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Business First Bancshares (BFST)
:BFST
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Business First Bancshares
(NASDAQ:BFST)
68Neutral
Business First Bancshares (BFST) vs. S&P 500 (SPY)
Market Cap
$638.47M
Dividend Yield2.59%
Average Volume (3M)101.77K
Price to Earnings (P/E)9.6
Beta (1Y)1.17
Revenue Growth18.42%
EPS Growth-12.79%
CountryUS
Employees849
SectorFinancial
Sector Strength84
IndustryBanks - Regional
Share Statistics
EPS (TTM)2.27
Shares Outstanding29,572,296
10 Day Avg. Volume142,142
30 Day Avg. Volume101,771
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.77
Price to Cash Flow (P/CF)10.40
P/FCF Ratio3.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$33.00Price Target Upside52.85% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Business First Bancshares Business Overview & Revenue Model
Company DescriptionBusiness First Bancshares, Inc. (BFST) is a financial holding company headquartered in Baton Rouge, Louisiana. It operates primarily through its wholly-owned subsidiary, b1BANK, which provides a wide range of commercial and personal banking services. BFST focuses on offering traditional banking services, including deposit accounts, commercial and consumer loans, treasury management, and other financial solutions, catering to businesses, professionals, and individuals across its regional footprint.
How the Company Makes MoneyBusiness First Bancshares generates revenue primarily through interest income from its lending activities, which include commercial, real estate, and consumer loans. The company earns money by charging interest on these loans, which constitutes the majority of its income. Additionally, BFST makes money through non-interest income streams such as service charges on deposit accounts, fees from treasury management and other financial services, and investment securities gains. Strategic partnerships and a commitment to community banking further enhance BFST's ability to drive growth and maintain a stable, diversified revenue base.
Business First Bancshares Financial Statement Overview
Summary
Business First Bancshares exhibits strong financial health with consistent revenue growth and effective cost management reflected in its profit margins. The balance sheet is robust, with substantial equity and no debt as of 2024, reducing financial risk. Cash flow performance is solid, though impacted by investment activities.Income Statement
Business First Bancshares has demonstrated strong revenue growth over the years, with Total Revenue increasing from $90.9 million in 2019 to $414.8 million in 2024. The Gross Profit Margin remains high at 100% due to the nature of banking revenue. However, the Net Profit Margin has shown some fluctuations, reaching 15.7% in 2024, slightly down from previous years. EBIT margins are unavailable, but the trend in Net Income suggests effective cost management.72
Positive
Balance Sheet
The company's balance sheet is characterized by a strong equity base, with Stockholders’ Equity increasing steadily to $799.5 million in 2024. The Equity Ratio improved to 10.2% in 2024, indicating a solid equity position relative to Total Assets. The absence of Total Debt in 2024 suggests prudent financial management. Nonetheless, the Debt-to-Equity Ratio in prior years reflected moderate leverage, which has since been mitigated.68
Positive
Cash Flow
Operating Cash Flow has shown variability but remains positive, with $61.4 million in 2024. The Free Cash Flow to Net Income Ratio is consistent, indicating healthy cash generation relative to earnings. However, the Free Cash Flow Growth Rate has been inconsistent, impacted by significant fluctuations in Investing Cash Flow, reflecting investment activities. Operating Cash Flow to Net Income Ratio remains robust, underscoring efficient cash management.65
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 414.76M | 247.42M | 227.54M | 186.56M | 149.21M | Gross Profit |
| 414.76M | 245.83M | 227.54M | 186.56M | 149.21M | EBIT |
| -275.69M | 129.73M | 103.09M | 64.56M | 36.78M | EBITDA |
| 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | Net Income Common Stockholders |
| 65.11M | 71.04M | 54.26M | 52.14M | 29.99M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.21B | 377.24M | 1.04B | 1.09B | 789.74M | Total Assets |
| 7.86B | 6.58B | 5.99B | 4.73B | 4.16B | Total Debt |
| 460.63M | 616.19M | 525.86M | 168.47M | 84.17M | Net Debt |
| 141.54M | 390.08M | 373.12M | 100.09M | -64.97M | Total Liabilities |
| 7.06B | 5.94B | 5.41B | 4.29B | 3.75B | Stockholders Equity |
| 799.47M | 644.26M | 580.48M | 433.37M | 409.96M |
| Cash Flow | Free Cash Flow | |||
| 61.40M | 80.78M | 61.80M | 52.47M | 26.37M | Operating Cash Flow |
| 61.40M | 92.43M | 69.58M | 56.44M | 29.34M | Investing Cash Flow |
| -294.91M | -521.14M | -700.52M | -675.35M | -475.30M | Financing Cash Flow |
| 326.50M | 502.08M | 715.31M | 538.15M | 505.72M |
Business First Bancshares Technical Analysis
Negative
21.59
Price Trends
25.26
Negative
25.95
Negative
25.07
Negative
Market Momentum
-0.97
Positive
32.22
Neutral
38.34
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BFST, the sentiment is Negative. The current price of 21.59 is below the 20-day moving average (MA) of 23.79, below the 50-day MA of 25.26, and below the 200-day MA of 25.07, indicating a bearish trend. The MACD of -0.97 indicates Positive momentum. The RSI at 32.22 is Neutral, neither overbought nor oversold. The STOCH value of 38.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BFST.
Business First Bancshares Risk Analysis
Business First Bancshares disclosed 57 risk factors in its most recent earnings report. Business First Bancshares reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Business First Bancshares Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $649.56M | 14.98 | 20.04% | 0.81% | 17.55% | 5.05% | |
71 Outperform | $618.28M | 9.98 | 8.60% | 4.99% | 8.33% | -21.76% | |
68 Neutral | $638.47M | 9.57 | 9.02% | 2.59% | 18.42% | -12.79% | |
65 Neutral | $651.32M | 12.21 | 10.25% | 4.37% | 6.13% | -9.06% | |
65 Neutral | $625.55M | 7.81 | 14.38% | 3.74% | 19.24% | -3.88% | |
64 Neutral | $655.90M | 10.24 | 16.07% | 3.33% | 11.80% | 24.53% | |
64 Neutral | $13.34B | 9.25 | 9.42% | 4.85% | 16.07% | -8.44% |
* Financial Sector Average
Performance Comparison
BFST
Business First Bancshares
21.59
1.79
9.04%
CPF
Central Pacific Financial
24.02
5.80
31.83%
HAFC
Hanmi Financial
20.45
6.41
45.66%
MBWM
Mercantile Bank
38.53
4.22
12.30%
ESQ
Esquire Financial Holdings
77.04
32.19
71.77%
MCBS
MetroCity Bankshares
25.82
3.58
16.10%
Business First Bancshares Earnings Call Summary
Earnings Call Date: Jan 23, 2025 | % Change Since: -14.70% | Next Earnings Date: Apr 24, 2025
Earnings Call Sentiment Positive
Overall, the earnings call reflected a positive sentiment, with significant achievements in net interest margin expansion, loan and deposit growth, and successful mergers. However, there were some challenges, such as a strategic shift away from construction loans and a temporary increase in net charge-offs.Highlights
Net Interest Margin Expansion
The company achieved a net interest margin of over 3.5% with nearly a 30 basis point expansion since the first quarter trough, reaching 3.61% in Q4.
Strong Loan and Deposit Growth
Total loans increased by $761.3 million or 58% annualized, and total deposits grew by $870.4 million or 61.4% annualized in Q4.
Successful Mergers
Completed two mergers: acquisition of Oakwood Bank and a nonbank transaction in Houston, achieving higher TCE ratio, higher TBV per share, and a stable risk-based capital ratio without additional capital.
Noninterest Income Growth
Noninterest income increased to $11.9 million in Q4, with contributions from the customer swap business line and SBA income.
Lowlights
Challenges with Construction Loans
Construction loans declined by $31.9 million in the linked quarter, reflecting a strategic shift away from construction and CRE.
Higher Net Charge-offs
Net charge-offs stepped up in the fourth quarter due to a few outstanding credit settlements.
Company Guidance
During the Business First Bancshares Fourth Quarter 2024 Earnings Conference Call, the executives provided extensive guidance showcasing significant achievements and strategic plans for future growth. The company reported a notable 30 basis point expansion in net interest margin throughout 2024, surpassing a sustainable 3.5% earlier than anticipated. The focus on disciplined loan and deposit pricing contributed to this success, alongside a strategic reduction in CRE and C&D concentrations. The company demonstrated robust core deposit growth, resulting in a total deposit increase of $870.4 million, with over 41% of loans based in Texas markets. Organic loan growth was recorded at $62.8 million, with total loans held for investment increasing by $761.3 million or 58% annualized during the fourth quarter. The non-GAAP core net income stood at $19.5 million, with an EPS of $0.66. The executives emphasized their continued commitment to expense management, technology investments, and strategic acquisitions, including the Oakwood Bank merger, which positively impacted their tangible book value and capital ratios. Looking forward, the company aims for a low to mid-single-digit margin expansion in 2025, supported by a diversified revenue stream from noninterest income sources such as SBA and interest rate swap provisioning.Business First Bancshares Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Business First Bancshares Appoints Alejandro M. Sanchez as Director
Positive
Apr 2, 2025
On March 27, 2025, Business First Bancshares, Inc. and its subsidiary b1BANK appointed Alejandro M. Sanchez as an independent director. Mr. Sanchez brings extensive experience from his previous roles, including serving as President and CEO of the Florida Bankers Association and as a director for TRUSTCO BANK. His appointment is expected to enhance the strategic direction of Business First, leveraging his expertise in financial regulation and crisis management.
M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Business First Bancshares Reports 2024 Financial Results
Neutral
Jan 23, 2025
On January 23, 2025, Business First Bancshares reported financial results for the fiscal year and fourth quarter of 2024, showcasing a net income of $15.1 million for Q4 and $59.7 million for the year, both reflecting decreases from previous periods. Despite these declines, the company experienced strong growth in deposits and loans, notably augmented by the completion of the Oakwood Bancshares acquisition in October 2024, which contributed significantly to asset and deposit increases, underscoring Business First’s strategic expansion and healthy asset quality.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.