NasdaqGS:BFST

Stock Analysis Report

Business First Bancshares

Executive Summary

Business First Bancshares, Inc. operates as the bank holding company for Business First Bank that provides various banking products and services.


Snowflake Analysis

Flawless balance sheet with solid track record.

Share Price & News

How has Business First Bancshares's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BFST has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.8%

BFST

-0.3%

US Banks

0.06%

US Market


1 Year Return

5.6%

BFST

11.1%

US Banks

19.3%

US Market

Return vs Industry: BFST underperformed the US Banks industry which returned 11.1% over the past year.

Return vs Market: BFST underperformed the US Market which returned 19.3% over the past year.


Shareholder returns

BFSTIndustryMarket
7 Day-1.8%-0.3%0.06%
30 Day5.3%-0.5%1.7%
90 Day4.0%0.6%9.0%
1 Year7.3%5.6%14.4%11.1%21.8%19.3%
3 Yearn/a24.7%15.7%49.5%39.9%
5 Yearn/a74.9%55.1%73.1%54.1%

Price Volatility Vs. Market

How volatile is Business First Bancshares's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Business First Bancshares undervalued compared to its fair value and its price relative to the market?

42.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BFST ($25.71) is trading below our estimate of fair value ($44.68)

Significantly Below Fair Value: BFST is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: BFST is poor value based on its PE Ratio (14.4x) compared to the Banks industry average (12.6x).

PE vs Market: BFST is good value based on its PE Ratio (14.4x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: BFST is overvalued based on its PB Ratio (1.2x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Business First Bancshares forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

41.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BFST's forecast earnings growth (41.7% per year) is above the savings rate (1.7%).

Earnings vs Market: BFST's earnings (41.7% per year) are forecast to grow faster than the US market (14.2% per year).

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

Revenue vs Market: BFST's revenue (29.5% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: BFST's revenue (29.5% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BFST's Return on Equity is forecast to be low in 3 years time (11.5%).


Next Steps

Past Performance

How has Business First Bancshares performed over the past 5 years?

40.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BFST has high quality earnings.

Growing Profit Margin: BFST's current net profit margins (26.9%) are higher than last year (21%).


Past Earnings Growth Analysis

Earnings Trend: BFST's earnings have grown significantly by 40.5% per year over the past 5 years.

Accelerating Growth: BFST's earnings growth over the past year (68.7%) exceeds its 5-year average (40.5% per year).

Earnings vs Industry: BFST earnings growth over the past year (68.7%) exceeded the Banks industry 12.2%.


Return on Equity

High ROE: BFST's Return on Equity (8.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Business First Bancshares'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

Inventory Level: BFST has a low level of unsold assets or inventory.

Debt Coverage by Assets: BFST's debt is not covered by short term assets (assets are 0.9x debt).


Financial Institutions Analysis

Asset Level: BFST's level of assets compared to its equity is low.

Allowance for Bad Loans: BFST has a sufficient allowance for bad loans.

Low Risk Liabilities: BFST's liabilities are made up of primarily low risk sources of funding.

Loan Level: BFST has an acceptable proportion of non-loan assets held.

Low Risk Deposits: BFST's loans are broadly funded by customer deposits.

Level of Bad Loans: BFST has an appropriate level of bad loans (0.53%)


Next Steps

Dividend

What is Business First Bancshares's current dividend yield, its reliability and sustainability?

1.56%

Current Dividend Yield


Dividend Yield vs Market

company1.6%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years1.6%

Current dividend yield vs market & industry

Notable Dividend: BFST's dividend (1.56%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: BFST's dividend (1.56%) is low compared to the top 25% of dividend payers in the US market (3.71%).


Stability and Growth of Payments

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

Growing Dividend: BFST'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 (22.4%), BFST's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BFST's dividends in 3 years are forecast to be well covered by earnings (16.9% payout ratio).


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Jude Melville (44yo)

8.9yrs

Tenure

US$1,023,254

Compensation

Mr. David R. Melville, III, also known as Jude, has been the Chief Executive Officer, President and Director at b1Bank and Business First Bancshares, Inc. since March 2011. Mr. Melville has served in these ...


CEO Compensation Analysis

Compensation vs Market: Jude's total compensation ($USD1.02M) is below average for companies of similar size in the US market ($USD1.66M).

Compensation vs Earnings: Jude's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
David Melville
President8.9yrsUS$1.02m0.77% $2.6m
Gregory Robertson
CFO & Treasurer3.1yrsUS$512.35k0.13% $434.2k
Mimi Lee
Executive VP0.6yrsno datano data
Heather Roemer
Corporate Secretary0yrsno datano data
Rodney Seaford
Regional President of SWLA0.6yrsno datano data

1.8yrs

Average Tenure

Experienced Management: BFST's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
David Melville
President8.9yrsUS$1.02m0.77% $2.6m
David Laxton
Independent Director4.7yrsUS$20.00k0.23% $801.3k
Robert Yarborough
Independent Director7.8yrsUS$22.50k0.25% $857.2k
Robert Greer
Chairman of the Board8.7yrsUS$159.73k0.13% $432.9k
Kenneth Smith
Independent Director7.8yrsUS$20.75k0.32% $1.1m
Rolfe McCollister
Independent Director14.5yrsUS$16.25k0.63% $2.2m
Andrew McLindon
Independent Director7.8yrsUS$20.75k0.21% $726.0k
Patrick Mockler
Independent Director7.8yrsUS$19.83k0.071% $243.6k
David Montgomery
Independent Director7.8yrsUS$22.25k0.052% $175.9k
Fayez Shamieh
Independent Director7.8yrsUS$16.00k0.26% $875.6k

7.8yrs

Average Tenure

60.5yo

Average Age

Experienced Board: BFST's board of directors are considered experienced (7.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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 19.7%.


Top Shareholders

Company Information

Business First Bancshares, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Business First Bancshares, Inc.
  • Ticker: BFST
  • Exchange: NasdaqGS
  • Founded: 2006
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$341.412m
  • Shares outstanding: 13.28m
  • Website: https://www.b1bank.com

Number of Employees


Location

  • Business First Bancshares, Inc.
  • 500 Laurel Street
  • Suite 101
  • Baton Rouge
  • Louisiana
  • 70801
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BFSTNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDApr 2018

Biography

Business First Bancshares, Inc. operates as the bank holding company for Business First Bank that provides various banking products and services. It offers various deposit products and services, including a range of checking, demand, money market, time, and savings accounts, as well as certificates of deposit; and remote deposit capture and direct deposit services. The company also provides commercial and industrial loans, including commercial lines of credit, working capital loans, term loans, equipment financing, asset acquisition, expansion and development loans, borrowing base loans, letters of credit, and other loan products; construction and development loans; commercial real estate loans; residential real estate loans comprising first and second lien one-to-four family mortgage loans, and home equity lines of credit; consumer loans, including secured and unsecured installment and term loans; and credit cards. In addition, it offers wealth management products, including mutual funds, annuities, individual retirement accounts, and other financial products. Further, the company provides a range of other financial services comprising drive-through banking facilities, automated teller machines, and employee and payroll benefits solutions; and night depository, personalized checks, treasury and cash management, merchant, automated clearing house, electronic funds transfer, domestic and foreign wire transfer, traveler’s checks, vault, loan and deposit sweep accounts, lock-box, international trade finance, international trade, foreign exchange, online and mobile banking, e-statements, and bank-by-mail services. The company operates through 25 banking centers located in the State of Louisiana and in Dallas, Texas. Business First Bancshares, Inc. was founded in 2006 and is headquartered in Baton Rouge, Louisiana. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/21 02:37
End of Day Share Price2020/02/20 00:00
Earnings2019/12/31
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.