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FBIZ

First Business Financial Services NasdaqGS:FBIZ Stock Report

Last Price

US$35.84

Market Cap

US$303.8m

7D

4.0%

1Y

26.6%

Updated

17 Aug, 2022

Data

Company Financials +
FBIZ fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance5/6
Financial Health6/6
Dividends5/6

FBIZ Stock Overview

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.

First Business Financial Services Competitors

Price History & Performance

Summary of all time highs, changes and price drops for First Business Financial Services
Historical stock prices
Current Share PriceUS$35.84
52 Week HighUS$36.58
52 Week LowUS$26.57
Beta0.75
1 Month Change15.28%
3 Month Change9.20%
1 Year Change26.64%
3 Year Change48.47%
5 Year Change71.48%
Change since IPO175.69%

Recent News & Updates

Jul 28

First Business Financial Services GAAP EPS of $1.29 beats by $0.39, revenue of $30.53M beats by $1.2M

First Business Financial Services press release (NASDAQ:FBIZ): Q2 GAAP EPS of $1.29 beats by $0.39. Revenue of $30.53M (+9.3% Y/Y) beats by $1.2M.

Shareholder Returns

FBIZUS BanksUS Market
7D4.0%3.2%1.1%
1Y26.6%-8.2%-9.0%

Return vs Industry: FBIZ exceeded the US Banks industry which returned -8.3% over the past year.

Return vs Market: FBIZ exceeded the US Market which returned -8.9% over the past year.

Price Volatility

Is FBIZ's price volatile compared to industry and market?
FBIZ volatility
FBIZ Average Weekly Movement3.9%
Banks Industry Average Movement3.6%
Market Average Movement7.6%
10% most volatile stocks in US Market17.0%
10% least volatile stocks in US Market3.1%

Stable Share Price: FBIZ is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: FBIZ's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1909333Corey Chambashttps://www.firstbusiness.com

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, as well as credit cards. 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, first and second mortgage, and other personal loans for professional and executive clients.

First Business Financial Services Fundamentals Summary

How do First Business Financial Services's earnings and revenue compare to its market cap?
FBIZ fundamental statistics
Market CapUS$303.78m
Earnings (TTM)US$36.31m
Revenue (TTM)US$123.44m

8.4x

P/E Ratio

1.3x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
FBIZ income statement (TTM)
RevenueUS$123.44m
Cost of RevenueUS$0
Gross ProfitUS$123.44m
Other ExpensesUS$87.12m
EarningsUS$36.31m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)4.28
Gross Margin100.00%
Net Profit Margin29.42%
Debt/Equity Ratio254.9%

How did FBIZ perform over the long term?

See historical performance and comparison

Dividends

2.2%

Current Dividend Yield

17%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is FBIZ undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for FBIZ?

Other financial metrics that can be useful for relative valuation.

FBIZ key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ratio-2.6x

Price to Earnings Ratio vs Peers

How does FBIZ's PE Ratio compare to its peers?

FBIZ PE Ratio vs Peers
The above table shows the PE ratio for FBIZ vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average10.3x
ESQ Esquire Financial Holdings
14.7x25.2%US$306.9m
UNTY Unity Bancorp
8.2x3.0%US$309.2m
CZFS Citizens Financial Services
10.9x6.8%US$300.9m
PCB PCB Bancorp
7.4x3.2%US$300.6m
FBIZ First Business Financial Services
8.4x-3.2%US$303.8m

Price-To-Earnings vs Peers: FBIZ is good value based on its Price-To-Earnings Ratio (8.4x) compared to the peer average (10.3x).


Price to Earnings Ratio vs Industry

How does FBIZ's PE Ratio compare vs other companies in the US Banks Industry?

Price-To-Earnings vs Industry: FBIZ is good value based on its Price-To-Earnings Ratio (8.4x) compared to the US Banks industry average (10.2x)


Price to Earnings Ratio vs Fair Ratio

What is FBIZ's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

FBIZ PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio8.4x
Fair PE Ratio10x

Price-To-Earnings vs Fair Ratio: FBIZ is good value based on its Price-To-Earnings Ratio (8.4x) compared to the estimated Fair Price-To-Earnings Ratio (10x).


Share Price vs Fair Value

What is the Fair Price of FBIZ when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: FBIZ ($35.84) is trading below our estimate of fair value ($64.12)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


Discover undervalued companies

Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-3.2%

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 (-3.2% per year).

Earnings vs Market: FBIZ's earnings are forecast to decline over the next 3 years (-3.2% per year).

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

Revenue vs Market: FBIZ's revenue (7.2% per year) is forecast to grow slower than the US market (7.9% per year).

High Growth Revenue: FBIZ'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: FBIZ's Return on Equity is forecast to be low in 3 years time (12.3%).


Discover growth companies

Past Performance

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

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


22.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: FBIZ has high quality earnings.

Growing Profit Margin: FBIZ's current net profit margins (29.4%) are higher than last year (26.1%).


Past Earnings Growth Analysis

Earnings Trend: FBIZ's earnings have grown significantly by 22% per year over the past 5 years.

Accelerating Growth: FBIZ's earnings growth over the past year (31.6%) exceeds its 5-year average (22% per year).

Earnings vs Industry: FBIZ earnings growth over the past year (31.6%) exceeded the Banks industry 9.2%.


Return on Equity

High ROE: FBIZ's Return on Equity (15.1%) is considered low.


Discover strong past performing companies

Financial Health

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

Financial Health Score

6/6

Financial Health Score 6/6

  • Asset Level

  • Allowance for Bad Loans

  • Low Risk Liabilities

  • Loan Level

  • Low Risk Deposits

  • Level of Bad Loans

Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: FBIZ's Assets to Equity ratio (11.1x) is moderate.

Allowance for Bad Loans: FBIZ has a sufficient allowance for bad loans (432%).

Low Risk Liabilities: 74% 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 (121%) is appropriate.

Level of Bad Loans: FBIZ has an appropriate level of bad loans (0.2%).


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Dividend

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

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


2.20%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: FBIZ's dividend (2.2%) is higher than the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: FBIZ's dividend (2.2%) is low compared to the top 25% of dividend payers in the US market (3.95%).


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

Earnings Coverage: With its low payout ratio (17.1%), 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 (20% payout ratio).


Discover strong dividend paying companies

Management

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

8.2yrs

Average management tenure


CEO

Corey Chambas (59 yo)

17.5yrs

Tenure

US$1,629,663

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 ($USD1.63M) is below average for companies of similar size in the US market ($USD2.58M).

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


Leadership Team

Experienced Management: FBIZ's management team is seasoned and experienced (8.2 years average tenure).


Board Members

Experienced Board: FBIZ's board of directors are considered experienced (5.5 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 employee growth, exchange listings and data sources


Key Information

  • Name: First Business Financial Services, Inc.
  • Ticker: FBIZ
  • Exchange: NasdaqGS
  • Founded: 1909
  • Industry: Regional Banks
  • Sector: Banks
  • Implied Market Cap: US$303.778m
  • Shares outstanding: 8.48m
  • Website: https://www.firstbusiness.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/17 00:00
End of Day Share Price2022/08/17 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.