Chances of First (NYSE:FBP) to decline in August

First BanCorp New is scheduled to announce its earnings today. The next earnings report is expected on the 27th of October 2020. First BanCorp Invested Capital Average is very stable at the moment as compared to the past year. First BanCorp reported last year Invested Capital Average of 12.76 Billion. As of 28th of July 2020, Calculated Tax Rate is likely to grow to 32.45, while Enterprise Value is likely to drop about 2.2 B. As many millenniums are trying to avoid financial services space, it makes sense to recap First BanCorp New a little further and try to understand its current market patterns. We will analyze why First BanCorp investors may still consider a stake in the business.
Published over a year ago
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Reviewed by Gabriel Shpitalnik

First BanCorp New has 1.17 B in debt with debt to equity (D/E) ratio of 6.42, demonstrating that First BanCorp may be unable to create cash to meet all of its financial commitments. We provide trade advice to complement the prevailing expert consensus on First BanCorp New. Our dynamic recommendation engine uses a multidimensional algorithm to analyze the company's potential to grow using all technical and fundamental data available at the time.
First Bancorp financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of First Bancorp, including all of First Bancorp's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of First Bancorp assets, the company is considered highly leveraged. Understanding the composition and structure of overall First Bancorp debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

Understanding First Total Liabilities

First Bancorp liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. First Bancorp has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on First Bancorp balance sheet include debt obligations and money owed to different First Bancorp vendors, workers, and loan providers. Below is the chart of First short long-term liabilities accounts currently reported on its balance sheet.
You can use First Bancorp financial leverage analysis tool to get a better grip on understanding its financial position

How important is First Bancorp's Liquidity

First Bancorp financial leverage refers to using borrowed capital as a funding source to finance First Bancorp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. First Bancorp financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to First Bancorp's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of First Bancorp's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between First Bancorp's total debt and its cash.

Breaking down First Bancorp Further

The entity reported the last year's revenue of 557.01 M. Total Income to common stockholders was 123.65 M with profit before taxes, overhead, and interest of 610.42 M.

Will First insiders exit after the decline?

Recent Treynor Ratio is up to 0.1. Price may decline again. First BanCorp New exhibits above-average semi-deviation for your current time horizon. We encourage investors to investigate First BanCorp New individually to make sure intended market timing strategies and available technical indicagtors are consistent with their estimates about First BanCorp future systematic risk.

Our Conclusion on First BanCorp

Although other entities in the banks—regional industry are either recovering or due for a correction, First may not be as strong as the others in terms of longer-term growth potentials. To summarize, as of the 28th of July 2020, our analysis shows that First BanCorp hyperactively responds to market trends. The firm is undervalued and projects close to average odds of distress for the next 2 years. However, our concluding 30 days buy vs. sell advice on the firm is Strong Sell.

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Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of First Bancorp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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