First Citizens BancShares Inc (FCNCA, Financial) has experienced a notable uptick in its stock performance, with a 5.78% gain over the past week and an impressive 15.29% gain over the past three months. The current market capitalization stands at $24.46 billion, with a stock price of $1,700. According to GuruFocus's valuation metrics, the stock is currently modestly undervalued with a GF Value of $2,258.46, compared to a past GF Value of $2,268.85. This shift from significantly undervalued to modestly undervalued indicates a positive market adjustment, reflecting the company's strong performance and potential for continued growth.
Introduction to First Citizens BancShares Inc
First Citizens BancShares Inc, operating in the banking industry, is the parent company of First Citizens Bank & Trust Company. With roots dating back to the Bank of Smithfield in North Carolina, First Citizens has grown through strategic branching and acquisitions. The bank has a significant presence in the Carolinas and offers a comprehensive suite of retail and commercial banking services, including trust and wealth management. The Holding family has historically played a pivotal role in the company, holding key executive positions and a substantial portion of the stock. The primary revenue driver for First Citizens is net interest income, which has been a stable source of growth for the company.
Assessing Profitability
First Citizens BancShares Inc boasts a Profitability Rank of 6/10, indicating a strong ability to generate profits relative to its peers. The company's Return on Equity (ROE) is an outstanding 63.49%, outperforming 99.32% of 1,460 companies in the industry. Similarly, its Return on Assets (ROA) stands at 5.97%, surpassing 98.63% of 1,464 companies. These figures are a testament to First Citizens' efficient use of equity and assets to generate earnings. Furthermore, the bank has maintained profitability for the past 10 years, a record better than 99.93% of its industry counterparts, showcasing its consistent performance and financial stability.
Growth Trajectory of First Citizens BancShares
The Growth Rank for First Citizens BancShares is a robust 7/10. The company's 3-Year Revenue Growth Rate per Share stands at 49.40%, which is higher than 97.15% of 1,405 companies in the industry. Over a 5-year period, the Revenue Growth Rate per Share is 31.80%, surpassing 96.03% of 1,360 companies. The estimated Total Revenue Growth Rate for the next 3 to 5 years is 2.43%, which is better than 35.42% of the industry. Additionally, the 3-Year EPS without NRI Growth Rate is 53.10%, outperforming 90.64% of the industry, and the 5-Year EPS Growth Rate is 31.00%, better than 92.53% of the industry. These growth metrics underscore First Citizens' strong revenue and earnings expansion, positioning it favorably for future growth.
Notable Shareholders in First Citizens BancShares
First Citizens BancShares has attracted the attention of several prominent investors. Philippe Laffont (Trades, Portfolio) holds a significant stake with 341,114 shares, accounting for 2.35% of the share percentage. Bill Nygren (Trades, Portfolio) follows with 189,000 shares, representing a 1.3% share percentage. HOTCHKIS & WILEY also maintains a position with 57,207 shares, equating to 0.39% of the shares. The confidence of these investors in First Citizens BancShares reflects the company's strong fundamentals and potential for continued success.
Competitive Landscape
When compared to its competitors, First Citizens BancShares stands strong with a market cap of $24.46 billion. M&T Bank Corp (MTB, Financial) closely trails with a market cap of $24.36 billion, while Fifth Third Bancorp (FITB, Financial) slightly surpasses with a market cap of $25.04 billion. Huntington Bancshares Inc (HBAN, Financial) follows with a market cap of $19.68 billion. These figures highlight the competitive nature of the banking industry and the need for First Citizens to maintain its growth and profitability to stay ahead.
Conclusion: Evaluating First Citizens BancShares' Market Position
In summary, First Citizens BancShares Inc has demonstrated strong stock performance, profitability, and growth prospects. The company's recent stock price gains reflect its robust financial health and market confidence. With a GF Value indicating the stock is modestly undervalued, First Citizens presents an attractive opportunity for value investors. The bank's competitive edge, as evidenced by its impressive ROE and ROA, along with consistent profitability and growth rates, positions it well against industry rivals. As First Citizens continues to execute its strategic initiatives, it remains a compelling choice for investors seeking stability and growth in the banking sector.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
