FCCO

First Community

Fundamental data last updated:April 13, 2026

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company profile

SECTOR

Financial Services

industry

Banks - Regional

Exchange

Nasdaq

County of HQ

United States

Next Earnings Date

04/22/26

Business Summary

First Community operates as a regional banking institution generating revenue primarily through the spread between interest earned on loans and interest paid on deposits, supplemented by fee-based services. Its moat is local relationship banking, embedded customer ties, and community presence that larger national banks often cannot replicate efficiently. Cash generation depends on disciplined underwriting, deposit stability, and maintaining healthy net interest margins, reflected in its 11.50% operating margin. The sustainability of its competitive position rests on credit quality management and capital allocation discipline, which ultimately determine whether its 29.30% ROIC can persist without compromising balance sheet stability.

 


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VALUATION

P/E

12.5

Market Cap ($M USD)

$290

Forward P/E

9.8

PEG

1.1

PRICE TO SALES

3.3

PRICE TO BOOK

1.7

EV / EBITDA

-

5-Year Average P/E

Free Cash Flow Yield

DCF Value

Graham Number

Price to FCF

EV to FCF

Earnings Yield

FCF Yield

DIVIDEND

Yield

2.00%

Annual Payout

$0.64

Payout Ratio

24.70%

Consecutive Years of Dividend Growth

4

5-Year Dividend Growth Rate

5.90%

Financial Health & Profitability

Earnings Per Share

$2.51

Next Year EPS Growth Estimate

$3.17

Next Year Revenue Growth Estimate

5.90%

Return on Equity (ROE)

11.50%

FREE CASH FLOW

Operating Margin

36.40%

Debt-to-Equity

0.1

Piotroski F-Score

5

Altman Z-Score

0.2

Return on Invested Capital (ROIC)

29.30%

Current Ratio

-

Quick Ratio

Net Debt to EBITDA

Interest Coverage

Gross Profit margin

FCF PER SHARE

REVENUE PER SHARE

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Gainseekers Quantitative Analysis

Summary

At 12.5x earnings and 9.8x forward earnings, FCCO screens optically inexpensive, but the 0.2 Altman Z-Score is a flashing distress signal that cannot be ignored. The market is discounting risk aggressively, and rightly so, given the weak solvency profile despite a modest $290M market cap. A 1.1 forward PEG suggests growth is roughly fairly priced rather than deeply mispriced, so this is not a screaming GARP bargain. The valuation implies skepticism around durability and balance sheet safety, and until the Altman score improves materially, this remains a statistically cheap but fundamentally fragile regional bank.

AI Exposure / Tech Reliance

As a regional bank, FCCO operates in a sector where AI primarily enhances underwriting, fraud detection, and cost efficiency rather than disrupts the core deposit-lending model. With an 11.50% operating margin and 5.90% ROE, there is room for technology-driven efficiency gains if management executes properly. However, smaller banks typically lack the scale advantages of larger institutions, making tech adoption a competitive necessity rather than a differentiator.

The Bull Case

A disciplined value or GARP investor could justify ownership based on capital efficiency and reasonable growth pricing. A 29.30% ROIC is exceptionally strong relative to the 5.90% ROE, signaling that invested capital is being deployed productively despite modest shareholder returns. The 9.8 forward P/E paired with a 1.1 PEG suggests earnings growth is being acquired at a reasonable multiple, not a speculative premium. A Piotroski F-Score of 5 indicates middling but not deteriorating fundamentals, while the 11.50% operating margin demonstrates core banking profitability. Add in 35.33% institutional ownership and a 2.00% dividend yield with a 4% five-year average dividend growth rate, and there is a case for steady, income-backed compounding if solvency concerns stabilize.

The Bear Case

The bear case is rooted squarely in financial fragility and muted profitability. An Altman Z-Score of 0.2 signals severe balance sheet risk, and a Debt/Equity ratio of 36.40% in a rising-rate or credit-stress environment compounds that vulnerability. ROE at 5.90% is subpar for a regional bank, suggesting limited shareholder value creation relative to risk taken. Short interest at 5.90% of float shows tangible skepticism, and the 0.90% consensus rating with a 1.5 mean target price implies limited upside conviction from analysts. Even with a 9.8 forward P/E, this could be a classic value trap if asset quality deteriorates or capital buffers prove inadequate.

Market Sentiment & Smart Money

Short Interest %

0.90%

Analyst Consensus

1.5

Average Analyst Price Target

$35.33

Institutional Ownership %

50.80%

1-Year Beta

0.7

Insider Buying % (6 Mo)

7.90%%

Distance to 52-Week High

98.30%

Distance to 52-Week Low

156.70%

EARNINGS SURPRISE %

50-DAY SMA

200-DAY SMA

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.