NasdaqGS:FBIZ

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First Business Financial Services

Executive Summary

First Business Financial Services, Inc. operates as the bank holding company for First Business Bank that provides commercial banking products and services for small and medium-sized businesses, business owners, executives, professionals, and high net worth individuals. More Details


Snowflake Analysis

Very undervalued with excellent balance sheet and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.2%

FBIZ

2.7%

US Banks

-1.1%

US Market


1 Year Return

-31.0%

FBIZ

-28.3%

US Banks

15.6%

US Market

Return vs Industry: FBIZ underperformed the US Banks industry which returned -26.7% over the past year.

Return vs Market: FBIZ underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

FBIZIndustryMarket
7 Day-1.2%2.7%-1.1%
30 Day18.1%9.8%4.2%
90 Day16.8%2.6%6.3%
1 Year-28.7%-31.0%-25.7%-28.3%18.2%15.6%
3 Year-17.4%-24.0%-17.4%-24.3%39.6%30.4%
5 Year-23.9%-32.9%17.7%3.1%79.5%59.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

21.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FBIZ ($16.89) is trading below our estimate of fair value ($21.47)

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


Price To Earnings Ratio

PE vs Industry: FBIZ is good value based on its PE Ratio (8.7x) compared to the US Banks industry average (10.3x).

PE vs Market: FBIZ is good value based on its PE Ratio (8.7x) compared to the US market (19.1x).


Price to Earnings Growth Ratio

PEG Ratio: FBIZ is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: FBIZ is good value based on its PB Ratio (0.7x) compared to the US Banks industry average (0.8x).


Next Steps

Future Growth

How is First Business Financial Services forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

12.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FBIZ's forecast earnings growth (12.6% per year) is above the savings rate (2.2%).

Earnings vs Market: FBIZ's earnings (12.6% per year) are forecast to grow slower than the US market (22.1% per year).

High Growth Earnings: FBIZ's earnings are forecast to grow, but not significantly.

Revenue vs Market: FBIZ's revenue (5.1% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: FBIZ's revenue (5.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FBIZ's Return on Equity is forecast to be low in 3 years time (8.9%).


Next Steps

Past Performance

How has First Business Financial Services performed over the past 5 years?

6.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FBIZ has high quality earnings.

Growing Profit Margin: FBIZ's current net profit margins (19.3%) are lower than last year (25.8%).


Past Earnings Growth Analysis

Earnings Trend: FBIZ's earnings have grown by 6.4% per year over the past 5 years.

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

Earnings vs Industry: FBIZ had negative earnings growth (-23.6%) over the past year, making it difficult to compare to the Banks industry average (-4%).


Return on Equity

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


Next Steps

Financial Health

How is First Business Financial Services'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: FBIZ's Assets to Equity ratio (13x) is moderate.

Allowance for Bad Loans: FBIZ has a low allowance for bad loans (85%).

Low Risk Liabilities: 76% of FBIZ's liabilities are made up of primarily low risk sources of funding.

Loan Level: FBIZ has an appropriate level of Loans to Assets ratio (82%).

Low Risk Deposits: FBIZ's Loans to Deposits ratio (117%) is appropriate.

Level of Bad Loans: FBIZ has an appropriate level of bad loans (1.7%).


Next Steps

Dividend

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

3.91%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FBIZ's dividend (3.91%) is higher than the bottom 25% of dividend payers in the US market (1.63%).

High Dividend: FBIZ's dividend (3.91%) is low compared to the top 25% of dividend payers in the US market (4.56%).


Stability and Growth of Payments

Stable Dividend: FBIZ's dividends per share have been stable in the past 10 years.

Growing Dividend: FBIZ's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (33.4%), FBIZ's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FBIZ's dividends in 3 years are forecast to be well covered by earnings (29.5% payout ratio).


Next Steps

Management

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

6.3yrs

Average management tenure


CEO

Corey Chambas (57 yo)

13.83yrs

Tenure

US$1,231,746

Compensation

Mr. Corey A. Chambas has been the Chief Executive Officer of First Business Financial Services, Inc. and First Business Capital Corp. since December 2006 and has been its President since February 2005. Mr. ...


CEO Compensation Analysis

Compensation vs Market: Corey's total compensation ($USD1.23M) is above average for companies of similar size in the US market ($USD578.04K).

Compensation vs Earnings: Corey's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Corey Chambas
President13.83yrsUS$1.23m1.63%
$ 2.3m
Edward Sloane
Chief Financial Officer4.75yrsUS$548.08k0.16%
$ 227.7k
David Seiler
Chief Operating Officer4.5yrsUS$592.85k0.18%
$ 252.7k
Michael Losenegger
Senior Vice President of Credit Administration0.58yrUS$478.22k0.39%
$ 560.3k
Mark Meloy
CEO & Director of First Business Bankno dataUS$440.52k0.57%
$ 823.9k
Brian Spielmann
Chief Accounting Officer & Principal Accounting Officer0.17yrno data0.030%
$ 42.5k
Dawn Siewert
Assistant Vice Presidentno datano datano data
Daniel Ovokaitys
Chief Information Officer6.33yrsno data0.065%
$ 93.4k
Barbara Conley
General Counsel12.33yrsno data0.34%
$ 483.2k
Theresa Wiese
Managing Director of Compliance & Risk Managementno datano datano data
Jodie Johnson
Director of Marketing & Communicationsno datano datano data
Jodi Chandler
Chief Human Resources Officer10.75yrsno data0.25%
$ 354.8k

6.3yrs

Average Tenure

57yo

Average Age

Experienced Management: FBIZ's management team is seasoned and experienced (6.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Corey Chambas
President13.83yrsUS$1.23m1.63%
$ 2.3m
Mark Meloy
CEO & Director of First Business Bankno dataUS$440.52k0.57%
$ 823.9k
David Vetta
CEO, President & Director of First Business Bank - Milwaukeeno datano datano data
Ralph Kauten
Independent Director1.83yrsUS$33.75k0.34%
$ 494.7k
Jan Eddy
Independent Director17yrsUS$38.75k0.20%
$ 294.7k
Carol Sanders
Independent Director4.08yrsUS$43.00k0.052%
$ 75.0k
Mark Bugher
Independent Director15.25yrsUS$38.75k0.12%
$ 167.6k
Gerald Kilcoyne
Independent Chair of the Board2yrsUS$98.25k0.61%
$ 875.3k
W. Lorenz
Independent Director2.33yrsUS$39.65k0.21%
$ 296.6k
John Harris
Independent Director8.75yrsUS$36.00k0.12%
$ 175.5k
Laurie Benson
Independent Director1.83yrsUS$38.15k0.042%
$ 60.6k
Carla Chavarria
Independent Director3.33yrsUS$29.25k0.018%
$ 25.6k

3.7yrs

Average Tenure

63yo

Average Age

Experienced Board: FBIZ's board of directors are considered experienced (3.7 years average tenure).


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: First Business Financial Services, Inc.
  • Ticker: FBIZ
  • Exchange: NasdaqGS
  • Founded: 1986
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$143.873m
  • Shares outstanding: 8.52m
  • Website: https://www.firstbusiness.com

Number of Employees


Location

  • First Business Financial Services, Inc.
  • 401 Charmany Drive
  • Madison
  • Wisconsin
  • 53719
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FBIZNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDOct 2005
45DDB (Deutsche Boerse AG)YesCommon StockDEEUROct 2005

Biography

First Business Financial Services, Inc. operates as the bank holding company for First Business Bank that provides commercial banking products and services for small and medium-sized businesses, business o ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/27 00:02
End of Day Share Price2020/10/26 00:00
Earnings2020/09/30
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.