Breaking Down First Capital, Inc. (FCAP) Financial Health: Key Insights for Investors

Are you keeping a close watch on your investments in First Capital, Inc. (FCAP)? Understanding the financial health of FCAP is crucial for making informed decisions. Did you know that for the year ended December 31, 2024, FCAP reported a net income of $11.9 million, or $3.57 per diluted share? While this shows a slight decrease compared to the previous year, several key factors influenced this performance, including an increase in interest income by $6.9 million and a rise in total assets to $1.19 billion. Let's delve deeper into the numbers to uncover the insights that can guide your investment strategy.

First Capital, Inc. (FCAP) Revenue Analysis

Understanding First Capital, Inc.'s (FCAP) financial health requires a detailed look into its revenue streams. A comprehensive analysis includes identifying primary revenue sources, examining historical revenue growth, and assessing the contribution of different business segments.

First Capital, Inc. primarily generates revenue through its banking services offered via First Harrison Bank. These services encompass

• deposit instruments (checking accounts, savings accounts, money market accounts, certificates of deposit),
• various loan types (residential mortgage, construction, commercial real estate, and business loans).

In 2024, First Capital's revenue was reported at $42.00 million, reflecting a 2.23% increase compared to the previous year's $41.08 million. However, it is important to note that First Capital Inc 's Annual Revenue for the fiscal year ended 2023, increased by 4.47% to $41.08 millions, from $39.32 millions achieved a year ago.

Analyzing the revenue per share provides additional insights. The revenue per share for the three months ending in September 2024 was $2.73. The trailing twelve months (TTM) revenue per share ending in September 2024 was $12.45. A warning sign indicates that First Capital Inc's revenue per share has been declining over the past 12 months.

Here's a look at First Capital's average Revenue Per Share Growth Rate:

• Past 12 months: -5.00% per year
• Past 3 years: 4.80% per year
• Past 5 years: 4.40% per year
• Past 10 years: 5.30% per year

The following table summarizes key financial data for First Capital, Inc. based on available 2024 data:

Service charges on deposit accounts contribute to First Capital's revenue. These include transaction-based fees (stop payment charges, statement rendering) recognized when the transaction is executed, and account maintenance fees recognized primarily on a monthly basis.

Noninterest income experienced a slight increase of $24,000 for the year ended December 31, 2024, compared to the previous year. This was mainly driven by increases in gains on the sale of loans and service charges on deposit accounts, which rose by $133,000 and $59,000, respectively. However, this was partially offset by a $374,000 loss on equity securities in 2024, compared to a $207,000 loss in 2023.

First Capital, Inc. (FCAP) Profitability Metrics

Analyzing the profitability of First Capital, Inc. (FCAP) provides key insights into its financial health and operational efficiency. A review of gross profit, operating profit, and net profit margins, alongside trends and industry comparisons, helps investors assess the company's ability to generate profits.

For the year ended December 31, 2024, First Capital, Inc. reported a net income of $11.9 million, or $3.57 per diluted share, compared to $12.8 million, or $3.82 per diluted share, for the year ended December 31, 2023. While net income decreased, the company's net interest income after provision for credit losses increased by $894,000, reflecting a mix of opportunities and challenges.

Key profitability metrics for First Capital, Inc. include:

• Gross Margin: First Capital's gross margin as of December 30, 2024, was 100.00%.
• Net Profit Margin: The net profit margin for 2024 was 28%, a decrease from 31% in 2023. This decrease was driven by higher expenses. However, another source indicates a net profit margin of 28.43% as of December 30, 2024.

The tax-equivalent net interest margin improved from 3.16% in 2023 to 3.20% in 2024, showcasing the company's ability to manage costs effectively despite challenges. The increase in noninterest expenses, including professional fees, compensation, and benefits, contributed to the decrease in the company's profit margin. For example, professional fees rose by $663,000, primarily due to increased costs associated with the company's annual audit and ongoing core contract negotiations. Compensation and benefits increased by $536,000, driven by standard increases in salary and wages, as well as higher costs for Company-provided health insurance benefits.

Here's a brief overview of First Capital, Inc.'s financial performance indicators:

• Net interest margin (NIM): 3.20% (up from 3.16% in FY 2023).
• Cost-to-income ratio: 64.1% (up from 61.6% in FY 2023).
• Non-performing loans: 0.69% (up from 0.28% in FY 2023).

A review of First Capital, Inc.'s revenue and net income figures shows:

Operating income margin For First Capital has operated at median operating income margin of 35.8% from fiscal years ending December 2020 to 2024.

To gain more insight into the values and principles that guide First Capital, Inc., explore Mission Statement, Vision, & Core Values of First Capital, Inc. (FCAP).

First Capital, Inc. (FCAP) Debt vs. Equity Structure

Understanding how First Capital, Inc. (FCAP) finances its operations and growth is crucial for investors. This involves looking at the company's debt levels, its debt-to-equity ratio, and how it balances debt and equity funding.

As of the fiscal year 2024, First Capital, Inc. (FCAP) showcases the following debt profile:

• Long-term debt: Specific figures for long-term debt are essential to assess the company's long-term financial obligations.
• Short-term debt: Details on short-term debt help evaluate immediate liabilities and liquidity.

The debt-to-equity ratio is a key metric in understanding First Capital, Inc.'s financial leverage. It indicates the proportion of debt and equity the company uses to finance its assets. To accurately assess First Capital, Inc.'s financial health, we need the specific debt-to-equity ratio for the fiscal year 2024 and a comparison against industry averages.

Recent activities in debt markets, such as new debt issuances, changes in credit ratings, or refinancing efforts, provide insights into First Capital, Inc.'s financial strategy and creditworthiness. For example:

• Any recent debt issuances would indicate how First Capital, Inc. is raising capital for investments or operations.
• Changes in credit ratings from agencies like Moody's or Standard & Poor's reflect the perceived risk of lending to First Capital, Inc..
• Refinancing activities could point to efforts to lower interest rates or extend debt maturity.

Balancing debt and equity is vital for sustainable growth. Too much debt can increase financial risk, while too little may limit growth opportunities. The optimal mix depends on First Capital, Inc.'s business model, industry conditions, and strategic priorities.

For a deeper dive into understanding who is investing in First Capital, Inc. (FCAP) and the motivations behind those investments, consider exploring this resource: Exploring First Capital, Inc. (FCAP) Investor Profile: Who’s Buying and Why?

To illustrate, a hypothetical scenario reflecting data points as of fiscal year 2024 could look like this:

In this example, a debt-to-equity ratio of 0.65 suggests that First Capital, Inc. has a balanced approach to funding, with a reasonable level of debt relative to its equity. However, it's crucial to compare this ratio with industry benchmarks to determine whether it's favorable or concerning.

First Capital, Inc. (FCAP) Liquidity and Solvency

When evaluating First Capital, Inc.'s financial health, understanding its liquidity and solvency is crucial for investors. Liquidity refers to the company's ability to meet its short-term obligations, while solvency indicates its ability to meet long-term obligations.

Assessing First Capital, Inc.'s Liquidity:

Analyzing First Capital, Inc.'s liquidity involves looking at key ratios and trends:

• Current and Quick Ratios: These ratios provide a snapshot of First Capital, Inc.'s ability to cover its current liabilities with its current assets. The current ratio is calculated by dividing current assets by current liabilities, while the quick ratio excludes inventories from current assets to provide a more conservative measure.
• Analysis of Working Capital Trends: Monitoring the trend of First Capital, Inc.'s working capital (current assets minus current liabilities) helps to identify whether the company's short-term financial health is improving or deteriorating.
• Cash Flow Statements Overview: Examining the cash flow statement reveals the sources and uses of cash. It is important to pay close attention to cash flow from operating activities, as it indicates the cash generated from the company's core business operations.

Here's a closer look at these elements:

Potential Liquidity Concerns or Strengths:

Investors should be aware of any potential liquidity concerns, such as a declining current ratio or negative operating cash flow. On the other hand, a rising current ratio and strong operating cash flow would indicate positive liquidity.

To gain more insights into First Capital, Inc.'s financial health, you can read the full analysis here: Breaking Down First Capital, Inc. (FCAP) Financial Health: Key Insights for Investors

First Capital, Inc. (FCAP) Valuation Analysis

Determining whether First Capital, Inc. (FCAP) is overvalued or undervalued requires a multifaceted approach, incorporating key financial ratios, stock performance analysis, and analyst sentiment. This Breaking Down First Capital, Inc. (FCAP) Financial Health: Key Insights for Investors aims to provide investors with a clearer picture of FCAP's current valuation.

Several key metrics are essential in assessing FCAP's valuation:

• Price-to-Earnings (P/E) Ratio: This ratio compares FCAP's stock price to its earnings per share (EPS). A higher P/E ratio might suggest overvaluation, while a lower one could indicate undervaluation, relative to its peers and historical averages.
• Price-to-Book (P/B) Ratio: The P/B ratio measures FCAP's market capitalization against its book value of equity. It helps investors understand how much they are paying for the company's net assets. A lower P/B ratio could suggest undervaluation.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: This ratio compares FCAP's enterprise value (market cap plus debt, minus cash) to its earnings before interest, taxes, depreciation, and amortization (EBITDA). It provides a more comprehensive valuation measure, especially useful when comparing companies with different capital structures.

Analyzing FCAP's stock price trends over the past year (or longer) can reveal important insights into market sentiment and investor confidence. Key considerations include:

• Stock Price Appreciation or Depreciation: Significant price increases might suggest growing investor optimism, while declines could indicate concerns about the company's prospects.
• Volatility: High volatility could signal uncertainty or speculative trading activity, while low volatility might suggest a more stable investment.
• Comparison to Industry Benchmarks: Comparing FCAP's stock performance to that of its industry peers can help determine whether its valuation is in line with market trends.

If applicable, dividend yield and payout ratios offer additional insights into FCAP's valuation:

• Dividend Yield: This is the annual dividend payment divided by the stock price, expressed as a percentage. A higher dividend yield can make a stock more attractive to income-seeking investors.
• Payout Ratio: This is the percentage of earnings paid out as dividends. A lower payout ratio suggests that FCAP has more room to increase its dividend payments in the future.

It's also valuable to consider analyst consensus on FCAP's stock valuation:

• Buy, Hold, or Sell Ratings: Analyst ratings reflect their overall assessment of FCAP's investment potential. A consensus of 'buy' ratings suggests that analysts believe the stock is undervalued, while 'sell' ratings indicate the opposite.
• Price Targets: Analysts often set price targets, which represent their expectations for the stock's future price. Comparing the current stock price to the consensus price target can provide an indication of potential upside or downside.

Below is a sample table illustrating how these valuation metrics might be organized and presented for analysis. Note that the data presented is purely hypothetical and for illustrative purposes only.

By analyzing these factors collectively, investors can form a more informed opinion on whether First Capital, Inc. (FCAP) is currently overvalued or undervalued in the market.

First Capital, Inc. (FCAP) Risk Factors

Understanding the risks that First Capital, Inc. (FCAP) faces is crucial for investors. These risks can stem from both internal and external factors, significantly impacting the company's financial health.

External Risks:

• Industry Competition: The financial services industry is highly competitive. FCAP faces competition from other investment firms, banks, and financial institutions, which could put pressure on its profit margins and market share.
• Regulatory Changes: Changes in regulations can significantly impact FCAP. Compliance with new laws and regulations may increase operational costs and limit certain business activities.
• Market Conditions: Economic downturns, changes in interest rates, and other market fluctuations can affect FCAP's investment portfolios and overall financial performance.

Internal Risks:

• Operational Risks: These include risks related to the company's internal processes, systems, and human capital. For example, a failure in risk management systems or a cybersecurity breach could lead to financial losses and reputational damage.
• Financial Risks: These pertain to FCAP's capital structure, liquidity, and creditworthiness. High levels of debt or a decline in asset values could impair the company's financial stability.
• Strategic Risks: These involve risks associated with the company's strategic decisions, such as mergers, acquisitions, or new business ventures. Poorly executed strategies can lead to financial losses and missed opportunities.

For further insights into the company’s core principles, explore: Mission Statement, Vision, & Core Values of First Capital, Inc. (FCAP).

While specific mitigation strategies for First Capital, Inc. (FCAP) were not found in the provided search results, companies generally employ several common strategies to manage these risks:

Common Risk Mitigation Strategies:

• Diversification: Spreading investments across different asset classes and sectors to reduce the impact of any single investment on the overall portfolio.
• Hedging: Using financial instruments to offset potential losses from adverse market movements.
• Compliance Programs: Implementing robust compliance programs to ensure adherence to regulatory requirements.
• Risk Management Systems: Developing and maintaining sophisticated risk management systems to identify, assess, and mitigate risks.
• Business Continuity Planning: Creating plans to ensure business operations can continue in the event of disruptions.

First Capital, Inc. (FCAP) Growth Opportunities

First Capital, Inc. (FCAP) demonstrates promising future growth prospects, driven by several key factors that position it favorably in the market. Here's an analysis of these growth drivers, projections, and strategic advantages.

Key growth drivers for First Capital, Inc. (FCAP):

• Product Innovations: FCAP's commitment to innovation ensures a steady stream of new products and services that meet evolving customer needs.
• Market Expansions: Strategic expansion into new geographic markets and customer segments broadens FCAP's reach and revenue potential.
• Acquisitions: Targeted acquisitions can quickly add new capabilities, technologies, and market share to FCAP's portfolio.

Future revenue growth projections and earnings estimates suggest a positive trajectory for First Capital, Inc. (FCAP). While specific figures depend on market conditions and company performance, analysts generally expect continued growth in both revenue and earnings per share (EPS) over the next several years. These estimates are based on factors such as increasing demand for FCAP's products, successful execution of its growth strategies, and favorable macroeconomic trends.

Strategic initiatives and partnerships play a crucial role in driving future growth for First Capital, Inc. (FCAP). These initiatives may include:

• Technology investments: Investments in cutting-edge technologies can enhance FCAP's operational efficiency, product development capabilities, and customer experience.
• Strategic alliances: Forming alliances with complementary businesses can expand FCAP's market reach, access new technologies, and create synergistic opportunities.
• Customer-centric programs: Implementing programs that enhance customer loyalty and satisfaction can drive repeat business and positive word-of-mouth referrals.

First Capital, Inc. (FCAP) possesses several competitive advantages that position it for sustained growth:

• Strong brand reputation: A well-established brand reputation builds trust and credibility with customers, giving FCAP a competitive edge in the market.
• Proprietary technology: Unique and patented technologies can differentiate FCAP's products and services, creating a barrier to entry for competitors.
• Efficient operations: Streamlined operations and cost-effective processes enable FCAP to deliver superior value to customers while maintaining healthy profit margins.

For more detailed insights into First Capital, Inc. (FCAP)'s financial health, you can explore this comprehensive analysis: Breaking Down First Capital, Inc. (FCAP) Financial Health: Key Insights for Investors