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.

Snowflake

Fundamentals

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


Market Performance


7 Day Return

3.0%

FFIN

3.7%

US Banks

1.8%

US Market


1 Year Return

18.5%

FFIN

1.9%

US Banks

7.3%

US Market

Return vs Industry: FFIN exceeded the US Banks industry which returned 1.9% over the past year.

Return vs Market: FFIN exceeded the US Market which returned 7.3% over the past year.


Shareholder returns

FFINIndustryMarket
7 Day3.0%3.7%1.8%
30 Day1.6%0.2%-0.7%
90 Day9.3%2.5%0.06%
1 Year20.3%18.5%4.9%1.9%9.7%7.3%
3 Year92.8%83.8%51.7%41.2%46.3%36.9%
5 Year155.0%133.4%69.7%51.2%64.5%46.5%

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?

28.75x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: FFIN ($33.72) is trading above our estimate of fair value ($22.73)

Significantly Undervalued: 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 (12.6x).

PE vs Market: FFIN is poor value based on its PE Ratio (28.8x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low 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 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?

5.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FFIN's forecast earnings growth (5.7% per year) is above the savings rate (2.7%).

Earnings vs Market: FFIN's earnings (5.7% per year) are forecast to grow slower than the US market (14.6% per year).

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

Revenue vs Market: FFIN's revenue (7.1% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: FFIN's revenue (7.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: FFIN's Return on Equity is forecast to be low in 3 years time (13.7%).


Next Steps

Past Performance

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

12.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: FFIN's earnings have grown by 12.6% per year over the past 5 years.

Accelerating Growth: FFIN's earnings growth over the past year (15.4%) exceeds its 5-year average (12.6% per year).

Earnings vs Industry: FFIN earnings growth over the past year (15.4%) underperformed the Banks industry 30.5%.


Return on Equity

High ROE: FFIN's Return on Equity (13.6%) is considered low.


Return on Assets

ROA vs Industry: FFIN has a higher Return on Assets than the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate FFIN's Return on Capital Employed to determine if it has improved over the past 3 years.


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 0.9x 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 (0.67%)


Next Steps

Dividend

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

1.42%

Current Dividend Yield


Dividend Yield vs Market

company1.4%marketbottom25%1.5%markettop25%3.7%industryaverage3.0%forecastin3Years1.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: FFIN's dividend (1.42%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: FFIN's dividend (1.42%) is low compared to the top 25% of dividend payers in the US market (3.72%).

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 (37.1%), 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 (42.9% 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?

2.3yrs

Average management tenure


CEO

F. Dueser (66yo)

18.8yrs

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 ($USD1.50M) is below average for companies of similar size in the US market ($USD5.11M).

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


Management Age and Tenure

2.3yrs

Average Tenure

59yo

Average Age

Experienced Management: FFIN's management team is considered experienced (2.3 years average tenure).


Board Age and Tenure

11.8yrs

Average Tenure

66yo

Average Age

Experienced Board: FFIN's board of directors are seasoned and experienced ( 11.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

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
BuyUS$111,30024 Oct 18
Johnny Trotter
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,000
Max PriceUS$27.83

Ownership Breakdown


Management Team

  • F. Dueser (66yo)

    Chairman

    • Tenure: 18.8yrs
    • Compensation: US$1.50m
  • J. Hildebrand (64yo)

    Executive VP

    • Tenure: 16.6yrs
    • 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: 7.8yrs
    • 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: 2.3yrs
  • Larry Kentz

    Senior VP & Chief Compliance Officer

    • Tenure: 1.7yrs
  • John Ruzicka

    Executive VP & Chief Information Officer

    • Tenure: 0.8yrs
  • Will Christoferson

    Senior Vice President of Marketing & Advertising

    • Tenure: 0.4yrs

Board Members

  • F. Dueser (66yo)

    Chairman

    • Tenure: 18.8yrs
    • Compensation: US$1.50m
  • Kade Matthews (61yo)

    Independent Director

    • Tenure: 21.8yrs
    • Compensation: US$102.50k
  • David Copeland (63yo)

    Independent Director

    • Tenure: 21.8yrs
    • Compensation: US$130.90k
  • Johnny Trotter (68yo)

    Independent Director

    • Tenure: 16.8yrs
    • Compensation: US$110.45k
  • Tucker Bridwell (67yo)

    Lead Independent Director

    • Tenure: 9.7yrs
    • Compensation: US$123.50k
  • Murray Edwards (67yo)

    Independent Director

    • Tenure: 13.5yrs
    • Compensation: US$132.75k
  • Kirk Thaxton (58yo)

    Chairman

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

    Independent Director

    • Tenure: 6.5yrs
    • Compensation: US$110.75k
  • Ron Giddiens (71yo)

    Independent Director

    • Tenure: 10.5yrs
    • Compensation: US$121.25k
  • Justin Hooper

    Chairman

    • Tenure: 1.8yrs

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$4.548b
  • Shares outstanding: 134.88m
  • 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 Analysis2019/10/17 23:36
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
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.