NYSE:FBK

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

FB Financial Corporation operates as a bank holding company for FirstBank that provides a suite of commercial and consumer banking services businesses, professionals, and individuals. More Details


Snowflake Analysis

Flawless balance sheet with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: FBK is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: FBK's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

3.2%

FBK

6.0%

US Banks

2.8%

US Market


1 Year Return

-13.4%

FBK

-17.3%

US Banks

20.7%

US Market

Return vs Industry: FBK exceeded the US Banks industry which returned -17.3% over the past year.

Return vs Market: FBK underperformed the US Market which returned 20.7% over the past year.


Shareholder returns

FBKIndustryMarket
7 Day3.2%6.0%2.8%
30 Day14.0%25.0%12.3%
90 Day21.7%17.7%6.4%
1 Year-12.2%-13.4%-14.3%-17.3%23.4%20.7%
3 Year-20.1%-22.2%-4.0%-12.0%47.2%37.4%
5 Yearn/a35.9%18.9%94.1%72.7%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

28.34x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FBK ($33.36) is trading above our estimate of fair value ($30.12)

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


Price To Earnings Ratio

PE vs Industry: FBK is poor value based on its PE Ratio (28.3x) compared to the US Banks industry average (11.4x).

PE vs Market: FBK is poor value based on its PE Ratio (28.3x) compared to the US market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: FBK is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: FBK is overvalued based on its PB Ratio (1.3x) compared to the US Banks industry average (0.9x).


Next Steps

Future Growth

How is FB Financial forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

41.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FBK's forecast earnings growth (41.5% per year) is above the savings rate (2.2%).

Earnings vs Market: FBK's earnings (41.5% per year) are forecast to grow faster than the US market (22% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: FBK's revenue (0.7% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: FBK's revenue (0.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FBK's Return on Equity is forecast to be low in 3 years time (9.3%).


Next Steps

Past Performance

How has FB Financial performed over the past 5 years?

13.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FBK has a large one-off loss of $26.1M impacting its September 30 2020 financial results.

Growing Profit Margin: FBK's current net profit margins (10.4%) are lower than last year (23.1%).


Past Earnings Growth Analysis

Earnings Trend: FBK's earnings have grown by 13.7% per year over the past 5 years.

Accelerating Growth: FBK's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: FBK had negative earnings growth (-50%) over the past year, making it difficult to compare to the Banks industry average (-4.3%).


Return on Equity

High ROE: FBK's Return on Equity (3.2%) is considered low.


Next Steps

  • Explore strong past performing companies in the Banks industry.

Financial Health

How is FB Financial'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


Financial Institutions Analysis

Asset Level: FBK's Assets to Equity ratio (8.8x) is low.

Allowance for Bad Loans: FBK has a sufficient allowance for bad loans (326%).

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

Loan Level: FBK has an appropriate level of Loans to Assets ratio (64%).

Low Risk Deposits: FBK's Loans to Deposits ratio (77%) is appropriate.

Level of Bad Loans: FBK has an appropriate level of bad loans (0.8%).


Next Steps

Dividend

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

1.08%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FBK's dividend (1.08%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: FBK's dividend (1.08%) is low compared to the top 25% of dividend payers in the US market (4.08%).


Stability and Growth of Payments

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

Growing Dividend: FBK's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (29.7%), FBK's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FBK's dividends in 3 years are forecast to be well covered by earnings (15.3% payout ratio).


Next Steps

Management

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

7.8yrs

Average management tenure


CEO

Chris Holmes (56 yo)

7.83yrs

Tenure

US$1,928,469

Compensation

Mr. Christopher T. Holmes, also known as Chris, serves as President of FB Financial Corporation and FirstBank since 2012, Chief Executive Officer since 2013 and as Director since 2010. While his career...


CEO Compensation Analysis

Compensation vs Market: Chris's total compensation ($USD1.93M) is below average for companies of similar size in the US market ($USD4.17M).

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


Leadership Team

NamePositionTenureCompensationOwnership
James Ayers
Executive Chairman4.58yrsUS$500.00k28.84%
$ 454.2m
Christopher Holmes
President7.83yrsUS$1.93m0.75%
$ 11.8m
Wilburn Evans
Executive Officer10.83yrsUS$809.96k0.042%
$ 655.8k
Michael Mettee
Interim Chief Financial Officer0.58yrno data0.013%
$ 200.6k
Lisa Smiley
Principal Accounting Officer & Corporate Controller0.58yrno data0.0023%
$ 35.6k
Beth Sims
General Counsel & Corporate Secretaryno datano datano data
Timothy Johnson
Executive Officerno dataUS$1.24m0.025%
$ 391.9k
Robert Peery
Executive Officerno datano data0.029%
$ 451.6k
James Bowers
Executive Officerno datano data0.0059%
$ 93.1k
David Burden
Regional President of West Tennesseeno datano datano data
Paul Craig
Senior VP & Director of Corporate Development - FirstBankno datano datano data
Jeanie Rittenberry
Senior VP and Director of Marketing & Communications - FirstBank7.83yrsno datano data

7.8yrs

Average Tenure

57.5yo

Average Age

Experienced Management: FBK's management team is seasoned and experienced (7.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
James Ayers
Executive Chairman4.58yrsUS$500.00k28.84%
$ 454.2m
Christopher Holmes
President7.83yrsUS$1.93m0.75%
$ 11.8m
William Andrews
Independent Director3.58yrsUS$70.00k0.030%
$ 478.8k
William Carpenter
Independent Director0.83yrno data0.012%
$ 190.7k
Orrin Ingram
Independent Director14.83yrsUS$60.00k0.13%
$ 2.1m
Stuart McWhorter
Independent Director0.083yrUS$66.00k0.0086%
$ 135.1k
Emily Reynolds
Independent Director8.83yrsUS$60.00k0.020%
$ 309.9k
Agenia Clark
Independent Director3.58yrsUS$66.00k0.0099%
$ 155.7k
Jimmy Allen
Director0.25yrno datano data
Raja Jubran
Independent Director2.83yrsUS$52.50k0.028%
$ 438.0k
James Exum
Independent Director3.58yrsUS$66.00k0.0098%
$ 153.7k
J. Ayers
Director3.58yrsno data0.017%
$ 266.9k

3.6yrs

Average Tenure

62.5yo

Average Age

Experienced Board: FBK's board of directors are considered experienced (3.6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: FBK insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 52.6%.


Top Shareholders

Company Information

FB Financial Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: FB Financial Corporation
  • Ticker: FBK
  • Exchange: NYSE
  • Founded: 1906
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$1.575b
  • Shares outstanding: 47.20m
  • Website: https://www.firstbankonline.com

Number of Employees


Location

  • FB Financial Corporation
  • 211 Commerce Street
  • Suite 300
  • Nashville
  • Tennessee
  • 37201
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FBKNYSE (New York Stock Exchange)YesCommon SharesUSUSDSep 2016
2J2DB (Deutsche Boerse AG)YesCommon SharesDEEURSep 2016

Biography

FB Financial Corporation operates as a bank holding company for FirstBank that provides a suite of commercial and consumer banking services businesses, professionals, and individuals. The company operates ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/28 23:37
End of Day Share Price2020/11/27 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.