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.


Snowflake Analysis

Very undervalued with solid track record 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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.6%

FBMS

0.6%

US Banks

2.4%

US Market


1 Year Return

-24.4%

FBMS

-19.4%

US Banks

9.2%

US Market

Return vs Industry: FBMS underperformed the US Banks industry which returned -21.3% over the past year.

Return vs Market: FBMS underperformed the US Market which returned 8.5% over the past year.


Shareholder returns

FBMSIndustryMarket
7 Day2.6%0.6%2.4%
30 Day22.5%10.2%10.2%
90 Day-20.6%-11.9%3.4%
1 Year-23.4%-24.4%-16.6%-19.4%11.6%9.2%
3 Year-16.0%-18.2%-5.8%-13.2%33.7%24.9%
5 Year41.7%36.0%15.0%1.2%59.7%41.8%

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?

38.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FBMS ($22.5) is trading below our estimate of fair value ($36.61)

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 (9x) compared to the Banks industry average (9.6x).

PE vs Market: FBMS is good value based on its PE Ratio (9x) compared to the US market (15.8x).


Price to Earnings Growth Ratio

PEG Ratio: FBMS is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: FBMS is good value based on its PB Ratio (0.8x) compared to the US Banks industry average (0.8x).


Next Steps

Future Growth

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

16.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FBMS's forecast earnings growth (16.3% per year) is above the savings rate (2.2%).

Earnings vs Market: FBMS's earnings (16.3% per year) are forecast to grow slower than the US market (22.1% per year).

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

Revenue vs Market: FBMS's revenue (1.5% per year) is forecast to grow slower than the US market (8.9% per year).

High Growth Revenue: FBMS's revenue (1.5% per year) is forecast to grow slower than 20% 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 (8.2%).


Next Steps

Past Performance

How has First Bancshares performed over the past 5 years?

40.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FBMS has high quality earnings.

Growing Profit Margin: FBMS's current net profit margins (30.2%) are higher than last year (21.6%).


Past Earnings Growth Analysis

Earnings Trend: FBMS's earnings have grown significantly by 40.4% per year over the past 5 years.

Accelerating Growth: FBMS's earnings growth over the past year (77.8%) exceeds its 5-year average (40.4% per year).

Earnings vs Industry: FBMS earnings growth over the past year (77.8%) exceeded the Banks industry 2.8%.


Return on Equity

High ROE: FBMS's Return on Equity (8%) 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 (7.3x) is low.

Allowance for Bad Loans: FBMS has a low allowance for bad loans (55%).

Low Risk Liabilities: 93% 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 (64%).

Low Risk Deposits: FBMS's Loans to Deposits ratio (79%) is appropriate.

Level of Bad Loans: FBMS has an appropriate level of bad loans (1.4%).


Next Steps

Dividend

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

1.78%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FBMS's dividend (1.78%) is higher than the bottom 25% of dividend payers in the US market (1.67%).

High Dividend: FBMS's dividend (1.78%) is low compared to the top 25% of dividend payers in the US market (4.48%).


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 (16.1% payout ratio).


Next Steps

Management

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

10.8yrs

Average management tenure


CEO

Hoppy Cole (57yo)

10.75yrs

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 ($USD1.10M) is below average for companies of similar size in the US market ($USD2.21M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Milton Cole
Vice Chairman10.75yrsUS$1.10m0.38% $1.8m
Donna Lowery
Executive VP & CFOno dataUS$483.70k0.18% $845.8k
Chris Ryals
Executive VP & COO9.42yrsno 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 First10.83yrsUS$246.17kno data

10.8yrs

Average Tenure

Experienced Management: FBMS's management team is seasoned and experienced (10.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Milton Cole
Vice Chairman10.75yrsUS$1.10m0.38% $1.8m
J. Seidenburg
Independent Director22.42yrsUS$78.06k0.45% $2.2m
Andrew Stetelman
Independent Director25.42yrsUS$72.06k0.25% $1.2m
David Bomboy
Independent Director25.42yrsUS$69.36k0.60% $2.9m
Fred McMurry
Independent Director25.42yrsUS$71.11k0.41% $2.0m
Ted Parker
Independent Director25.42yrsUS$72.41k0.40% $1.9m
E. Gibson
Independent Chairman of the Board9.83yrsUS$164.15k0.47% $2.3m
Charles Lightsey
Independent Director17.42yrsUS$87.86k0.43% $2.1m
Rodney Bennett
Independent Director3.08yrsUS$63.91k0.025% $118.1k
Thomas Mitchell
Independent Director3.08yrsUS$69.21k0.029% $140.6k

22.4yrs

Average Tenure

59yo

Average Age

Experienced Board: FBMS's board of directors are seasoned and experienced ( 22.4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: FBMS 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 24.6%.


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$481.471m
  • Shares outstanding: 21.40m
  • 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 three segments: Commercial/Retail Bank, Mortgage Banking Division, and Holding Company. It offers deposit services, including checking, NOW, and savings accounts; other time deposits, such as daily money market accounts and longer-term certificates of deposit; and individual retirement accounts. The company also provides commercial loans comprising secured and unsecured loans for working capital, business expansion, and purchase of equipment and machinery; consumer loans consisting of equity lines of credit, as well as secured and unsecured loans for financing automobiles, home improvements, education, and personal investments; and real estate construction and acquisition loans. In addition, it originates loans to purchase existing residential homes or construct new homes, and to refinance existing mortgages; and provides financial and wealth management services. Further, the company offers internet banking services, automated teller machines, voice response telephone inquiry services, commercial sweep accounts, cash management services, safe deposit boxes, merchant, mobile deposit, direct deposit of payroll and social security checks, automatic drafts for various accounts, and credit card services. It primarily serves small to medium-sized businesses, professional concerns, individuals, associations and organizations, and governmental authorities. As of December 31, 2019, the company operated through its main office and 72 full-service branches, one motor branch, and four loan production offices in Mississippi, Alabama, Louisiana, Florida, and Georgia. The First Bancshares, Inc. was incorporated in 1995 and is headquartered in Hattiesburg, Mississippi. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/04 02:18
End of Day Share Price2020/06/03 00:00
Earnings2020/03/31
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.