NasdaqCM:FSBW

Stock Analysis Report

Executive Summary

FS Bancorp, Inc. operates as a bank holding company for 1st Security Bank of Washington that provides banking and financial services to local families, local and regional businesses, and industry niches.

Snowflake

Fundamentals

Flawless balance sheet and good value.

Share Price & News

How has FS Bancorp's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-1.8%

FSBW

1.1%

US Mortgage

1.0%

US Market


1 Year Return

3.9%

FSBW

13.0%

US Mortgage

6.7%

US Market

Return vs Industry: FSBW underperformed the US Mortgage industry which returned 13% over the past year.

Return vs Market: FSBW underperformed the US Market which returned 6.7% over the past year.


Share holder returns

FSBWIndustryMarket
7 Day-1.8%1.1%1.0%
30 Day-0.8%-0.5%-1.8%
90 Day3.0%2.2%-1.8%
1 Year5.2%3.9%15.4%13.0%9.1%6.7%
3 Year87.5%81.6%40.4%30.9%46.1%36.6%
5 Year222.6%204.5%68.9%51.2%66.9%48.6%

Price Volatility Vs. Market

How volatile is FS Bancorp's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is FS Bancorp undervalued based on future cash flows and its price relative to the stock market?

26%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: FSBW ($51.06) is trading below our estimate of fair value ($68.77)

Significantly Undervalued: FSBW is trading below fair value, but not by a significant amount.


Price Based on Earnings

PE vs Industry: FSBW is good value based on its PE Ratio (8.3x) compared to the Mortgage industry average (14.5x).

PE vs Market: FSBW is good value based on its PE Ratio (8.3x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: FSBW is good value based on its PEG Ratio (0.9x)


Price Based on Value of Assets

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


Next Steps

Future Growth

How is FS Bancorp expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

9.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: FSBW's forecast earnings growth (9.4% per year) is above the savings rate (2.7%).

Earnings vs Market: FSBW's earnings (9.4% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: FSBW's revenue (10.1% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: FSBW's revenue (10.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: Insufficient data to determine if FSBW's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has FS Bancorp performed over the past 5 years?

33.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: FSBW's earnings have grown significantly by 33.4% per year over the past 5 years.

Accelerating Growth: FSBW's earnings growth over the past year (61.4%) exceeds its 5-year average (33.4% per year).

Earnings vs Industry: FSBW earnings growth over the past year (61.4%) exceeded the Mortgage industry 31.7%.


Return on Equity

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


Return on Assets

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


Return on Capital Employed

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


Next Steps

Financial Health

How is FS Bancorp'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: FSBW has a low level of unsold assets or inventory.

Debt Coverage by Assets: FSBW's debt is covered by short term assets (assets are 1.684320x debt).


Financial Institutions Analysis

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

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

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

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

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

Level of Bad Loans: FSBW has an appropriate level of bad loans (0.12%)


Next Steps

Dividend

What is FS Bancorp's current dividend yield, its reliability and sustainability?

1.20%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase FS Bancorp before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company1.6%marketbottom25%1.5%markettop25%3.8%industryaverage2.2%forecastin3Years1.2%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: FSBW's dividend (1.57%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: FSBW's dividend (1.57%) is low compared to the top 25% of dividend payers in the US market (3.77%).

Stable Dividend: Whilst dividend payments have been stable, FSBW has been paying a dividend for less than 10 years.

Growing Dividend: FSBW's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (9.4%), FSBW's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

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


Next Steps

Management

What is the CEO of FS Bancorp's salary, the management and board of directors tenure and is there insider trading?

8.1yrs

Average management tenure


CEO

Joe Adams (60yo)

8.1yrs

Tenure

US$1,622,639

Compensation

Mr. Joseph C. Adams, also known as Joe, has been the Chief Executive Officer of FS Bancorp, Inc. (Former Name: 1st Security Bancorp, Inc) since September 2011. Mr. Adams has been the Chief Executive Office ...


CEO Compensation Analysis

Compensation vs. Market: Joe's total compensation ($USD1.62M) is about average for companies of similar size in the US market ($USD1.17M).

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


Management Age and Tenure

8.1yrs

Average Tenure

59yo

Average Age

Experienced Management: FSBW's management team is seasoned and experienced (8.1 years average tenure).


Board Age and Tenure

8.1yrs

Average Tenure

62yo

Average Age

Experienced Board: FSBW's board of directors are considered experienced (8.1 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

SellUS$626,02628 May 19
Debra Steck
EntityIndividual
Shares13,040
Max PriceUS$48.01

Ownership Breakdown


Management Team

  • Joe Adams (60yo)

    CEO & Director

    • Tenure: 8.1yrs
    • Compensation: US$1.62m
  • Shana Allen

    Senior VP of Technology & Ops and Chief Information Officer of 1St Security Bank of Washington

    • Tenure: 0yrs
  • Matt Mullet (40yo)

    CFO, Treasurer & Secretary

    • Tenure: 8.1yrs
    • Compensation: US$1.02m
  • Rob Fuller (59yo)

    Chief Credit Officer

    • Tenure: 6.1yrs
  • Deanne Goff

    Senior VP of Retail Banking - 1st Security Bank of Washington

    • Tenure: 0yrs
  • May-Ling Sowell

    SVP & Compliance Officer

    • Tenure: 0yrs
  • Kathrine Shairrick

    Senior Vice President of Service & Operations - 1st Security Bank of Washington

    • Tenure: 0yrs

Board Members

  • Joe Adams (60yo)

    CEO & Director

    • Tenure: 8.1yrs
    • Compensation: US$1.62m
  • Joe Zavaglia (70yo)

    Director

    • Tenure: 8.1yrs
    • Compensation: US$141.53k
  • Ted Leech (72yo)

    Chairman of the Board

    • Tenure: 8.1yrs
    • Compensation: US$157.81k
  • Peggy Piesik (69yo)

    Director

    • Tenure: 13.8yrs
    • Compensation: US$147.00k
  • Mike Mansfield (62yo)

    Director

    • Tenure: 11.8yrs
    • Compensation: US$144.27k
  • Mark Tueffers (60yo)

    Director

    • Tenure: 3.4yrs
    • Compensation: US$141.05k
  • Marina Cofer-Wildsmith (51yo)

    Director

    • Tenure: 7.8yrs
    • Compensation: US$139.10k

Company Information

FS Bancorp, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: FS Bancorp, Inc.
  • Ticker: FSBW
  • Exchange: NasdaqCM
  • Founded: 1936
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Market Cap: US$224.003m
  • Shares outstanding: 4.39m
  • Website: https://www.fsbwa.com

Number of Employees


Location

  • FS Bancorp, Inc.
  • 6920 220th Street SW
  • Mountlake Terrace
  • Washington
  • 98043
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FSBWNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDJul 2012

Biography

FS Bancorp, Inc. operates as a bank holding company for 1st Security Bank of Washington that provides banking and financial services to local families, local and regional businesses, and industry niches. T ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 02:37
End of Day Share Price2019/10/11 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.

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