First Citizens BancShares Inc. (FCNCA, Financial) has demonstrated a robust performance in the stock market recently, with its shares appreciating by 1.66% over the past week and an impressive 13.85% over the last three months. As of the latest data, the company boasts a market capitalization of $28.48 billion and a current stock price of $1,974.99. According to GuruFocus, the GF Value of the stock is $2,300.64, suggesting that it is modestly undervalued. This valuation has remained consistent from three months ago when the GF Value was slightly lower at $2,255.66.
Overview of First Citizens BancShares Inc.
First Citizens BancShares Inc. operates as the holding company for First Citizens Bank & Trust Company, which provides a variety of banking services mainly in the Carolinas. The company, originally founded as the Bank of Smithfield in North Carolina, has expanded significantly through acquisitions and new branches. It now serves customers across nearly half of the continental United States. The bank's primary revenue source is net interest income, supplemented by its offerings in trust and wealth management. The Holding family has historically played a significant role in the bank's operations, holding key executive positions and controlling a substantial portion of the stock.
Profitability Insights
First Citizens BancShares Inc. holds a Profitability Rank of 6/10, indicating a solid track record. The company's Return on Equity (ROE) is 13.07%, which is better than 70.19% of 1,513 companies in the same sector. Additionally, its Return on Assets (ROA) stands at 1.25%, surpassing 69.95% of 1,514 companies. Impressively, the bank has maintained profitability for the past 10 years, a feat better than 99.94% of 1,540 companies, showcasing its consistent performance and financial stability.
Growth Trajectory
The Growth Rank of First Citizens BancShares is 7/10. The company has experienced a 49.30% 3-Year Revenue Growth Rate per Share, ranking better than 96.77% of 1,486 companies. Its 5-Year Revenue Growth Rate per Share is 31.70%, also ranking highly at 95.45% of 1,408 companies. Looking ahead, the estimated Total Revenue Growth Rate for the next 3 to 5 years is 3.11%, which is better than 28.57% of 308 companies. The EPS without NRI has grown by 53.10% over three years and 31.00% over five years, indicating strong earnings growth.
Notable Shareholders
Among the notable investors in First Citizens BancShares are Philippe Laffont (Trades, Portfolio), holding 286,393 shares (1.97% share percentage), Bill Nygren (Trades, Portfolio) with 203,000 shares (1.4% share percentage), and HOTCHKIS & WILEY, which owns 54,906 shares (0.38% share percentage). These significant investments by well-regarded financial minds underscore the bank's strong market position and potential for future growth.
Competitive Landscape
First Citizens BancShares competes closely with other banks such as Fifth Third Bancorp (FITB, Financial) with a market cap of $28.2 billion, M&T Bank Corp (MTB, Financial) at $28.95 billion, and Huntington Bancshares Inc (HBAN, Financial) valued at $21.89 billion. These comparisons highlight the competitive environment in which First Citizens operates, maintaining a strong position among its peers.
Conclusion
First Citizens BancShares Inc. stands out as a robust entity in the banking sector, backed by a strong history of profitability and growth. The company's recent stock performance and its consistent undervaluation relative to the GF Value suggest potential for further gains. Investors should consider the bank's solid financial health, growth prospects, and competitive standing when evaluating its stock for potential investment opportunities.
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.
