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

Undervalued with proven track record.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.4%

FBP

-0.7%

US Banks

0.4%

US Market


1 Year Return

15.8%

FBP

10.4%

US Banks

13.1%

US Market

Return vs Industry: FBP exceeded the US Banks industry which returned 10.4% over the past year.

Return vs Market: FBP exceeded the US Market which returned 13.1% over the past year.


Shareholder returns

FBPIndustryMarket
7 Day-1.4%-0.7%0.4%
30 Day4.9%8.3%4.0%
90 Day13.4%19.0%7.4%
1 Year17.3%15.8%13.7%10.4%15.6%13.1%
3 Year70.8%68.7%40.9%31.0%48.2%38.6%
5 Year120.5%117.9%72.2%53.1%62.6%44.6%

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?

14.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FBP ($10.61) is trading below our estimate of fair value ($12.45)

Significantly Below Fair Value: FBP is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: FBP is good value based on its PE Ratio (10x) compared to the Banks industry average (12.6x).

PE vs Market: FBP is good value based on its PE Ratio (10x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: FBP is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: FBP is good value based on its PB Ratio (1.1x) 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?

15.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FBP's forecast earnings growth (15.4% per year) is above the savings rate (2.7%).

Earnings vs Market: FBP's earnings (15.4% per year) are forecast to grow faster than the US market (14.3% per year).

High Growth Earnings: FBP's earnings are forecast to grow, but not significantly.

Revenue vs Market: FBP's revenue (18.3% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: FBP's revenue (18.3% 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 (10.5%).


Next Steps

Past Performance

How has First BanCorp performed over the past 5 years?

-11.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FBP has high quality earnings.

Growing Profit Margin: FBP's current net profit margins (38.3%) are higher than last year (24.4%).


Past Earnings Growth Analysis

Earnings Trend: FBP's earnings have declined by -11.6% per year over the past 5 years.

Accelerating Growth: FBP's earnings growth over the past year (88%) exceeds its 5-year average (-11.6% per year).

Earnings vs Industry: FBP earnings growth over the past year (88%) exceeded the Banks industry 27.7%.


Return on Equity

High ROE: FBP's Return on Equity (10.5%) is considered low.


Return on Assets


Return on Capital Employed


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 covered by short term assets (assets are 1.2x 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 (2.49%)


Next Steps

Dividend

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

1.88%

Current Dividend Yield


Upcoming Dividend Payment

Purchase First BanCorp before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company1.9%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years1.5%

Current dividend yield vs market & industry

Notable Dividend: FBP's dividend (1.89%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: FBP's dividend (1.89%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

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 (11.3%), 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 (15.8% 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?

10.3yrs

Average management tenure


CEO

Aurelio Alemán-Bermudez (60yo)

10.2yrs

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 ($USD4.10M) is about average for companies of similar size in the US market ($USD3.98M).

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


Management Age and Tenure

10.3yrs

Average Tenure

58yo

Average Age

Experienced Management: FBP's management team is seasoned and experienced (10.3 years average tenure).


Board Age and Tenure

5.3yrs

Average Tenure

62yo

Average Age

Experienced Board: FBP's board of directors are considered experienced (5.3 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

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


Management Team

  • Aurelio Alemán-Bermudez (60yo)

    President

    • Tenure: 10.2yrs
    • Compensation: US$4.10m
  • Cassan Pancham (58yo)

    Executive VP & Business Group Executive

    • Tenure: 17.1yrs
    • 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: 10.3yrs
    • Compensation: US$1.58m
  • Lawrence Odell (71yo)

    Executive VP

    • Tenure: 13.8yrs
    • Compensation: US$967.96k
  • Jon Swatsburg (48yo)

    Executive Vice President of Youth Services

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

    Executive VP & Florida Region Executive

    • Tenure: 10.7yrs
    • Compensation: US$1.39m
  • John Pelling

    Investor Relations Officer & Capital Planning Officer

    • Tenure: 6.4yrs
  • Donald Kafka (59yo)

    Executive VP & COO

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

    Executive VP & Strategic Management Director

    • Tenure: 9.7yrs

Board Members

  • Roberto Herencia (59yo)

    Non-Executive Chairman of the Board

    • Tenure: 8.1yrs
    • Compensation: US$1.30m
  • Aurelio Alemán-Bermudez (60yo)

    President

    • Tenure: 10.2yrs
    • Compensation: US$4.10m
  • Robert Gormley (71yo)

    Independent Director

    • Tenure: 7.1yrs
    • Compensation: US$148.92k
  • Juan Reboyras (63yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: US$143.92k
  • José Menéndez-Cortada (72yo)

    Independent Director

    • Tenure: 15.6yrs
    • Compensation: US$125.17k
  • John Heffern (57yo)

    Independent Director

    • Tenure: 2.1yrs
    • Compensation: US$126.42k
  • Tracey Dedrick (62yo)

    Independent Director

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

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$121.42k
  • Daniel Frye (64yo)

    Independent Director

    • Tenure: 1.3yrs
    • 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$2.299b
  • Shares outstanding: 216.71m
  • 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 Analysis2019/11/13 23:37
End of Day Share Price2019/11/13 00:00
Earnings2019/09/30
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.