First Capital Inc (NASDAQ: FCAP)

Sector: Financial Services Industry: Banks - Regional CIK: 0001070296
Market Cap 135.14 Mn
P/B 2.65
P/E 33.83
P/S 7.15
ROIC (Qtr) 11.40
Div Yield % 2.20
Rev 1y % (Qtr) 25.33
Total Debt (Qtr) 0.00
Debt/Equity (Qtr) 0.00

About

Price action

Investment thesis

Bull case

  • Operating cash flow of 20.12M provides exceptional 1676.33x coverage of minority interest expenses 12000, showing strong core operations.
  • Operating cash flow of 20.12M provides strong 162.23x coverage of stock compensation 124000, indicating sustainable incentive practices.
  • Robust free cash flow of 19.15M exceeds capital expenditure of 970000 by 19.74x, indicating strong organic growth funding capability.
  • Cash position of 114.38M provides exceptional 9531.83x coverage of minority interest expenses 12000, indicating strong liquidity.
  • Operating cash flow of 20.12M provides strong 14.76x coverage of operating expenses 1.36M, showing operational efficiency.

Bear case

  • Operating cash flow of 20.12M barely covers its investment activities of (24.68M), with a coverage ratio of -0.81, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 20.12M provides thin coverage of dividend payments of (3.97M) with a -5.07 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Free cash flow of 19.15M represents just -0.57x of debt issuance (33.62M), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Retained earnings of 113.79M provide limited buffer against comprehensive income items of (13.67M), which is -8.32x, indicating elevated exposure to market risks.
  • Operating cash flow of 20.12M is outpaced by equity issuance of (61000) (-329.77 ratio), indicating concerning reliance on equity markets for funding operations.

Peer comparison

Companies in the Banks - Regional
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 PNC Pnc Financial Services Group, Inc. 116.04 Bn 32.12 7.88 62.34 Bn
2 USB Us Bancorp \De\ 92.41 Bn 16.38 4.66 77.98 Bn
3 NU Nu Holdings Ltd. 81.91 Bn 32.39 5.82 4.49 Bn
4 NWG NatWest Group plc 65.96 Bn 9.79 3.02 169.04 Bn
5 TFC Truist Financial Corp 65.29 Bn -29.96 6.01 71.11 Bn
6 FITB Fifth Third Bancorp 34.56 Bn 14.24 4.21 18.94 Bn
7 RF Regions Financial Corp 34.00 Bn -44.56 11.28 6.09 Bn
8 CFG Citizens Financial Group Inc/Ri 33.38 Bn 38.59 7.16 10.66 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.11 0.13
EV to Cash from Ops. EV/CFO 19.12 10.77
EV to Debt EV to Debt 0.00 6.49
EV to EBIT EV/EBIT 24.67 6.25
EV to EBITDA EV/EBITDA 21.16 192.10
EV to Free Cash Flow [EV/FCF] EV/FCF 20.87 4.75
EV to Market Cap EV to Market Cap 1.02 1.03
EV to Revenue EV/Rev 7.29 5.61
Price to Book Value [P/B] P/B 2.65 1.83
Price to Earnings [P/E] P/E 33.83 26.60
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 3.72 273.23
Dividend Payout Ratio % Div Payout % (Qtr) 26.70 34.77
Dividend per Basic Share Div per Share (Qtr) 1.18 0.89
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 20.68 33.82
Interest Coverage Interest Coverage 0.00 -0.06
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -67.53 -74.97
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 23.48 16.02
Dividend Growth (1y) % Div 1y % (Qtr) 7.27 5.29
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 25.13 111.43
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 28.73 39.20
EBIT Growth (1y) % EBIT 1y % (Qtr) 30.63 61.65
EBT Growth (1y) % EBT 1y % (Qtr) 30.63 61.56
EPS Growth (1y) % EPS 1y % (Qtr) 25.21 76.44
FCF Growth (1y) % FCF 1y % (Qtr) 2.61 162.62
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 15.22 14.19
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.04 0.04
Cash Payout Ratio Cash Payout (Qtr) 0.19 0.26
Cash Ratio Cash Ratio 0.00 0.00
Current Ratio Current Ratio 0.00 0.01
Debt to Equity Ratio Debt/Equity (Qtr) 0.00 0.53
Interest Cover Ratio Interest Cover Ratio 0.00 -0.06
Times Interest Earned Times Interest Earned 0.00 -0.06
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 40.50 148.90
EBIT Margin % EBIT Margin % (Qtr) 38.09 156.32
EBT Margin % EBT Margin % (Qtr) 38.09 155.57
Gross Margin % Gross Margin % (Qtr) 100.00 97.81
Net Profit Margin % Net Margin % (Qtr) 31.20 116.30