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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: 67GRADE B
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
16.4%
Sector: 8.5%
Dividend Analysis audit
INCOME
2.86%
Trailing Yield
$2.86
Per $100 Invested
Solid dividend yield for income-focused strategies.
Est. Payout Ratio
19%SAFE
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, UNIVEST FINANCIAL Corp (UVSP) receives a "Buy" rating with a composite score of 58.9/100, ranked #42 out of 4446 stocks. Key factor scores: Quality 67/100, Value 75/100, Momentum 54/100. This is quantitative analysis only — not investment advice.
UNIVEST FINANCIAL Corp (UVSP) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does UNIVEST FINANCIAL Corp Do?
Univest Financial Corporation operates as the bank holding company for Univest Bank and Trust Co. that provides banking products and services primarily in Pennsylvania. It operates through three segments: Banking, Wealth Management, and Insurance. The Banking segment provides a range of banking services, such as deposit taking, loan origination and servicing, mortgage banking, other general banking, and equipment lease financing services for individuals, businesses, municipalities, and nonprofit organizations. The Wealth Management segment offers investment advisory, financial planning, and trust and brokerage services for private families and individuals, municipal pension plans, retirement plans, and trusts and guardianships. The Insurance segment provides commercial property and casualty insurance, employee benefits solutions, personal insurance lines, and human resources consulting services. It serves customers primarily in Bucks, Berks, Chester, Cumberland, Dauphin, Delaware, Lancaster, Lehigh, Montgomery, Northampton, Philadelphia, and York counties in Pennsylvania; and Atlantic, Burlington, and Cape May counties in New Jersey through 37 banking offices. The company was formerly known as Univest Corporation of Pennsylvania and changed its name to Univest Financial Corporation in January 2019. Univest Financial Corporation was founded in 1876 and is headquartered in Souderton, Pennsylvania. UNIVEST FINANCIAL Corp (UVSP) is classified as a small-cap stock in the Financials sector, specifically within the Banking industry. The company is led by CEO Jeffrey M. Schweitzer and employs approximately 970 people, headquartered in Souderton, Pennsylvania. With a market capitalization of $978M, UVSP is one of the notable companies in the Financials sector.
As of April 2026, UNIVEST FINANCIAL Corp receives a Buy rating with a composite score of 58.9/100 and 4 out of 5 stars from the Blank Capital Research quantitative model.UVSP ranks #42 out of 4,446 stocks in our coverage universe. Within the Financials sector, UNIVEST FINANCIAL Corp ranks #26 of 891 stocks, placing it in the top 10% 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%).
UVSP Stock Price and 52-Week Range
UNIVEST FINANCIAL Corp (UVSP) currently trades at $37.11. The stock lost $0.50 (1.3%) in the most recent trading session. The 52-week high for UVSP is $36.20, which means the stock is currently trading 2.5% from its annual peak. The 52-week low is $22.83, putting the stock 62.5% above its annual trough. Recent trading volume was 122K shares, suggesting relatively thin trading activity.
Is UVSP Overvalued or Undervalued? — Valuation Analysis
UNIVEST FINANCIAL Corp (UVSP) carries a value factor score of 75/100 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 6.50x, compared to the Financials sector average of 14.88x — a discount of 56%. The price-to-book ratio stands at 1.07x, versus the sector average of 1.22x. The price-to-sales ratio is 2.87x, compared to 0.90x for the average Financials stock. On an enterprise value basis, UVSP trades at 9.30x EV/EBITDA, versus 3.26x for the sector.
Based on these multiples, UNIVEST FINANCIAL Corp 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.
UNIVEST FINANCIAL Corp Profitability — ROE, Margins, and Quality Score
UNIVEST FINANCIAL Corp (UVSP) earns a quality factor score of 67/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 16.4%, compared to the Financials sector average of 8.5%, which is within a healthy range. Return on assets (ROA) comes in at 1.8% versus the sector average of 1.2%.
On a margin basis, UNIVEST FINANCIAL Corp reports gross margins of 0.0%. The operating margin is 31.5% (sector: 21.8%). Net profit margin stands at 46.2%, versus 17.7% for the average Financials stock. Revenue growth is running at -16.6% 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.
UVSP Debt, Balance Sheet, and Financial Health
UNIVEST FINANCIAL Corp has a debt-to-equity ratio of 794.0%, 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 1.13x, suggesting adequate working capital coverage. Total debt on the balance sheet is $342M. Cash and equivalents stand at $71M.
UVSP has a beta of 0.77, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for UNIVEST FINANCIAL Corp is 82/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
UNIVEST FINANCIAL Corp Revenue and Earnings History — Quarterly Trend
In TTM 2026, UNIVEST FINANCIAL Corp reported revenue of $350M and earnings per share (EPS) of $3.16. Net income for the quarter was $155M. Gross margin was 0.0%. Operating income came in at $108M.
In FY 2025, UNIVEST FINANCIAL Corp reported revenue of $328M and earnings per share (EPS) of $3.16. Net income for the quarter was $182M. Revenue grew 9.6% year-over-year compared to FY 2024. Operating income came in at $113M.
In Q3 2025, UNIVEST FINANCIAL Corp reported revenue of $83M and earnings per share (EPS) of $0.89. Net income for the quarter was $51M. Revenue grew -21.8% year-over-year compared to Q3 2024. Operating income came in at $32M.
In Q2 2025, UNIVEST FINANCIAL Corp reported revenue of $81M and earnings per share (EPS) of $0.69. Net income for the quarter was $40M. Revenue grew -18.8% year-over-year compared to Q2 2024. Operating income came in at $25M.
Over the past 8 quarters, UNIVEST FINANCIAL Corp has demonstrated a growth trajectory, with revenue expanding from $100M to $350M. Investors analyzing UVSP stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
UVSP Dividend Yield and Income Analysis
UNIVEST FINANCIAL Corp (UVSP) currently pays a dividend yield of 2.9%. At this yield, a $10,000 investment in UVSP stock would generate approximately $$286.00 in annual dividend income. This compares to the Financials sector average dividend yield of 2.5%, meaning UVSP offers above-average income for its sector. With a net margin of 46.2%, the dividend appears well-covered by earnings, suggesting sustainable payouts going forward.
UVSP Momentum and Technical Analysis Profile
UNIVEST FINANCIAL Corp (UVSP) has a momentum factor score of 54/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 37/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 22/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
UVSP vs Competitors — Financials Sector Ranking and Peer Comparison
Comparing UVSP against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full UVSP vs S&P 500 (SPY) comparison to assess how UNIVEST FINANCIAL Corp stacks up against the broader market across all factor dimensions.
UVSP Next Earnings Date
No upcoming earnings date has been announced for UNIVEST FINANCIAL Corp (UVSP) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy UVSP? — Investment Thesis Summary
The bull case for UNIVEST FINANCIAL Corp rests on several quantitative strengths. The quality score of 67/100 indicates above-average profitability and business fundamentals. The value score of 75/100 suggests attractive pricing relative to fundamentals. Low volatility (stability score 82/100) reduces downside risk.
In summary, UNIVEST FINANCIAL Corp (UVSP) earns a Buy rating with a composite score of 58.9/100 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 UVSP stock.
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Institutional Research Dossier
UNIVEST FINANCIAL Corp (UVSP) Deep Dive Analysis
Published on March 24, 2026
Action RatingBuy
Sections
Executive Summary
We initiate coverage on Univest Financial Corporation (UVSP) with a Buy rating, driven by its compelling valuation relative to its profitability and the broader financial sector. UVSP's superior ROE and net margins, coupled with a significantly lower P/E and EV/EBITDA compared to its peers, suggest the market is undervaluing the company's earnings power. While revenue growth has been a concern, the company's strong performance in net income and EPS indicates effective cost management and operational efficiency, making it an attractive investment opportunity.
The primary takeaway is that UVSP presents a value proposition for investors seeking exposure to the regional banking sector. Its strong profitability metrics, particularly its high net income and ROE, combined with its discounted valuation, make it a potentially rewarding investment. However, investors should closely monitor the company's revenue growth and its ability to maintain its profitability in a potentially challenging economic environment.
Business Strategy & Overview
Univest Financial Corporation operates as a diversified financial services provider, offering banking, wealth management, and insurance solutions primarily in Pennsylvania and New Jersey. The company's core business revolves around its Banking segment, which provides traditional banking services such as deposit taking, loan origination, and mortgage banking. This segment caters to a diverse clientele, including individuals, businesses, municipalities, and non-profit organizations, indicating a broad market reach within its geographic footprint.
The Wealth Management segment contributes to UVSP's revenue stream by offering investment advisory, financial planning, and trust and brokerage services. This segment targets private families, individuals, municipal pension plans, retirement plans, and trusts, demonstrating a focus on high-value clients seeking comprehensive financial planning. The Insurance segment further diversifies UVSP's revenue base by providing commercial property and casualty insurance, employee benefits solutions, personal insurance lines, and human resources consulting services. This segment allows UVSP to capture a portion of the insurance market, providing a hedge against fluctuations in the banking sector.
UVSP's strategic positioning involves operating through 37 banking offices across several counties in Pennsylvania and New Jersey. This regional focus allows the company to build strong relationships with its customers and tailor its services to the specific needs of the local markets. The company's history, dating back to 1876, suggests a long-standing presence and established reputation within its operating region, which can be a significant advantage in attracting and retaining customers.
The company's recent name change from Univest Corporation of Pennsylvania to Univest Financial Corporation in 2019 signals a broader strategic vision, potentially indicating an intention to expand its service offerings or geographic reach beyond Pennsylvania. However, based on the provided data, the company's revenue growth has been negative, suggesting potential challenges in executing its strategic initiatives. The company's ability to adapt to changing market conditions and effectively manage its operations will be crucial for its future success.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
-16.6%
Sector: 9.4%
-277% VS SCTR
Economic Moat Analysis
Univest Financial Corporation's economic moat can be classified as Narrow. While the company possesses certain advantages that provide a degree of competitive protection, they are not substantial enough to warrant a Wide moat rating. These advantages primarily stem from its established regional presence and customer relationships.
The company's long history in the Pennsylvania and New Jersey markets has allowed it to build a strong reputation and brand recognition. This local presence fosters customer loyalty and provides a competitive edge over larger, national banks that may lack the same level of community engagement. Furthermore, the company's diversified service offerings, including banking, wealth management, and insurance, create cross-selling opportunities and enhance customer retention.
However, UVSP faces significant competition from other regional and national banks, as well as non-bank financial service providers. The banking industry is highly fragmented, and customers have numerous options for their financial needs. While UVSP's local presence provides some differentiation, it is not a unique or irreplaceable advantage. The company's services are largely commoditized, and customers can easily switch to competitors offering better rates or services.
The absence of significant switching costs further weakens UVSP's moat. Customers can easily transfer their accounts and loans to other banks without incurring substantial penalties or inconvenience. This lack of stickiness makes it challenging for UVSP to retain customers in the face of competitive pressures. While the company's wealth management and insurance services may offer some degree of switching costs, they are not significant enough to create a substantial barrier to entry for competitors.
UVSP's moat is also limited by the lack of significant intangible assets. While the company's brand reputation is valuable, it is not a proprietary asset that cannot be replicated by competitors. The company does not possess any unique patents or technologies that provide a sustainable competitive advantage. Furthermore, UVSP does not benefit from significant cost advantages or efficient scale. Its operating margin, while higher than the sector average, is not substantially higher, suggesting that it does not have a significant cost advantage over its competitors.
In conclusion, while UVSP possesses some advantages that provide a degree of competitive protection, its economic moat is relatively narrow. The company's established regional presence and customer relationships provide some differentiation, but it faces significant competition and lacks significant switching costs, intangible assets, or cost advantages. Therefore, we believe that UVSP's competitive advantages are not sustainable enough to warrant a Wide moat rating.
Financial Health & Profitability
Univest Financial Corporation exhibits a mixed financial profile. The company's profitability metrics are strong, with a TTM net income of $181.51 million and an ROE of 16.4%, significantly exceeding the sector average of 8.5%. The net margin of 46.2% is also substantially higher than the sector average of 17.8%, indicating efficient operations and effective cost management. However, the company's revenue growth has been negative, with a TTM revenue decline of 16.6%, contrasting sharply with the sector's 9.3% growth. This revenue decline is a concern and warrants further investigation.
Analyzing the quarterly financial history reveals a fluctuating revenue trend. While the most recent fiscal year (FY2025) shows a revenue of $328.06 million, it is still below the FY2023 revenue of $371.73 million. The net income, however, has shown significant improvement, jumping from $75.93 million in FY2024 to $181.51 million in FY2025. This suggests that the company has been successful in improving its profitability despite the revenue decline, possibly through cost-cutting measures or improved efficiency.
The company's balance sheet reveals a total debt of $341.55 million and a current ratio of 1.13. The debt-to-equity ratio is exceptionally high at 794.00, significantly exceeding the sector average of 115.00. This high leverage poses a risk, as it increases the company's vulnerability to interest rate fluctuations and economic downturns. The company's ability to manage its debt effectively will be crucial for its financial stability.
The company's free cash flow is relatively low at $10.34 million, which may limit its ability to invest in growth opportunities or return capital to shareholders. The company's total cash position is $70.84 million, which provides some liquidity buffer, but may not be sufficient to address its high debt levels. The company's ability to generate consistent and growing free cash flow will be essential for its long-term financial health.
Overall, UVSP's financial health presents a mixed picture. The company's strong profitability metrics are encouraging, but the negative revenue growth and high leverage are concerning. The company's ability to address these challenges will determine its future financial performance. Investors should closely monitor the company's revenue trends, debt management, and cash flow generation.
Valuation Assessment
Univest Financial Corporation's valuation appears attractive based on several key metrics. The company's P/E ratio of 10.4x is significantly lower than the sector average of 15.5x, suggesting that the stock is undervalued relative to its earnings. Similarly, the EV/EBITDA ratio of 2.0x is substantially lower than the sector average of 3.5x, further indicating undervaluation. These metrics suggest that the market is not fully recognizing the company's earnings power.
The company's strong profitability metrics, such as its high ROE and net margin, further support the argument for undervaluation. The company's ROE of 16.4% is significantly higher than the sector average of 8.5%, indicating that the company is generating superior returns on its equity. The net margin of 46.2% is also substantially higher than the sector average of 17.8%, suggesting that the company is more efficient in converting revenue into profit.
However, the company's negative revenue growth is a concern that may be contributing to its discounted valuation. The company's TTM revenue decline of 16.6% is a significant drag on its overall financial performance and may be causing investors to be cautious about its future prospects. The company's ability to reverse this revenue decline will be crucial for its valuation to improve.
Considering the company's strong profitability metrics and discounted valuation, the stock appears to be a potentially attractive investment opportunity. However, investors should carefully consider the risks associated with the company's negative revenue growth and high leverage. The company's ability to address these challenges will determine its future valuation.
A discounted cash flow (DCF) analysis, which is beyond the scope of the provided data, would provide a more comprehensive valuation assessment. However, based on the available metrics, UVSP appears to be undervalued relative to its peers and its own historical performance. The market may be overly focused on the company's revenue decline and overlooking its strong profitability and efficient operations.
Risk & Uncertainty
Univest Financial Corporation faces several specific risks that could negatively impact its business and financial performance. One of the most significant risks is the company's high debt-to-equity ratio of 794.00, which is substantially higher than the sector average. This high leverage increases the company's vulnerability to interest rate fluctuations and economic downturns. Rising interest rates could increase the company's borrowing costs and reduce its profitability. An economic downturn could lead to increased loan defaults and reduced demand for the company's services.
Another significant risk is the company's negative revenue growth. The company's TTM revenue decline of 16.6% is a major concern and could indicate underlying problems with its business model or competitive positioning. The company's ability to reverse this revenue decline is crucial for its future success. Failure to do so could lead to further erosion of its market share and profitability.
The company also faces regulatory risks associated with the banking industry. Changes in banking regulations could increase the company's compliance costs and limit its ability to generate revenue. The company is also subject to scrutiny from regulatory agencies, which could lead to fines or other penalties if it is found to be in violation of regulations.
Competition from other regional and national banks is another significant risk. The banking industry is highly competitive, and UVSP faces competition from larger, more established banks with greater resources. These competitors may be able to offer better rates or services, which could attract customers away from UVSP.
Finally, the company faces operational risks associated with its business operations. These risks include the potential for fraud, cyberattacks, and other disruptions to its operations. A major operational disruption could damage the company's reputation and lead to financial losses.
Bulls Say / Bears Say
The Bull Case
BULL VIEWUVSP's significantly lower P/E and EV/EBITDA ratios compared to the sector indicate substantial undervaluation, offering a compelling entry point for value investors.
BULL VIEWThe company's superior ROE and net margin demonstrate efficient operations and strong profitability, suggesting a sustainable competitive advantage despite revenue headwinds.
BULL VIEWUVSP's diversified service offerings across banking, wealth management, and insurance provide resilience and cross-selling opportunities, mitigating risks associated with a single business line.
The Bear Case
BEAR VIEWUVSP's negative revenue growth of 16.6% signals fundamental problems with its business model and raises concerns about its ability to compete effectively in the long term.
BEAR VIEWThe company's extremely high debt-to-equity ratio of 794.00 exposes it to significant financial risk, making it vulnerable to interest rate hikes and economic downturns.
BEAR VIEWUVSP's relatively low free cash flow limits its ability to invest in growth initiatives or return capital to shareholders, hindering its long-term value creation potential.
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 UVSP and 4,400+ other equities.
UNIVEST FINANCIAL Corp exhibits a 84% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
1.8%
Sector: 1.2%
Gross Margin
Pricing power and cost efficiency
0.0%
Sector: 0.0%
Operating Margin
Core business profitability
31.5%
Sector: 21.8%
Net Margin
Bottom-line profitability
46.2%
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+15%
Income Projection audit
A $10,000 investment would generate approximately $286 annually in dividends at the current trailing rate.
