First BanCorp. Fundamental Analysis (NYSE: FBP)
First BanCorp. (NYSE: FBP) shows strong financial fundamentals with a PE ratio of 10.89, profit margin of 28.60%, and ROE of 18.91%. The company generates $1.3B in annual revenue with moderate year-over-year growth of 5.35%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 71.1/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze FBP's fundamental strength across five key dimensions:
Efficiency Score
WeakFBP struggles to generate sufficient returns from assets.
Valuation Score
ExcellentFBP trades at attractive valuation levels.
Growth Score
ExcellentFBP delivers strong and consistent growth momentum.
Financial Health Score
ExcellentFBP maintains a strong and stable balance sheet.
Profitability Score
ExcellentFBP achieves industry-leading margins.
Key Financial Metrics
Is FBP Expensive or Cheap?
P/E Ratio
FBP trades at 10.89 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, FBP's PEG of 0.66 indicates potential undervaluation.
Price to Book
The market values First BanCorp. at 2.11 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 9.02 times EBITDA. This is generally considered low.
How Well Does FBP Make Money?
Net Profit Margin
For every $100 in sales, First BanCorp. keeps $28.60 as profit after all expenses.
Operating Margin
Core operations generate 35.50 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $18.91 in profit for every $100 of shareholder equity.
ROA
First BanCorp. generates $1.91 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
First BanCorp. produces operating cash flow of $319.01M, showing steady but balanced cash generation.
Free Cash Flow
First BanCorp. generates strong free cash flow of $304.67M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.01 in free cash annually.
FCF Yield
FBP converts 7.67% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.89
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.66
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.11
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.08
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.12
vs 25 benchmark
Current Ratio
Current assets to current liabilities
22.55
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.19
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How FBP Stacks Against Its Sector Peers
| Metric | FBP Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.89 | 20.31 | Better (Cheaper) |
| ROE | 18.91% | 615.00% | Weak |
| Net Margin | 28.60% | 666.00% | Weak |
| Debt/Equity | 0.12 | 0.82 | Strong (Low Leverage) |
| Current Ratio | 22.55 | 800.80 | Strong Liquidity |
| ROA | 1.91% | -76.00% (disorted) | Weak |
FBP outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews First BanCorp.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
121.25%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
357.25%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
102.70%
Industry Style: Value, Dividend, Cyclical
High Growth