NasdaqGS:FFIN

Stock Analysis Report

First Financial Bankshares

Executive Summary

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

Rewards

Earnings are forecast to grow 8% per year

Earnings have grown 12.9% per year over the past 5 years

Pays a reliable dividend of 1.39%

Risk Analysis

Significant insider selling over the past 3 months



Snowflake Analysis

Flawless balance sheet average dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0.2%

FFIN

1.1%

US Banks

0.7%

US Market


1 Year Return

13.1%

FFIN

21.0%

US Banks

18.2%

US Market

Return vs Industry: FFIN underperformed the US Banks industry which returned 21% over the past year.

Return vs Market: FFIN underperformed the US Market which returned 18.2% over the past year.


Shareholder returns

FFINIndustryMarket
7 Day0.2%1.1%0.7%
30 Day-1.2%0.8%1.5%
90 Day6.5%10.5%5.0%
1 Year14.8%13.1%24.6%21.0%20.8%18.2%
3 Year62.1%54.5%31.6%22.4%45.2%35.8%
5 Year161.1%140.1%79.1%59.2%71.6%52.7%

Price Volatility Vs. Market

How volatile is First Financial Bankshares's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

28.82x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FFIN ($34.42) is trading above our estimate of fair value ($27.37)

Significantly Below Fair Value: FFIN is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: FFIN is poor value based on its PE Ratio (28.8x) compared to the Banks industry average (12.7x).

PE vs Market: FFIN is poor value based on its PE Ratio (28.8x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: FFIN is poor value based on its PEG Ratio (3.6x)


Price to Book Ratio

PB vs Industry: FFIN is overvalued based on its PB Ratio (3.9x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

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

8.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FFIN's forecast earnings growth (8% per year) is above the savings rate (1.7%).

Earnings vs Market: FFIN's earnings (8% per year) are forecast to grow slower than the US market (14.2% per year).

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

Revenue vs Market: FFIN's revenue (8.8% per year) is forecast to grow faster than the US market (7.4% per year).

High Growth Revenue: FFIN's revenue (8.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FFIN's Return on Equity is forecast to be low in 3 years time (12.9%).


Next Steps

Past Performance

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

12.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FFIN has high quality earnings.

Growing Profit Margin: FFIN's current net profit margins (41.9%) are higher than last year (41.5%).


Past Earnings Growth Analysis

Earnings Trend: FFIN's earnings have grown by 12.9% per year over the past 5 years.

Accelerating Growth: FFIN's earnings growth over the past year (9.1%) is below its 5-year average (12.9% per year).

Earnings vs Industry: FFIN earnings growth over the past year (9.1%) underperformed the Banks industry 27.1%.


Return on Equity

High ROE: FFIN's Return on Equity (13.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is First Financial Bankshares'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

Inventory Level: FFIN has a low level of unsold assets or inventory.

Debt Coverage by Assets: FFIN's debt is not covered by short term assets (assets are 0.7x debt).


Financial Institutions Analysis

Asset Level: FFIN's level of assets compared to its equity is low.

Allowance for Bad Loans: FFIN has a sufficient allowance for bad loans.

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

Loan Level: FFIN has an acceptable proportion of non-loan assets held.

Low Risk Deposits: FFIN's loans are broadly funded by customer deposits.

Level of Bad Loans: FFIN has an appropriate level of bad loans (0.63%)


Next Steps

Dividend

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

1.39%

Current Dividend Yield


Upcoming Dividend Payment

Purchase First Financial Bankshares before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company1.4%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years1.5%

Current dividend yield vs market & industry

Notable Dividend: FFIN's dividend (1.39%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: FFIN's dividend (1.39%) is low compared to the top 25% of dividend payers in the US market (3.7%).


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

Dividend Coverage: With its reasonably low payout ratio (37.3%), FFIN's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FFIN's dividends in 3 years are forecast to be well covered by earnings (41.7% payout ratio).


Next Steps

Management

What is the CEO of First Financial Bankshares's salary, the management and board of directors tenure and is there insider trading?

2.5yrs

Average management tenure


CEO

F. Dueser (66yo)

18.9yrs

Tenure

US$1,496,513

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 ($USD1.50M) is below average for companies of similar size in the US market ($USD5.09M).

Compensation vs Earnings: F.'s compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.5yrs

Average Tenure

59yo

Average Age

Experienced Management: FFIN's management team is considered experienced (2.5 years average tenure).


Board Age and Tenure

11.9yrs

Average Tenure

66yo

Average Age

Experienced Board: FFIN's board of directors are seasoned and experienced ( 11.9 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUS$10,26019 Nov 19
Murray Edwards
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares300
Max PriceUS$34.20
BuyUS$52,15513 Nov 19
Michael Denny
EntityIndividual
Shares1,500
Max PriceUS$34.77
SellUS$2,393,93030 Oct 19
David Copeland
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares68,021
Max PriceUS$35.25
SellUS$479,72730 Oct 19
David Copeland
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares13,590
Max PriceUS$35.30
SellUS$83,70529 Oct 19
Ronald Giddiens
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,380
Max PriceUS$35.17
BuyUS$8,75829 Oct 19
Murray Edwards
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares250
Max PriceUS$35.03
SellUS$2,381,60129 Oct 19
David Copeland
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares67,497
Max PriceUS$35.30
BuyUS$17,97825 Oct 19
Robert Nickles
EntityIndividual
Shares510
Max PriceUS$35.25
BuyUS$19,93903 Jul 19
Michael Denny
EntityIndividual
Shares670
Max PriceUS$29.76
BuyUS$9,36526 Jun 19
Kirk Thaxton
EntityIndividual
Role
Unit Chairman
Chairman
Shares330
Max PriceUS$28.38
BuyUS$7,81621 May 19
Robert Nickles
EntityIndividual
Shares256
Max PriceUS$30.53
BuyUS$121,34014 May 19
Johnny Trotter
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,000
Max PriceUS$30.34
BuyUS$427,55009 May 19
Johnny Trotter
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares14,000
Max PriceUS$30.65
SellUS$308,40002 May 19
David Copeland
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$30.97
BuyUS$122,14002 May 19
Johnny Trotter
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,000
Max PriceUS$30.54
BuyUS$13,43801 May 19
F. Dueser
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares436
Max PriceUS$30.82
BuyUS$184,83001 May 19
Johnny Trotter
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares6,000
Max PriceUS$30.81
BuyUS$302,45015 Mar 19
Johnny Trotter
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$30.25
BuyUS$9,42812 Feb 19
Murray Edwards
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares300
Max PriceUS$31.45

Ownership Breakdown

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


Management Team

  • F. Dueser (66yo)

    Chairman

    • Tenure: 18.9yrs
    • Compensation: US$1.50m
  • J. Hildebrand (64yo)

    Executive VP

    • Tenure: 16.8yrs
    • Compensation: US$793.79k
  • Gary Gragg (59yo)

    Executive VP & Chief Lending Officer

    • Tenure: 0yrs
    • Compensation: US$626.84k
  • Ron Butler (58yo)

    Executive VP & Chief Administrative Officer

    • Tenure: 7.9yrs
    • Compensation: US$750.65k
  • Bill Rowe

    Senior Vice President of Fixed Income - Investment Management Team

    • Tenure: 0yrs
  • Kirk Thaxton (58yo)

    Chairman

    • Tenure: 0yrs
    • Compensation: US$670.94k
  • J. McVey

    Senior VP & Chief Accounting Officer

    • Tenure: 2.5yrs
  • Larry Kentz

    Senior VP & Chief Compliance Officer

    • Tenure: 1.8yrs
  • John Ruzicka

    Executive VP & Chief Information Officer

    • Tenure: 1yrs
  • Will Christoferson

    Senior Vice President of Marketing & Advertising

    • Tenure: 0.6yrs

Board Members

  • F. Dueser (66yo)

    Chairman

    • Tenure: 18.9yrs
    • Compensation: US$1.50m
  • Kade Matthews (61yo)

    Independent Director

    • Tenure: 21.9yrs
    • Compensation: US$102.50k
  • David Copeland (63yo)

    Independent Director

    • Tenure: 21.9yrs
    • Compensation: US$130.90k
  • Johnny Trotter (68yo)

    Independent Director

    • Tenure: 16.9yrs
    • Compensation: US$110.45k
  • Tucker Bridwell (67yo)

    Lead Independent Director

    • Tenure: 9.8yrs
    • Compensation: US$123.50k
  • Murray Edwards (67yo)

    Independent Director

    • Tenure: 13.7yrs
    • Compensation: US$132.75k
  • Kirk Thaxton (58yo)

    Chairman

    • Tenure: 0yrs
    • Compensation: US$670.94k
  • Ivan Lancaster (65yo)

    Independent Director

    • Tenure: 6.7yrs
    • Compensation: US$110.75k
  • Ron Giddiens (71yo)

    Independent Director

    • Tenure: 10.7yrs
    • Compensation: US$121.25k
  • Justin Hooper

    Chairman

    • Tenure: 1.9yrs

Company Information

First Financial Bankshares, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: First Financial Bankshares, Inc.
  • Ticker: FFIN
  • Exchange: NasdaqGS
  • Founded: 1890
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$4.644b
  • Shares outstanding: 134.92m
  • Website: https://www.ffin.com

Number of Employees


Location

  • First Financial Bankshares, Inc.
  • 400 Pine Street
  • PO Box 701
  • Abilene
  • Texas
  • 79601
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FFINNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDNov 1993

Biography

First Financial Bankshares, Inc., through its subsidiaries, provides commercial banking products and services primarily in Texas. The company accepts checking, savings, and time deposits; and offers real e ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/09 23:35
End of Day Share Price2019/12/09 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.