NasdaqGM:FBMS

Stock Analysis Report

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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. More Details


Snowflake Analysis

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


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: FBMS has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.4%

FBMS

-0.8%

US Banks

1.0%

US Market


1 Year Return

-34.6%

FBMS

-26.3%

US Banks

13.6%

US Market

Return vs Industry: FBMS underperformed the US Banks industry which returned -26.3% over the past year.

Return vs Market: FBMS underperformed the US Market which returned 13.6% over the past year.


Shareholder returns

FBMSIndustryMarket
7 Day1.4%-0.8%1.0%
30 Day-0.3%-0.8%-0.4%
90 Day-5.3%-3.1%8.9%
1 Year-33.6%-34.6%-23.7%-26.3%16.2%13.6%
3 Year-25.0%-27.2%-15.1%-22.1%40.2%30.8%
5 Year28.9%23.4%21.7%6.6%89.6%68.2%

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?

40.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FBMS ($21.6) is trading below our estimate of fair value ($36.47)

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


Price To Earnings Ratio

PE vs Industry: FBMS is good value based on its PE Ratio (8.3x) compared to the US Banks industry average (9.8x).

PE vs Market: FBMS is good value based on its PE Ratio (8.3x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: FBMS is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: FBMS's PB Ratio (0.7x) is in line with the US Banks industry average.


Next Steps

Future Growth

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

6.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FBMS's forecast earnings growth (6.3% per year) is above the savings rate (2.2%).

Earnings vs Market: FBMS's earnings (6.3% per year) are forecast to grow slower than the US market (23.2% per year).

High Growth Earnings: FBMS's earnings are forecast to grow, but not significantly.

Revenue vs Market: FBMS's revenue is expected to decline over the next 3 years (-0.9% per year).

High Growth Revenue: FBMS's revenue is forecast to decline over the next 3 years (-0.9% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FBMS's Return on Equity is forecast to be low in 3 years time (8.1%).


Next Steps

Past Performance

How has First Bancshares performed over the past 5 years?

41.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FBMS has high quality earnings.

Growing Profit Margin: FBMS's current net profit margins (32.8%) are higher than last year (25.2%).


Past Earnings Growth Analysis

Earnings Trend: FBMS's earnings have grown significantly by 41.9% per year over the past 5 years.

Accelerating Growth: FBMS's earnings growth over the past year (55.7%) exceeds its 5-year average (41.9% per year).

Earnings vs Industry: FBMS earnings growth over the past year (55.7%) exceeded the Banks industry -3.1%.


Return on Equity

High ROE: FBMS's Return on Equity (7.9%) is considered low.


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


Financial Institutions Analysis

Asset Level: FBMS's Assets to Equity ratio (8.1x) is low.

Allowance for Bad Loans: FBMS has a low allowance for bad loans (72%).

Low Risk Liabilities: 95% of FBMS's liabilities are made up of primarily low risk sources of funding.

Loan Level: FBMS has an appropriate level of Loans to Assets ratio (62%).

Low Risk Deposits: FBMS's Loans to Deposits ratio (75%) is appropriate.

Level of Bad Loans: FBMS has an appropriate level of bad loans (1.2%).


Next Steps

Dividend

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

1.85%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FBMS's dividend (1.85%) is higher than the bottom 25% of dividend payers in the US market (1.66%).

High Dividend: FBMS's dividend (1.85%) is low compared to the top 25% of dividend payers in the US market (4.68%).


Stability and Growth of Payments

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 (14.5%), FBMS's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FBMS's dividends in 3 years are forecast to be well covered by earnings (16% payout ratio).


Next Steps

Management

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

11.0yrs

Average management tenure


CEO

Hoppy Cole (58 yo)

11yrs

Tenure

US$1,104,355

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 ($USD1.10M) is below average for companies of similar size in the US market ($USD2.02M).

Compensation vs Earnings: Hoppy's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Milton Cole
Vice Chairman11yrsUS$1.10m0.41%
$ 1.9m
Donna Lowery
Executive VP & CFOno dataUS$483.70k0.18%
$ 827.8k
Chris Ryals
Executive VP & COO9.67yrsno datano data
Dawn Ard
Compliance Officer & Compliance Officer of The Firstno datano datano data
Marsie White
Vice President of Human Resourceno datano datano data
Chandra Kidd
VP & Corporate Secretaryno datano datano data
Ray Wesson
President of Southern Region - The Firstno dataUS$261.45kno data
Douglas Waldron
President of Northern Region - The Firstno dataUS$260.81kno data
Carol Daniel
Credit Administrator of The Firstno dataUS$179.88kno data
Hayden Mitchell
Chief Retail Banking Officer & Executive VP of The First11.08yrsUS$246.17kno data
David Bush
Executive Vice President of Private Banking - The Firstno dataUS$276.03kno data
W. Neth
President of Alabama Regionno dataUS$268.01kno data

11.0yrs

Average Tenure

Experienced Management: FBMS's management team is seasoned and experienced (11 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Milton Cole
Vice Chairman11yrsUS$1.10m0.41%
$ 1.9m
J. Seidenburg
Independent Director22.67yrsUS$78.06k0.45%
$ 2.1m
Andrew Stetelman
Independent Director25.67yrsUS$72.06k0.25%
$ 1.1m
David Bomboy
Independent Director25.67yrsUS$69.36k0.60%
$ 2.8m
Fred McMurry
Independent Director25.67yrsUS$71.11k0.41%
$ 1.9m
Ted Parker
Independent Director25.67yrsUS$72.41k0.40%
$ 1.9m
E. Gibson
Independent Chairman of the Board10.08yrsUS$164.15k0.47%
$ 2.2m
Charles Lightsey
Independent Director17.67yrsUS$87.86k0.43%
$ 2.0m
Rodney Bennett
Independent Director3.33yrsUS$63.91k0.025%
$ 113.4k
Thomas Mitchell
Independent Director3.33yrsUS$69.21k0.029%
$ 135.0k
Diana Moore
Independent Director0.33yrno data0.0040%
$ 18.4k

20.2yrs

Average Tenure

60yo

Average Age

Experienced Board: FBMS's board of directors are seasoned and experienced ( 20.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 24.9%.


Top Shareholders

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$462.392m
  • Shares outstanding: 21.41m
  • 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
3RYDB (Deutsche Boerse AG)YesCommon StockDEEURJan 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 Analysis2020/09/19 06:07
End of Day Share Price2020/09/18 00:00
Earnings2020/06/30
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.