First BanCorp (FBP) Valuation: Weighing EPS Beat Against Revenue and NII Miss in Latest Quarter

First BanCorp (FBP) recently shared its quarterly results, reporting a 6% rise in revenue compared to last year. However, the bank missed expectations on both revenue and net interest income, even though it surpassed earnings per share forecasts.

See our latest analysis for First BanCorp.

First BanCorp’s share price has seen some swings this year, climbing 7.7% year-to-date but giving back ground recently, with a 1.3% drop in the last day and an 11.1% decline over the past three months. While current momentum is a bit muted, long-term total shareholder return remains a bright spot, up an impressive 46.9% over three years and 165% across five years. This shows the bank has delivered for patient investors even as short-term sentiment shifts.

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With shares trading at a notable discount to analyst targets, and long-term gains handily outpacing broad declines in the sector, investors are left to ask: is First BanCorp undervalued, or is the market already pricing in its future growth?

Most Popular Narrative: 18.2% Undervalued

First BanCorp’s fair value, as calculated by leading narrative projections, comes in notably higher than its last closing price. A sizable gap between these numbers is drawing attention to the assumptions behind this confidence.

The bank's aggressive and sustained investment in digital platforms, evidenced by multi-year growth in active digital users and streamlined operations, positions it to capture cost efficiencies and improve net margins as customers shift toward digital channels. Favorable labor market conditions and improving consumer health are reducing credit losses, as seen in lower net charge-offs and stable or non-improving asset quality metrics, which could support more stable and higher earnings in the future.

Read the complete narrative.

Want to know why the current share price is trailing the fair value estimate? Discover the bold growth drivers, margin predictions, and competitive edge baked into these targets. The real number-crunching and narrative tension all come together behind this valuation. What’s the real catalyst moving the needle? Find out by unlocking the full story.

Result: Fair Value of $24.17 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent local economic challenges or increased competition for deposits could quickly change the growth and profitability outlook for First BanCorp.

Find out about the key risks to this First BanCorp narrative.

Build Your Own First BanCorp Narrative

If you see the numbers differently or want a deeper dive based on your own insights, you can shape your own story about First BanCorp in just minutes. Do it your way

A great starting point for your First BanCorp research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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