NYSE:FBK

Stock Analysis Report

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.

Snowflake

Fundamentals

Flawless balance sheet and slightly overvalued.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.7%

FBK

0.3%

US Banks

-0.2%

US Market


1 Year Return

-2.3%

FBK

10.7%

US Banks

16.1%

US Market

Return vs Industry: FBK underperformed the US Banks industry which returned 10.7% over the past year.

Return vs Market: FBK underperformed the US Market which returned 16.1% over the past year.


Shareholder returns

FBKIndustryMarket
7 Day-0.7%0.3%-0.2%
30 Day0.05%3.7%3.7%
90 Day8.1%18.8%8.5%
1 Year-1.4%-2.3%14.0%10.7%18.7%16.1%
3 Year64.6%62.3%37.2%27.6%46.9%37.4%
5 Yearn/a71.0%52.1%61.8%44.0%

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?

20.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FBK ($37.85) is trading below our estimate of fair value ($47.65)

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


Price To Earnings Ratio

PE vs Industry: FBK is poor value based on its PE Ratio (14.8x) compared to the Banks industry average (12.6x).

PE vs Market: FBK is good value based on its PE Ratio (14.8x) compared to the US market (18x).


Price to Earnings Growth Ratio

PEG Ratio: FBK is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: FBK is overvalued based on its PB Ratio (1.6x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

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

10.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FBK's forecast earnings growth (10.3% per year) is above the savings rate (2.7%).

Earnings vs Market: FBK's earnings (10.3% per year) are forecast to grow slower than the US market (14.3% per year).

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

Revenue vs Market: FBK's revenue (5.8% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: FBK's revenue (5.8% 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 (11.2%).


Next Steps

Past Performance

How has FB Financial performed over the past 5 years?

23.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FBK has high quality earnings.

Growing Profit Margin: FBK's current net profit margins (23.1%) are lower than last year (25.4%).


Past Earnings Growth Analysis

Earnings Trend: FBK's earnings have grown significantly by 23.1% 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 (-8.2%) over the past year, making it difficult to compare to the Banks industry average (27.3%).


Return on Equity

High ROE: FBK's Return on Equity (10.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

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

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

Debt Coverage by Assets: FBK's debt is covered by short term assets (assets are 2x debt).


Financial Institutions Analysis

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

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

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

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

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

Level of Bad Loans: FBK has an appropriate level of bad loans (0.47%)


Next Steps

Dividend

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

0.84%

Current Dividend Yield


Dividend Yield vs Market

company0.8%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years1.0%

Current dividend yield vs market & industry

Notable Dividend: FBK's dividend (0.85%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: FBK's dividend (0.85%) is low compared to the top 25% of dividend payers in the US market (3.69%).


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 2 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (12.5%), FBK's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FBK's dividends in 3 years are forecast to be thoroughly covered by earnings (12.6% payout ratio).


Next Steps

Management

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

5.8yrs

Average management tenure


CEO

Chris Holmes (55yo)

6.8yrs

Tenure

US$2,099,831

Compensation

Mr. Christopher T. Holmes, also known as Chris, President and CEO of FirstBank, He was named President of FirstBank in 2012 and CEO in 2013 as part of a planned transition of the bank’s executive leadershi ...


CEO Compensation Analysis

Compensation vs Market: Chris's total compensation ($USD2.10M) is about average for companies of similar size in the US market ($USD2.63M).

Compensation vs Earnings: Chris's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

5.8yrs

Average Tenure

56.5yo

Average Age

Experienced Management: FBK's management team is seasoned and experienced (5.8 years average tenure).


Board Age and Tenure

2.6yrs

Average Tenure

61yo

Average Age

Experienced Board: FBK's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


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$99,98614 Mar 19
Raja Jubran
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,933
Max PriceUS$34.09
BuyUS$7,02615 Dec 18
Christopher Holmes
EntityIndividual
Role
Chief Executive Officer
President
Shares200
Max PriceUS$35.15
BuyUS$3,52915 Dec 18
Christopher Holmes
EntityIndividual
Role
Chief Executive Officer
President
Shares100
Max PriceUS$35.29

Ownership Breakdown

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


Management Team

  • James Gordon (53yo)

    Chief Financial Officer

    • Tenure: 3.8yrs
    • Compensation: US$658.76k
  • Chris Holmes (55yo)

    President

    • Tenure: 6.8yrs
    • Compensation: US$2.10m
  • Jim Ayers (75yo)

    Executive Chairman

    • Tenure: 3.6yrs
    • Compensation: US$479.15k
  • Winnie Bunch

    Director of Administration at FirstBank Mortgage

    • Tenure: 4.8yrs
  • Tim Johnson (58yo)

    Executive Officer

    • Tenure: 0yrs
    • Compensation: US$1.24m
  • David Burden

    Regional President of West Tennessee

    • Tenure: 0yrs
  • Paul Craig

    Senior VP & Director of Corporate Development - FirstBank

    • Tenure: 0yrs
  • Jeanie Rittenberry

    Senior VP and Director of Marketing & Communications - FirstBank

    • Tenure: 6.8yrs
  • Lisa Smiley

    Director of External Financial Reporting

    • Tenure: 0yrs
  • Beth Sims

    General Counsel & Corporate Secretary

    • Tenure: 0yrs

Board Members

  • Bill Andrews (87yo)

    Independent Director

    • Tenure: 3yrs
    • Compensation: US$70.00k
  • Orrin Ingram (58yo)

    Independent Director

    • Tenure: 13.8yrs
    • Compensation: US$60.00k
  • Chris Holmes (55yo)

    President

    • Tenure: 6.8yrs
    • Compensation: US$2.10m
  • Jim Ayers (75yo)

    Executive Chairman

    • Tenure: 3.6yrs
    • Compensation: US$479.15k
  • Emily Reynolds (63yo)

    Independent Director

    • Tenure: 2.6yrs
    • Compensation: US$60.00k
  • Agenia Clark (60yo)

    Independent Director

    • Tenure: 2.6yrs
    • Compensation: US$60.00k
  • Raja Jubran (61yo)

    Independent Director

    • Tenure: 1.8yrs
  • Jim Exum (77yo)

    Independent Director

    • Tenure: 2.6yrs
    • Compensation: US$66.00k
  • Jon Ayers (47yo)

    Director

    • Tenure: 2.6yrs

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$1.171b
  • Shares outstanding: 30.93m
  • 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 Analysis2019/11/22 01:29
End of Day Share Price2019/11/21 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.