Company Overview
First BanCorp. operates as the bank holding company for FirstBank Puerto Rico, delivering a comprehensive suite of financial products and services tailored for both consumer and commercial clients. This institution functions within the Financial Services sector, specifically categorized under the Banks - Regional industry, which implies a focus on localized banking operations serving distinct geographic markets. The company demonstrates a substantial scale with a market capitalization of $3.27B, an annual revenue of $914.86M, and an employee count of 3218. These valuation and revenue figures indicate that First BanCorp. maintains a significant footprint in its regional market, positioning it as a major player capable of generating nearly $1B in revenue annually while supporting a workforce of over three thousand employees.
Financial Health
The company reported a revenue of $914.86M for the trailing twelve months, resulting in a net income of $344.87M, while EBITDA data is not available in the provided records. The substantial gap between the $914.86M revenue and the $344.87M net income reveals a cost structure where operating expenses are approximately 62.3% of total revenue, reflecting the high-cost nature of banking operations before interest income is factored in. Free cash flow data is not available, which limits the immediate assessment of operational cash generation flexibility but does not preclude other forms of liquidity management. Operating margin stands at 45.9%, indicating that for every dollar of revenue, the company retains $0.459 after covering operating expenses, a figure typical for regional banks due to significant non-interest expenses. Profit margin is recorded at 37.7%, showing the portion of revenue that translates to actual profit after all expenses, including interest and taxes. Gross margin is listed as 0.0%, which is standard for financial institutions as their primary revenue streams are interest-based rather than from the sale of goods. The company holds $658.44M in cash against $364.57M in debt, resulting in a net cash position that suggests a conservative balance sheet rather than a leveraged one. Current ratio data is not available, preventing a direct calculation of short-term liquidity relative to current liabilities. Return on Equity is 19.0%, signifying that shareholders receive a significant return on their invested capital relative to the bank's equity base. Return on Assets is 1.8%, which is a standard metric for banks, indicating that the total asset base is generating a modest but efficient return compared to the equity base.
Valuation Assessment
The trailing twelve-month P/E ratio is 9.70, while the forward P/E is 8.85, implying that the market expects earnings to grow or stabilize such that the future price relative to earnings is lower than the current historical average. The price-to-book ratio is 1.65, indicating that the market values the company at 65% above its tangible book value, suggesting a premium assigned to its brand, franchise value, or regional stability. The price-to-sales ratio stands at 3.57, and EV/EBITDA is not available; these alternative metrics suggest that the company is valued based on its revenue generation capability rather than traditional earnings multiples due to the lack of EBITDA data. The stock has a 52-week high of $23.43 and a 52-week low of $16.40, and without the specific current share price, the exact percentage position relative to this range cannot be calculated, but the trading band spans $7.03. The beta value is 0.85, meaning the stock is expected to be 15% less volatile than the broader market, offering a more stable price movement profile compared to the overall index.
Growth & Income
Revenue growth year-over-year is 6.9%, while earnings growth year-over-year is 20.8%, indicating that earnings are growing at a rate significantly faster than revenue, which often implies improving operational efficiency or favorable net interest margin expansions. The company offers a dividend yield of 3.8% with a payout ratio of 33.5%, suggesting that the dividend payments are highly sustainable as they cover only about one-third of the earnings available for distribution. This low payout ratio allows the company to retain a substantial portion of its profits for capital deployment, loan growth, or share buybacks rather than fully distributing them. The overall growth and income profile combines moderate revenue expansion with robust earnings acceleration and a sustainable, income-generating dividend structure that appeals to value-oriented investors.