First Northern Community Bancorp (FNRN)

FairStock Score: 52/100 — MIXED

Key Financials

Strengths

• Solid return on equity of 10.9% above cost of capital

Concerns

• Altman Z-Score of 0.2 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

First Northern Community Bancorp is a micro-cap financial services company valued at $261 million. Revenue stands at $74 million. From a quality standpoint, First shows distressed Altman Z-Score of 0.2 warrants caution and adequate 11% ROE. On valuation, the stock is attractively valued at 13.7x earnings, with a modest 16% margin of safety vs Graham Number. Growth dynamics show revenue growing at 5.6% and profit growth of 2.3%. Our composite FairStock Score of 52/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the financial services space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer