NasdaqGS:FBIZ

Stock Analysis Report

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.

Rewards

PE ratio (10.3x) is below the US market (18.9x)

Revenue is forecast to grow 7.69% per year

Earnings grew by 32.3% over the past year

Pays a high and reliable dividend of 2.36%

Risk Analysis

Earnings are forecast to decline by an average of -5.5% per year for the next 3 years

Significant insider selling over the past 3 months



Snowflake Analysis

Solid track record with excellent balance sheet and pays a dividend.


Similar Companies

Horizon Bancorp

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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

0.1%

FBIZ

-3.0%

US Banks

-1.3%

US Market


1 Year Return

24.8%

FBIZ

11.8%

US Banks

22.0%

US Market

Return vs Industry: FBIZ exceeded the US Banks industry which returned 21.7% over the past year.

Return vs Market: FBIZ matched the US Market which returned 23.9% over the past year.


Shareholder returns

FBIZIndustryMarket
7 Day0.1%-3.0%-1.3%
30 Day0.2%-4.7%1.8%
90 Day7.3%2.7%9.3%
1 Year28.1%24.8%15.0%11.8%24.6%22.0%
3 Year11.1%3.3%26.9%17.9%49.2%39.6%
5 Year34.0%19.5%86.3%65.4%77.9%58.3%

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?

9.55x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FBIZ ($25.43) is trading above our estimate of fair value ($23.71)

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


Price To Earnings Ratio

PE vs Industry: FBIZ is good value based on its PE Ratio (10.3x) compared to the Banks industry average (12.8x).

PE vs Market: FBIZ is good value based on its PE Ratio (10.3x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: FBIZ's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

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


Next Steps

Future Growth

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

-9.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FBIZ's earnings are forecast to decline over the next 3 years (-5.5% per year).

Earnings vs Market: FBIZ's earnings are forecast to decline over the next 3 years (-5.5% per year).

High Growth Earnings: FBIZ's earnings are forecast to decline over the next 3 years.

Revenue vs Market: FBIZ's revenue (7.7% per year) is forecast to grow faster than the US market (7.5% per year).

High Growth Revenue: FBIZ's revenue (7.7% 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 (9.5%).


Next Steps

Past Performance

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

6.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FBIZ has high quality earnings.

Growing Profit Margin: FBIZ's current net profit margins (25.8%) are higher than last year (21.5%).


Past Earnings Growth Analysis

Earnings Trend: FBIZ's earnings have grown by 4.2% per year over the past 5 years.

Accelerating Growth: FBIZ's earnings growth over the past year (32.3%) exceeds its 5-year average (4.2% per year).

Earnings vs Industry: FBIZ earnings growth over the past year (32.3%) exceeded the Banks industry 27.1%.


Return on Equity

High ROE: FBIZ's Return on Equity (11.3%) is considered low.


Return on Assets


Return on Capital Employed


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

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

Debt Coverage by Assets: FBIZ's debt is not covered by short term assets (assets are 0.3x debt).


Financial Institutions Analysis

Asset Level: FBIZ's level of assets compared to its equity is moderate.

Allowance for Bad Loans: FBIZ has a low allowance for bad loans.

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

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

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

Level of Bad Loans: FBIZ has an appropriate level of bad loans (1.32%)


Next Steps

Dividend

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

2.29%

Current Dividend Yield


Dividend Yield vs Market

company2.3%marketbottom25%1.4%markettop25%3.7%industryaverage2.9%forecastin3Years2.4%

Current dividend yield vs market & industry

Notable Dividend: FBIZ's dividend (2.36%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: FBIZ's dividend (2.36%) is low compared to the top 25% of dividend payers in the US market (3.66%).


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 low payout ratio (23.8%), 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 (26.7% payout ratio).


Next Steps

Management

What is the CEO of First Business Financial Services's salary, the management and board of directors tenure and is there insider trading?

4.8yrs

Average management tenure


CEO

Corey Chambas (56yo)

13.1yrs

Tenure

US$899,756

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 ($USD899.76K) is about average for companies of similar size in the US market ($USD1.08M).

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


Management Age and Tenure

4.8yrs

Average Tenure

56.5yo

Average Age

Experienced Management: FBIZ's management team is considered experienced (4.8 years average tenure).


Board Age and Tenure

5.7yrs

Average Tenure

58yo

Average Age

Experienced Board: FBIZ's board of directors are considered experienced (5.7 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$51,22904 Dec 19
Barbara Conley
EntityIndividual
Role
Chief Legal Officer
General Counsel
Shares2,115
Max PriceUS$24.22
BuyUS$6,00330 Oct 19
Daniel Olszewski
EntityIndividual
Shares245
Max PriceUS$24.50
BuyUS$6,00330 Oct 19
Carol Sanders
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares245
Max PriceUS$24.50
SellUS$36,03522 Aug 19
Michael Losenegger
EntityIndividual
Shares1,500
Max PriceUS$24.05
BuyUS$6,00131 Jul 19
Daniel Olszewski
EntityIndividual
Shares249
Max PriceUS$24.10
BuyUS$6,00131 Jul 19
Carol Sanders
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares249
Max PriceUS$24.10
SellUS$46,20910 Jun 19
W. Lorenz
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceUS$23.10
BuyUS$6,00602 May 19
Daniel Olszewski
EntityIndividual
Shares258
Max PriceUS$23.28
BuyUS$6,00602 May 19
Carol Sanders
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares258
Max PriceUS$23.28
BuyUS$9,77802 May 19
Timothy Keane
EntityIndividual
Shares420
Max PriceUS$23.28
SellUS$115,97030 Apr 19
Barbara Conley
EntityIndividual
Role
Chief Legal Officer
General Counsel
Shares5,000
Max PriceUS$23.19
BuyUS$51,75004 Feb 19
Daniel Olszewski
EntityIndividual
Shares2,500
Max PriceUS$20.70
SellUS$51,13531 Jan 19
W. Lorenz
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,500
Max PriceUS$20.45

Ownership Breakdown

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


Management Team

  • Corey Chambas (56yo)

    President

    • Tenure: 13.1yrs
    • Compensation: US$899.76k
  • Jerry Smith (74yo)

    Consultant

    • Tenure: 1.3yrs
    • Compensation: US$175.68k
  • Dawn Siewert

    Assistant Vice President

    • Mark Meloy (57yo)

      CEO & Director of First Business Bank

      • Compensation: US$344.69k
    • Barbara Conley (66yo)

      General Counsel

      • Tenure: 11.6yrs
    • Ed Sloane (58yo)

      Chief Financial Officer

      • Tenure: 4yrs
      • Compensation: US$395.36k
    • Dan Ovokaitys (45yo)

      Chief Information Officer

      • Tenure: 5.6yrs
    • Dave Seiler (54yo)

      Chief Operating Officer

      • Tenure: 3.8yrs
      • Compensation: US$414.86k
    • Theresa Wiese

      Managing Director of Compliance & Risk Management

      • Peggy Stebbins (32yo)

        Chief Accounting Officer & Controller

        • Tenure: 1.1yrs

      Board Members

      • Corey Chambas (56yo)

        President

        • Tenure: 13.1yrs
        • Compensation: US$899.76k
      • Jan Eddy (70yo)

        Independent Director

        • Tenure: 16.3yrs
        • Compensation: US$42.50k
      • Mark Meloy (57yo)

        CEO & Director of First Business Bank

        • Compensation: US$344.69k
      • Carol Sanders (51yo)

        Independent Director

        • Tenure: 3.3yrs
        • Compensation: US$37.25k
      • Mark Bugher (70yo)

        Independent Director

        • Tenure: 14.5yrs
        • Compensation: US$42.50k
      • Jerry Kilcoyne (59yo)

        Chair of the Board

        • Tenure: 1.3yrs
        • Compensation: US$62.76k
      • Dave Vetta (65yo)

        CEO, President & Director of First Business Bank - Milwaukee

        • W. Lorenz (36yo)

          Independent Director

          • Tenure: 1.6yrs
          • Compensation: US$33.20k
        • John Harris (67yo)

          Independent Director

          • Tenure: 8yrs
          • Compensation: US$34.50k
        • Carla Chavarria (53yo)

          Independent Director

          • Tenure: 2.6yrs
          • Compensation: US$33.75k

        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$214.322m
        • Shares outstanding: 8.57m
        • 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

        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 owners, executives, professionals, and high net worth individuals. The company offers deposit products, such as non-interest-bearing transaction accounts, interest-bearing transaction accounts, money market accounts, time deposits, and certificates of deposit. It also provides loan products, including commercial real estate loans, commercial and industrial loans, small business administration loans, and direct financing leases, as well as consumer and other loans comprising home equity, second mortgage, credit card, and other personal loans for professional and executive clients. In addition, the company offers commercial lending, asset-based financing, equipment financing, treasury management, and trust and investment. Further, it provides lines of credit and factored receivable financing, and term loans secured by accounts receivable, inventory, equipment, and real estate assets primarily to manufacturers and wholesale distribution companies; and new and replacement equipment loan and lease, debt restructuring, consolidation, and sale-lease-back transaction services. The company holds an equity investment in a Madison, Wisconsin community development project; and invests in marketable securities and tax-exempt loans. First Business Financial Services, Inc. was incorporated in 1986 and is headquartered in Madison, Wisconsin. 


        Company Analysis and Financial Data Status

        All financial data provided by Standard & Poor's Capital IQ.
        DataLast Updated (UTC time)
        Company Analysis2020/01/25 00:08
        End of Day Share Price2020/01/24 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.