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

1.4%

NasdaqGS:FBIZ

3.3%

US Banks

2.1%

US Market


1 Year Return

10.6%

NasdaqGS:FBIZ

-13.8%

US Banks

-0.04%

US Market

FBIZ outperformed the Banks industry which returned -14.8% over the past year.

FBIZ outperformed the Market in United States of America which returned 0.2% over the past year.


Share holder returns

FBIZIndustryMarket
7 Day1.4%3.3%2.1%
30 Day7.7%-7.0%-3.2%
90 Day3.2%-2.3%2.8%
1 Year13.7%10.6%-11.3%-13.8%2.2%-0.04%
3 Year15.0%6.9%42.5%32.7%41.5%32.3%
5 Year18.4%5.8%54.2%37.6%55.0%37.8%

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 based on future cash flows and its price relative to the stock market?

7%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

First Business Financial Services's share price is below the future cash flow value, but not at a moderate discount (< 20%).

First Business Financial Services's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

First Business Financial Services is good value based on earnings compared to the US Banks industry average.

First Business Financial Services is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

First Business Financial Services earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

First Business Financial Services is good value based on assets compared to the US Banks industry average.


Next Steps

Future Growth

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

-8.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

First Business Financial Services's revenue is expected to grow by 8.4% yearly, however this is not considered high growth (20% yearly).

First Business Financial Services's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

First Business Financial Services's revenue growth is expected to exceed the United States of America market average.

First Business Financial Services's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.

First Business Financial Services's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if First Business Financial Services will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


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

First Business Financial Services's year on year earnings growth rate has been positive over the past 5 years.

First Business Financial Services's 1-year earnings growth exceeds its 5-year average (60.6% vs 2.4%)

First Business Financial Services's earnings growth has exceeded the US Banks industry average in the past year (60.6% vs 33.2%).


Return on Equity

First Business Financial Services has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

First Business Financial Services used its assets less efficiently than the US Banks industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if First Business Financial Services improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.


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

Information is not available.

Information is not available.


Financial Institutions Analysis

First Business Financial Services has an acceptable proportion of non-loan assets held.

First Business Financial Services has a low allowance for bad loans.

First Business Financial Services's liabilities are made up of primarily low risk sources of funding.

First Business Financial Services's level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).

Loans at First Business Financial Services are broadly funded by customer deposits.

First Business Financial Services has an acceptable level of bad loans (less than 2%).


Next Steps

Dividend

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

2.52%

Expected Dividend Yield


Dividend Yield and Payments Analysis

First Business Financial Services's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

First Business Financial Services's dividend is below the markets top 25% of dividend payers in United States of America (3.84%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (4.3x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


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?

5.2yrs

Average management tenure


CEO

Corey Chambas (56yo)

12.7yrs

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

Corey's remuneration is about average for companies of similar size in United States of America.

Corey's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

5.2yrs

Average Tenure

57yo

Average Age

The average tenure for the First Business Financial Services management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

7.6yrs

Average Tenure

58yo

Average Age

The tenure for the First Business Financial Services board of directors is about average.


Insider Trading

First Business Financial Services individual insiders have sold more shares than they have bought in the past 3 months, but not in substantial volumes.


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
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
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
Member of the Board of Directors
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
Director
Shares240
Max PriceUS$20.75
SellUS$30,14527 Aug 18
Daniel Ovokaitys
EntityIndividual
Role
Chief Information Officer
Chief Information Officer
Shares1,379
Max PriceUS$21.86

Ownership Breakdown


Management Team

  • Corey Chambas (56yo)

    President

    • Tenure: 12.7yrs
    • Compensation: US$899.76k
  • Jerry Smith (74yo)

    Consultant

    • Tenure: 0.8yrs
    • Compensation: US$175.68k
  • Michael Losenegger (61yo)

    Chief Credit Officer

    • Tenure: 8.3yrs
    • Compensation: US$358.48k
  • Dawn Siewert

    Assistant Vice President

    • Tenure: 0.0yrs
  • Mark Meloy (57yo)

    Chief Executive Officer of First Business Bank

    • Tenure: 12.9yrs
    • Compensation: US$344.69k
  • Barbara Conley (66yo)

    General Counsel

    • Tenure: 11.2yrs
  • Ed Sloane (58yo)

    Chief Financial Officer

    • Tenure: 3.6yrs
    • Compensation: US$395.36k
  • Daniel Ovokaitys (45yo)

    Chief Information Officer

    • Tenure: 5.2yrs
  • Dave Seiler (54yo)

    Chief Operating Officer

    • Tenure: 3.3yrs
    • Compensation: US$414.86k
  • Peggy Stebbins (32yo)

    Chief Accounting Officer & Controller

    • Tenure: 0.7yrs

Board Members

  • Corey Chambas (56yo)

    President

    • Tenure: 12.7yrs
    • Compensation: US$899.76k
  • Jan Eddy (70yo)

    Director

    • Tenure: 15.8yrs
    • Compensation: US$42.50k
  • Mark Meloy (57yo)

    Chief Executive Officer of First Business Bank

    • Tenure: 12.9yrs
    • Compensation: US$344.69k
  • Carol Sanders (51yo)

    Director

    • Tenure: 2.9yrs
    • Compensation: US$37.25k
  • Mark Bugher (70yo)

    Director

    • Tenure: 14.1yrs
    • Compensation: US$42.50k
  • Jerry Kilcoyne (59yo)

    Chair of the Board

    • Tenure: 0.8yrs
    • Compensation: US$62.76k
  • Dave Vetta (65yo)

    CEO, President & Director of First Business Bank - Milwaukee

    • Tenure: 0.0yrs
  • W. Lorenz (36yo)

    Independent Director

    • Tenure: 1.2yrs
    • Compensation: US$33.20k
  • John Harris (67yo)

    Director

    • Tenure: 7.6yrs
    • Compensation: US$34.50k
  • Carla Chavarria (53yo)

    Director

    • Tenure: 2.2yrs
    • 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$208.554m
  • 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 Analysis2019/08/23 00:00
End of Day Share Price2019/08/22 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.