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Stock Analysis & ValuationFulton Financial Corporation (FULTP)

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$18.43
Sector Valuation Confidence Level
High
Valuation methodValue, $Upside, %
Artificial intelligence (AI)39.28113
Intrinsic value (DCF)16.18-12
Graham-Dodd Method12.03-35
Graham Formula44.85143

Strategic Investment Analysis

Company Overview

Fulton Financial Corporation (NASDAQ: FULTP) is a regional financial holding company headquartered in Lancaster, Pennsylvania, with a history dating back to 1882. Operating primarily in Pennsylvania, Maryland, Delaware, New Jersey, and Virginia, Fulton Financial provides a comprehensive suite of consumer and commercial banking services. Its offerings include checking and savings accounts, certificates of deposit, commercial and industrial loans, commercial real estate financing, and wealth management services. The company serves customers through traditional branch banking, ATMs, and digital channels, including mobile and online banking. With a market capitalization of approximately $3.35 billion, Fulton Financial plays a key role in the mid-Atlantic regional banking sector, focusing on community-oriented financial solutions. Its diversified revenue streams—spanning lending, deposit services, and wealth management—position it as a stable player in the competitive regional banking landscape.

Investment Summary

Fulton Financial Corporation presents a moderate investment opportunity with stable fundamentals in the regional banking sector. The company’s diversified revenue model, spanning commercial lending, retail banking, and wealth management, provides resilience against economic fluctuations. With a beta of 0.777, it exhibits lower volatility compared to broader markets, appealing to risk-averse investors. However, its net income of $288.7 million and diluted EPS of $1.63 reflect modest profitability, while its dividend yield (based on a $1.281 per share payout) may attract income-focused investors. Key risks include exposure to regional economic conditions, competitive pressures from larger national banks, and interest rate sensitivity. Investors should weigh its steady cash flow ($416.6M operating cash flow) against its debt levels ($1.78B total debt) and tightening net interest margins in a rising-rate environment.

Competitive Analysis

Fulton Financial Corporation competes in the crowded mid-Atlantic regional banking sector, where it differentiates itself through localized customer relationships and a diversified service portfolio. Its competitive advantages include a strong regional footprint with deep community ties, which fosters customer loyalty and cross-selling opportunities. The company’s commercial lending expertise, particularly in commercial real estate and small business financing, provides a niche edge. However, it faces intense competition from both larger national banks (e.g., PNC, Truist) with greater scale and digital capabilities, as well as community banks with hyper-local focus. Fulton’s wealth management division adds a higher-margin revenue stream but competes with specialized firms. Its digital offerings lag behind tech-forward peers, though its hybrid branch-digital model retains relevance for older demographics. The bank’s conservative risk management (evidenced by its low beta) is a strength in downturns but may limit growth during economic expansions. Its regional concentration is both a strength (localized decision-making) and a risk (limited geographic diversification).

Major Competitors

  • PNC Financial Services Group (PNC): PNC dominates the mid-Atlantic with a national presence, offering superior digital banking tools and larger-scale commercial lending. Its weakness includes less personalized service compared to Fulton’s community focus. PNC’s broader geographic reach reduces regional concentration risk.
  • Truist Financial Corporation (TFC): Truist leverages its Southeast and mid-Atlantic footprint with strong cross-selling capabilities and investment banking services. It outperforms Fulton in technology and scale but faces integration challenges post-merger. Truist’s higher efficiency ratio may pressure Fulton’s margins.
  • Citizens Financial Group (CFG): Citizens competes aggressively in commercial lending and has a stronger Northeast presence. Its digital platform is more advanced, but Fulton’s localized relationships give it an edge in customer retention. Citizens’ higher reliance on net interest income makes it more rate-sensitive.
  • WSFS Financial Corporation (WSFS): A fellow regional player, WSFS overlaps with Fulton in Delaware and Pennsylvania. It excels in niche commercial lending but lacks Fulton’s wealth management diversification. WSFS’s smaller scale limits its pricing power against Fulton.
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