Value
7.6/10data confidence 83%| Component | Sub-score |
|---|---|
| P/E | 8.7 |
| P/S | 7.3 |
| Fwd P/E | 9.1 |
| PEG | 9.9 |
| Analyst target | 3.0 |
- ▸Forward P/E: 11.0x
- ▸PEG: 0.52
- ▸Attractively valued
FBP · Why this verdict
Why First BanCorp. New (FBP) is rated HOLD
Updated
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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VerdictHOLD
Overall score5.7/10
ConfidenceMEDIUM
MacroNEUTRAL
Thesis pillars
| Pillar | Expectation | Trend |
|---|---|---|
The bank has beaten analyst earnings estimates in all four of the most recent quarters, including a 29.7% positive surprise two quarters ago and a 10.96% beat in the most recent period, with an average positive surprise exceeding 14%; this level of consistent outperformance over four consecutive periods reflects disciplined guidance management. Earnings | Over the next 12 months, the bank sustains earnings beats in at least three of four quarters with an average positive surprise above 5%. | →Stable |
| CounterA four-quarter beat streak with very large surprises often leads analysts to revise their estimates sharply higher, raising the bar the company must clear; if expectations catch up to performance, the era of double-digit positive surprises may end even without any deterioration in underlying operations. | ||
With net margins of 38% and a peer-relative standing described as best-in-class, the bank's profitability profile stands out within its regional banking peer group; a Piotroski F-Score of 8 out of 9 further confirms that balance sheet strength and earnings quality underpin these margins. Peer rank | Over the next 12 months, net margins remain above 30% and the bank's peer-relative margin standing does not meaningfully deteriorate. | →Stable |
| CounterNo discernible competitive moat leaves these margins exposed to competitive pressure on deposit rates and loan pricing; margins at the top of the peer range can compress if larger institutions enter the same markets or if the rate environment shifts unfavorably. | ||
The stock is just below a resistance level with only 0.4% of headroom remaining to the take-profit target, giving a risk/reward of 0.11-to-1 against roughly 3.6% of downside; despite an attractive forward multiple of 10.5 times, the current price offers no meaningful margin of safety for new buyers. Price targets | Over the next 12 months, a price pullback creates at least 8% headroom to the take-profit target, restoring a viable risk/reward for new entry. | →Stable |
| CounterIf earnings continue to beat at the pace observed over the past four quarters, analyst price targets are likely to be revised upward, effectively expanding the implied upside from current prices without requiring a stock pullback. | ||
A put/call ratio of 1.67 indicates that options market participants are positioning defensively relative to the current share price, suggesting the market is pricing in a meaningful probability of near-term downside; this level of protective hedging is notable given the otherwise constructive price action. Risk breakdown | Over the next 12 months, the put/call ratio falls below 1.0, signaling that market participants have shifted from defensive to neutral or bullish positioning. | →Stable |
| CounterElevated put/call ratios can reflect hedging by existing holders seeking to protect gains rather than outright bearish conviction; contrarian sentiment indicators have historically preceded short-term rallies when underlying fundamentals remain strong. | ||
The bank has beaten analyst earnings estimates in all four of the most recent quarters, including a 29.7% positive surprise two quarters ago and a 10.96% beat in the most recent period, with an average positive surprise exceeding 14%; this level of consistent outperformance over four consecutive periods reflects disciplined guidance management.
→StableEarnings
- Expectation
- Over the next 12 months, the bank sustains earnings beats in at least three of four quarters with an average positive surprise above 5%.
CounterA four-quarter beat streak with very large surprises often leads analysts to revise their estimates sharply higher, raising the bar the company must clear; if expectations catch up to performance, the era of double-digit positive surprises may end even without any deterioration in underlying operations.
With net margins of 38% and a peer-relative standing described as best-in-class, the bank's profitability profile stands out within its regional banking peer group; a Piotroski F-Score of 8 out of 9 further confirms that balance sheet strength and earnings quality underpin these margins.
→StablePeer rank
- Expectation
- Over the next 12 months, net margins remain above 30% and the bank's peer-relative margin standing does not meaningfully deteriorate.
CounterNo discernible competitive moat leaves these margins exposed to competitive pressure on deposit rates and loan pricing; margins at the top of the peer range can compress if larger institutions enter the same markets or if the rate environment shifts unfavorably.
The stock is just below a resistance level with only 0.4% of headroom remaining to the take-profit target, giving a risk/reward of 0.11-to-1 against roughly 3.6% of downside; despite an attractive forward multiple of 10.5 times, the current price offers no meaningful margin of safety for new buyers.
→StablePrice targets
- Expectation
- Over the next 12 months, a price pullback creates at least 8% headroom to the take-profit target, restoring a viable risk/reward for new entry.
CounterIf earnings continue to beat at the pace observed over the past four quarters, analyst price targets are likely to be revised upward, effectively expanding the implied upside from current prices without requiring a stock pullback.
A put/call ratio of 1.67 indicates that options market participants are positioning defensively relative to the current share price, suggesting the market is pricing in a meaningful probability of near-term downside; this level of protective hedging is notable given the otherwise constructive price action.
→StableRisk breakdown
- Expectation
- Over the next 12 months, the put/call ratio falls below 1.0, signaling that market participants have shifted from defensive to neutral or bullish positioning.
CounterElevated put/call ratios can reflect hedging by existing holders seeking to protect gains rather than outright bearish conviction; contrarian sentiment indicators have historically preceded short-term rallies when underlying fundamentals remain strong.
TrendMatrix Research · core thesis
Engine thesis — one sentence
The bank has compiled a perfect four-quarter beat streak with average earnings surprises exceeding 14% and posts best-in-class margins of 38%, yet the stock has advanced to within less than 1% of its resistance target, producing a risk/reward of 0.11-to-1 that does not support new positions; the quality case is compelling, but the entry geometry is not.
Falsifiable statement — pillar-level invalidators below. Engine-derived; not personalized advice.
Per-dimension breakdown
Quality
5.9/10data confidence 100%| Component | Sub-score |
|---|---|
| ROE | 6.3 |
| ROA | 1.2 |
| Gross margin | 0.0 |
| Op margin | 10.0 |
| Net margin | 10.0 |
| Moat | 5.2 |
| Piotroski F | 8.9 |
- ▸Strong margins: 38%
- ▸No competitive moat
- ▸Strong Piotroski F-Score: 8/9
Growth
5.4/10data confidence 67%| Component | Sub-score |
|---|---|
| Rev growth | 4.5 |
| EPS growth | 6.3 |
Momentum
4.6/10data confidence 100%| Component | Sub-score |
|---|---|
| RSI | 5.0 |
| MACD | 7.2 |
| OBV | 1.0 |
| MA position | 9.0 |
| Volume | 0.7 |
- ▸Volume distribution (falling OBV)
- ▸Above 200-day MA
Sentiment
5.6/10data confidence 100%| Component | Sub-score |
|---|---|
| LLM sentiment | 4.8 |
| Analyst rating | 6.6 |
| Price target | 5.3 |
- ▸Light analyst coverage (6.0) — signal dampened
Insider
5.0/10data confidence 50%| Component | Sub-score |
|---|---|
| materiality | 5.0 |
| holder change | 5.0 |
- ▸Negligible insider selling — $194,677 (0.005% of mkt cap)
Peer rank
5.6/10data confidence 80%| Component | Sub-score |
|---|---|
| value rank | 5.4 |
| quality rank | 9.1 |
| growth rank | 2.8 |
- ▸Superior ROE vs peers
- ▸Best-in-class margins
Technical
4.6/10data confidence 100%| Component | Sub-score |
|---|---|
| bollinger | 2.4 |
| support resistance | 1.9 |
| 52w position | 9.5 |
Risk (lower is worse)
5.4/10data confidence 100%| Component | Sub-score |
|---|---|
| short interest | 7.1 |
| days to cover | 6.5 |
| volatility | 7.2 |
| implied vol | 0.0 |
| beta | 8.1 |
| news risk | 3.5 |
- ▸High IV: 107%
Catalyst
6.6/10data confidence 100%| Component | Sub-score |
|---|---|
| erm | 3.5 |
| earnings history | 10.0 |
| earnings timing | 5.0 |
| surprise avg | 9.7 |
| dividend safety | 5.2 |
| news activity | 6.0 |
- ▸Perfect beat streak: 4Q
- ▸Dividend: 289.0%
How the verdict was assembled
Engine trigger
Maintain position. Not compelling to add more.
Engine technical detail
verdict_path:
L4:PATH_F_HOLDPassed (5)
- MOMENTUM:4.6>=4.5
- INSIDER:OK
- EARNINGS_PROXIMITY:19d clear
- SEMI_CYCLE_PEAK:CLEAR
- MATERIALS_CYCLE_PEAK:CLEAR
Failed (1)
- ASYMMETRY:-1.2=NEGATIVE
Warning (2)
- MOMENTUM:4.6<5.5 (soft — BUY_NOW allowed but watch)
- 8K_CSUITE_CHANGE:5.02 (officer departure/appointment)
Reward-to-Risk
-1.18
Upside
-11.3%
Downside
9.6%
Sizing output
AVOID
SetupBreakout — Golden cross, above all MAs, RSI 65, MACD bullish
EdgeCatalyst-Driven — Earnings in 19d with 4/4 beat streak
SuitabilityAggressive — MCap $4.1B<$5B
Investment implication
None of the engine's positive-conviction paths (C-quality, D-momentum) triggered — the F-path HOLD reflects balanced signals. Strongest-cleared gate: MOMENTUM:4.6>=4.5. Top dim: Value at 7.6; weakest: Technical at 4.6. No conviction either direction.
The strongest dimensions are Value at 7.6, Catalyst at 6.6, and Quality at 5.9; the weakest are Technical at 4.6, Momentum at 4.6, and Insider at 5.0. The V9 engine flagged 1 failed gate with 2 warnings, producing an asymmetric reward-to-risk of -1.18 and an engine sizing output of AVOID.
What would invalidate the thesis
Falsifying conditions — when triggered, the corresponding pillar's thesis is invalidated.
- P1Perfect Earnings Beat Streak
Trip ifEPS surprise falls below 0% for 2 consecutive quarters.
- P2Best In Class Margins
Trip ifNet margin compresses below 30% for 2 consecutive quarters.
- P3Price Target Exhaustion
Trip ifUpside to take-profit target exceeds 10% from current price.
- P4Elevated Options Hedging
Trip ifPut/call ratio falls below 1.0.