First Citizens BancShares (FCNCA) AI Stock Analysis

• Market Cap: $23.24B
• Dividend Yield: 0.41%
• Average Volume (3M): 68.03K
• Price to Earnings (P/E): 9.1
• Beta (1Y): 1.60
• Revenue Growth: 18.05%
• EPS Growth: -75.88%
• Country: US
• Employees: 17,475
• Sector: Financial
• Sector Strength: 77
• Industry: Banking
• EPS (TTM): 189.38
• Shares Outstanding: 12,572,063
• 10 Day Avg. Volume: 92,996
• 30 Day Avg. Volume: 68,025
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.40
• Price to Cash Flow (P/CF): 5.20
• P/FCF Ratio: 2.50
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $2,462.75
• Price Target Upside: 40.25% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

First Citizens BancShares demonstrates strong financial performance with consistent revenue growth and a well-managed balance sheet. Despite this, the stock faces technical pressure with bearish indicators and a current price below key moving averages. The valuation is favorable, given the low P/E ratio, but the dividend yield is less attractive. The earnings call reinforces a positive outlook, highlighting strategic initiatives and growth. Overall, the company's strengths in financial health and strategic planning balance the current technical challenges, resulting in a moderately positive stock score.

Positive Factors

Financial Performance

Analysts expect a positive reaction in FCNCA's stock due to the potential for nearly 5% NII upside based on current rate expectations.

Stock Valuation

The stock has become cheaper by 12%, creating a tactical opportunity to add exposure to the higher-for-longer interest rate environment.

Negative Factors

Interest Rate Environment

Declining rates could pressure FCNCA’s Net Interest Income as it is the most asset sensitive bank in coverage.

First Citizens BancShares Business Overview & Revenue Model

Company Description

First Citizens BancShares, Inc. is a bank holding company, which engages in the provision of retail and commercial banking services through its subsidiary. It operates through the following business lines: Card Holder and Merchant Services; Services Charges on Deposit Accounts; Wealth Management Services; Other Service Charges and Fees; Insurance Commissions; ATM Income; and Other. The Card Holder and Merchant Services business lines include interchange fees from customer debut and credit card transactions. The Services Charges on Deposit Accounts business line represent monthly account maintenance and transaction-based service fees. The Wealth Management Services business line comprises sales commissions on various product offerings, transaction fees, and trust and asset management fees. The Other Service Charges and Fees business line encompasses check cashing fees, international banking fees, internet banking fees, wire transfer fees and safe deposit fees. The Insurance Commissions business line focuses in the commissions earned on the issuance of insurance products and services. The ATM income covers customers and non-customers for engaging in an ATM transaction. The Other business line composes several forms of recurring revenue such as FHLB dividends and income earned on changes in the cash surrender value of bank-owned life insurance. The company was founded on August 7, 1986 and is headquartered in Raleigh, NC.

How the Company Makes Money

First Citizens BancShares generates revenue through several key streams. The primary source of income is interest earned on loans and leases, which include consumer, commercial, and real estate loans. Additional revenue comes from non-interest income, such as service charges on deposit accounts, fees from investment services, and wealth management offerings. The bank also earns through treasury services and by providing trust services. A significant factor contributing to its earnings is its strategic acquisitions, which have expanded its market presence and client base. First Citizens BancShares also benefits from partnerships with financial technology firms to enhance its service offerings and operational efficiency.

First Citizens BancShares Financial Statement Overview

Summary

First Citizens BancShares exhibits strong financial health with consistent revenue growth and profitability. The balance sheet is well-managed, though the high leverage warrants close monitoring. Cash flows are positive and managed well, supporting the company's growth trajectory. Overall, the financials reflect a well-run banking institution with some areas to monitor for potential risks.

Income Statement

First Citizens BancShares demonstrates strong profitability with a consistent increase in total revenue over the years. The net profit margin and EBIT margin show robust performance, enhancing the overall financial strength. However, fluctuations in revenue growth rates indicate some volatility, which needs attention.

Balance Sheet

The company's balance sheet is solid with a low debt-to-equity ratio and strong equity levels. The return on equity is impressive, indicating efficient use of shareholders' capital. However, the equity ratio suggests that the company is highly leveraged, which could pose risks if not managed carefully.

Cash Flow

The cash flow position is generally positive, with a notable free cash flow growth, reflecting efficient cash management. The operating cash flow to net income ratio indicates healthy cash conversion. However, variations in free cash flow to net income ratios suggest potential instability in cash flow generation.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
12.35B	7.60B	4.54B	1.84B	1.86B
	Gross Profit
12.35B	4.08B	2.55B	1.84B	1.86B
	EBIT
1.05B	3.33B	2.77B	701.66M	617.88M
	EBITDA
0.00	371.00M	864.00M	814.13M	719.43M
	Net Income Common Stockholders
2.78B	11.47B	1.10B	547.00M	492.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
915.00M	908.00M	518.00M	18.66B	4.71B
	Total Assets
223.72B	213.76B	109.30B	58.31B	49.96B
	Total Debt
367.00M	37.56B	6.21B	1.19B	1.25B
	Net Debt
-447.00M	3.05B	666.00M	856.56M	886.12M
	Total Liabilities
201.49B	192.50B	99.64B	1.19B	1.25B
	Stockholders Equity
22.23B	21.25B	9.66B	4.74B	4.23B
Cash Flow		Free Cash Flow
1.88B	1.23B	1.86B	-391.15M	206.63M
	Operating Cash Flow
2.99B	2.66B	2.79B	-283.78M	340.01M
	Investing Cash Flow
-10.15B	2.43B	75.00M	-7.57B	-9.87B
	Financing Cash Flow
7.07B	-4.70B	-2.69B	7.83B	9.52B

First Citizens BancShares Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1755.93
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FCNCA, the sentiment is Negative. The current price of 1755.93 is below the 20-day moving average (MA) of 1984.21, below the 50-day MA of 2089.21, and below the 200-day MA of 1978.77, indicating a bearish trend. The MACD of -99.19 indicates Positive momentum. The RSI at 25.49 is Positive, neither overbought nor oversold. The STOCH value of 12.27 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FCNCA.

First Citizens BancShares Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HBAN	74 Outperform	$21.03B	12.00	9.93%	4.30%	10.13%	-1.25%
PNC	71 Outperform	$67.30B	12.71	11.10%	3.73%	7.24%	7.51%
RF	71 Outperform	$19.01B	11.14	10.72%	4.67%	2.70%	-8.16%
FCNCA	70 Outperform	$23.24B	9.14	12.77%	0.41%	18.05%	-75.88%
ZION	69 Neutral	$7.00B	9.54	13.15%	3.56%	7.91%	13.79%
Sector *	64 Neutral	$13.79B	10.52	9.20%	4.24%	17.25%	-7.60%
FHN	61 Neutral	$9.49B	13.05	8.70%	3.39%	4.56%	-13.90%

First Citizens BancShares Corporate Events

First Citizens BancShares Reports Strong Q4 2024 Results

First Citizens BancShares reported strong financial results for the fourth quarter of 2024, with net income rising to $700 million from the previous quarter. The company experienced growth in loans and deposits across all segments, despite challenges from recent natural disasters. The quarter also saw a repurchase of 461,583 shares of Class A common stock for $963 million. Operational results were affected by acquisition-related expenses, tax changes, and increased noninterest expenses due to integration and relief efforts. Net interest income and margin saw declines, impacted by lower average yields on loans and decreased interest income from deposits. Despite these challenges, noninterest income rose due to gains in leasing equipment sales and favorable market adjustments. The balance sheet reflected growth in loans, investment securities, and deposits, indicating a stable funding mix.

First Citizens BancShares Strengthens Board with New Appointment

First Citizens BancShares has appointed Matt Snow to its Board of Directors, effective January 2, 2025. Snow brings over 30 years of experience in accounting and auditing, having served in leadership roles at Forvis Mazars and Dixon Hughes Goodman LLP. His expertise is expected to enhance the board’s capabilities, particularly in audit and financial oversight, benefiting the company’s strategic direction and governance.