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.

Snowflake

Fundamentals

Excellent balance sheet average dividend payer.


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


Market Performance


7 Day Return

6.1%

FBIZ

4.1%

US Banks

1.0%

US Market


1 Year Return

25.6%

FBIZ

7.2%

US Banks

8.0%

US Market

Return vs Industry: FBIZ exceeded the US Banks industry which returned 7.2% over the past year.

Return vs Market: FBIZ exceeded the US Market which returned 8% over the past year.


Shareholder returns

FBIZIndustryMarket
7 Day6.1%4.1%1.0%
30 Day4.2%2.8%-0.07%
90 Day14.8%2.9%-1.0%
1 Year29.1%25.6%10.3%7.2%10.4%8.0%
3 Year21.0%12.5%53.9%43.3%46.2%36.7%
5 Year25.7%12.3%71.9%53.1%64.3%46.2%

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?

10.25x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FBIZ ($25.54) is trading above our estimate of fair value ($25.06)

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 (12.6x).

PE vs Market: FBIZ is good value based on its PE Ratio (10.3x) compared to the US market (17.6x).


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 4 analysts?

-8.3%

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 (-8.3% per year).

Earnings vs Market: FBIZ's earnings are forecast to decline over the next 3 years (-8.3% per year).

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

Revenue vs Market: FBIZ's revenue (8.4% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: FBIZ's revenue (8.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if FBIZ's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

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

2.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: FBIZ's earnings have grown by 2.4% per year over the past 5 years.

Accelerating Growth: FBIZ's earnings growth over the past year (60.6%) exceeds its 5-year average (2.4% per year).

Earnings vs Industry: FBIZ earnings growth over the past year (60.6%) exceeded the Banks industry 30.1%.


Return on Equity

High ROE: FBIZ's Return on Equity (11.6%) is considered low.


Return on Assets

ROA vs Industry: FBIZ's Return on Assets is below or equal to the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate FBIZ's Return on Capital Employed to determine if it has improved over the past 3 years.


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 0.2x 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 (1.5%)


Next Steps

Dividend

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

2.35%

Current Dividend Yield


Dividend Yield vs Market

company2.3%marketbottom25%1.4%markettop25%3.7%industryaverage3.0%forecastin3Years2.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: FBIZ's dividend (2.35%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: FBIZ's dividend (2.35%) is low compared to the top 25% of dividend payers in the US market (3.68%).

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 (23.3%), FBIZ's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


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?

5.3yrs

Average management tenure


CEO

Corey Chambas (56yo)

12.8yrs

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 ($USD899.76K) is about average for companies of similar size in the US market ($USD1.18M).

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


Management Age and Tenure

5.3yrs

Average Tenure

57yo

Average Age

Experienced Management: FBIZ's management team is seasoned and experienced (5.3 years average tenure).


Board Age and Tenure

5.4yrs

Average Tenure

58yo

Average Age

Experienced Board: FBIZ's board of directors are considered experienced (5.4 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$36,03522 Aug 19
Michael Losenegger
EntityIndividual
Role
Senior Key Executive
Chief Credit Officer
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
BuyUS$3,65126 Dec 18
Daniel Olszewski
EntityIndividual
Shares183
Max PriceUS$19.95
BuyUS$5,74626 Dec 18
Timothy Keane
EntityIndividual
Shares288
Max PriceUS$19.95
BuyUS$19,98026 Dec 18
Jan Eddy
EntityIndividual
Role
Unit Chairman
Independent Director
Shares1,000
Max PriceUS$19.98
BuyUS$99,95021 Dec 18
Gerald Kilcoyne
EntityIndividual
Role
Chairman of the Board
Chair of the Board
Shares5,000
Max PriceUS$19.99
BuyUS$4,98030 Oct 18
Carol Sanders
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares240
Max PriceUS$20.75

Ownership Breakdown


Management Team

  • Corey Chambas (56yo)

    President

    • Tenure: 12.8yrs
    • Compensation: US$899.76k
  • Jerry Smith (74yo)

    Consultant

    • Tenure: 1yrs
    • Compensation: US$175.68k
  • Michael Losenegger (61yo)

    Chief Credit Officer

    • Tenure: 8.4yrs
    • Compensation: US$358.48k
  • Dawn Siewert

    Assistant Vice President

    • Tenure: 0yrs
  • Mark Meloy (57yo)

    Chief Executive Officer of First Business Bank

    • Tenure: 13.1yrs
    • Compensation: US$344.69k
  • Barbara Conley (66yo)

    General Counsel

    • Tenure: 11.3yrs
  • Ed Sloane (58yo)

    Chief Financial Officer

    • Tenure: 3.8yrs
    • Compensation: US$395.36k
  • Daniel Ovokaitys (45yo)

    Chief Information Officer

    • Tenure: 5.3yrs
  • Dave Seiler (54yo)

    Chief Operating Officer

    • Tenure: 3.5yrs
    • Compensation: US$414.86k
  • Peggy Stebbins (32yo)

    Chief Accounting Officer & Controller

    • Tenure: 0.8yrs

Board Members

  • Corey Chambas (56yo)

    President

    • Tenure: 12.8yrs
    • Compensation: US$899.76k
  • Jan Eddy (70yo)

    Independent Director

    • Tenure: 0yrs
    • Compensation: US$42.50k
  • Mark Meloy (57yo)

    Chief Executive Officer of First Business Bank

    • Tenure: 13.1yrs
    • Compensation: US$344.69k
  • Carol Sanders (51yo)

    Independent Director

    • Tenure: 3.1yrs
    • Compensation: US$37.25k
  • Mark Bugher (70yo)

    Independent Director

    • Tenure: 14.3yrs
    • Compensation: US$42.50k
  • Jerry Kilcoyne (59yo)

    Chair of the Board

    • Tenure: 1yrs
    • Compensation: US$62.76k
  • Dave Vetta (65yo)

    CEO, President & Director of First Business Bank - Milwaukee

    • Tenure: 0yrs
  • W. Lorenz (36yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$33.20k
  • John Harris (67yo)

    Independent Director

    • Tenure: 7.8yrs
    • Compensation: US$34.50k
  • Carla Chavarria (53yo)

    Independent Director

    • Tenure: 2.3yrs
    • 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$220.557m
  • Shares outstanding: 8.64m
  • 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 o ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 23:55
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.