailed understanding of United Bancorp, Inc.'s (UBCP) operations and market dynamics. While specific projections vary, several factors influence these estimates:

• Economic Conditions: Overall economic growth, interest rates, and regulatory changes impact financial performance.
• Competitive Landscape: The intensity of competition from other financial institutions affects market share and profitability.
• Internal Efficiencies: Improvements in operational efficiency and cost management can boost earnings.

Strategic initiatives and partnerships can significantly influence United Bancorp, Inc.'s (UBCP) growth trajectory. These may include:

• Technology Investments: Implementing advanced technologies to enhance customer experience and streamline operations.
• Strategic Alliances: Forming partnerships with other companies to offer complementary products and services.
• Community Engagement: Strengthening relationships with local communities to build brand loyalty and attract new customers.

United Bancorp, Inc.'s (UBCP) competitive advantages play a crucial role in positioning the company for sustained growth. These advantages might include:

• Strong Brand Reputation: A well-established brand known for trust and reliability.
• Customer Loyalty: High levels of customer retention and satisfaction.
• Efficient Operations: Streamlined processes and effective cost management.

A comprehensive analysis involves considering various scenarios and their potential impact on United Bancorp, Inc.'s (UBCP) financial performance. Staying informed about these factors is essential for investors seeking to understand the company's growth prospects. For more detailed insights into United Bancorp, Inc.'s (UBCP) financial health, refer to: Breaking Down United Bancorp, Inc. (UBCP) Financial Health: Key Insights for Investors