First Financial Bankshares (NasdaqGS:FFIN) - Share price, News & Analysis

FFIN fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	1/6
Past Performance	2/6
Financial Health	6/6
Dividends	3/6

FFIN Stock Overview

First Financial Bankshares, Inc., through its subsidiaries, provides commercial banking products and services in Texas.

Rewards

Trading at 1.8% below our estimate of its fair value

Earnings are forecast to grow 5.03% per year

Earnings have grown 15.9% per year over the past 5 years

Risk Analysis

No risks detected for FFIN from our risk checks.

First Financial Bankshares Competitors

Signature Bank

NasdaqGS:SBNY

US$12.7b

First Horizon

NYSE:FHN

US$12.4b

Western Alliance Bancorporation

NYSE:WAL

US$8.7b

Webster Financial

NYSE:WBS

US$8.5b

Price History & Performance

Summary of all time highs, changes and price drops for First Financial Bankshares
Historical stock prices
Current Share Price	US$41.21
52 Week High	US$55.00
52 Week Low	US$39.09
Beta	0.87
1 Month Change	1.68%
3 Month Change	-14.11%
1 Year Change	-17.46%
3 Year Change	44.50%
5 Year Change	110.79%
Change since IPO	2,444.16%

Recent News & Updates

May 24

First Financial Bankshares (NASDAQ:FFIN) Has Announced That It Will Be Increasing Its Dividend To US$0.17

The board of First Financial Bankshares, Inc. ( NASDAQ:FFIN ) has announced that it will be increasing its dividend by...

May 10

First Financial Bankshares' (NASDAQ:FFIN) Dividend Will Be Increased To US$0.17

First Financial Bankshares, Inc.'s ( NASDAQ:FFIN ) dividend will be increasing on the 1st of July to US$0.17, with...

Shareholder Returns

	FFIN	US Banks	US Market
7D	3.1%	3.9%	1.0%
1Y	-17.5%	-15.0%	-15.1%

Return vs Industry: FFIN underperformed the US Banks industry which returned -15% over the past year.

Return vs Market: FFIN underperformed the US Market which returned -15.1% over the past year.

Price Volatility

Is FFIN's price volatile compared to industry and market?
FFIN volatility
FFIN Average Weekly Movement	4.0%
Banks Industry Average Movement	3.9%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	2.9%

Stable Share Price: FFIN is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

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

About the Company

Founded	Employees	CEO	Website
1890	1,450	F. Dueser	https://www.ffin.com

First Financial Bankshares, Inc., through its subsidiaries, provides commercial banking products and services in Texas. The company accepts checking, savings and money market accounts, and time deposits; commercial and industrial, municipal, agricultural, construction and development, farm, non-owner occupied and owner-occupied commercial real estate, residential, and consumer auto and non-auto loans to businesses, professional individuals, and farm and ranch operations. It also provides drive-in and night deposit, remote deposit capture, internet and mobile banking, payroll cards, transmitting funds, and other customary commercial banking services, as well as automated teller machines and safe deposit facilities.

First Financial Bankshares Fundamentals Summary

How do First Financial Bankshares's earnings and revenue compare to its market cap?
FFIN fundamental statistics
Market Cap	US$5.84b
Earnings (TTM)	US$226.62m
Revenue (TTM)	US$513.52m

25.8x

P/E Ratio

3.9x

P/B Ratio

Is FFIN overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
FFIN income statement (TTM)
Revenue	US$513.52m
Cost of Revenue	US$0
Gross Profit	US$513.52m
Other Expenses	US$286.91m
Earnings	US$226.62m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	1.60
Gross Margin	100.00%
Net Profit Margin	44.13%
Debt/Equity Ratio	51.0%

How did FFIN perform over the long term?

See historical performance and comparison

Dividends

1.5%

Current Dividend Yield

38%

Payout Ratio

Does FFIN pay a reliable dividends?

See FFIN dividend history and benchmarks

When do you need to buy FFIN by to receive an upcoming dividend?
First Financial Bankshares dividend dates
Ex Dividend Date	Jun 15 2022
Dividend Pay Date	Jul 01 2022
Days until Ex dividend	18 days
Days until Dividend pay date	34 days

Does FFIN pay a reliable dividends?

See FFIN dividend history and benchmarks

Valuation

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

Valuation Score

1/6

Valuation Score 1/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

1.8%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: FFIN ($41.21) is trading below our estimate of fair value ($41.97)

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

Price To Earnings Ratio

PE vs Industry: FFIN is poor value based on its Price-To-Earnings Ratio (25.8x) compared to the US Banks industry average (9.8x).

PE vs Market: FFIN is poor value based on its Price-To-Earnings Ratio (25.8x) compared to the US market (15.2x).

Price to Earnings Growth Ratio

PEG Ratio: FFIN is poor value based on its PEG Ratio (5.1x)

Price to Book Ratio

PB vs Industry: FFIN is overvalued based on its Price-To-Book Ratio (3.9x) compared to the US Banks industry average (1.1x).

Future Growth

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

Future Growth Score

1/6

Future Growth Score 1/6

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

5.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: FFIN's forecast earnings growth (5% per year) is above the savings rate (1.9%).

Earnings vs Market: FFIN's earnings (5% per year) are forecast to grow slower than the US market (13% per year).

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

Revenue vs Market: FFIN's revenue (6.1% per year) is forecast to grow slower than the US market (8% per year).

High Growth Revenue: FFIN's revenue (6.1% 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 FFIN's Return on Equity is forecast to be high in 3 years time

Past Performance

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

Past Performance Score

2/6

Past Performance Score 2/6

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

15.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: FFIN has high quality earnings.

Growing Profit Margin: FFIN's current net profit margins (44.1%) are lower than last year (44.7%).

Past Earnings Growth Analysis

Earnings Trend: FFIN's earnings have grown by 15.9% per year over the past 5 years.

Accelerating Growth: FFIN's earnings growth over the past year (2.2%) is below its 5-year average (15.9% per year).

Earnings vs Industry: FFIN earnings growth over the past year (2.2%) underperformed the Banks industry 20.9%.

Return on Equity

High ROE: FFIN's Return on Equity (15.2%) is considered low.

Financial Health

How is First Financial Bankshares'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: FFIN's Assets to Equity ratio (8.9x) is low.

Allowance for Bad Loans: FFIN has a sufficient allowance for bad loans (233%).

Low Risk Liabilities: 93% of FFIN's liabilities are made up of primarily low risk sources of funding.

Loan Level: FFIN has an appropriate level of Loans to Assets ratio (41%).

Low Risk Deposits: FFIN's Loans to Deposits ratio (50%) is appropriate.

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

Dividend

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

Dividend Score

3/6

Dividend Score 3/6

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

1.46%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: FFIN's dividend (1.46%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.54%).

High Dividend: FFIN's dividend (1.46%) is low compared to the top 25% of dividend payers in the US market (4.01%).

Stability and Growth of Payments

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

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

Current Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (37.7%), FFIN'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.

Discover strong dividend paying companies

Management

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

4.9yrs

Average management tenure

CEO

F. Dueser (68 yo)

21.33yrs

Tenure

US$3,442,141

Compensation

Mr. F. Scott Dueser has been the President and Chief Executive Officer of First Financial Bankshares, Inc. since 2001. He has been the Chairman of First Financial Bankshares, Inc. since January 1, 2008 and...

CEO Compensation Analysis

Compensation vs Market: F.'s total compensation ($USD3.44M) is below average for companies of similar size in the US market ($USD8.23M).

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

Leadership Team

Experienced Management: FFIN's management team is considered experienced (4.9 years average tenure).

Board Members

Experienced Board: FFIN's board of directors are considered experienced (9.1 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: FFIN 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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/26 00:00
End of Day Share Price	2022/05/26 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31