NasdaqGS:FCBC

Stock Analysis Report

First Community Bankshares

Executive Summary

First Community Bankshares, Inc. operates as the financial holding company for First Community Bank that provides various banking products and services.


Snowflake Analysis

Flawless balance sheet established dividend payer.


Similar Companies

Share Price & News

How has First Community Bankshares's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: FCBC's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

5.7%

FCBC

2.9%

US Banks

5.3%

US Market


1 Year Return

-30.3%

FCBC

-27.8%

US Banks

-10.7%

US Market

Return vs Industry: FCBC underperformed the US Banks industry which returned -26.4% over the past year.

Return vs Market: FCBC underperformed the US Market which returned -10.4% over the past year.


Shareholder returns

FCBCIndustryMarket
7 Day5.7%2.9%5.3%
30 Day-15.3%-26.3%-13.6%
90 Day-25.1%-39.3%-19.8%
1 Year-28.1%-30.3%-25.6%-27.8%-8.9%-10.7%
3 Year3.7%-5.9%-17.1%-23.1%15.5%8.0%
5 Year53.1%31.2%10.9%-1.7%35.2%20.4%

Price Volatility Vs. Market

How volatile is First Community Bankshares's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is First Community Bankshares undervalued compared to its fair value and its price relative to the market?

20.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FCBC ($23.36) is trading below our estimate of fair value ($29.23)

Significantly Below Fair Value: FCBC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: FCBC is poor value based on its PE Ratio (9.4x) compared to the Banks industry average (8.9x).

PE vs Market: FCBC is good value based on its PE Ratio (9.4x) compared to the US market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: FCBC's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: FCBC is overvalued based on its PB Ratio (1x) compared to the US Banks industry average (0.8x).


Next Steps

Future Growth

How is First Community Bankshares forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

-6.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FCBC's earnings are forecast to decline over the next 3 years (-6.7% per year).

Earnings vs Market: FCBC's earnings are forecast to decline over the next 3 years (-6.7% per year).

High Growth Earnings: FCBC's earnings are forecast to decline over the next 3 years.

Revenue vs Market: FCBC's revenue (7.3% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: FCBC's revenue (7.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FCBC's Return on Equity is forecast to be low in 3 years time (8%).


Next Steps

Past Performance

How has First Community Bankshares performed over the past 5 years?

10.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FCBC has high quality earnings.

Growing Profit Margin: FCBC's current net profit margins (34.5%) are higher than last year (31.6%).


Past Earnings Growth Analysis

Earnings Trend: FCBC's earnings have grown by 10.4% per year over the past 5 years.

Accelerating Growth: FCBC's earnings growth over the past year (6.8%) is below its 5-year average (10.4% per year).

Earnings vs Industry: FCBC earnings growth over the past year (6.8%) underperformed the Banks industry 10.9%.


Return on Equity

High ROE: FCBC's Return on Equity (9%) is considered low.


Next Steps

Financial Health

How is First Community Bankshares's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: FCBC has a low level of unsold assets or inventory.

Debt Coverage by Assets: FCBC's debt is covered by short term assets (assets are 144.2x debt).


Financial Institutions Analysis

Asset Level: FCBC's level of assets compared to its equity is low.

Allowance for Bad Loans: FCBC has a sufficient allowance for bad loans.

Low Risk Liabilities: FCBC's liabilities are made up of primarily low risk sources of funding.

Loan Level: FCBC has an acceptable proportion of non-loan assets held.

Low Risk Deposits: FCBC's loans are broadly funded by customer deposits.

Level of Bad Loans: FCBC has an appropriate level of bad loans (0.81%)


Next Steps

Dividend

What is First Community Bankshares's current dividend yield, its reliability and sustainability?

4.32%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FCBC's dividend (4.28%) is higher than the bottom 25% of dividend payers in the US market (1.95%).

High Dividend: FCBC's dividend (4.28%) is low compared to the top 25% of dividend payers in the US market (5.4%).


Stability and Growth of Payments

Stable Dividend: FCBC's dividends per share have been stable in the past 10 years.

Growing Dividend: FCBC's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (40.4%), FCBC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FCBC's dividends in 3 years are forecast to be covered by earnings (50.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.7yrs

Average management tenure


CEO

Will Stafford (55yo)

6.67s

Tenure

US$826,936

Compensation

Mr. William P. Stafford, II, has been the Chief Executive Officer of First Community Bankshares, Inc., the holding company of First Community Bank since August 31, 2013. Mr. Stafford serves as Corporate Se ...


CEO Compensation Analysis

Compensation vs Market: Will's total compensation ($USD826.94K) is below average for companies of similar size in the US market ($USD2.12M).

Compensation vs Earnings: Will's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
William Stafford
Chairman & CEO6.67yrsUS$826.94k1.12% $4.6m
Gary Mills
President & Director3.67yrsUS$1.09m0.31% $1.3m
David Brown
Chief Financial Officer13.92yrsUS$534.53k0.14% $583.1k
Jason Belcher
Chief Operating Officer0.25yrUS$400.43k0.095% $393.4k
P. Bundy
Treasurer7.25yrsno datano data
Sarah Harmon
Company Secretaryno datano data0.029% $117.9k

6.7yrs

Average Tenure

47.5yo

Average Age

Experienced Management: FCBC's management team is seasoned and experienced (6.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
William Stafford
Chairman & CEO6.67yrsUS$826.94k1.12% $4.6m
Gary Mills
President & Director3.67yrsUS$1.09m0.31% $1.3m
Samuel Elmore
Independent Director6.67yrsUS$201.34k0.061% $252.2k
C. Davis
Independent Director4.67yrsUS$138.17k0.063% $259.3k
Frank Tinder
Director of First Community Bank NAno datano datano data
T. Foster
Director of First Community Bank NAno datano datano data
Richard Johnson
Independent Director11.5yrsUS$200.65k0.19% $773.2k
James Atkinson
Director of First Community Bank NAno datano datano data
Samuel Campbell
Director of First Community Bank NAno datano datano data
Michael Sarver
Independent Director4.67yrsUS$82.32k0.64% $2.6m

5.7yrs

Average Tenure

69yo

Average Age

Experienced Board: FCBC's board of directors are considered experienced (5.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: FCBC insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

First Community Bankshares, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: First Community Bankshares, Inc.
  • Ticker: FCBC
  • Exchange: NasdaqGS
  • Founded: 1874
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$412.205m
  • Shares outstanding: 17.69m
  • Website: https://www.firstcommunitybank.com

Number of Employees


Location

  • First Community Bankshares, Inc.
  • One Community Place
  • PO Box 989
  • Bluefield
  • Virginia
  • 24605
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FCBCNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDDec 1993

Biography

First Community Bankshares, Inc. operates as the financial holding company for First Community Bank that provides various banking products and services. It offers demand deposit accounts, savings and money market accounts, certificates of deposit, and individual retirement arrangements; commercial, consumer, and real estate mortgage loans, as well as lines of credit; various credit and debit cards, and automated teller machine card services; and corporate and personal trust services. The company also provides wealth management services, including trust management, estate administration, and investment advisory services; and investment management services. It serves individuals and businesses across various industries, such as education, government, and health services; coal mining and gas extraction; retail trade; construction; manufacturing; tourism; and transportation. As of December 31, 2018, the company operated 44 branches, including 19 branches in Virginia, 18 branches in West Virginia, 5 branches in North Carolina, and 2 branches in Tennessee. First Community Bankshares, Inc. was founded in 1874 and is headquartered in Bluefield, Virginia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 03:26
End of Day Share Price2020/03/31 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.