First Citizens BancShares, Inc. Fundamental Analysis (NASDAQ: FCNCO)
First Citizens BancShares, Inc. Fundamental Analysis (NASDAQ: FCNCO)
First Citizens BancShares, Inc. (NASDAQ: FCNCO) shows moderate financial fundamentals with a PE ratio of 11.58, profit margin of 16.31%, and ROE of 10.68%. The company generates $14.9B in annual revenue with weak year-over-year growth of -2.97%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 50.3/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze FCNCO's fundamental strength across five key dimensions:
Efficiency Score
WeakFCNCO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentFCNCO trades at attractive valuation levels.
Growth Score
WeakFCNCO faces weak or negative growth trends.
Financial Health Score
ModerateFCNCO shows balanced financial health with some risks.
Profitability Score
ModerateFCNCO maintains healthy but balanced margins.
Key Financial Metrics
Is FCNCO Expensive or Cheap?
P/E Ratio
FCNCO trades at 11.58 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, FCNCO's PEG of 1.12 indicates fair valuation.
Price to Book
The market values First Citizens BancShares, Inc. at 1.14 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -1.73 times EBITDA. This is generally considered low.
How Well Does FCNCO Make Money?
Net Profit Margin
For every $100 in sales, First Citizens BancShares, Inc. keeps $16.31 as profit after all expenses.
Operating Margin
Core operations generate 21.88 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.68 in profit for every $100 of shareholder equity.
ROA
First Citizens BancShares, Inc. generates $0.99 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
First Citizens BancShares, Inc. produces operating cash flow of $3.10B, showing steady but balanced cash generation.
Free Cash Flow
First Citizens BancShares, Inc. generates strong free cash flow of $2.30B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $192.79 in free cash annually.
FCF Yield
FCNCO converts 9.02% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.58
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.12
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.14
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.71
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.47
vs 25 benchmark
Current Ratio
Current assets to current liabilities
9.99
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.010
vs 25 benchmark
ROCE
Return on capital employed
0.01
vs 25 benchmark
How FCNCO Stacks Against Its Sector Peers
| Metric | FCNCO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.58 | 21.06 | Better (Cheaper) |
| ROE | 10.68% | 651.00% | Weak |
| Net Margin | 16.31% | -603.00% (disorted) | Strong |
| Debt/Equity | 1.47 | 0.88 | Weak (High Leverage) |
| Current Ratio | 9.99 | 887.27 | Strong Liquidity |
| ROA | 0.99% | 6574.00% | Weak |
FCNCO outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews First Citizens BancShares, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
515.50%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
264.74%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
532.39%
Industry Style: Value, Dividend, Cyclical
High Growth