First Capital (FCAP) AI Stock Analysis

• Market Cap: $174.81M
• Dividend Yield: 1.96%
• Average Volume (3M): 3.32K
• Price to Earnings (P/E): 10.7
• Beta (1Y): 0.07
• Revenue Growth: 11.36%
• EPS Growth: 25.07%
• Country: US
• Employees: 173
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.46
• Shares Outstanding: 3,347,627
• 10 Day Avg. Volume: 2,805
• 30 Day Avg. Volume: 3,318
• PEG Ratio: -1.38
• Price to Book (P/B): 0.94
• Price to Sales (P/S): 1.86
• P/FCF Ratio: 4.99
• Enterprise Value/Market Cap: 0.43
• Enterprise Value/Revenue: 1.19
• Enterprise Value/Gross Profit: 1.59
• Enterprise Value/Ebitda: 3.92
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: $55.00 ▼(-5.61% Downside)

The score is driven primarily by solid financial health (strong margins, zero debt, and good cash conversion) offset by a sharp TTM revenue decline and softer recent earnings trend. Technicals are mixed with longer-term support but muted near-term momentum, while valuation (P/E ~13.2 and ~2.1% yield) is supportive.

Positive Factors

High net margin

Sustained TTM net margin near 26% indicates durable earnings power for a regional bank. High margins provide a buffer versus credit losses and funding cost increases, support reinvestment in branches/services, and underpin stable internal capital generation over months.

Minimal financial leverage

Zero reported total debt and stronger equity levels signal a conservatively capitalized balance sheet. This reduces interest expense sensitivity, increases resilience to localized credit stress, and gives management flexibility to support lending or absorb shocks without raising external debt.

Strong cash conversion

FCF at ~95% of net income and solid operating cash flow show high earnings quality and cash generative ability. Reliable cash supports dividends, branch/lending investments, and organic growth, reducing reliance on capital markets for near-term funding needs.

Negative Factors

Sharp revenue decline

A roughly 24.5% TTM revenue drop is a material structural headwind. Lower top-line scale can erode operating leverage, limit funds available for reserves and growth, and signal weakening loan origination or fee income that may persist absent strategic remediation.

Earnings trend weakening

Falling annual net income reduces retained earnings and ROE, constraining capital available for lending and strategic initiatives. A multi-year downtrend raises questions about sustainable profitability and could force more conservative underwriting or cost actions over the medium term.

Variable cash flow growth

Periodic variability in FCF growth increases forecasting and planning risk for a community bank. Inconsistent cash conversion can necessitate precautionary liquidity buffers or reliance on deposit stability, complicating capital allocation and durable loan growth execution.

First Capital Business Overview & Revenue Model

Company Description

First Capital, Inc. operates as the bank holding company for First Harrison Bank that provides various banking services to individuals and business customers. The company offers various deposit instruments, including non-interest bearing checking accounts, negotiable order of withdrawal accounts, money market accounts, regular savings accounts, certificates of deposit, and retirement savings plans. It also provides real estate mortgage loans, such as fixed-rate and adjustable rate mortgage residential loans, construction loans for residential and commercial properties, and commercial real estate loans, as well as commercial business loans. In addition, the company originates mortgage loans for sale in the secondary market and sells non-deposit investment products; and offers various secured or guaranteed consumer loans comprising automobile and truck loans, home equity loans, home improvement loans, boat loans, mobile home loans, and loans secured by savings deposits, as well as unsecured consumer loans. It provides its products and services through 18 locations in Indiana and Kentucky. First Capital, Inc. was founded in 1891 and is based in Corydon, Indiana.

How the Company Makes Money

First Capital generates revenue through several key streams: interest income from loans and credit facilities provided to customers, fees from account maintenance and transaction services, and commissions on investment products and asset management services. Additionally, the company may engage in strategic partnerships with financial institutions, which can enhance its product offerings and drive customer acquisition. The performance of its investment portfolio also contributes to earnings, as capital gains and dividends from securities held can significantly impact overall profitability.

First Capital Financial Statement Overview

Summary

Financials are solid overall: strong profitability (TTM net margin ~25.8%), very conservative leverage (zero total debt), and reliable cash generation (FCF ~95% of net income). The main drag is weakening near-term performance, with TTM revenue down ~24.5% and net income trending lower from 2023 to 2024.

Income Statement

Profitability remains a clear strength, with TTM (Trailing-Twelve-Months) net margin at ~25.8% and strong operating profitability. However, the near-term trajectory has weakened meaningfully: TTM (Trailing-Twelve-Months) revenue declined ~24.5% versus prior periods of positive growth, and annual net income has trended down from 2023 to 2024. Overall, solid earnings power but currently pressured by shrinking revenue.

Balance Sheet

The balance sheet shows very low financial leverage, with total debt at zero in the most recent periods (TTM and 2024) and a minimal debt burden historically. Returns on equity are healthy for a regional bank (~8.4% TTM and ~10.4% in 2024), though below the stronger levels seen in 2022–2023. Equity levels appear to have increased sharply in the TTM data versus 2024, which improves capitalization but also creates some comparability noise when evaluating year-to-year trends.

Cash Flow

Cash generation is solid and consistent: TTM (Trailing-Twelve-Months) operating cash flow is ~$20.1M and free cash flow is ~$19.8M, with free cash flow running close to net income (~95% TTM), indicating good earnings quality. Free cash flow growth is modestly positive in the TTM period, but has been uneven across earlier years, suggesting periodic variability in cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	63.32M	58.13M	51.24M	41.87M	39.01M	38.23M
Gross Profit	47.32M	42.00M	41.08M	39.32M	38.21M	34.87M
EBITDA	19.16M	15.27M	16.08M	15.30M	14.82M	13.04M
Net Income	14.75M	11.94M	12.79M	11.90M	11.42M	10.13M
Balance Sheet
Total Assets	1.24B	1.19B	1.16B	1.15B	1.16B	1.02B
Cash, Cash Equivalents and Short-Term Investments	553.09M	91.68M	464.37M	493.55M	479.61M	325.05M
Total Debt	0.00	0.00	21.50M	0.00	0.00	0.00
Total Liabilities	1.10B	1.07B	1.05B	1.07B	1.04B	906.80M
Stockholders Equity	132.44M	114.60M	105.23M	85.16M	113.83M	110.64M
Cash Flow
Free Cash Flow	19.79M	21.63M	13.54M	16.12M	21.34M	11.46M
Operating Cash Flow	20.12M	22.34M	14.16M	16.53M	21.63M	12.06M
Investing Cash Flow	-24.68M	29.01M	-23.95M	-144.03M	-156.46M	-62.41M
Financing Cash Flow	26.81M	15.90M	-17.84M	21.29M	131.45M	174.88M

First Capital Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 58.27
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FCAP, the sentiment is Neutral. The current price of 58.27 is above the 20-day moving average (MA) of 53.84, above the 50-day MA of 56.08, and above the 200-day MA of 46.20, indicating a neutral trend. The MACD of -0.15 indicates Positive momentum. The RSI at 45.78 is Neutral, neither overbought nor oversold. The STOCH value of 13.47 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FCAP.

First Capital Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LARK	75 Outperform	$166.43M	8.93	11.72%	3.01%	12.31%	39.46%
BVFL	72 Outperform	$173.72M	13.32	5.32%	―	4.86%	-8.20%
FCAP	70 Outperform	$174.81M	10.68	11.84%	1.96%	11.36%	25.07%
CZWI	70 Outperform	$182.42M	12.93	7.00%	2.00%	-2.16%	-9.35%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
CFBK	67 Neutral	$204.98M	11.85	9.18%	1.16%	2.33%	22.43%
MNSB	60 Neutral	$171.68M	12.67	-2.07%	1.90%	1.92%	-174.59%