📊 FNLC Key Takeaways
Is First Bancorp, Inc /ME/ (FNLC) a Good Investment?
First Bancorp exhibits strong revenue growth (107% YoY) and healthy operating margins (27.9%), but faces critical solvency concerns with interest coverage of only 0.5x—meaning operating income cannot cover interest obligations. The disconnect between surging revenue and flat net income growth, combined with severely depressed returns (ROE 3.1%, ROA 0.3%), raises sustainability questions and suggests deteriorating underlying profitability.
First Bancorp shows solid underlying bank profitability, with a 21.5% net margin, 12.1% ROE, 1.1% ROA, and healthy free cash flow generation relative to revenue. However, the quality of recent growth looks mixed because revenue more than doubled year over year while net income was flat, suggesting margin pressure, acquisition-related noise, or higher funding and credit costs. Overall fundamentals appear sound, but the earnings trend needs clearer confirmation before a more constructive view is warranted.
Why Buy First Bancorp, Inc /ME/ Stock? FNLC Key Strengths
- Exceptional revenue growth of 107% YoY demonstrates strong market demand or successful expansion
- Healthy operating margin of 27.9% and net margin of 23.0% show pricing power and cost control
- Robust free cash flow of $22.2M with 56.8% FCF margin provides financial flexibility despite earnings weakness
- Solid profitability with 26.2% operating margin, 21.5% net margin, 12.1% ROE, and 1.1% ROA
- Positive cash generation with $37.81M operating cash flow and $34.59M free cash flow
- Manageable reported leverage outside core banking liabilities, with long-term debt of $95.50M and debt-to-equity of 0.34x
FNLC Stock Risks: First Bancorp, Inc /ME/ Investment Risks
- Critical: Interest coverage ratio of 0.5x indicates operating income cannot cover interest expenses—major solvency red flag
- Revenue growth of 107% not translating to earnings growth (0% YoY) suggests unsustainable revenue sources or deteriorating cost structure
- Severely depressed returns on equity (3.1%) and assets (0.3%) indicate capital is not generating adequate returns relative to asset base
- Revenue growth did not translate into net income growth, which raises questions about earnings quality and cost structure
- Interest coverage of 2.1x is thin and leaves less room if funding costs remain elevated
- Low cash balance relative to asset size means liquidity trends and deposit stability need close monitoring
Key Metrics to Watch
- Interest coverage ratio trend—must improve above 1.5x for financial health
- Net income growth sustainability relative to revenue growth in next quarter
- Operating cost structure and whether revenue growth margins are compressing
- Net interest margin and provision for credit losses
- Deposit mix, funding costs, and interest coverage
First Bancorp, Inc /ME/ (FNLC) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 56.8% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
FNLC Profit Margin, ROE & Profitability Analysis
FNLC vs Finance Sector: How First Bancorp, Inc /ME/ Compares
How First Bancorp, Inc /ME/ compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is First Bancorp, Inc /ME/ Stock Overvalued? FNLC Valuation Analysis 2026
Based on fundamental analysis, First Bancorp, Inc /ME/ has mixed fundamental signals relative to the Finance sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
First Bancorp, Inc /ME/ Balance Sheet: FNLC Debt, Cash & Liquidity
FNLC Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: First Bancorp, Inc /ME/'s revenue has remained relatively flat over the 5-year period, with a 0% decline. The most recent EPS of $2.66 reflects profitable operations.
FNLC Revenue Growth, EPS Growth & YoY Performance
First Bancorp, Inc /ME/ Dividends, Buybacks & Capital Allocation
FNLC SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for First Bancorp, Inc /ME/ (CIK: 0000765207)
📋 Recent SEC Filings
❓ Frequently Asked Questions about FNLC
What is the AI rating for FNLC?
First Bancorp, Inc /ME/ (FNLC) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 72% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are FNLC's key strengths?
Claude: Exceptional revenue growth of 107% YoY demonstrates strong market demand or successful expansion. Healthy operating margin of 27.9% and net margin of 23.0% show pricing power and cost control. ChatGPT: Solid profitability with 26.2% operating margin, 21.5% net margin, 12.1% ROE, and 1.1% ROA. Positive cash generation with $37.81M operating cash flow and $34.59M free cash flow.
What are the risks of investing in FNLC?
Claude: Critical: Interest coverage ratio of 0.5x indicates operating income cannot cover interest expenses—major solvency red flag. Revenue growth of 107% not translating to earnings growth (0% YoY) suggests unsustainable revenue sources or deteriorating cost structure. ChatGPT: Revenue growth did not translate into net income growth, which raises questions about earnings quality and cost structure. Interest coverage of 2.1x is thin and leaves less room if funding costs remain elevated.
What is FNLC's revenue and growth?
First Bancorp, Inc /ME/ reported revenue of $39.1M.
Does FNLC pay dividends?
First Bancorp, Inc /ME/ pays dividends, with $4.0M distributed to shareholders in the trailing twelve months.
Where can I find FNLC SEC filings?
Official SEC filings for First Bancorp, Inc /ME/ (CIK: 0000765207) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is FNLC's EPS?
First Bancorp, Inc /ME/ has a diluted EPS of $0.80.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is FNLC a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, First Bancorp, Inc /ME/ has a SELL rating with 72% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is FNLC stock overvalued or undervalued?
Valuation metrics for FNLC: ROE of 3.1% (sector avg: 12%), net margin of 23.0% (sector avg: 25%). Compare these metrics with sector averages to assess valuation.
Should I buy FNLC stock in 2026?
Our dual AI analysis gives First Bancorp, Inc /ME/ a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is FNLC's free cash flow?
First Bancorp, Inc /ME/'s operating cash flow is $22.8M, with capital expenditures of $526.0K. FCF margin is 56.8%.
How does FNLC compare to other Finance stocks?
Vs Finance sector averages: Net margin 23.0% (avg: 25%), ROE 3.1% (avg: 12%), current ratio N/A (avg: 1.2).