NYSE:FBP

Stock Analysis Report

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Executive Summary

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. More Details


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: FBP is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: FBP's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

-5.6%

FBP

-2.7%

US Banks

0.6%

US Market


1 Year Return

-20.6%

FBP

-16.6%

US Banks

22.7%

US Market

Return vs Industry: FBP matched the US Banks industry which returned -19.6% over the past year.

Return vs Market: FBP underperformed the US Market which returned 21% over the past year.


Shareholder returns

FBPIndustryMarket
7 Day-5.6%-2.7%0.6%
30 Day25.4%20.9%13.1%
90 Day38.7%17.0%4.5%
1 Year-18.2%-20.6%-13.6%-16.6%25.5%22.7%
3 Year70.5%62.8%-6.0%-13.8%49.0%39.1%
5 Year177.7%165.1%38.8%21.5%98.3%76.5%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

20.55x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FBP ($8.14) is trading above our estimate of fair value ($7.43)

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 (20.5x) compared to the US Banks industry average (11.3x).

PE vs Market: FBP is poor value based on its PE Ratio (20.5x) compared to the US market (19.3x).


Price to Earnings Growth Ratio

PEG Ratio: FBP is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: FBP's PB Ratio (0.8x) is in line with the US Banks industry average.


Next Steps

Future Growth

How is First BanCorp forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

54.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FBP's forecast earnings growth (54.8% per year) is above the savings rate (2.2%).

Earnings vs Market: FBP's earnings (54.8% per year) are forecast to grow faster than the US market (21.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: FBP's revenue (20% per year) is forecast to grow faster than the US market (10.3% per year).

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


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FBP's Return on Equity is forecast to be low in 3 years time (11%).


Next Steps

Past Performance

How has First BanCorp performed over the past 5 years?

8.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FBP has high quality earnings.

Growing Profit Margin: FBP's current net profit margins (17.5%) are lower than last year (38.1%).


Past Earnings Growth Analysis

Earnings Trend: FBP's earnings have grown by 8.9% per year over the past 5 years.

Accelerating Growth: FBP's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: FBP had negative earnings growth (-62.4%) over the past year, making it difficult to compare to the Banks industry average (-4.1%).


Return on Equity

High ROE: FBP's Return on Equity (4%) is considered low.


Next Steps

Financial Health

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


Balance Sheet


Financial Institutions Analysis

Asset Level: FBP's Assets to Equity ratio (8.4x) is low.

Allowance for Bad Loans: FBP has a sufficient allowance for bad loans (191%).

Low Risk Liabilities: 93% 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 (61%).

Low Risk Deposits: FBP's Loans to Deposits ratio (75%) is appropriate.

Level of Bad Loans: FBP has an appropriate level of bad loans (1.7%).


Next Steps

Dividend

What is First BanCorp current dividend yield, its reliability and sustainability?

2.46%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FBP's dividend (2.46%) is higher than the bottom 25% of dividend payers in the US market (1.5%).

High Dividend: FBP's dividend (2.46%) is low compared to the top 25% of dividend payers in the US market (4.18%).


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 2 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (50.5%), FBP's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FBP's dividends in 3 years are forecast to be well covered by earnings (18.4% payout ratio).


Next Steps

Management

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

11.2yrs

Average management tenure


CEO

Aurelio Alemán-Bermudez (61 yo)

11.17yrs

Tenure

US$3,379,977

Compensation

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 ($USD3.38M) is about average for companies of similar size in the US market ($USD4.21M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Aurelio Alemán-Bermudez
President11.17yrsUS$3.38m0.55%
$ 9.5m
Orlando Berges-González
Executive VP11.25yrsUS$1.29m0.18%
$ 3.2m
Donald Kafka
Executive VP & COO5.83yrsUS$1.18m0.098%
$ 1.7m
Nayda Rivera-Batista
Executive VP & Chief Risk Officer18.33yrsUS$1.15m0.13%
$ 2.3m
Calixto García-Vélez
Executive VP & Florida Region Executive11.67yrsUS$1.14m0.14%
$ 2.4m
John Pelling
Investor Relations Officer & Capital Planning Officer7.42yrsno datano data
Lawrence Odell
Executive VP14.75yrsUS$967.96k0.098%
$ 1.7m
Cassan Pancham
Executive VP & Business Group Executive18.08yrsUS$1.11m0.15%
$ 2.6m
Ginoris López-Lay
Executive VP & Strategic Management Director10.67yrsno data0.084%
$ 1.5m
Jon Swatsburg
Executive Vice President of Youth Servicesno datano datano data
Thomas McDonald
Executive VP & Business Group Director8.17yrsUS$712.34k0.086%
$ 1.5m
Carlos Pietrantoni
Executive VP & Consumer Lending Business Executive7.58yrsno data0.16%
$ 2.8m

11.2yrs

Average Tenure

59yo

Average Age

Experienced Management: FBP's management team is seasoned and experienced (11.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Aurelio Alemán-Bermudez
President11.17yrsUS$3.38m0.55%
$ 9.5m
Roberto Herencia
Independent Chairman9.08yrsUS$1.05m0.38%
$ 6.5m
Robert Gormley
Independent Director8.08yrsUS$150.17k0.041%
$ 700.3k
Félix Villamil
Director0.083yrno datano data
Juan Reboyras
Independent Director6.25yrsUS$145.17k0.030%
$ 519.6k
José Menéndez-Cortada
Independent Director16.58yrsUS$125.17k0.048%
$ 830.8k
John Heffern
Independent Director3.08yrsUS$130.17k0.029%
$ 504.8k
Tracey Dedrick
Independent Director1.83yrsUS$163.50k0.0081%
$ 140.2k
Luz Crespo
Independent Director5.75yrsUS$120.17k0.028%
$ 488.3k
Daniel Frye
Independent Director2.25yrsUS$123.50k0.0096%
$ 165.2k

6.0yrs

Average Tenure

62.5yo

Average Age

Experienced Board: FBP's board of directors are considered experienced (6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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 BanCorp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: First BanCorp.
  • Ticker: FBP
  • Exchange: NYSE
  • Founded: 1948
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$1.722b
  • Shares outstanding: 216.91m
  • Website: https://www.1firstbank.com

Number of Employees


Location

  • First BanCorp.
  • First Federal Building
  • 1519 Ponce de León Avenue
  • Santurce
  • Puerto Rico
  • 00908-0146
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FBPNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1987
OLWNDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1987
FBPR.MOTCPK (Pink Sheets LLC)PFD PERP C 7.40%USUSDJul 2001
FBPR.NOTCPK (Pink Sheets LLC)PFD D 7.25%USUSDMar 2002

Biography

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...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/01 23:05
End of Day Share Price2020/12/01 00:00
Earnings2020/09/30
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.