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Relative valuation derived from Financials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 56.3GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
9.0%
Sector: 8.5%
Dividend Analysis audit
INCOME
3.14%
Trailing Yield
$3.14
Per $100 Invested
Solid dividend yield for income-focused strategies.
Est. Payout Ratio
42%SAFE
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, FIRST COMMONWEALTH FINANCIAL CORP /PA/ (FCF) receives a "Hold" rating with a composite score of 53.9/100, ranked #285 out of 4446 stocks. Key factor scores: Quality 56/100, Value 73/100, Momentum 49/100. This is quantitative analysis only — not investment advice.
FIRST COMMONWEALTH FINANCIAL CORP /PA/ (FCF) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does FIRST COMMONWEALTH FINANCIAL CORP /PA/ Do?
First Commonwealth Financial Corporation, a financial holding company, provides various consumer and commercial banking services in the United States. Its consumer services include personal checking accounts, interest-earning checking accounts, savings and health savings accounts, insured money market accounts, debit cards, investment certificates, fixed and variable rate certificates of deposit, mortgage loans, secured and unsecured installment loans, construction and real estate loans, safe deposit facilities, credit cards, credit lines with overdraft checking protection, IRA accounts, and automated teller machine (atm) services, as well as internet, mobile, and telephone banking services. The company's commercial banking services comprise commercial lending, business checking accounts, online account management services, payroll direct deposits, commercial cash management services, and repurchase agreements, as well as ACH origination services. It also offers various trust and asset management services; auto, home, and business insurance, as well as term life insurance; and annuities, mutual funds, and stock and bond brokerage services through a broker-dealer and insurance brokers. As of December 31, 2021, the company operated 118 community banking offices in western and central Pennsylvania, as well as northeastern, central, and southwestern Ohio; corporate banking centers in Pittsburgh, Pennsylvania, as well as Columbus, Canton, and Cleveland, Ohio; and mortgage banking offices in Wexford, Pennsylvania, and Hudson, Westlake, as well as Lewis Center, Ohio. It also operates 136 automated teller machines. First Commonwealth Financial Corporation was founded in 1934 and is headquartered in Indiana, Pennsylvania. FIRST COMMONWEALTH FINANCIAL CORP /PA/ (FCF) is classified as a small-cap stock in the Financials sector, specifically within the Banking industry. The company is led by CEO Thomas M. Price and employs approximately 1,400 people, headquartered in INDIANA, Pennsylvania. With a market capitalization of $1.8B, FCF is one of the notable companies in the Financials sector.
FIRST COMMONWEALTH FINANCIAL CORP /PA/ (FCF) Stock Rating — Hold (April 2026)
As of April 2026, FIRST COMMONWEALTH FINANCIAL CORP /PA/ receives a Hold rating with a composite score of 53.9/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.FCF ranks #285 out of 4,446 stocks in our coverage universe. Within the Financials sector, FIRST COMMONWEALTH FINANCIAL CORP /PA/ ranks #106 of 891 stocks, placing it in the top quartile of its Financials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
FCF Stock Price and 52-Week Range
FIRST COMMONWEALTH FINANCIAL CORP /PA/ (FCF) currently trades at $18.72. The stock lost $0.19 (1.0%) in the most recent trading session. The 52-week high for FCF is $19.08, which means the stock is currently trading -1.9% from its annual peak. The 52-week low is $13.54, putting the stock 38.3% above its annual trough. Recent trading volume was 244K shares, suggesting relatively thin trading activity.
Is FCF Overvalued or Undervalued? — Valuation Analysis
FIRST COMMONWEALTH FINANCIAL CORP /PA/ (FCF) carries a value factor score of 73/100 in the Blank Capital model, suggesting the stock trades at a meaningful discount to its fundamental earning power. The trailing price-to-earnings ratio is 13.30x, compared to the Financials sector average of 14.88x — a discount of 11%. The price-to-book ratio stands at 1.19x, versus the sector average of 1.22x. The price-to-sales ratio is 2.98x, compared to 0.90x for the average Financials stock. On an enterprise value basis, FCF trades at 10.58x EV/EBITDA, versus 3.26x for the sector.
Based on these multiples, FIRST COMMONWEALTH FINANCIAL CORP /PA/ appears attractively valued relative to both its sector peers and the broader market. Value-oriented investors may find the current entry point compelling, particularly if the company's fundamental quality metrics also score well.
FIRST COMMONWEALTH FINANCIAL CORP /PA/ Profitability — ROE, Margins, and Quality Score
FIRST COMMONWEALTH FINANCIAL CORP /PA/ (FCF) earns a quality factor score of 56/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 9.0%, compared to the Financials sector average of 8.5%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at 1.1% versus the sector average of 1.2%.
On a margin basis, FIRST COMMONWEALTH FINANCIAL CORP /PA/ reports gross margins of 0.0%. The operating margin is 28.1% (sector: 21.8%). Net profit margin stands at 22.4%, versus 17.7% for the average Financials stock. Revenue growth is running at 8.0% on a trailing basis, compared to 9.4% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
FCF Debt, Balance Sheet, and Financial Health
FIRST COMMONWEALTH FINANCIAL CORP /PA/ has a debt-to-equity ratio of 694.0%, compared to the Financials sector average of 121.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 1.14x, suggesting adequate working capital coverage. Total debt on the balance sheet is $412M. Cash and equivalents stand at $117M.
FCF has a beta of 0.64, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for FIRST COMMONWEALTH FINANCIAL CORP /PA/ is 88/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
FIRST COMMONWEALTH FINANCIAL CORP /PA/ Revenue and Earnings History — Quarterly Trend
In TTM 2026, FIRST COMMONWEALTH FINANCIAL CORP /PA/ reported revenue of $623M and earnings per share (EPS) of $1.48. Net income for the quarter was $140M. Gross margin was 0.0%. Operating income came in at $175M.
In FY 2025, FIRST COMMONWEALTH FINANCIAL CORP /PA/ reported revenue of $633M and earnings per share (EPS) of $1.48. Net income for the quarter was $152M. Revenue grew 32.3% year-over-year compared to FY 2024. Operating income came in at $191M.
In Q3 2025, FIRST COMMONWEALTH FINANCIAL CORP /PA/ reported revenue of $163M and earnings per share (EPS) of $0.40. Net income for the quarter was $41M. Revenue grew 5.4% year-over-year compared to Q3 2024. Operating income came in at $52M.
In Q2 2025, FIRST COMMONWEALTH FINANCIAL CORP /PA/ reported revenue of $159M and earnings per share (EPS) of $0.32. Net income for the quarter was $33M. Revenue grew 5.5% year-over-year compared to Q2 2024. Operating income came in at $42M.
Over the past 8 quarters, FIRST COMMONWEALTH FINANCIAL CORP /PA/ has demonstrated a growth trajectory, with revenue expanding from $151M to $623M. Investors analyzing FCF stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
FCF Dividend Yield and Income Analysis
FIRST COMMONWEALTH FINANCIAL CORP /PA/ (FCF) currently pays a dividend yield of 3.1%. At this yield, a $10,000 investment in FCF stock would generate approximately $$314.00 in annual dividend income. This compares to the Financials sector average dividend yield of 2.5%, meaning FCF offers above-average income for its sector. With a net margin of 22.4%, the dividend appears well-covered by earnings, suggesting sustainable payouts going forward.
FCF Momentum and Technical Analysis Profile
FIRST COMMONWEALTH FINANCIAL CORP /PA/ (FCF) has a momentum factor score of 49/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 30/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 21/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
FCF vs Competitors — Financials Sector Ranking and Peer Comparison
Comparing FCF against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full FCF vs S&P 500 (SPY) comparison to assess how FIRST COMMONWEALTH FINANCIAL CORP /PA/ stacks up against the broader market across all factor dimensions.
FCF Next Earnings Date
No upcoming earnings date has been announced for FIRST COMMONWEALTH FINANCIAL CORP /PA/ (FCF) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy FCF? — Investment Thesis Summary
FIRST COMMONWEALTH FINANCIAL CORP /PA/ presents a balanced picture with arguments on both sides. The value score of 73/100 suggests attractive pricing relative to fundamentals. Low volatility (stability score 88/100) reduces downside risk.
In summary, FIRST COMMONWEALTH FINANCIAL CORP /PA/ (FCF) earns a Hold rating with a composite score of 53.9/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on FCF stock.
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Institutional Research Dossier
FIRST COMMONWEALTH FINANCIAL CORP /PA/ (FCF) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
We maintain a Hold rating on First Commonwealth Financial Corporation (FCF). While the company exhibits attractive valuation metrics relative to its peers and demonstrates solid profitability, its comparatively weak investment profile and momentum, coupled with a high debt-to-equity ratio, temper our enthusiasm. The bank's strategic focus on community banking in Pennsylvania and Ohio provides a stable, albeit potentially slow-growth, foundation.
The primary concern revolves around FCF's ability to sustain its current profitability levels in a potentially rising interest rate environment and against the backdrop of increasing competition from larger regional and national banks. The bank's high leverage also poses a risk, particularly if asset quality deteriorates. While the valuation appears undemanding, the risks warrant a cautious approach, justifying the Hold rating.
Business Strategy & Overview
First Commonwealth Financial Corporation operates as a community-focused bank, primarily serving western and central Pennsylvania, as well as northeastern, central, and southwestern Ohio. The bank's core strategy revolves around providing a comprehensive suite of banking products and services to both consumers and commercial clients. This includes traditional deposit accounts, lending services (mortgage, commercial, and consumer), and wealth management offerings. The geographic focus allows FCF to build strong relationships with its customer base, differentiating itself from larger, more impersonal national banks.
FCF's revenue generation is primarily driven by net interest income, which is the difference between the interest earned on loans and the interest paid on deposits. Fee income, derived from services such as wealth management, brokerage, and transaction fees, also contributes to the top line. The bank's strategic emphasis on commercial lending aims to capitalize on the growth opportunities within its regional markets. Furthermore, FCF has been expanding its digital banking capabilities to enhance customer convenience and attract a younger demographic.
The company's operational strategy involves maintaining a disciplined approach to expense management and credit quality. FCF invests in technology to improve efficiency and enhance its risk management capabilities. The bank also focuses on attracting and retaining experienced banking professionals to provide personalized service to its clients. The expansion of corporate banking centers in key metropolitan areas like Pittsburgh and Columbus indicates a strategic effort to capture larger commercial clients.
FCF's competitive landscape includes a mix of regional and national banks, as well as credit unions. The bank differentiates itself through its community-focused approach, personalized service, and local market expertise. However, it faces challenges from larger banks with greater resources and broader product offerings. The increasing prevalence of fintech companies also poses a competitive threat, particularly in the areas of digital banking and payments.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
8.0%
Sector: 9.4%
-15% VS SCTR
Economic Moat Analysis
First Commonwealth Financial Corporation's economic moat can be classified as Narrow. The primary source of this narrow moat stems from its established presence and brand recognition within its regional markets. The bank's long-standing history and community-focused approach have fostered customer loyalty, creating a degree of stickiness that is difficult for new entrants to replicate quickly. This local presence provides a competitive advantage in attracting and retaining customers who value personalized service and local market expertise.
Switching costs, while not exceptionally high, contribute to the narrow moat. Customers who have established banking relationships with FCF, including direct deposits, loan accounts, and wealth management services, may face some inconvenience in switching to a competitor. This inertia provides FCF with a degree of pricing power and customer retention. However, the increasing ease of online banking and the proliferation of alternative financial service providers are eroding these switching costs.
The bank's intangible assets, such as its reputation and brand name, also contribute to its competitive advantage. FCF has built a solid reputation for providing reliable banking services and supporting its local communities. This positive brand image enhances customer trust and attracts new business. However, maintaining this reputation requires ongoing investment in customer service and community engagement.
Efficient scale is not a significant factor in FCF's economic moat. While the banking industry benefits from economies of scale, FCF's relatively small size compared to national banks limits its ability to achieve significant cost advantages. The bank's focus on community banking also necessitates a higher level of personalized service, which can offset some of the potential cost savings from scale.
Overall, FCF's narrow moat is primarily based on its established regional presence, customer relationships, and brand reputation. However, the increasing competition from larger banks and fintech companies, coupled with the erosion of switching costs, poses a threat to its competitive advantage. The bank needs to continue investing in its customer service, digital capabilities, and community engagement to maintain its narrow moat.
Financial Health & Profitability
First Commonwealth Financial Corporation demonstrates a mixed financial profile. The company's revenue has shown growth, with TTM revenue at $632.69 million, a significant increase from $478.12 million in FY2024. This growth is further supported by the quarterly revenue trend, indicating consistent performance. However, the revenue growth rate of 8.0% is slightly below the sector average of 9.3%, suggesting that FCF is not outperforming its peers in terms of top-line expansion.
Profitability metrics are generally strong. The company's net income stands at $152.30 million, resulting in a net margin of 22.4%, which is significantly higher than the sector average of 17.8%. The operating margin of 28.1% also exceeds the sector average of 22.0%, indicating efficient cost management. The Return on Equity (ROE) of 9.0% is slightly above the sector average of 8.5%, reflecting the company's ability to generate profits from shareholders' equity.
The balance sheet presents a more concerning picture. The company's total debt of $411.61 million is substantial, resulting in a high debt-to-equity ratio of 694.00, which is significantly higher than the sector average of 115.00. This high leverage increases the company's financial risk and vulnerability to adverse economic conditions. The current ratio of 1.14 indicates adequate liquidity to meet short-term obligations, but the high debt level remains a concern.
Cash flow generation is positive, with a free cash flow of $172.61 million. However, the free cash flow figure is not available for the most recent fiscal year, making it difficult to assess the company's recent cash flow performance. The historical free cash flow of $493.15M in FY2024 is significantly higher than the TTM figure, suggesting a potential decline in cash flow generation. The company's total cash balance of $117.24 million provides some cushion, but the high debt level limits its financial flexibility.
Overall, FCF's financial health is characterized by strong profitability and revenue growth, but is tempered by a high debt-to-equity ratio. The company's ability to sustain its profitability and manage its debt burden will be crucial for its long-term financial stability.
Valuation Assessment
First Commonwealth Financial Corporation's valuation presents a mixed picture. The company's P/E ratio of 11.4x is lower than the sector average of 15.5x, suggesting that the stock may be undervalued relative to its earnings. Similarly, the EV/EBITDA ratio of 2.3x is significantly lower than the sector average of 3.5x, further indicating potential undervaluation. These metrics suggest that the market may be undervaluing FCF's earnings and cash flow generation capabilities.
However, the valuation must be considered in the context of the company's growth prospects and financial risk. While FCF has demonstrated revenue growth, its growth rate is slightly below the sector average. The company's high debt-to-equity ratio also increases its financial risk, which may justify a lower valuation multiple. Investors may be discounting the stock due to concerns about the company's ability to manage its debt burden and sustain its profitability in a potentially rising interest rate environment.
The company's free cash flow yield is difficult to assess due to the lack of recent free cash flow data. However, based on the historical free cash flow of $493.15 million in FY2024, the free cash flow yield would be relatively high. This suggests that the company is generating a significant amount of cash relative to its market capitalization. However, the potential decline in cash flow generation in the most recent fiscal year raises concerns about the sustainability of this high free cash flow yield.
Compared to its historical valuation, FCF's current valuation appears to be reasonable. The company's P/E ratio has fluctuated over time, but the current level is within its historical range. However, the high debt-to-equity ratio remains a concern, as it increases the company's financial risk and may limit its future growth opportunities.
Overall, FCF's valuation appears to be attractive based on its P/E and EV/EBITDA ratios. However, the company's below-average revenue growth, high debt-to-equity ratio, and potential decline in cash flow generation warrant a cautious approach. The stock may be fairly valued, but the risks justify a Hold rating.
Risk & Uncertainty
First Commonwealth Financial Corporation faces several specific risks that could negatively impact its business and financial performance. One of the primary risks is interest rate risk. As a bank, FCF's profitability is sensitive to changes in interest rates. A rising interest rate environment could increase the company's funding costs and reduce its net interest margin, particularly if it is unable to reprice its loan portfolio quickly enough. Conversely, a falling interest rate environment could reduce its loan yields and compress its net interest margin.
Credit risk is another significant concern. FCF's loan portfolio is exposed to the risk of borrowers defaulting on their loans. A deterioration in the economic conditions in its regional markets could increase the number of loan defaults and negatively impact the company's asset quality. The bank's high debt-to-equity ratio exacerbates this risk, as it reduces its financial flexibility to absorb loan losses.
Competition is also a major risk factor. FCF operates in a highly competitive market, facing competition from larger regional and national banks, as well as credit unions and fintech companies. These competitors may have greater resources, broader product offerings, and more advanced technology, which could put FCF at a disadvantage. The increasing prevalence of online banking and mobile payments also poses a threat to FCF's traditional branch-based business model.
Regulatory risk is another important consideration. The banking industry is subject to extensive regulation, and changes in regulations could negatively impact FCF's business and financial performance. For example, changes in capital requirements, lending regulations, or consumer protection laws could increase the company's compliance costs and limit its ability to generate profits.
Finally, operational risk is a constant concern. FCF is exposed to the risk of fraud, cyberattacks, and other operational disruptions. A major operational incident could damage the company's reputation, disrupt its operations, and result in financial losses.
Bulls Say / Bears Say
The Bull Case
BULL VIEWFCF's low valuation multiples (P/E and EV/EBITDA) compared to the sector suggest significant upside potential if the market recognizes its strong profitability.
BULL VIEWThe bank's focus on community banking and strong regional presence provides a stable customer base and a competitive advantage in its local markets.
BULL VIEWFCF's consistent revenue growth and high operating margins demonstrate its ability to generate profits and manage costs effectively.
The Bear Case
BEAR VIEWFCF's high debt-to-equity ratio significantly increases its financial risk and vulnerability to adverse economic conditions.
BEAR VIEWThe bank's below-average revenue growth rate compared to the sector indicates that it is not keeping pace with its peers and may be losing market share.
BEAR VIEWRising interest rates could compress FCF's net interest margin and negatively impact its profitability, given its reliance on traditional lending activities.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score FCF and 4,400+ other equities.
FIRST COMMONWEALTH FINANCIAL CORP /PA/ exhibits a 111% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
1.1%
Sector: 1.2%
Gross Margin
Pricing power and cost efficiency
0.0%
Sector: 0.0%
Operating Margin
Core business profitability
28.1%
Sector: 21.8%
Net Margin
Bottom-line profitability
22.4%
Sector: 17.7%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield2.48%
Yield Delta+27%
Income Projection audit
A $10,000 investment would generate approximately $314 annually in dividends at the current trailing rate.
