First National (FXNC) AI Stock Analysis

• Market Cap: $199.38M
• Dividend Yield: 2.82%
• Average Volume (3M): 16.18K
• Price to Earnings (P/E): 22.1
• Beta (1Y): 0.62
• Revenue Growth: 43.39%
• EPS Growth: -21.38%
• Country: US
• Employees: 303
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.57
• Shares Outstanding: 8,989,138
• 10 Day Avg. Volume: 14,292
• 30 Day Avg. Volume: 16,185
• PEG Ratio: -0.66
• Price to Book (P/B): 0.96
• Price to Sales (P/S): 1.82
• P/FCF Ratio: -6.28
• Enterprise Value/Market Cap: 0.98
• Enterprise Value/Revenue: 1.88
• Enterprise Value/Gross Profit: 2.79
• Enterprise Value/Ebitda: 15.20
• 1Y Price Target: $23.50
• Price Target Upside: 6.96% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 61 Neutral
• Price Target: $23.50 ▲(6.96% Upside)

The overall stock score of 61 reflects the company's strong revenue growth and stable balance sheet, but is tempered by challenges in profitability and cash flow management. The technical indicators suggest a bearish trend, and the valuation appears high relative to industry norms. The lack of earnings call data and corporate events further limits the potential for a higher score.

First National Business Overview & Revenue Model

Company Description

First National Corporation operates as the bank holding company for First Bank that provides various commercial banking services to small and medium-sized businesses, individuals, estates, local governmental entities, and non-profit organizations in Virginia. The company's deposit products include checking, savings, money market, and individual retirement accounts, as well as certificates of deposit and treasury management solutions. Its loan products comprise construction loans, including residential, land acquisition, and development loans; 1-4 family residential real estate loans; and commercial real estate loans that are secured by commercial real estate, including multi-family residential buildings, office and retail buildings, hotels, industrial buildings, and religious facilities. The company's loan products also include commercial and industrial loans that are secured by business assets, such as accounts receivable, equipment, and inventory; home equity loans; and secured and unsecured consumer loans, such as lines of credit, automobile loans, deposit account loans, and installment and demand loans. In addition, it provides wealth management services, including estate planning, investment management of assets, trustee under an agreement, trustee under a will, and estate settlement. Further, the company offers title insurance and investment services; and holds other real estate owned and office sites, as well as provides internet and mobile banking, remote deposit capture, and other traditional banking services. It serves customers through 20 bank branch offices, a loan production office, and a customer service center, as well as through a network of ATMs. The company was founded in 1907 and is headquartered in Strasburg, Virginia.

How the Company Makes Money

First National generates revenue through various channels including interest income from loans, fees for banking services, and mortgage origination fees. The primary revenue stream comes from the interest charged on personal, business, and mortgage loans, which is typically higher than the interest paid on customer deposits. Additionally, the company earns non-interest income through service fees, account maintenance charges, and transaction fees. Strategic partnerships with real estate agencies and financial service providers also play a crucial role in driving mortgage lending and enhancing their customer base, further contributing to overall earnings.

First National Financial Statement Overview

Summary

First National showcases strong revenue growth and a stable balance sheet with prudent financial leverage. However, cash flow challenges and a slight decline in net profitability margins highlight areas that require attention to ensure sustainable financial health.

Income Statement

First National has demonstrated a consistent increase in total revenue from $40.1M in 2020 to $95.4M in TTM 2025, representing a robust revenue growth trajectory. Gross profit margins have remained strong, though the net profit margin has slightly declined over the years, indicating some pressure on profitability. The EBIT and EBITDA margins have shown variability, signifying fluctuations in operating efficiency.

Balance Sheet

The balance sheet of First National reflects a strong equity position with stockholders' equity rising to $168.7M in TTM 2025. A low debt-to-equity ratio suggests prudent financial leverage, enhancing financial stability. The equity ratio has also improved, indicating a solid foundation of equity financing relative to total assets. Overall, the balance sheet exhibits financial strength and stability.

Cash Flow

The cash flow statements indicate challenges in cash generation with negative operating cash flows in recent periods. However, free cash flow has shown improvement, although it remains negative in the TTM 2025. The operating cash flow to net income ratio suggests inefficiencies in converting income into cash, posing a potential risk to liquidity management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	104.59M	88.27M	67.88M	60.67M	46.17M	40.10M
Gross Profit	70.39M	56.55M	47.42M	55.01M	44.52M	33.71M
EBITDA	12.91M	10.45M	13.42M	22.26M	14.35M	12.37M
Net Income	7.96M	6.97M	9.62M	16.80M	10.36M	8.86M
Balance Sheet
Total Assets	2.04B	2.01B	1.42B	1.37B	1.39B	950.93M
Cash, Cash Equivalents and Short-Term Investments	222.01M	164.50M	240.02M	229.82M	465.50M	267.52M
Total Debt	55.43M	30.45M	64.28M	14.27M	19.27M	19.27M
Total Liabilities	1.87B	1.84B	1.30B	1.26B	1.27B	866.02M
Stockholders Equity	173.53M	166.53M	116.27M	108.36M	117.04M	84.92M
Cash Flow
Free Cash Flow	-25.73M	-25.50M	14.52M	25.59M	7.03M	14.18M
Operating Cash Flow	-22.31M	-22.20M	16.39M	26.77M	7.87M	15.09M
Investing Cash Flow	128.23M	136.83M	-34.34M	-120.14M	-126.30M	-70.49M
Financing Cash Flow	-47.23M	-38.91M	38.20M	-15.72M	167.15M	136.91M

First National Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 21.97
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FXNC, the sentiment is Neutral. The current price of 21.97 is below the 20-day moving average (MA) of 22.54, below the 50-day MA of 22.83, and above the 200-day MA of 21.75, indicating a neutral trend. The MACD of -0.25 indicates Positive momentum. The RSI at 43.72 is Neutral, neither overbought nor oversold. The STOCH value of 30.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FXNC.

First National Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LCNB	70 Outperform	$209.94M	9.78	8.28%	5.98%	14.84%	169.99%
VABK	70 Outperform	$214.01M	11.73	11.01%	3.48%	2.41%	14.29%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
OPBK	67 Neutral	$200.21M	9.07	10.74%	3.57%	11.05%	8.18%
EFSI	67 Neutral	$197.37M	16.85	5.44%	3.38%	-1.51%	-26.72%
FRAF	62 Neutral	$198.54M	13.41	9.88%	2.93%	15.18%	5.13%
FXNC	61 Neutral	$199.38M	22.14	5.43%	2.82%	43.39%	-21.38%

First National Corporate Events

First National Declares Quarterly Cash Dividend

On August 13, 2025, First National‘s Board of Directors announced a quarterly cash dividend of $0.155 per common share. This dividend will be paid on September 12, 2025, to shareholders who are recorded by August 29, 2025, reflecting the company’s ongoing commitment to returning value to its shareholders.