First Bancorp Intrinsic Value – First Bancorp Posts Disappointing Q2 Results, Misses Earnings and Revenue Estimates
April 28, 2023
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First Bancorp ($NASDAQ:FBNC), a financial services holding company, recently posted its second quarter financial results and the news was not as positive as expected. The disappointing performance of First Bancorp has disappointed investors and the stock has taken a sharp dip in the market. Analysts have noted that the company’s high operational costs and weak loan growth were responsible for the underwhelming results. Despite the weak financial performance, the management of First Bancorp remains confident that they can turn things around with cost-cutting measures and improved execution.
Price History
As a result, the stock opened at $32.1 and closed at $31.4, down by 0.9% from last closing price of 31.7. Investors reacted negatively to the results with the stock retreating following the news. Analysts are now closely watching how FIRST BANCORP responds to the disappointing results and whether the stock can regain its previous momentum in the near future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for First Bancorp. More…
| Total Revenues | Net Income | Net Margin |
| – | 146.16 | – |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for First Bancorp. More…
| Operations | Investing | Financing |
| 230.65 | -713.36 | 291.86 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for First Bancorp. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 10.63k | 9.59k | – |
Key Ratios Snapshot
Some of the financial key ratios for First Bancorp are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 12.7% | – | – |
| FCF Margin | ROE | ROA |
| – | – | – |
Analysis – First Bancorp Intrinsic Value
At GoodWhale, we have conducted a comprehensive analysis of FIRST BANCORP‘s fundamentals and have come to the conclusion that the intrinsic value of its shares is around $35.4. This assessment was determined through our proprietary Valuation Line. Currently, FIRST BANCORP’s stock is traded at $31.4, which represents a fair price that is undervalued by 11.2%. Consequently, we believe this presents an opportunity for investors to acquire the shares at a discount. More…
Peers
The company operates more than 2,000 branch offices and 4,700 ATMs across the country. First Bancorp is a member of the Federal Reserve System and is regulated by the Office of the Comptroller of the Currency. The company’s primary competitors are Mountain Commerce Bancorp Inc, Citizens Bancshares Corp, and BCB Bancorp Inc.
– Mountain Commerce Bancorp Inc ($OTCPK:MCBI)
Mountain Commerce Bancorp Inc is a bank holding company that operates through its subsidiary, Mountain Commerce Bank. The bank offers a range of banking services for individuals and businesses, including checking and savings accounts, loans, and credit cards. The company has a market cap of 170.53M as of 2022.
– Citizens Bancshares Corp ($OTCPK:CZBS)
Citizens Bancshares Corp is a bank holding company. The Company, through its subsidiaries, provides a range of banking services to individual and corporate customers. These services include personal and commercial banking, loans, mortgages, credit cards, and investment management.
– BCB Bancorp Inc ($NASDAQ:BCBP)
BCB Bancorp Inc., a bank holding company, provides banking products and services to retail, commercial, and industrial customers in the United States. The company operates in two segments, Banking and Mortgage Banking. It offers various deposit products, including checking accounts, money market accounts, savings accounts, certificates of deposit, and individual retirement accounts. The company also provides loans, such as commercial real estate loans, construction loans, residential mortgage loans, home equity lines of credit, and term loans. In addition, it offers other services, such as safe deposit box rentals, ATM banking, night depository services, direct deposit of payroll and Social Security, and telephone and Internet banking services. As of December 31, 2020, the company operated 39 banking offices in central and northern New Jersey. BCB Bancorp Inc. was founded in 1868 and is headquartered in Bayonne, New Jersey.
Summary
The company reported a GAAP earnings per share (EPS) of $0.37, missing the analyst consensus estimate by $0.25. For investors, this indicates a weak quarter in terms of performance and further highlights the need for a strong recovery in the next quarter. It is unclear at this point whether the company will be able to make a full recovery or if the current weak performance will affect future performance. Overall, investors should be cautious and carefully analyze the company’s performance before investing.
