First National (FXNC) AI Stock Analysis

• Market Cap: $178.34M
• Dividend Yield: 3.1%
• Average Volume (3M): 18.07K
• Price to Earnings (P/E): 24.2
• Beta (1Y): 0.51
• Revenue Growth: 35.46%
• EPS Growth: -42.78%
• Country: US
• Employees: 303
• Sector: Financial
• Sector Strength: 86
• Industry: Banks - Regional
• EPS (TTM): 0.35
• Shares Outstanding: 8,986,696
• 10 Day Avg. Volume: 13,950
• 30 Day Avg. Volume: 18,065
• PEG Ratio: -2.38
• Price to Book (P/B): 1.04
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -6.91
• Enterprise Value/Market Cap: 0.83
• Enterprise Value/Revenue: 0.53
• Enterprise Value/Gross Profit: 2.11
• Enterprise Value/Ebitda: 3.71
• 1Y Price Target: $28.50
• Price Target Upside: 45.56% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 66 Neutral
• Price Target: ―

First National's overall score reflects a stable financial performance with strong revenue growth and conservative leverage. The lack of recent cash flow data introduces some uncertainty, but historical performance was strong. Technical indicators show a bearish trend, while valuation metrics suggest the stock is fairly priced with a decent dividend yield. The recent CFO appointment is a positive strategic move, though it does not significantly alter the current stock outlook.

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 Corporation makes money primarily through its banking operations, which generate revenue from interest income on loans and investments, as well as fees for various banking services. Key revenue streams include interest earned on a diverse portfolio of loans such as commercial, residential, and consumer loans. Additionally, FXNC earns non-interest income through service charges on deposit accounts, wealth management services, and transaction fees. The company also benefits from strategic partnerships and a strong local presence, which help attract and retain customers, thereby contributing to its overall earnings.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
58.02M	49.05M	56.85M	45.01M	37.69M
	Gross Profit
58.02M	49.05M	56.85M	45.01M	37.69M
	EBIT
14.26M	11.76M	23.08M	12.95M	10.91M
	EBITDA
0.00	0.00	22.26M	14.35M	12.37M
	Net Income Common Stockholders
6.97M	9.62M	16.80M	10.36M	8.86M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
24.92M	87.16M	229.82M	465.50M	267.52M
	Total Assets
2.01B	1.42B	1.37B	1.39B	950.93M
	Total Debt
30.45M	64.61M	14.27M	19.27M	19.27M
	Net Debt
-132.42M	-22.56M	-52.64M	-156.73M	-108.03M
	Total Liabilities
1.84B	1.30B	1.26B	1.27B	866.02M
	Stockholders Equity
166.53M	116.27M	108.36M	117.04M	84.92M
Cash Flow		Free Cash Flow
-25.50M	14.52M	25.59M	7.03M	14.18M
	Operating Cash Flow
-22.20M	16.39M	26.77M	7.87M	15.09M
	Investing Cash Flow
136.83M	-34.34M	-120.14M	-126.30M	-70.49M
	Financing Cash Flow
-38.91M	38.20M	-15.72M	167.15M	136.91M

First National Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 19.58
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 19.58 is below the 20-day moving average (MA) of 20.29, below the 50-day MA of 20.24, and below the 200-day MA of 21.23, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 40.14 is Neutral, neither overbought nor oversold. The STOCH value of 4.66 is Positive, 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	77 Outperform	$190.96M	17.46	4.65%	2.97%	8.70%	-10.56%
ESSA	68 Neutral	$184.41M	11.72	6.43%	3.30%	5.57%	-16.40%
EFSI	67 Neutral	$166.73M	14.93	4.10%	3.97%	-2.87%	-21.25%
FXNC	66 Neutral	$178.34M	24.25	3.74%	3.10%	35.46%	-42.78%
Sector *	64 Neutral	$12.79B	9.71	7.54%	16971.00%	12.07%	-7.53%
MYFW	63 Neutral	$201.11M	20.19	4.04%	―	3.14%	35.67%
FUNC	62 Neutral	$193.52M	8.56	12.99%	2.88%	13.41%	62.51%

First National Corporate Events

First National Appoints Brad Schwartz as CFO

On March 7, 2025, First National Corporation announced the appointment of Brad E. Schwartz as Executive Vice President and Chief Financial Officer, effective March 31, 2025. With over 40 years of experience in the banking industry, Schwartz is expected to bring strong leadership and financial expertise to First Bank, enhancing its strategic operations and supporting its growth trajectory following recent acquisitions.