First National (FXNC) AI Stock Analysis

• Market Cap: $167.78M
• Dividend Yield: 3.28%
• Average Volume (3M): 20.37K
• Price to Earnings (P/E): 22.8
• Beta (1Y): 0.48
• Revenue Growth: 35.45%
• EPS Growth: -42.78%
• Country: US
• Employees: 303
• Sector: Financial
• Sector Strength: 79
• Industry: Banks - Regional
• EPS (TTM): 0.35
• Shares Outstanding: 8,986,696
• 10 Day Avg. Volume: 29,592
• 30 Day Avg. Volume: 20,370
• PEG Ratio: 0.15
• Price to Book (P/B): 0.99
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.19
• Enterprise Value/Market Cap: 0.32
• Enterprise Value/Revenue: 0.24
• Enterprise Value/Gross Profit: 1.02
• Enterprise Value/Ebitda: 1.95
• 1Y Price Target: $28.50
• Price Target Upside: 50.24% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 56 Neutral
• Price Target: $19.00 ▲(0.16%Upside)

The overall stock score of 56.25 reflects First National's strong financial performance with robust revenue growth and a solid balance sheet. However, negative cash flows and declining net margins pose challenges. The stock's technical indicators indicate bearish momentum, and valuation metrics suggest it is somewhat overvalued, presenting potential risks to investors.

First National Business Overview & Revenue Model

Company Description

First National Corporation (FXNC), through its subsidiary First Bank, operates as a community bank providing a wide range of financial services. The bank primarily serves individuals, small and medium-sized businesses, and commercial clients across Virginia. Its core offerings include personal and business banking services, such as savings and checking accounts, loans, mortgages, and wealth management solutions. Additionally, FXNC provides digital banking services to cater to the modern needs of its customers.

How the Company Makes Money

First National Corporation primarily generates revenue through interest income from loans and mortgages provided to individual and commercial clients. The company also earns money from fees associated with its financial products and services, such as account maintenance fees, transaction fees, and service charges. Another significant revenue stream is the income generated from investment securities. FXNC's earnings are bolstered by its strategic focus on building strong relationships with local communities and businesses, fostering customer loyalty, and leveraging digital banking solutions to enhance customer engagement and operational efficiency. The bank's partnerships with various financial service providers and technology vendors also contribute to its revenue by expanding its product offerings and improving service delivery.

First National Financial Statement Overview

Summary

First National shows solid revenue growth and strong margins indicative of a healthy income statement. The balance sheet reflects a conservative approach to leverage, but the low ROE highlights a need for improved profitability. The lack of current cash flow data presents an uncertainty, but historical performance suggests competent cash management. Overall, the company appears stable with room for enhancing profitability and cash flow transparency.

Income Statement

First National has demonstrated consistent revenue growth with a 18.28% increase from 2023 to 2024. The gross profit margin remains strong, as the company enjoys a 100% gross profit margin due to its industry nature. Despite a slight decline in net income compared to 2023, the net profit margin is robust at 12.01%. The EBIT margin improved to 24.57%, indicating effective cost management.

Balance Sheet

The debt-to-equity ratio is quite low at 0.18, suggesting conservative leverage and financial stability. The equity ratio stands at 8.28%, which is reasonable but indicates reliance on liabilities. ROE decreased to 4.18% from previous years, showing a need for improved profitability relative to equity.

Cash Flow

Cash flow figures are unavailable for 2024, making it difficult to assess current cash flow stability. In previous years, free cash flow growth and operating cash flow ratios were positive, suggesting historically strong cash management, but the absence of recent data poses a risk.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	53.74M	58.02M	67.88M	56.85M	45.01M	36.71M
Gross Profit	53.35M	58.02M	49.05M	56.85M	45.01M	37.69M
EBITDA	4.40M	0.00	13.42M	20.78M	14.35M	12.37M
Net Income	5.36M	6.97M	9.62M	16.80M	10.36M	8.86M
Balance Sheet
Total Assets	2.03B	2.01B	1.42B	1.37B	1.39B	950.93M
Cash, Cash Equivalents and Short-Term Investments	188.41M	164.50M	87.16M	229.82M	176.01M	267.52M
Total Debt	0.00	30.45M	64.28M	14.27M	19.27M	19.27M
Total Liabilities	1.86B	1.84B	1.30B	1.26B	1.27B	866.02M
Stockholders Equity	168.68M	166.53M	116.27M	108.36M	117.04M	84.92M
Cash Flow
Free Cash Flow	-29.90M	-25.50M	14.52M	25.59M	7.03M	14.18M
Operating Cash Flow	-26.91M	-22.20M	16.39M	26.77M	7.87M	15.09M
Investing Cash Flow	114.41M	136.83M	-34.34M	-120.14M	-126.30M	-70.49M
Financing Cash Flow	-43.05M	-38.91M	38.20M	-15.72M	167.15M	136.91M

First National Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 18.97
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FXNC, the sentiment is Negative. The current price of 18.97 is below the 20-day moving average (MA) of 19.21, below the 50-day MA of 19.67, and below the 200-day MA of 21.42, indicating a bearish trend. The MACD of -0.35 indicates Negative momentum. The RSI at 43.15 is Neutral, neither overbought nor oversold. The STOCH value of 47.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FXNC.

First National Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WNEB	73 Outperform	$185.78M	16.99	4.65%	3.12%	8.70%	-10.56%
EFSI	72 Outperform	$159.95M	14.32	4.10%	3.98%	-2.87%	-21.25%
FUNC	71 Outperform	$189.31M	8.37	12.99%	2.97%	13.41%	62.54%
ESSA	71 Outperform	$191.92M	12.20	6.43%	3.17%	5.57%	-16.40%
Sector *	67 Neutral	$16.51B	11.23	9.71%	3.96%	11.61%	-10.70%
MYFW	63 Neutral	$219.67M	21.81	4.04%	―	3.14%	35.67%
FXNC	56 Neutral	$167.78M	22.81	3.74%	3.28%	35.45%	-42.78%

First National Corporate Events

First National Holds Annual Shareholder Meeting

On May 14, 2025, First National Corporation held its Annual Meeting of Shareholders. The meeting addressed several key issues, including the election of thirteen directors, the ratification of Yount, Hyde & Barbour, P.C. as the independent registered public accounting firm for 2025, an advisory vote on executive compensation, and the frequency of future votes on the executive compensation program. All proposals were approved, with the directors elected, the accounting firm ratified, and a three-year cycle for future advisory votes on executive compensation established. Additionally, on May 14, 2024, the Board declared a quarterly cash dividend of $0.155 per share, payable on June 13, 2025.

The most recent analyst rating on (FXNC) stock is a Buy with a $21.00 price target. To see the full list of analyst forecasts on First National stock, see the FXNC Stock Forecast page.

First National’s Annual Shareholder Meeting Insights

During the Annual Meeting of Shareholders on May 14, 2025, First National‘s management presented financial and other information to attendees. The information shared is considered “furnished” and not “filed” under the Securities Exchange Act, indicating it is not subject to certain liabilities. The report includes cautionary notes on forward-looking statements, highlighting potential risks and uncertainties that could affect future outcomes.

The most recent analyst rating on (FXNC) stock is a Buy with a $21.00 price target. To see the full list of analyst forecasts on First National stock, see the FXNC Stock Forecast page.