NasdaqGM:FBMS

Stock Analysis Report

Executive Summary

The First Bancshares, Inc. operates as the bank holding company for The First, A National Banking Association that provides general commercial and retail banking services.

Snowflake

Fundamentals

Excellent balance sheet and good value.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

2.1%

FBMS

3.4%

US Banks

0.4%

US Market


1 Year Return

-3.2%

FBMS

11.9%

US Banks

11.4%

US Market

Return vs Industry: FBMS underperformed the US Banks industry which returned 11.9% over the past year.

Return vs Market: FBMS underperformed the US Market which returned 11.4% over the past year.


Shareholder returns

FBMSIndustryMarket
7 Day2.1%3.4%0.4%
30 Day-2.4%3.8%0.3%
90 Day1.7%3.3%-1.2%
1 Year-2.4%-3.2%15.2%11.9%13.9%11.4%
3 Year54.3%51.3%54.5%43.8%47.2%37.6%
5 Year126.4%117.9%69.9%51.4%62.4%44.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is First Bancshares undervalued compared to its fair value and its price relative to the market?

26.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FBMS ($32.77) is trading below our estimate of fair value ($44.58)

Significantly Below Fair Value: FBMS is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: FBMS is poor value based on its PE Ratio (13.6x) compared to the Banks industry average (12.6x).

PE vs Market: FBMS is good value based on its PE Ratio (13.6x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: FBMS is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: FBMS 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 Bancshares forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

31.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FBMS's forecast earnings growth (31.5% per year) is above the savings rate (2.7%).

Earnings vs Market: FBMS's earnings (31.5% per year) are forecast to grow faster than the US market (14.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: FBMS's revenue (12.6% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: FBMS's revenue (12.6% 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 FBMS's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has First Bancshares performed over the past 5 years?

35.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: FBMS's earnings have grown significantly by 35.4% per year over the past 5 years.

Accelerating Growth: FBMS's earnings growth over the past year (131%) exceeds its 5-year average (35.4% per year).

Earnings vs Industry: FBMS earnings growth over the past year (131%) exceeded the Banks industry 29.2%.


Return on Equity

High ROE: FBMS's Return on Equity (8.1%) is considered low.


Return on Assets

ROA vs Industry: FBMS has a higher Return on Assets than the Banks industry average last year.


Return on Capital Employed

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


Next Steps

Financial Health

How is First Bancshares'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: FBMS has a low level of unsold assets or inventory.

Debt Coverage by Assets: FBMS's debt is not covered by short term assets (assets are 0.9x debt).


Financial Institutions Analysis

Asset Level: FBMS's level of assets compared to its equity is low.

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

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

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

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

Level of Bad Loans: FBMS has an appropriate level of bad loans (1.59%)


Next Steps

Dividend

What is First Bancshares's current dividend yield, its reliability and sustainability?

0.98%

Current Dividend Yield


Dividend Yield vs Market

company1.0%marketbottom25%1.4%markettop25%3.7%industryaverage2.9%forecastin3Years1.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: FBMS's dividend (0.98%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: FBMS's dividend (0.98%) is low compared to the top 25% of dividend payers in the US market (3.68%).

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

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (12.8%), FBMS's dividend payments are thoroughly 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 Bancshares's salary, the management and board of directors tenure and is there insider trading?

10.1yrs

Average management tenure


CEO

Hoppy Cole (57yo)

10.1yrs

Tenure

US$893,603

Compensation

Mr. Milton Ray Cole, Jr., also known as Hoppy, has been the President of First BancShares Inc. since August 8, 2005. Mr. Cole has been the Chief Executive Officer of First Bancshares Inc. and The First, A  ...


CEO Compensation Analysis

Compensation vs. Market: Hoppy's total compensation ($USD893.60K) is below average for companies of similar size in the US market ($USD1.79M).

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


Management Age and Tenure

10.1yrs

Average Tenure

Experienced Management: FBMS's management team is seasoned and experienced (10.1 years average tenure).


Board Age and Tenure

21.8yrs

Average Tenure

59yo

Average Age

Experienced Board: FBMS's board of directors are seasoned and experienced ( 21.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$192,19230 Nov 18
Milton Cole
EntityIndividual
Role
Chief Executive Officer
Vice Chairman
Shares5,436
Max PriceUS$35.50

Ownership Breakdown


Management Team

  • Marsie White

    Vice President of Human Resource

    • Tenure: 0yrs
  • Chandra Kidd

    VP & Corporate Secretary

    • Tenure: 0yrs
  • Dawn Ard

    Compliance Officer & Compliance Officer of The First

    • Tenure: 0yrs
  • Hoppy Cole (57yo)

    Vice Chairman

    • Tenure: 10.1yrs
    • Compensation: US$893.60k
  • Dee Dee Lowery (52yo)

    Executive VP & CFO

    • Tenure: 0yrs
    • Compensation: US$414.13k
  • Ray Wesson

    President of Southern Region - The First

    • Tenure: 0yrs
    • Compensation: US$261.45k
  • Carol Daniel

    Credit Administrator of The First

    • Tenure: 0yrs
    • Compensation: US$179.88k
  • Douglas Waldron

    President of Northern Region - The First

    • Tenure: 0yrs
    • Compensation: US$260.81k
  • Hayden Mitchell

    Chief Retail Banking Officer & Executive VP of The First

    • Tenure: 10.2yrs
    • Compensation: US$246.17k
  • Chris Ryals

    Executive VP & COO

    • Tenure: 8.8yrs

Board Members

  • Doug Seidenburg (59yo)

    Independent Director

    • Tenure: 21.8yrs
    • Compensation: US$77.00k
  • Andy Stetelman (58yo)

    Independent Director

    • Tenure: 24.8yrs
    • Compensation: US$69.00k
  • David Bomboy (73yo)

    Independent Director

    • Tenure: 24.8yrs
    • Compensation: US$67.70k
  • Fred McMurry (54yo)

    Independent Director

    • Tenure: 24.8yrs
    • Compensation: US$69.65k
  • Ted Parker (59yo)

    Independent Director

    • Tenure: 24.8yrs
    • Compensation: US$71.00k
  • E. Gibson (62yo)

    Chairman of the Board

    • Tenure: 9.2yrs
    • Compensation: US$160.73k
  • Charles Lightsey (79yo)

    Independent Director

    • Tenure: 16.8yrs
    • Compensation: US$86.25k
  • Hoppy Cole (57yo)

    Vice Chairman

    • Tenure: 10.1yrs
    • Compensation: US$893.60k
  • Rodney Bennett (52yo)

    Independent Director

    • Tenure: 2.4yrs
    • Compensation: US$65.80k
  • Thomas Mitchell (71yo)

    Independent Director

    • Tenure: 2.4yrs
    • Compensation: US$68.45k

Company Information

The First Bancshares, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The First Bancshares, Inc.
  • Ticker: FBMS
  • Exchange: NasdaqGM
  • Founded: 1995
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$561.187m
  • Shares outstanding: 17.13m
  • Website: https://www.thefirstbank.com

Number of Employees


Location

  • The First Bancshares, Inc.
  • 6480 U.S. Highway 98 West
  • Suite A
  • Hattiesburg
  • Mississippi
  • 39402
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FBMSNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDJan 2003

Biography

The First Bancshares, Inc. operates as the bank holding company for The First, A National Banking Association that provides general commercial and retail banking services. The company operates through thre ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 23:48
End of Day Share Price2019/10/23 00:00
Earnings2019/09/30
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.