NYSE:FBP

Stock Analysis Report

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.

Snowflake

Fundamentals

Adequate balance sheet and fair value.


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


Market Performance


7 Day Return

1.4%

FBP

2.7%

US Banks

0.5%

US Market


1 Year Return

12.8%

FBP

2.9%

US Banks

6.8%

US Market

Return vs Industry: FBP exceeded the US Banks industry which returned 2.9% over the past year.

Return vs Market: FBP exceeded the US Market which returned 6.8% over the past year.


Shareholder returns

FBPIndustryMarket
7 Day1.4%2.7%0.5%
30 Day2.0%1.1%-0.8%
90 Day-5.0%2.7%-0.9%
1 Year14.1%12.8%5.8%2.9%9.2%6.8%
3 Year95.8%93.4%52.0%41.5%45.6%36.2%
5 Year119.8%117.2%69.2%50.7%63.2%45.4%

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?

10.11x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FBP ($10.25) is trading above our estimate of fair value ($10.03)

Significantly Below Fair Value: FBP is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: FBP is good value based on its PE Ratio (10.1x) compared to the Banks industry average (12.5x).

PE vs Market: FBP is good value based on its PE Ratio (10.1x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: FBP is good value based on its PB Ratio (1x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is First BanCorp forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

-1.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FBP's earnings are forecast to decline over the next 3 years (-1.5% per year).

Earnings vs Market: FBP's earnings are forecast to decline over the next 3 years (-1.5% per year).

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

Revenue vs Market: FBP's revenue (5.5% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: FBP's revenue (5.5% 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 (7.8%).


Next Steps

Past Performance

How has First BanCorp performed over the past 5 years?

-12.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: FBP's earnings have declined by -12% per year over the past 5 years.

Accelerating Growth: FBP's earnings growth over the past year (192.8%) exceeds its 5-year average (-12% per year).

Earnings vs Industry: FBP earnings growth over the past year (192.8%) exceeded the Banks industry 29.7%.


Return on Equity

High ROE: FBP's Return on Equity (10.3%) is considered low.


Return on Assets

ROA vs Industry: FBP has a higher Return on Assets than the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate FBP's Return on Capital Employed to determine if it has improved over the past 3 years.


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

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

Debt Coverage by Assets: FBP's debt is not covered by short term assets (assets are 0.9x debt).


Financial Institutions Analysis

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

Allowance for Bad Loans: FBP has a low allowance for bad loans.

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

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

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

Level of Bad Loans: FBP has a high level of bad loans (2.86%)


Next Steps

Dividend

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

1.17%

Current Dividend Yield


Dividend Yield vs Market

company1.2%marketbottom25%1.4%markettop25%3.7%industryaverage3.0%forecastin3Years1.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: FBP's dividend (1.17%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: FBP's dividend (1.17%) is low compared to the top 25% of dividend payers in the US market (3.73%).

Stable Dividend: FBP's dividend payments have been volatile in the past 10 years.

Growing Dividend: FBP's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (8.9%), FBP's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FBP's dividends in 3 years are forecast to be well covered by earnings (21.4% payout ratio).


Next Steps

Management

What is the CEO of First BanCorp's salary, the management and board of directors tenure and is there insider trading?

10.2yrs

Average management tenure


CEO

Aurelio Alemán-Bermudez (60yo)

10.1yrs

Tenure

US$4,095,790

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 ($USD4.10M) is about average for companies of similar size in the US market ($USD4.00M).

Compensation vs Earnings: Aurelio's compensation has increased by more than 20% in the past year.


Management Age and Tenure

10.2yrs

Average Tenure

58yo

Average Age

Experienced Management: FBP's management team is seasoned and experienced (10.2 years average tenure).


Board Age and Tenure

5.2yrs

Average Tenure

62yo

Average Age

Experienced Board: FBP's board of directors are considered experienced (5.2 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Aurelio Alemán-Bermudez (60yo)

    President

    • Tenure: 10.1yrs
    • Compensation: US$4.10m
  • Cassan Pancham (58yo)

    Executive VP & Business Group Executive

    • Tenure: 17yrs
    • Compensation: US$1.11m
  • Nayda Rivera-Batista (46yo)

    Executive VP & Chief Risk Officer

    • Tenure: 17.3yrs
    • Compensation: US$1.31m
  • Orlando Berges-González (61yo)

    Executive VP & CFO

    • Tenure: 10.2yrs
    • Compensation: US$1.58m
  • Lawrence Odell (71yo)

    Executive VP

    • Tenure: 13.7yrs
    • Compensation: US$1.50m
  • Jon Swatsburg (48yo)

    Executive Vice President of Youth Services

    • Tenure: 0yrs
  • Cali García-Vélez (51yo)

    Executive VP & Florida Region Executive

    • Tenure: 10.6yrs
    • Compensation: US$1.39m
  • John Pelling

    Investor Relations Officer & Capital Planning Officer

    • Tenure: 6.3yrs
  • Donald Kafka (59yo)

    Executive VP & COO

    • Tenure: 4.8yrs
    • Compensation: US$1.30m
  • Ginoris López-Lay (51yo)

    Executive VP & Strategic Management Director

    • Tenure: 9.6yrs

Board Members

  • Roberto Herencia (59yo)

    Non-Executive Chairman of the Board

    • Tenure: 8yrs
    • Compensation: US$1.30m
  • Aurelio Alemán-Bermudez (60yo)

    President

    • Tenure: 10.1yrs
    • Compensation: US$4.10m
  • Robert Gormley (71yo)

    Director

    • Tenure: 7yrs
    • Compensation: US$148.92k
  • Juan Reboyras (63yo)

    Independent Director

    • Tenure: 5.2yrs
    • Compensation: US$143.92k
  • José Menéndez-Cortada (72yo)

    Independent Director

    • Tenure: 15.5yrs
    • Compensation: US$125.17k
  • John Heffern (57yo)

    Director

    • Tenure: 2yrs
    • Compensation: US$126.42k
  • Tracey Dedrick (62yo)

    Director

    • Tenure: 0.8yrs
  • Luz Crespo (61yo)

    Director

    • Tenure: 4.7yrs
    • Compensation: US$121.42k
  • Daniel Frye (64yo)

    Director

    • Tenure: 1.2yrs
    • Compensation: US$71.25k

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$2.221b
  • Shares outstanding: 216.64m
  • Website: https://www.1firstbank.com

Number of Employees


Location

  • First BanCorp.
  • First Federal Building
  • 1519 Ponce de León Avenue
  • Santurce
  • Puerto Rico
  • 927
  • 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 Analysis2019/10/21 23:37
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.