Last Updated: 11 Nov 2024
Executive Summary
First Capital Inc. (FCAP) is a community bank holding company with a market capitalization of $117.22 million. The company's stock price is currently trading at $34.97, within its 52-week range of $23.73 to $38. FCAP has a trailing price-to-earnings (P/E) ratio of 9.93, indicating that it is currently trading at a discount to the industry average. The company's fundamentals are strong, with a profit margin of 28.7%, an operating margin of 32.9%, and a return on assets of 1.01%. However, its quarterly earnings growth has been negative in recent quarters.
Company Overview
First Capital Inc. is a bank holding company headquartered in Corydon, Indiana. The company provides various banking services to individuals and commercial clients through its subsidiary, First Harrison Bank. FCAP has a long history of serving the Corydon community, dating back to 1877.
Fundamental Analysis
FCAP's financial performance has been solid in recent years. The company's revenue has grown at a compound annual growth rate (CAGR) of 5.6% over the past five years, while its earnings per share (EPS) have grown at a CAGR of 12.3%. The company's profitability metrics are also strong, with a gross profit margin of 95.7% and a net profit margin of 28.7%.
However, FCAP's recent quarterly earnings growth has been negative. In the most recent quarter, the company's EPS declined by 7.7% year-over-year. This decline was primarily due to an increase in expenses, including interest expense and non-interest expense.
Technical Analysis
FCAP's stock price has been trending sideways in recent months. The stock is currently trading below its 50-day and 200-day moving averages, indicating that the short-term and long-term trends are both bearish. The stock's relative strength index (RSI) is also below 50, indicating that the stock is oversold.
Short Term Outlook
In the short term, FCAP's stock price is likely to continue to trade sideways. The stock's technical indicators are bearish, and the company's recent earnings growth has been negative. However, the stock's valuation is attractive, and the company's fundamentals are strong.
Long Term Outlook
In the long term, FCAP's stock price is likely to rise. The company's fundamentals are strong, and the banking industry is expected to grow in the coming years. However, the company's recent earnings growth has been negative, and the stock's technical indicators are bearish.
Analyst Recommendations
Analysts are currently divided on FCAP's stock. Some analysts believe that the stock is undervalued and has a lot of upside potential. However, other analysts believe that the stock is overvalued and is likely to continue to decline.
