First Financial Bancorp (NasdaqGS:FFBC) - Share price, News & Analysis

Q: What is the Fair Price of FFBC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

FFBC ($22.29) is trading below our estimate of [[fair value]] ($49.73)

FFBC fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	2/6
Past Performance	3/6
Financial Health	6/6
Dividends	4/6

FFBC Stock Overview

Rewards

Trading at 55.2% below our estimate of its fair value

Earnings are forecast to grow 7.78% per year

Earnings have grown 12.4% per year over the past 5 years

Risk Analysis

Unstable dividend track record

Significant insider selling over the past 3 months

First Financial Bancorp Competitors

Trustmark

NasdaqGS:TRMK

US$2.0b

Banner

NasdaqGS:BANR

US$2.1b

Washington Federal

NasdaqGS:WAFD

US$2.2b

Renasant

NasdaqGS:RNST

US$1.9b

Price History & Performance

Summary of all time highs, changes and price drops for First Financial Bancorp
Historical stock prices
Current Share Price	US$22.29
52 Week High	US$26.83
52 Week Low	US$18.75
Beta	1.07
1 Month Change	12.92%
3 Month Change	7.68%
1 Year Change	-4.38%
3 Year Change	-6.97%
5 Year Change	-8.27%
Change since IPO	187.93%

Recent News & Updates

Jul 30

First Financial Bancorp (NASDAQ:FFBC) Has Affirmed Its Dividend Of $0.23

First Financial Bancorp.'s ( NASDAQ:FFBC ) investors are due to receive a payment of $0.23 per share on 15th of...

Jul 21

First Financial Non-GAAP EPS of $0.56 beats by $0.05, revenue of $166.99M beats by $6.42M

First Financial press release (NASDAQ:FFBC): Q2 Non-GAAP EPS of $0.56 beats by $0.05. Revenue of $166.99M (+6.3% Y/Y) beats by $6.42M.

May 28

First Financial Bancorp's (NASDAQ:FFBC) Dividend Will Be US$0.23

First Financial Bancorp. ( NASDAQ:FFBC ) will pay a dividend of US$0.23 on the 15th of June. This makes the dividend...

Shareholder Returns

	FFBC	US Banks	US Market
7D	-0.2%	0.3%	1.0%
1Y	-4.4%	-14.1%	-12.9%

Return vs Industry: FFBC exceeded the US Banks industry which returned -14.1% over the past year.

Return vs Market: FFBC exceeded the US Market which returned -12.8% over the past year.

Price Volatility

Is FFBC's price volatile compared to industry and market?
FFBC volatility
FFBC Average Weekly Movement	3.5%
Banks Industry Average Movement	3.7%
Market Average Movement	7.9%
10% most volatile stocks in US Market	17.1%
10% least volatile stocks in US Market	3.2%

Stable Share Price: FFBC is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: FFBC's weekly volatility (3%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1863	2,096	Archie Brown	https://www.bankatfirst.com

First Financial Bancorp. operates as the bank holding company for First Financial Bank that provides commercial banking and related services to individuals and businesses in Ohio, Indiana, Kentucky, and Illinois. The company accepts various deposit products, such as interest-bearing and noninterest-bearing accounts, time deposits, and cash management services for commercial customers.

First Financial Bancorp Fundamentals Summary

How do First Financial Bancorp's earnings and revenue compare to its market cap?
FFBC fundamental statistics
Market Cap	US$2.11b
Earnings (TTM)	US$199.78m
Revenue (TTM)	US$638.71m

10.5x

P/E Ratio

1.0x

P/B Ratio

Is FFBC overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
FFBC income statement (TTM)
Revenue	US$638.71m
Cost of Revenue	US$0
Gross Profit	US$638.71m
Other Expenses	US$438.93m
Earnings	US$199.78m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	2.12
Gross Margin	100.00%
Net Profit Margin	31.28%
Debt/Equity Ratio	60.6%

How did FFBC perform over the long term?

See historical performance and comparison

Dividends

4.1%

Current Dividend Yield

43%

Payout Ratio

Does FFBC pay a reliable dividends?

See FFBC dividend history and benchmarks

When do you need to buy FFBC by to receive an upcoming dividend?
First Financial Bancorp dividend dates
Ex Dividend Date	Aug 31 2022
Dividend Pay Date	Sep 15 2022
Days until Ex dividend	23 days
Days until Dividend pay date	38 days

Does FFBC pay a reliable dividends?

See FFBC dividend history and benchmarks

We’ve recently updated our valuation analysis.

Valuation

Is FFBC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for FFBC?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for FFBC. This is calculated by dividing FFBC's market cap by their current preferred multiple.
What is FFBC's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$2.11b

FFBC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	1.4x

Price to Earnings Ratio vs Peers

How does FFBC's PE Ratio compare to its peers?

FFBC PE Ratio vs Peers

The above table shows the PE ratio for FFBC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	14.9x
TRMK Trustmark	18.1x	13.1%	US$2.0b
BANR Banner	10.9x	6.5%	US$2.1b
WAFD Washington Federal	11.2x	7.7%	US$2.2b
RNST Renasant	12.5x	8.9%	US$1.9b
FFBC First Financial Bancorp	10.5x	7.8%	US$2.1b

Price-To-Earnings vs Peers: FFBC is good value based on its Price-To-Earnings Ratio (10.5x) compared to the peer average (14.9x).

Price to Earnings Ratio vs Industry

How does FFBC's PE Ratio compare vs other companies in the US Banks Industry?

Price-To-Earnings vs Industry: FFBC is expensive based on its Price-To-Earnings Ratio (10.5x) compared to the US Banks industry average (9.8x)

Price to Earnings Ratio vs Fair Ratio

What is FFBC's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

FFBC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	10.5x
Fair PE Ratio	13.1x

Price-To-Earnings vs Fair Ratio: FFBC is good value based on its Price-To-Earnings Ratio (10.5x) compared to the estimated Fair Price-To-Earnings Ratio (13.1x).

Share Price vs Fair Value

What is the Fair Price of FFBC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: FFBC ($22.29) is trading below our estimate of fair value ($49.73)

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

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Future Growth

How is First Financial Bancorp forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

7.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: FFBC's forecast earnings growth (7.8% per year) is above the savings rate (1.9%).

Earnings vs Market: FFBC's earnings (7.8% per year) are forecast to grow slower than the US market (12.8% per year).

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

Revenue vs Market: FFBC's revenue (9.8% per year) is forecast to grow faster than the US market (7.9% per year).

High Growth Revenue: FFBC's revenue (9.8% 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 FFBC's Return on Equity is forecast to be high in 3 years time

Discover growth companies

Past Performance

How has First Financial Bancorp performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

12.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: FFBC has high quality earnings.

Growing Profit Margin: FFBC's current net profit margins (31.3%) are higher than last year (30.2%).

Past Earnings Growth Analysis

Earnings Trend: FFBC's earnings have grown by 12.4% per year over the past 5 years.

Accelerating Growth: FFBC's earnings growth over the past year (6.3%) is below its 5-year average (12.4% per year).

Earnings vs Industry: FFBC earnings growth over the past year (6.3%) underperformed the Banks industry 9.2%.

Return on Equity

High ROE: FFBC's Return on Equity (9.7%) is considered low.

Discover strong past performing companies

Financial Health

How is First Financial Bancorp's financial position? (This company is analysed differently as a bank or financial institution)

Financial Health Score

6/6

Financial Health Score 6/6

Asset Level
Allowance for Bad Loans
Low Risk Liabilities
Loan Level
Low Risk Deposits
Level of Bad Loans

Financial Position Analysis

Debt to Equity History and Analysis

Balance Sheet

Financial Institutions Analysis

Asset Level: FFBC's Assets to Equity ratio (7.9x) is low.

Allowance for Bad Loans: FFBC has a sufficient allowance for bad loans (235%).

Low Risk Liabilities: 87% of FFBC's liabilities are made up of primarily low risk sources of funding.

Loan Level: FFBC has an appropriate level of Loans to Assets ratio (57%).

Low Risk Deposits: FFBC's Loans to Deposits ratio (76%) is appropriate.

Level of Bad Loans: FFBC has an appropriate level of bad loans (0.5%).

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Dividend

What is First Financial Bancorp current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

4.13%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: FFBC's dividend (4.13%) is higher than the bottom 25% of dividend payers in the US market (1.52%).

High Dividend: FFBC's dividend (4.13%) is in the top 25% of dividend payers in the US market (4.09%)

Stability and Growth of Payments

Stable Dividend: FFBC's dividend payments have been volatile in the past 10 years.

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

Current Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (43.1%), FFBC's dividend payments are well covered by earnings.

Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years or that it will be covered by earnings.

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Management

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

3.9yrs

Average management tenure

CEO

Archie Brown (61 yo)

4.33yrs

Tenure

US$3,054,247

Compensation

Mr. Archie M. Brown, Jr., serves as Director of Cincinnati Branch at Federal Reserve Bank of Cleveland since January 1, 2022. He has been President, Chief Executive Officer and Director of First Financial...

CEO Compensation Analysis

Compensation vs Market: Archie's total compensation ($USD3.05M) is below average for companies of similar size in the US market ($USD5.42M).

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

Leadership Team

Experienced Management: FFBC's management team is considered experienced (3.9 years average tenure).

Board Members

Experienced Board: FFBC's board of directors are seasoned and experienced ( 11.7 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: FFBC insiders have sold more shares than they have bought in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/08/06 00:00
End of Day Share Price	2022/08/05 00:00
Earnings	2022/06/30
Annual Earnings	2021/12/31