First National (FXNC) AI Stock Analysis

• Market Cap: $233.38M
• Dividend Yield: 2.45%
• Average Volume (3M): 17.30K
• Price to Earnings (P/E): 20.7
• Beta (1Y): 0.68
• Revenue Growth: 48.94%
• EPS Growth: 11.61%
• Country: US
• Employees: 303
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.58
• Shares Outstanding: 9,010,817
• 10 Day Avg. Volume: 18,705
• 30 Day Avg. Volume: 17,295
• 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: 0.91
• Enterprise Value/Revenue: 2.02
• Enterprise Value/Gross Profit: 3.00
• Enterprise Value/Ebitda: 16.37
• 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: 73 Outperform
• Price Target: $27.00 ▲(5.47% Upside)

First National's stock is supported by strong technical indicators and a reasonable valuation, with an attractive dividend yield. While financial performance shows potential, profitability and cash flow management need improvement. The recent dividend increase is a positive signal of financial health and shareholder commitment.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a positive trajectory and expanding market presence, essential for long-term business sustainability.

Dividend Increase

The dividend increase reflects strong financial health and a commitment to returning value to shareholders, enhancing investor confidence.

Gross Profit Margin

A strong gross profit margin indicates effective cost management and pricing power, supporting long-term profitability and competitive advantage.

Negative Factors

Profitability Challenges

Decreasing net profit margins may indicate rising costs or competitive pressures, potentially impacting long-term profitability.

Cash Flow Issues

Negative cash flows can strain liquidity and limit the company's ability to invest in growth opportunities, affecting financial stability.

Return on Equity Decline

A decline in return on equity suggests inefficiencies in using shareholder capital to generate profits, which could hinder growth prospects.

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 several key channels, primarily from interest income on loans provided to customers, including personal loans, mortgages, and commercial loans. The company also earns money from fees associated with account maintenance, transaction services, and wealth management offerings. Additionally, First National may benefit from investment income derived from its portfolio of securities. Strategic partnerships with financial technology firms and local businesses enhance its service offerings and customer base, contributing to its overall earnings. The bank's focus on community engagement and personalized service helps attract and retain customers, further driving revenue growth.

First National Financial Statement Overview

Summary

First National demonstrates strong revenue growth and a solid gross profit margin, but faces challenges in profitability and cash flow management. The balance sheet remains stable with moderate leverage, but declining return on equity suggests efficiency issues. Overall, the company shows potential for growth but needs to address profitability and cash flow concerns.

Income Statement

First National has shown a solid revenue growth rate of 9.58% in the TTM, indicating a positive trajectory. The gross profit margin remains strong at 67.30%, although the net profit margin has decreased to 7.61%, suggesting some pressure on profitability. The EBIT and EBITDA margins have also declined, indicating potential cost management issues.

Balance Sheet

The company's debt-to-equity ratio is moderate at 0.32, reflecting a balanced leverage position. However, the return on equity has decreased to 5.03%, indicating reduced efficiency in generating profits from equity. The equity ratio remains stable, suggesting a solid capital structure.

Cash Flow

First National faces challenges in cash flow, with negative operating and free cash flows in the TTM. The free cash flow to net income ratio is positive at 1.15, indicating some ability to cover net income, but the negative growth in free cash flow highlights potential liquidity issues.

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: Positive
• Last Price: 25.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FXNC, the sentiment is Positive. The current price of 25.6 is above the 20-day moving average (MA) of 25.03, above the 50-day MA of 23.57, and above the 200-day MA of 21.59, indicating a bullish trend. The MACD of 0.75 indicates Negative momentum. The RSI at 68.17 is Neutral, neither overbought nor oversold. The STOCH value of 85.13 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FXNC.

First National Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LCNB	77 Outperform	$238.90M	10.12	8.97%	5.23%	5.07%	228.39%
EFSI	77 Outperform	$219.09M	18.22	6.63%	3.04%	-1.45%	-31.32%
VABK	77 Outperform	$228.67M	12.85	10.41%	3.33%	1.11%	14.44%
OPBK	74 Outperform	$221.65M	9.48	10.99%	3.22%	9.10%	12.36%
FXNC	73 Outperform	$233.38M	20.73	7.36%	2.45%	48.94%	11.61%
FRAF	73 Outperform	$246.39M	15.70	9.91%	2.38%	12.06%	10.38%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

First National Corporate Events

First National Increases Quarterly Dividend by 9.7%

On November 12, 2025, First National Corporation’s Board of Directors declared a quarterly cash dividend of $0.17 per common share, marking a 9.7% increase from the previous dividend. This decision reflects the company’s strong financial performance and continues its decade-long trend of annual dividend increases, underscoring its commitment to shareholder value.