First BanCorp (FBP) stock analysis

P/E above its 5-year median

First BanCorp's P/E of 11.1 is above its own 5-year median of 10.3.

P/E below the industry

First BanCorp's P/E of 11.1 is below the Commercial Banks median of 12.1.

P/S below the industry

First BanCorp's price-to-sales of 3.09 is below the Commercial Banks median of 3.60.

P/B above the industry

First BanCorp's price-to-book of 2.13 is above the Commercial Banks median of 1.29.

Trading above fair value

The share price of $26.21 is above our fair value estimate of $22.95.

Margin of safety under 20%

The price is 14.2% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 8.4% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 10.6% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew 10.4% over the last twelve months, against a 5-year average of 27.5% a year.

Growing slower than the industry

Revenue grew 1.7% over the last twelve months; the Commercial Banks median is 11.3%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin trend

Banks and insurers do not report gross profit.

Return on equity over 15%

Return on equity was 19.4% over the last twelve months and averaged 18.0% over five years.

Return on assets over 1%

Return on assets was 1.9%; for a bank or insurer, 1% or more is considered good.

Return on equity above the industry

First BanCorp's return on equity of 19.4% is above the Commercial Banks median of 11.5%.

Earnings grew over 5 years

Net income grew 27.5% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 28.4% over the last twelve months, against a 5-year average of 27.9%.

Net margin below the industry

First BanCorp's net margin of 28.4% is below the Commercial Banks median of 30.3%.

Well capitalized

Equity is 9.7% of total assets; 8% or more is a comfortable cushion.

Loans funded by deposits

Loans equal 77.6% of deposits, so lending is funded by customer deposits.

Adequate loan-loss reserve

The allowance for credit losses is 1.8% of loans; we look for at least 1%.

Efficient operations

Non-interest expense takes 49.1% of revenue; under 60% is efficient for a bank.

Deposits growing

Deposits grew 0.3% over the past year.

Modest borrowings

Borrowings other than deposits are 1.3% of equity.

Pays a dividend

First BanCorp paid dividends worth 2.3% of the share price over the last twelve months.

Yield below Treasuries

The 2.3% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; First BanCorp yields 2.3%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 32.9% of net income.

Covered by free cash flow

Dividends take 29.7% of free cash flow.