NasdaqGM:FBMS

Stock Analysis Report

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Market Cap

US$788.6m

Last Updated

2021/07/28 00:29 UTC

Data Sources

Company Financials +

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

Flawless balance sheet established dividend payer.


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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: FBMS's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

2.1%

FBMS

3.7%

US Banks

3.3%

US Market


1 Year Return

78.7%

FBMS

59.0%

US Banks

37.8%

US Market

Return vs Industry: FBMS exceeded the US Banks industry which returned 59% over the past year.

Return vs Market: FBMS exceeded the US Market which returned 37.8% over the past year.


Shareholder returns

FBMSIndustryMarket
7 Day2.1%3.7%3.3%
30 Day-1.3%-4.8%1.1%
90 Day-3.0%-3.8%2.9%
1 Year81.8%78.7%63.5%59.0%39.9%37.8%
3 Year1.1%-2.7%17.7%7.6%65.8%55.4%
5 Year125.4%114.4%96.5%71.8%124.3%99.4%

Long-Term 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?

39.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FBMS ($37.52) is trading below our estimate of fair value ($61.6)

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


Price To Earnings Ratio

PE vs Industry: FBMS is poor value based on its PE Ratio (13.1x) compared to the US Banks industry average (11.1x).

PE vs Market: FBMS is good value based on its PE Ratio (13.1x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: FBMS's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: FBMS is overvalued based on its PB Ratio (1.2x) compared to the US Banks industry average (1.1x).


Future Growth

How is First Bancshares forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

-2.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FBMS's earnings are forecast to decline over the next 3 years (-2.4% per year).

Earnings vs Market: FBMS's earnings are forecast to decline over the next 3 years (-2.4% per year).

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

Revenue vs Market: FBMS's revenue is expected to decline over the next 3 years (-0.3% per year).

High Growth Revenue: FBMS's revenue is forecast to decline over the next 3 years (-0.3% 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 (9.1%).


Past Performance

How has First Bancshares performed over the past 5 years?

42.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FBMS has high quality earnings.

Growing Profit Margin: FBMS's current net profit margins (34.4%) are higher than last year (30.2%).


Past Earnings Growth Analysis

Earnings Trend: FBMS's earnings have grown significantly by 42.5% per year over the past 5 years.

Accelerating Growth: FBMS's earnings growth over the past year (37%) is below its 5-year average (42.5% per year).

Earnings vs Industry: FBMS earnings growth over the past year (37%) exceeded the Banks industry 28.4%.


Return on Equity

High ROE: FBMS's Return on Equity (9.4%) is considered low.


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 (8.5x) is low.

Allowance for Bad Loans: FBMS has a sufficient allowance for bad loans (109%).

Low Risk Liabilities: 96% 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 (56%).

Low Risk Deposits: FBMS's Loans to Deposits ratio (65%) is appropriate.

Level of Bad Loans: FBMS has an appropriate level of bad loans (1%).


Dividend

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

1.49%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FBMS's dividend (1.49%) is higher than the bottom 25% of dividend payers in the US market (1.32%).

High Dividend: FBMS's dividend (1.49%) is low compared to the top 25% of dividend payers in the US market (3.53%).


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 (17.1%), FBMS's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FBMS's dividends in 3 years are forecast to be well covered by earnings (19.9% payout ratio).


Next Steps

Management

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

11.8yrs

Average management tenure


CEO

Hoppy Cole (59 yo)

11.83yrs

Tenure

US$1,586,035

Compensation

Mr. Milton Ray Cole, Jr., also known as Hoppy, has been the President of First BancShares Inc. since August 8, 2005 and First, A National Banking Association since 2009. Mr. Cole has been the Chief Executi...


CEO Compensation Analysis

Compensation vs Market: Hoppy's total compensation ($USD1.59M) is below average for companies of similar size in the US market ($USD2.41M).

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


Leadership Team

Experienced Management: FBMS's management team is seasoned and experienced (11.8 years average tenure).


Board Members

Experienced Board: FBMS's board of directors are seasoned and experienced ( 21 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 not been meaningfully diluted in the past year.


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$788.623m
  • Shares outstanding: 21.02m
  • 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


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 Analysis2021/07/28 00:29
End of Day Share Price2021/07/27 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.