First BanCorp. operates as the bank holding company for FirstBank Puerto Rico that provides a range of financial products and services to retail, commercial, and institutional clients.
First BanCorp Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$12.17|
|52 Week High||US$4.94|
|52 Week Low||US$13.25|
|1 Month Change||-3.11%|
|3 Month Change||1.42%|
|1 Year Change||115.78%|
|3 Year Change||32.71%|
|5 Year Change||145.36%|
|Change since IPO||85.37%|
Recent News & Updates
First BanCorp.: Net Provision Reversals To Drive Earnings
Economic rebound in Puerto Rico will likely subdue the provision expense and spur loan growth. Next year’s earnings will likely decline because of higher provision expenses. The year-end target price is close to the current market price. Further, FBP is offering a low dividend yield.
First BanCorp: Balance Sheet Growth, Subdued Credit Costs To Drive Earnings Recovery
Economic recovery in Puerto Rico will likely drive loan growth in the year ahead. The existing allowance for loan losses is quite high relative to actual loan losses and non-performing assets. Therefore, the provision expense will likely remain subdued. Due to the disbursement of relief funds, the deposit growth will likely far outpace loan growth. The excess liquidity will likely lead to pressure on the margin. The year-end target price suggests a small downside from the current market price. FBP is offering a small dividend yield.
|FBP||US Banks||US Market|
Return vs Industry: FBP exceeded the US Banks industry which returned 63.3% over the past year.
Return vs Market: FBP exceeded the US Market which returned 33.8% over the past year.
Stable Share Price: FBP is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: FBP's weekly volatility (4%) has been stable over the past year.
About the Company
First BanCorp. operates as the bank holding company for FirstBank Puerto Rico that provides a range of financial products and services to retail, commercial, and institutional clients. The company operates in six segments: Commercial and Corporate Banking, Mortgage Banking, Consumer (Retail) Banking, Treasury and Investments, United States Operations, and Virgin Islands Operations.
Is First BanCorp undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: FBP ($12.17) is trading above our estimate of fair value ($12.11)
Significantly Below Fair Value: FBP is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: FBP is poor value based on its PE Ratio (12.1x) compared to the US Banks industry average (10.8x).
PE vs Market: FBP is good value based on its PE Ratio (12.1x) compared to the US market (17.8x).
Price to Earnings Growth Ratio
PEG Ratio: FBP is poor value based on its PEG Ratio (1.3x)
Price to Book Ratio
PB vs Industry: FBP's PB Ratio (1.2x) is in line with the US Banks industry average.
How is First BanCorp forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: FBP's forecast earnings growth (9.1% per year) is above the savings rate (2%).
Earnings vs Market: FBP's earnings (9.1% per year) are forecast to grow slower than the US market (14.8% per year).
High Growth Earnings: FBP's earnings are forecast to grow, but not significantly.
Revenue vs Market: FBP's revenue (6.4% per year) is forecast to grow slower than the US market (9.8% per year).
High Growth Revenue: FBP's revenue (6.4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if FBP's Return on Equity is forecast to be high in 3 years time
How has First BanCorp performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: FBP has high quality earnings.
Growing Profit Margin: FBP's current net profit margins (26.1%) are higher than last year (20%).
Past Earnings Growth Analysis
Earnings Trend: FBP's earnings have grown by 14.7% per year over the past 5 years.
Accelerating Growth: FBP's earnings growth over the past year (100.5%) exceeds its 5-year average (14.7% per year).
Earnings vs Industry: FBP earnings growth over the past year (100.5%) exceeded the Banks industry 36%.
Return on Equity
High ROE: FBP's Return on Equity (9.5%) is considered low.
How is First BanCorp's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Financial Institutions Analysis
Asset Level: FBP's Assets to Equity ratio (9.7x) is low.
Allowance for Bad Loans: FBP has a sufficient allowance for bad loans (178%).
Low Risk Liabilities: 94% of FBP's liabilities are made up of primarily low risk sources of funding.
Loan Level: FBP has an appropriate level of Loans to Assets ratio (52%).
Low Risk Deposits: FBP's Loans to Deposits ratio (61%) is appropriate.
Level of Bad Loans: FBP has an appropriate level of bad loans (1.6%).
What is First BanCorp current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: FBP's dividend (2.3%) is higher than the bottom 25% of dividend payers in the US market (1.33%).
High Dividend: FBP's dividend (2.3%) is low compared to the top 25% of dividend payers in the US market (3.6%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, FBP has been paying a dividend for less than 10 years.
Growing Dividend: FBP's dividend payments have increased, but the company has only paid a dividend for 3 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (25%), FBP's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Aurelio Alemán-Bermudez (62 yo)
Mr. Aurelio Alemán-Bermudez has been the Chief Executive Officer and President of First BanCorp. since September 28, 2009. Mr. Alemán currently serves as Chairman of the Board of Directors and CEO of the C...
CEO Compensation Analysis
Compensation vs Market: Aurelio's total compensation ($USD3.64M) is below average for companies of similar size in the US market ($USD5.27M).
Compensation vs Earnings: Aurelio's compensation has been consistent with company performance over the past year.
Experienced Management: FBP's management team is seasoned and experienced (12 years average tenure).
Experienced Board: FBP's board of directors are considered experienced (3.9 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: FBP insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
First BanCorp.'s employee growth, exchange listings and data sources
- Name: First BanCorp.
- Ticker: FBP
- Exchange: NYSE
- Founded: 1948
- Industry: Regional Banks
- Sector: Banks
- Market Cap: US$2.522b
- Shares outstanding: 207.26m
- Website: https://www.1firstbank.com
Number of Employees
- First BanCorp.
- First Federal Building
- 1519 Ponce de León Avenue
- Puerto Rico
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/09/19 22:02|
|End of Day Share Price||2021/09/17 00:00|
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.