DB:2J2

Stock Analysis Report

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Executive Summary

FB Financial Corporation operates as a bank holding company for FirstBank that provides a suite of commercial and consumer banking services businesses, professionals, and individuals.


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has FB Financial's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 2J2's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

17.9%

2J2

1.5%

DE Banks

3.1%

DE Market


1 Year Return

-19.3%

2J2

8.4%

DE Banks

14.0%

DE Market

Return vs Industry: 2J2 underperformed the German Banks industry which returned 8.4% over the past year.

Return vs Market: 2J2 underperformed the German Market which returned 14% over the past year.


Shareholder returns

2J2IndustryMarket
7 Day17.9%1.5%3.1%
30 Day26.9%3.2%2.3%
90 Day42.0%54.2%18.4%
1 Year-18.6%-19.3%8.4%8.4%16.5%14.0%
3 Yearn/a-45.7%-47.8%7.4%-1.2%
5 Yearn/a-29.4%-46.2%23.8%7.2%

Price Volatility Vs. Market

How volatile is FB Financial's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is FB Financial undervalued compared to its fair value and its price relative to the market?

13.57x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 2J2 (€25) is trading above our estimate of fair value (€24.16)

Significantly Below Fair Value: 2J2 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 2J2 is good value based on its PE Ratio (13.6x) compared to the DE Banks industry average (20.9x).

PE vs Market: 2J2 is good value based on its PE Ratio (13.6x) compared to the German market (21.9x).


Price to Earnings Growth Ratio

PEG Ratio: 2J2 is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: 2J2 is overvalued based on its PB Ratio (1.2x) compared to the DE Banks industry average (0.8x).


Next Steps

Future Growth

How is FB Financial forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

41.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2J2's forecast earnings growth (41.3% per year) is above the savings rate (0.2%).

Earnings vs Market: 2J2's earnings (41.3% per year) are forecast to grow faster than the German market (25.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 2J2's revenue (7.2% per year) is forecast to grow faster than the German market (5.8% per year).

High Growth Revenue: 2J2's revenue (7.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 2J2's Return on Equity is forecast to be low in 3 years time (9.4%).


Next Steps

Past Performance

How has FB Financial performed over the past 5 years?

17.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2J2 has a high level of non-cash earnings.

Growing Profit Margin: 2J2's current net profit margins (18.9%) are lower than last year (23%).


Past Earnings Growth Analysis

Earnings Trend: 2J2's earnings have grown by 17.9% per year over the past 5 years.

Accelerating Growth: 2J2's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 2J2 had negative earnings growth (-9.7%) over the past year, making it difficult to compare to the Banks industry average (1.4%).


Return on Equity

High ROE: 2J2's Return on Equity (8.6%) is considered low.


Next Steps

Financial Health

How is FB Financial's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: 2J2's Assets to Equity ratio (9x) is low.

Allowance for Bad Loans: 2J2 has a sufficient allowance for bad loans (325%).

Low Risk Liabilities: 92% of 2J2's liabilities are made up of primarily low risk sources of funding.

Loan Level: 2J2 has an appropriate level of Loans to Assets ratio (65%).

Low Risk Deposits: 2J2's Loans to Deposits ratio (79%) is appropriate.

Level of Bad Loans: 2J2 has an appropriate level of bad loans (0.7%).


Next Steps

Dividend

What is FB Financial current dividend yield, its reliability and sustainability?

1.21%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: 2J2's dividend (1.21%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.23%).

High Dividend: 2J2's dividend (1.21%) is low compared to the top 25% of dividend payers in the German market (3.78%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 2J2 has been paying a dividend for less than 10 years.

Growing Dividend: 2J2's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (15.4%), 2J2's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 2J2's dividends in 3 years are forecast to be thoroughly covered by earnings (15% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.6yrs

Average management tenure


CEO

Chris Holmes (56 yo)

7.58yrs

Tenure

US$1,928,469

Compensation

Mr. Christopher T. Holmes, also known as Chris, serves as President of FB Financial Corporation and FirstBank since 2012, Chief Executive Officer since 2013 and as Director since 2010. While his career has ...


CEO Compensation Analysis

Compensation vs Market: Chris's total compensation ($USD1.93M) is above average for companies of similar size in the German market ($USD1.29M).

Compensation vs Earnings: Chris's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
James Ayers
Executive Chairman4.33yrsUS$500.00k42.39%
$ 343.7m
Christopher Holmes
President7.58yrsUS$1.93m1.1%
$ 8.9m
Wilburn Evans
Executive Officer10.58yrsUS$809.96k0.061%
$ 496.5k
Michael Mettee
Interim Chief Financial Officer0.33yrno data0.019%
$ 151.8k
Lisa Smiley
Principal Accounting Officer & Corporate Controller0.33yrno data0.0033%
$ 26.9k
Beth Sims
General Counsel & Corporate Secretaryno datano datano data
Timothy Johnson
Executive Officerno dataUS$1.24m0.037%
$ 296.7k
Robert Peery
Executive Officerno datano data0.042%
$ 341.8k
James Bowers
Executive Officerno datano data0.0087%
$ 70.4k
David Burden
Regional President of West Tennesseeno datano datano data
Paul Craig
Senior VP & Director of Corporate Development - FirstBankno datano datano data
Jeanie Rittenberry
Senior VP and Director of Marketing & Communications - FirstBank7.58yrsno datano data

7.6yrs

Average Tenure

57.5yo

Average Age

Experienced Management: 2J2's management team is seasoned and experienced (7.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
James Ayers
Executive Chairman4.33yrsUS$500.00k42.39%
$ 343.7m
Christopher Holmes
President7.58yrsUS$1.93m1.1%
$ 8.9m
William Andrews
Independent Director3.33yrsUS$70.00k0.045%
$ 362.5k
William Carpenter
Independent Director0.58yrno data0.017%
$ 136.1k
Orrin Ingram
Independent Director14.58yrsUS$60.00k0.20%
$ 1.6m
Emily Reynolds
Independent Director8.58yrsUS$60.00k0.028%
$ 226.3k
Agenia Clark
Independent Director3.33yrsUS$66.00k0.014%
$ 109.6k
Raja Jubran
Independent Director2.58yrsUS$52.50k0.041%
$ 331.6k
James Exum
Independent Director3.33yrsUS$66.00k0.014%
$ 114.6k
J. Ayers
Director3.33yrsno data0.025%
$ 202.0k

3.3yrs

Average Tenure

62.5yo

Average Age

Experienced Board: 2J2's board of directors are considered experienced (3.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 2J2 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.9%.


Top Shareholders

Company Information

FB Financial Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: FB Financial Corporation
  • Ticker: 2J2
  • Exchange: DB
  • Founded: 1906
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$958.927m
  • Listing Market Cap: US$810.677m
  • Shares outstanding: 32.10m
  • Website: https://www.firstbankonline.com

Number of Employees


Location

  • FB Financial Corporation
  • 211 Commerce Street
  • Suite 300
  • Nashville
  • Tennessee
  • 37201
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FBKNYSE (New York Stock Exchange)YesCommon SharesUSUSDSep 2016
2J2DB (Deutsche Boerse AG)YesCommon SharesDEEURSep 2016

Biography

FB Financial Corporation operates as a bank holding company for FirstBank that provides a suite of commercial and consumer banking services businesses, professionals, and individuals. The company operates ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/14 09:52
End of Day Share Price2020/08/13 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.