Saturday, 19. August 2017  
28.06.2017 22:57
Author: Nic Wright

STOCK SCREEN: U.S. Banks With Low Price/Book Multiple And Attractive Dividend Yield Profile

 

For the first time since the Fed began the reviews in the wake of the 2008 financial crisis every lender the passed annual stress tests. Even more, after stress testing the sector the Federal Reserve told big banks they have more than enough capital.

 

Promptly, JPMorgan Chase & Co., Citigroup Inc. and Bank of America Corp. unveiled plans to boost dividends and stock buybacks. JPMorgan, the nation’s largest lender, said it’s boosting its quarterly dividend 12 percent and may increase share repurchases to $19.4 billion over the next 12 months -- roughly 90 percent more than in the prior year. Citigroup plans to double its dividend and may purchase up to $15.6 billion. Bank of America hiked its dividend 60 percent and will buy back up to $12 billion.

 

JPMorgan Chase & Co., Citigroup Inc. and Bank of America Corp., along with Wells Fargo & Co. and Morgan Stanley, may collectively buy as much as $64 billion in stock, while Goldman Sachs Group Inc. has yet to make an announcement. In looking for ideas this week, we screen for U.S. banks with Price/Book ratio below 1.1, with improving Dividend Yield and the opportunity to accelerate payouts in 2018.

 

Here are the filter criteria:

1. Market capitalization above 1bn.

2. P/BV equal or less than 1.1

 

Here is our list of stocks matching all criteria in alphabetical order. Company names in the table below are linked to the ANALYZER, our single stock analysis tool. Intrinsic Value Model assumptions can be adapted in the MODELER, our modeling and forecasting environment:

CLICK COMPANY NAME FOR DETAILED STOCK VALUE ANALYSIS

LAST PRICE

MARKET CAP.

MEAN MULTIPLE UPSIDE [%]

GRAHAM UPSIDE [%]

GREENBLATT UPSIDE [%]

PRICE / BOOK

DIVIDEND YIELD [%]

 BANK OF AMERICA CORP

23.88

240590

-27.1

-74.0

-72.4

0.9

1.7

 BENEFICIAL BANCORP INC

15.05

1152

14.5

-88.3

-83.7

1.1

1.6

 CAPITAL ONE FINANCIAL CORP

82.98

40077

6.9

-12.6

15.3

0.8

2.1

 CITIGROUP INC

65.18

180564

-7.1

-45.2

1.7

0.8

1.3

 MORGAN STANLEY

44.32

83667

-18.6

-48.5

-24.4

1.1

2.1

 PEOPLE'S UNITED FINANCIAL

17.52

6033

-16.9

-59.0

-39.7

1.0

4.1

 REGIONS FINANCIAL CORP

14.09

16937

-32.4

-66.1

45.2

1.0

2.1

 UMPQUA HOLDINGS CORP

18.39

4053

-12.1

-72.1

-30.2

1.0

3.7