Fact based stock research
FirstBanCorp (NYSE:FBP)

PR3186727065

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

FirstBanCorp stock research in summary

1firstbank.com

ANALYSIS: With an Obermatt Combined Rank of 68 (better than 68% compared with investment alternatives), FirstBanCorp (Regional Banks, USA) shares have above-average financial characteristics compared with similar stocks. Shares of FirstBanCorp are low in value (priced high) with a consolidated Value Rank of 36 (worse than 64% of alternatives) and show below-average growth (Growth Rank of 41) but are safely financed (Safety Rank of 100), which means low debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 68, is a buy recommendation based on FirstBanCorp's financial characteristics. As the company FirstBanCorp's critical financial metrics exhibit below-average performance, such as low value (Obermatt Value Rank of 36) and low growth (Obermatt Growth Rank of 41), it is a somewhat questionable stock investment, where the risk of paying too much for the shares is significant, unless the company has an exceptionally bright future. In this case, good financing practices (Obermatt Safety Rank of 100) are a positive sign, because it may allow the company to weather challenging times until the hoped-for cash flows materialize. This may be true for high-tech or biotechnology companies with enough cash to sustain prolonged business development. If they own properties that only provide cash flows in the future, the stock may look excessively expensive and unattractive today. In such cases, the Obermatt Method has limited value, as it is based on facts we can observe today. If the facts lie all in the future, stock investing becomes guesswork, and this should only be a driver in a limited number of investments that account for a small fraction of a safe portfolio. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	36
Growth Rank	41
Safety Rank	100
Combined Rank	68

Country	USA
Industry	Regional Banks
Index
Size class	XX-Large

14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

Multiple opinions. One number.

Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: FirstBanCorp

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	50	83	20	36
GROWTH
GROWTH	84	79	69	41
SAFETY
SAFETY	79	73	100	100
SENTIMENT
SENTIMENT	n/a	15	92	^new
360° VIEW
360° VIEW	n/a	77	90	^new

Most recent update of the stock research: 14-Nov-2024. Financial reporting date used for calculating ranks: 30-Jun-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better FirstBanCorp is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	50	83	20	36
GROWTH
GROWTH	84	79	69	41
SAFETY
SAFETY	79	73	100	100
COMBINED
COMBINED	97	97	74	68

Last update of combined financial performance: 14-Nov-2024. Stock analysis on combined financial performance: The higher the rank of FirstBanCorp the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 36 (worse than 64% compared with alternatives), FirstBanCorp shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, with half of the indicators below and half above average for FirstBanCorp. Price-to-Profit (also referred to as price-earnings, P/E) is 73 which means that the stock price compared with what market professionals expect for future profits is lower than for 73% of comparable companies, indicating a good value concerning FirstBanCorp's profit levels. The same is valid for Price-to-Book Capital (also referred to as market-to-book ratio) with a Price-to-Book Rank of 5, which means that the stock price is lower as regards to invested capital than for 5% of comparable investments. On the other hand, Price-to-Sales is less favorable than 71% of alternatives (only 29% of peers have an even less favorable ratio). The same is valid for dividend yield, which is lower than 39% of comparable companies, making the stock more expensive as regards to the company's expected dividend payouts. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 36, is a hold recommendation based on FirstBanCorp's stock price compared with the company's operational size and dividend yields. This is a puzzling picture, because it means that profits are high while dividends are low. Since the stock price is low compared with invested capital but high in respect to expected revenues, it means that the company has more invested capital than peers for generating the same amount of revenue. Since profits are higher, it could be a "cash cow" situation (using the classic Boston Consulting BCG matrix naming convention) where the company is on a downward trend, still living from the profits of past products. As the company pays low dividends, it may harbor the opinion that a turnaround is possible, and it rather invests the cash than pay it out to shareholders, thus sealing the company's fate early. Any investment optimism should only be a buy trigger once thorough research is completed. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is especially important in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	67	23	28	29
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	53	91	55	73
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	41	93	3	5
DIVIDEND YIELD
DIVIDEND YIELD	35	71	57	61
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	50	83	20	36

Last update of Value Rank: 14-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of FirstBanCorp; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 41 (better than 41% compared with alternatives), FirstBanCorp shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for FirstBanCorp. Sales Growth has a rank of 65 which means that currently, professionals expect the company to grow more than 65% of its competitors. Capital Growth is also above 36% of competitors with a rank of 75. But Profit Growth only has a rank of 36, which means that currently professionals expect the company to grow its profits less than 64% of its competitors. And Stock Returns have also been below average with a rank of only 47. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 41, is a hold recommendation for growth and momentum investors. Profits are sometimes low if the company invests in the future. The positive revenue and capital investment outlook confirms such an interpretation. Both revenues and capital are solid growth indicators, and lower profits in such a case would be encouraging. But the investors see it differently by punishing the share price. Sometimes, Mister Market is not very reliable, because it is not uncommon for it to be volatile. Investors should look out for signs of growth expenditure that could justify low profit growth, and they may also find reasons why recent stock price developments don't confirm the growth outlook of operations. While operating growth indicators are not perfect, they are more reliable indicators for future performance than stock prices that can repeatedly surprise investors. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	90	59	61	65
PROFIT GROWTH
PROFIT GROWTH	97	98	61	36
CAPITAL GROWTH
CAPITAL GROWTH	n/a	18	1	75
STOCK RETURNS
STOCK RETURNS	55	89	97	47
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	84	79	69	41

Last update of Growth Rank: 14-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of FirstBanCorp.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 100 (better than 100% compared with alternatives) for 2024, the company FirstBanCorp has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of FirstBanCorp is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, where all three are above average for FirstBanCorp. Leverage is at 86, meaning the company has a below-average debt-to-equity ratio. It has less debt than 86% of its competitors. Refinancing is at a rank of 70, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 70% of its competitors. Finally, Liquidity is also good at a rank of 97, which means that the company generates more profit to service its debt than 97% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 100 (better than 100% compared with alternatives), FirstBanCorp has a financing structure that is significantly safer than that of its competitors. These three positive financing indicators signal that the company is less likely to default on its debt obligations. However, it also means that its shareholder returns will be more modest if things go well. A low safety means fewer troubles in downtimes and less upside in good times. Investors may not have a debt issue with FirstBanCorp but they should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	69	94	92	86
REFINANCING
REFINANCING	51	71	74	70
LIQUIDITY
LIQUIDITY	84	13	85	97
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	79	73	100	100

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of FirstBanCorp and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	74	86	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	13	50	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	13	100	^new
MARKET PULSE
MARKET PULSE	n/a	30	40	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	15	92	^new

Last update of Sentiment Rank: 14-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for FirstBanCorp.
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