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Relative valuation derived from Financials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 65.2GRADE B
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
16.9%
Sector: 8.5%
Dividend Analysis audit
INCOME
3.20%
Trailing Yield
$3.20
Per $100 Invested
Solid dividend yield for income-focused strategies.
Est. Payout Ratio
33%SAFE
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, FIRST BANCORP /PR/ (FBP) receives a "Hold" rating with a composite score of 55.0/100, ranked #242 out of 4446 stocks. Key factor scores: Quality 65/100, Value 74/100, Momentum 48/100. This is quantitative analysis only — not investment advice.
FIRST BANCORP /PR/ (FBP) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does FIRST BANCORP /PR/ Do?
First BanCorp. operates as the bank holding company for FirstBank Puerto Rico that provides a range of financial services to retail, commercial, and institutional clients. The company operates in six segments: Commercial and Corporate Banking, Mortgage Banking, Consumer (Retail) Banking, Treasury and Investments, United States Operations, and Virgin Islands Operations. The Commercial and Corporate Banking segment offers commercial real estate and construction loans, floor plan financing, and cash and business management services. The Mortgage Banking segment engages in the origination, sale, and servicing of various residential mortgage loan products and related hedging activities; and acquisition and sale of mortgages in the secondary markets. The Consumer (Retail) Banking segment provides auto, boat, and personal loans; credit cards; lines of credit; deposit products comprising interest bearing and non-interest bearing checking and savings accounts, individual retirement accounts, and retail certificates of deposit (CDs); finance leasing and insurance agency services. The Treasury and Investments segment offers funding and liquidity management services. The United States Operations segment provides checking, savings, and money market accounts, as well as retail CDs; and residential mortgages, home equity loans, lines of credit, and term and construction loans, as well as Internet banking, cash management, remote data capture, and automated clearing house transaction services. The Virgin Islands Operations segment is involved in consumer, commercial lending, and deposit-taking activities. The company operates 64 branches in Puerto Rico, 8 branches in the U.S. Virgin Islands and British Virgin Islands, and 11 branches in the state of Florida. First BanCorp. was founded in 1948 and is based in Santurce, Puerto Rico. FIRST BANCORP /PR/ (FBP) is classified as a mid-cap stock in the Financials sector, specifically within the Banking industry. The company is led by CEO Aurelio Alemán-Bermúdez and employs approximately 3,130 people. With a market capitalization of $3.4B, FBP is one of the notable companies in the Financials sector.
FIRST BANCORP /PR/ (FBP) Stock Rating — Hold (April 2026)
As of April 2026, FIRST BANCORP /PR/ receives a Hold rating with a composite score of 55.0/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.FBP ranks #242 out of 4,446 stocks in our coverage universe. Within the Financials sector, FIRST BANCORP /PR/ ranks #90 of 891 stocks, placing it in the top quartile of its Financials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
FBP Stock Price and 52-Week Range
FIRST BANCORP /PR/ (FBP) currently trades at $22.75. The stock lost $0.25 (1.1%) in the most recent trading session. The 52-week high for FBP is $23.43, which means the stock is currently trading -2.9% from its annual peak. The 52-week low is $16.40, putting the stock 38.8% above its annual trough. Recent trading volume was 329K shares, suggesting relatively thin trading activity.
Is FBP Overvalued or Undervalued? — Valuation Analysis
FIRST BANCORP /PR/ (FBP) carries a value factor score of 74/100 in the Blank Capital model, suggesting the stock trades at a meaningful discount to its fundamental earning power. The trailing price-to-earnings ratio is 10.23x, compared to the Financials sector average of 14.88x — a discount of 31%. The price-to-book ratio stands at 1.72x, versus the sector average of 1.22x. The price-to-sales ratio is 3.47x, compared to 0.90x for the average Financials stock. On an enterprise value basis, FBP trades at 9.07x EV/EBITDA, versus 3.26x for the sector.
Based on these multiples, FIRST BANCORP /PR/ appears attractively valued relative to both its sector peers and the broader market. Value-oriented investors may find the current entry point compelling, particularly if the company's fundamental quality metrics also score well.
FIRST BANCORP /PR/ Profitability — ROE, Margins, and Quality Score
FIRST BANCORP /PR/ (FBP) earns a quality factor score of 65/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 16.9%, compared to the Financials sector average of 8.5%, which is within a healthy range. Return on assets (ROA) comes in at 1.7% versus the sector average of 1.2%.
The operating margin is 41.5% (sector: 21.8%). Net profit margin stands at 33.9%, versus 17.7% for the average Financials stock. Revenue growth is running at 7.4% on a trailing basis, compared to 9.4% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
FBP Debt, Balance Sheet, and Financial Health
FIRST BANCORP /PR/ has a debt-to-equity ratio of 15.0%, compared to the Financials sector average of 121.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 1.11x, suggesting adequate working capital coverage. Total debt on the balance sheet is $290M. Cash and equivalents stand at $898M.
FBP has a beta of 0.81, meaning it is roughly in line with the broader market in terms of price volatility. The stability factor score for FIRST BANCORP /PR/ is 82/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
FIRST BANCORP /PR/ Revenue and Earnings History — Quarterly Trend
In TTM 2026, FIRST BANCORP /PR/ reported revenue of $978M and earnings per share (EPS) of $2.16. Net income for the quarter was $331M. Operating income came in at $406M.
In FY 2025, FIRST BANCORP /PR/ reported revenue of $1.26B and earnings per share (EPS) of $2.16. Net income for the quarter was $345M. Revenue grew 2.4% year-over-year compared to FY 2024. Operating income came in at $417M.
In Q3 2025, FIRST BANCORP /PR/ reported revenue of $249M and earnings per share (EPS) of $0.63. Net income for the quarter was $101M. Revenue grew 6.0% year-over-year compared to Q3 2024. Operating income came in at $106M.
In Q2 2025, FIRST BANCORP /PR/ reported revenue of $247M and earnings per share (EPS) of $0.50. Net income for the quarter was $80M. Revenue grew 6.5% year-over-year compared to Q2 2024. Operating income came in at $103M.
Over the past 8 quarters, FIRST BANCORP /PR/ has demonstrated a growth trajectory, with revenue expanding from $232M to $978M. Investors analyzing FBP stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
FBP Dividend Yield and Income Analysis
FIRST BANCORP /PR/ (FBP) currently pays a dividend yield of 3.2%. At this yield, a $10,000 investment in FBP stock would generate approximately $$320.00 in annual dividend income. This compares to the Financials sector average dividend yield of 2.5%, meaning FBP offers above-average income for its sector. With a net margin of 33.9%, the dividend appears well-covered by earnings, suggesting sustainable payouts going forward.
FBP Momentum and Technical Analysis Profile
FIRST BANCORP /PR/ (FBP) has a momentum factor score of 48/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 30/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 11/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
FBP vs Competitors — Financials Sector Ranking and Peer Comparison
Comparing FBP against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full FBP vs S&P 500 (SPY) comparison to assess how FIRST BANCORP /PR/ stacks up against the broader market across all factor dimensions.
FBP Next Earnings Date
No upcoming earnings date has been announced for FIRST BANCORP /PR/ (FBP) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy FBP? — Investment Thesis Summary
FIRST BANCORP /PR/ presents a balanced picture with arguments on both sides. The quality score of 65/100 indicates above-average profitability and business fundamentals. The value score of 74/100 suggests attractive pricing relative to fundamentals. Low volatility (stability score 82/100) reduces downside risk.
In summary, FIRST BANCORP /PR/ (FBP) earns a Hold rating with a composite score of 55.0/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on FBP stock.
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Institutional Research Dossier
FIRST BANCORP /PR/ (FBP) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
First BanCorp (FBP), with its 'Hold' rating and composite score of 54.4/100, presents a mixed investment picture. While the bank exhibits strong profitability and attractive valuation multiples compared to its sector, its relatively weak momentum and investment scores raise concerns about future growth prospects and capital allocation efficiency. The bank's significant presence in Puerto Rico, while offering unique opportunities, also exposes it to specific regional economic and regulatory risks that warrant careful consideration.
The 'Hold' rating reflects a balanced view, acknowledging the bank's current financial strength and undervaluation while remaining cautious about its growth trajectory and the inherent risks associated with its geographic concentration. Investors should closely monitor the bank's ability to sustain its profitability, improve its capital allocation strategies, and navigate the economic challenges in Puerto Rico before considering a more decisive investment stance.
Business Strategy & Overview
First BanCorp operates as a diversified financial services provider, primarily serving the Puerto Rican market through its FirstBank Puerto Rico subsidiary. The company's business is segmented into Commercial and Corporate Banking, Mortgage Banking, Consumer (Retail) Banking, Treasury and Investments, United States Operations, and Virgin Islands Operations, demonstrating a broad approach to capturing market share across various financial product categories. This diversification allows First BanCorp to cater to a wide range of customer needs, from individual consumers seeking personal loans and deposit accounts to large corporations requiring commercial real estate financing and cash management services.
A key aspect of First BanCorp's strategy is its focus on the Puerto Rican market, where it holds a significant market share. This concentration allows the bank to leverage its local expertise and established brand recognition to maintain a competitive edge. However, it also exposes the bank to the economic and regulatory conditions specific to Puerto Rico, which can be volatile and unpredictable. The expansion into the U.S. Virgin Islands and Florida represents an attempt to diversify its geographic footprint and reduce its reliance on the Puerto Rican economy, but these operations are still relatively small compared to its core business.
The Mortgage Banking segment plays a crucial role in First BanCorp's overall strategy, involving the origination, sale, and servicing of residential mortgage loans. This segment not only generates revenue through interest income and servicing fees but also supports the bank's broader efforts to attract and retain customers. The bank's Treasury and Investments segment is responsible for managing the company's funding and liquidity, ensuring that it has sufficient capital to meet its obligations and capitalize on investment opportunities. This segment is critical for maintaining the bank's financial stability and supporting its growth initiatives.
First BanCorp's strategic positioning is characterized by a blend of geographic concentration and product diversification. While its strong presence in Puerto Rico provides a solid foundation, the bank's success hinges on its ability to effectively manage the risks associated with this concentration and to successfully expand its operations in other markets. The bank's focus on providing a comprehensive suite of financial services positions it well to compete in the evolving banking landscape, but it must continue to adapt to changing customer preferences and technological advancements to maintain its competitive advantage.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
7.4%
Sector: 9.4%
-22% VS SCTR
Economic Moat Analysis
First BanCorp's economic moat appears to be narrow, primarily derived from its established presence and brand recognition within the Puerto Rican market. While the bank benefits from a degree of customer loyalty and local expertise, these advantages are not insurmountable and are vulnerable to competition from larger, more diversified financial institutions. The bank's concentrated geographic footprint also limits its ability to leverage economies of scale and diversify its revenue streams, making it more susceptible to regional economic downturns.
Switching costs for banking customers are generally low, particularly in the retail segment. Customers can easily transfer their accounts to other banks if they find better rates or services. While commercial clients may face slightly higher switching costs due to the complexity of their financial relationships, these costs are not significant enough to create a wide moat. First BanCorp's ability to retain customers depends on its ability to provide competitive pricing, superior customer service, and innovative products, which are all areas where it faces intense competition.
The bank's intangible assets, such as its brand reputation and regulatory licenses, provide some degree of competitive advantage. However, these assets are not unique to First BanCorp and are shared by many other banks operating in the region. The bank's cost advantages are also limited, as it faces similar operating expenses and regulatory requirements as its competitors. While the bank has made efforts to improve its efficiency and reduce its costs, these efforts have not resulted in a significant cost advantage that would create a wider moat.
Efficient scale is not a significant factor in First BanCorp's business, as the banking industry is characterized by a large number of competitors and relatively low barriers to entry. While larger banks may benefit from economies of scale in certain areas, such as technology and compliance, these advantages are not significant enough to create a wide moat. First BanCorp's ability to compete depends on its ability to differentiate itself through its local expertise, customer service, and product offerings, rather than on its size or scale.
In conclusion, First BanCorp's economic moat is narrow, primarily based on its established presence and brand recognition in Puerto Rico. While these advantages provide some degree of competitive protection, they are not strong enough to create a wide moat. The bank faces intense competition from other financial institutions and is vulnerable to regional economic downturns. Investors should carefully consider these factors when evaluating the bank's long-term growth prospects and profitability.
Financial Health & Profitability
First BanCorp demonstrates a solid financial health profile, characterized by strong profitability metrics and a conservative balance sheet. The company's ROE of 16.9% significantly exceeds the sector average of 8.5%, indicating efficient utilization of equity. Similarly, its net margin of 33.9% is substantially higher than the sector average of 17.8%, reflecting effective cost management and revenue generation. These metrics suggest that First BanCorp is a highly profitable institution compared to its peers.
The company's debt-to-equity ratio of 15.00 is significantly lower than the sector average of 115.00, indicating a conservative approach to leverage. This low leverage provides the bank with greater financial flexibility and reduces its vulnerability to interest rate fluctuations and economic downturns. The company's current ratio of 1.11 suggests adequate liquidity to meet its short-term obligations. The substantial cash balance of $897.88 million further strengthens its financial position and provides ample resources for investment and growth opportunities.
Analyzing the quarterly financial history reveals a consistent trend of profitability and revenue growth. The company's revenue has steadily increased over the past few years, from $1.16 billion in FY2023 to $1.26 billion in FY2025. Net income has also remained strong, with $344.87 million in FY2025, although there have been some fluctuations in quarterly results. The operating margin has consistently remained above 30%, indicating effective cost control and operational efficiency. The Q3 FY2025 operating margin of 42.7% is particularly noteworthy, suggesting further improvements in operational performance.
However, it's important to note that the company's revenue growth of 7.4% is slightly below the sector average of 9.3%. This suggests that while First BanCorp is performing well, it may not be growing as rapidly as its peers. The company's free cash flow of $205.07 million indicates its ability to generate cash from its operations, which can be used to fund investments, pay dividends, or reduce debt. Overall, First BanCorp's financial health is strong, characterized by high profitability, low leverage, and consistent revenue growth. However, investors should monitor the company's revenue growth rate and its ability to maintain its profitability in the face of increasing competition and economic uncertainty.
Valuation Assessment
First BanCorp's valuation appears attractive based on several key metrics. The company's P/E ratio of 9.5x is significantly lower than the sector average of 15.5x, suggesting that the stock is undervalued relative to its earnings. Similarly, its EV/EBITDA ratio of 2.0x is substantially lower than the sector average of 3.5x, further indicating undervaluation. These multiples suggest that investors are not fully recognizing the company's strong profitability and growth potential.
The company's high ROE of 16.9% further supports the argument that the stock is undervalued. A high ROE indicates that the company is generating significant returns on its equity, which should translate into higher stock prices. The company's strong net margin of 33.9% also suggests that it is more profitable than its peers, which should justify a higher valuation. However, it's important to consider the company's geographic concentration in Puerto Rico, which may be contributing to the lower valuation multiples.
While a precise FCF yield cannot be calculated from the provided data without a share count, the available free cash flow of $205.07 million suggests a healthy cash flow generation capability. This cash flow can be used to fund dividends, share repurchases, or acquisitions, all of which could potentially increase shareholder value. The company's strong balance sheet, with a low debt-to-equity ratio and a substantial cash balance, provides further support for its ability to generate value for shareholders.
Overall, First BanCorp's valuation appears to be a bargain relative to its growth, its history, and its sector. The company's low P/E and EV/EBITDA multiples, combined with its high ROE and strong net margin, suggest that the stock is undervalued. However, investors should carefully consider the risks associated with the company's geographic concentration and its relatively slower revenue growth rate compared to the sector average. A more detailed valuation analysis, including a discounted cash flow analysis and a peer group comparison, would be necessary to determine a more precise fair value for the stock.
Risk & Uncertainty
First BanCorp faces several specific, idiosyncratic risks that could negatively impact its business and financial performance. The most significant risk is its geographic concentration in Puerto Rico. The Puerto Rican economy has been volatile in recent years, and any further economic downturn could significantly impact the bank's loan portfolio, revenue, and profitability. The bank's exposure to the Puerto Rican government and its agencies also presents a risk, as any fiscal challenges faced by the government could lead to loan defaults and reduced economic activity.
Regulatory risk is another important consideration. The banking industry is heavily regulated, and any changes in regulations could increase the bank's compliance costs and limit its ability to generate revenue. The bank is also subject to regulatory scrutiny related to anti-money laundering and other compliance matters, and any violations could result in significant fines and penalties. The regulatory environment in Puerto Rico may also differ from that in the United States, adding complexity to the bank's compliance efforts.
Competition from larger, more diversified financial institutions is also a risk. First BanCorp competes with both local and international banks, some of which have greater financial resources and a broader range of products and services. These larger banks may be able to offer more competitive pricing and attract customers away from First BanCorp. The increasing adoption of digital banking technologies also presents a challenge, as the bank must invest in new technologies to remain competitive and meet the evolving needs of its customers.
Credit risk is inherent in the banking business, and First BanCorp is exposed to the risk that its borrowers will default on their loans. The bank's loan portfolio is concentrated in Puerto Rico, which increases its exposure to regional economic risks. The bank's mortgage banking segment is also subject to interest rate risk, as changes in interest rates can impact the value of its mortgage loan portfolio. Effective risk management is crucial for mitigating these risks and maintaining the bank's financial stability.
Bulls Say / Bears Say
The Bull Case
BULL VIEWFirst BanCorp's superior profitability, as evidenced by its high ROE and net margin, justifies a higher valuation than its peers, making it an attractive investment opportunity.
BULL VIEWThe bank's conservative balance sheet, with its low debt-to-equity ratio and substantial cash balance, provides a strong foundation for future growth and shareholder returns.
BULL VIEWFBP's strong presence in Puerto Rico positions it to benefit from any potential economic recovery in the region, leading to increased loan demand and revenue growth.
The Bear Case
BEAR VIEWFirst BanCorp's heavy reliance on the Puerto Rican economy exposes it to significant regional economic risks, potentially leading to loan losses and reduced profitability.
BEAR VIEWThe bank's relatively slower revenue growth compared to the sector average raises concerns about its ability to compete effectively and maintain its market share.
BEAR VIEWFBP's low short interest suggests a lack of institutional conviction in the stock's potential, indicating limited upside potential.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score FBP and 4,400+ other equities.
FIRST BANCORP /PR/ exhibits a 118% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
1.7%
Sector: 1.2%
Gross Margin
Pricing power and cost efficiency
—
Sector: 0.0%
Operating Margin
Core business profitability
41.5%
Sector: 21.8%
Net Margin
Bottom-line profitability
33.9%
Sector: 17.7%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield2.48%
Yield Delta+29%
Income Projection audit
A $10,000 investment would generate approximately $320 annually in dividends at the current trailing rate.
