First Citizens Price To Book vs. Price To Earning

FCNCA Stock  USD 2,087  12.03  0.58%   
Based on First Citizens' profitability indicators, First Citizens BancShares is performing exceptionally good at this time. It has a great probability to showcase excellent profitability results in January. Profitability indicators assess First Citizens' ability to earn profits and add value for shareholders. The current year's EV To Sales is expected to grow to 7.91, whereas Price To Sales Ratio is forecasted to decline to 1.77. At present, First Citizens' Operating Income is projected to increase significantly based on the last few years of reporting. The current year's Income Before Tax is expected to grow to about 12.7 B, whereas Accumulated Other Comprehensive Income is projected to grow to (466.4 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.760.5366
Significantly Up
Slightly volatile
Net Profit Margin1.581.5079
Sufficiently Up
Slightly volatile
Operating Profit Margin0.460.4381
Sufficiently Up
Slightly volatile
Pretax Profit Margin1.671.5882
Sufficiently Up
Slightly volatile
Return On Assets0.05630.0536
Sufficiently Up
Slightly volatile
Return On Equity0.570.5394
Notably Up
Slightly volatile
For First Citizens profitability analysis, we use financial ratios and fundamental drivers that measure the ability of First Citizens to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well First Citizens BancShares utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between First Citizens's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of First Citizens BancShares over time as well as its relative position and ranking within its peers.
  

First Citizens' Revenue Breakdown by Earning Segment

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Is Regional Banks space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of First Citizens. If investors know First will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about First Citizens listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.14)
Dividend Share
6.56
Earnings Share
174.67
Revenue Per Share
646.115
Quarterly Revenue Growth
(0.03)
The market value of First Citizens BancShares is measured differently than its book value, which is the value of First that is recorded on the company's balance sheet. Investors also form their own opinion of First Citizens' value that differs from its market value or its book value, called intrinsic value, which is First Citizens' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because First Citizens' market value can be influenced by many factors that don't directly affect First Citizens' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between First Citizens' value and its price as these two are different measures arrived at by different means. Investors typically determine if First Citizens is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, First Citizens' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

First Citizens BancShares Price To Earning vs. Price To Book Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining First Citizens's current stock value. Our valuation model uses many indicators to compare First Citizens value to that of its competitors to determine the firm's financial worth.
First Citizens BancShares is rated below average in price to book category among its peers. It is rated # 2 in price to earning category among its peers reporting about  10.78  of Price To Earning per Price To Book. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the First Citizens' earnings, one of the primary drivers of an investment's value.

First Price To Earning vs. Price To Book

Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.

First Citizens

P/B

 = 

MV Per Share

BV Per Share

 = 
1.33 X
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.

First Citizens

P/E

 = 

Market Value Per Share

Earnings Per Share

 = 
14.34 X
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.

First Price To Earning Comparison

First Citizens is currently under evaluation in price to earning category among its peers.

First Citizens Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in First Citizens, profitability is also one of the essential criteria for including it into their portfolios because, without profit, First Citizens will eventually generate negative long term returns. The profitability progress is the general direction of First Citizens' change in net profit over the period of time. It can combine multiple indicators of First Citizens, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-491 M-466.4 M
Operating Income3.3 B3.5 B
Income Before Tax12.1 B12.7 B
Total Other Income Expense Net8.7 B9.2 B
Net Income11.5 B12 B
Income Tax Expense611 M641.5 M
Net Income Applicable To Common Shares1.2 B1.3 B
Net Income From Continuing Ops11.2 B11.8 B
Net Interest Income5.6 B5.9 B
Interest Income8.3 B8.7 B
Non Operating Income Net Other23.9 M21.2 M
Change To Netincome1.1 B1.1 B
Net Income Per Share 789.24  828.70 
Income Quality 0.23  0.22 
Net Income Per E B T 0.95  0.54 

First Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on First Citizens. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of First Citizens position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the First Citizens' important profitability drivers and their relationship over time.

Use First Citizens in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if First Citizens position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in First Citizens will appreciate offsetting losses from the drop in the long position's value.

First Citizens Pair Trading

First Citizens BancShares Pair Trading Analysis

The ability to find closely correlated positions to First Citizens could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace First Citizens when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back First Citizens - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling First Citizens BancShares to buy it.
The correlation of First Citizens is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as First Citizens moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if First Citizens BancShares moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for First Citizens can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your First Citizens position

In addition to having First Citizens in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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When determining whether First Citizens BancShares offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of First Citizens' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of First Citizens Bancshares Stock. Outlined below are crucial reports that will aid in making a well-informed decision on First Citizens Bancshares Stock:
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You can also try the Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
To fully project First Citizens' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of First Citizens BancShares at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include First Citizens' income statement, its balance sheet, and the statement of cash flows.
Potential First Citizens investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although First Citizens investors may work on each financial statement separately, they are all related. The changes in First Citizens's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on First Citizens's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.