First Community Bankshares Inc (FCBC) stock analysis

P/E above its 5-year median

First Community Bankshares's P/E of 13.7 is above its own 5-year median of 12.8.

P/E above the industry

First Community Bankshares's P/E of 13.7 is above the Commercial Banks median of 12.1.

P/S above the industry

First Community Bankshares's price-to-sales of 4.41 is above the Commercial Banks median of 3.60.

P/B above the industry

First Community Bankshares's price-to-book of 1.57 is above the Commercial Banks median of 1.29.

Trading above fair value

The share price of $45.29 is above our fair value estimate of $39.40.

Margin of safety under 20%

The price is 15.0% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 3.8% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -39.3% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 26.4% over the last twelve months, against a 5-year average of -19.7% a year.

Growing faster than the industry

Revenue grew 17.5% 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 under 15%

Return on equity was 11.8% over the last twelve months and averaged 7.6% over five years; we look for 15% on both.

Return on assets over 1%

Return on assets was 1.8%; for a bank or insurer, 1% or more is considered good.

Return on equity above the industry

First Community Bankshares's return on equity of 11.8% is above the Commercial Banks median of 11.5%.

Earnings shrank over 5 years

Net income shrank 19.7% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 32.1% over the last twelve months, against a 5-year average of 22.4%.

Net margin above the industry

First Community Bankshares's net margin of 32.1% is above the Commercial Banks median of 30.3%.

Well capitalized

Equity is 15.0% of total assets; 8% or more is a comfortable cushion.

Loans funded by deposits

Needs loans and deposits.

Adequate loan-loss reserve

The allowance for credit losses is not reported.

Efficient operations

Non-interest expense takes 57.6% of revenue; under 60% is efficient for a bank.

Deposits growing

Deposits grew 15.1% over the past year.

Borrowings

Needs debt and equity figures.

Pays a dividend

First Community Bankshares paid dividends worth 2.8% of the share price over the last twelve months.

Yield below Treasuries

The 2.8% 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 Community Bankshares yields 2.8%.

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 67.3% of net income.

Not covered by free cash flow

Dividends take 92.9% of free cash flow.