First of Long Island Corp. – Value Analysis (NASDAQ:FLIC) : May 19, 2017

Capitalcube gives First of Long Island Corp. a score of 79.

Our analysis is based on comparing First of Long Island Corp. with the following peers – Community Bank System, Inc., Bridge Bancorp, Inc., Financial Institutions, Inc., Arrow Financial Corporation, Jeffersonville Bancorp, NBT Bancorp Inc. and Evans Bancorp, Inc. (CBU-US, BDGE-US, FISI-US, AROW-US, JFBC-US, NBTB-US and EVBN-US).

Fundamental Overview

First of Long Island Corp. has a fundamental score of 79 and has a relative valuation of OVERVALUED.

Fundamental Score

Company Overview

  • It currently trades at a Price/Book ratio of (2.07).
  • FLIC-US‘s operating performance is relatively good compared to its peers. The market currently does not expect high earnings growth relative to its peers but seems to expect the company to maintain its relatively high rates of return.
  • FLIC-US has relatively high profit margins while operating with median capital turns.
  • The company’s year-on-year change in revenues and earnings are better than the median among its peer group.
  • Over the last five years, FLIC-US‘s return on equity has improved from median to better than the median among its peers, suggesting the company has found relative operating advantages.
  • While FLIC-US‘s revenues in recent years have grown faster than the peer median, the market gives the stock a P/E ratio that is around peer median suggesting that the market has some questions about the company’s long-term strategy.
  • The company is likely overinvesting in a business with only median returns.

Drivers of Margin

  • FLIC-US‘s pre-tax margin suggests relatively low operating costs.
  • The company’s net interest income (net interest income/total revenues) of 90.14% is around peer median suggesting that FLIC-US‘s lending operations does not benefit from any differentiating pricing advantage. However, FLIC-US‘s pre-tax margin is more than the peer median (42.64% compared to 33.96%) suggesting relatively low operating costs.
  • The company’s comparatively low proportion of fee based income (i.e. non interest income/total revenues) of 9.86% versus peer median of 22.39% — suggests that FLIC-US‘s operating margins are likely to be more volatile. In addition, FLIC-US‘s proportion of overhead costs (i.e. non interest expense/total revenues) of 51.52x is around peer median — suggesting no cost advantage on fee-based overhead operations.
Drivers of Margins

Quadrant label definitions. Hover to know more

Differentiated; Low Cost, Differentiated; High Cost, Commodity; High Cost, Commodity; Low Cost

Company Profile

First of Long Island Corp. provides financial services through its wholly owned subsidiary, The First National Bank of Long Island. It offers various financial services includes personal banking, business banking and lending services to individual, professional, corporate, institutional, and government customers. The company was founded on February 7, 1984 and is headquartered in Glen Head, NY.