First Business Financial (FBIZ) AI Stock Analysis

• Market Cap: $397.54M
• Dividend Yield: 2.08%
• Average Volume (3M): 30.16K
• Price to Earnings (P/E): 9.6
• Beta (1Y): 0.92
• Revenue Growth: 15.98%
• EPS Growth: 19.35%
• Country: US
• Employees: 353
• Sector: Financial
• Sector Strength: 83
• Industry: Banks - Regional
• EPS (TTM): 5.22
• Shares Outstanding: 8,301,126
• 10 Day Avg. Volume: 23,864
• 30 Day Avg. Volume: 30,157
• PEG Ratio: 0.50
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.73
• Price to Cash Flow (P/CF): 4.50
• P/FCF Ratio: 2.50
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $59.75
• Price Target Upside: 24.77% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

First Business Financial demonstrates robust financial performance with strong earnings growth, improved efficiency, and a solid equity base. The stock's attractive valuation and dividend yield further enhance its appeal. Despite minor concerns about asset quality in specific sectors, the company's financial resilience and positive market sentiment position it well for future growth.

First Business Financial Business Overview & Revenue Model

Company Description

First Business Financial Services, Inc. operates as the bank holding company for First Business Bank that provides commercial banking products and services for small and medium-sized businesses, business owners, executives, professionals, and high net worth individuals. The company offers deposit products, such as non-interest-bearing transaction accounts, interest-bearing transaction accounts, money market accounts, time deposits, and certificates of deposit, as well as credit cards. It also provides loan products, including commercial real estate loans, commercial and industrial loans, small business administration loans, and direct financing leases, as well as consumer and other loans comprising home equity, first and second mortgage, and other personal loans for professional and executive clients. The company offers commercial lending, asset-based lending, equipment financing, accounts receivable financing, vendor financing, floorplan financing, treasury management services, and company retirement plans; trust and estate administration, financial planning, investment management, and private banking services; and investment portfolio administrative, asset-liability management, and asset-liability management process validation services for other financial institutions. First Business Financial Services, Inc. was founded in 1909 and is headquartered in Madison, Wisconsin.

How the Company Makes Money

First Business Financial (FBIZ) generates revenue primarily through interest income from its commercial banking operations, which involve providing loans and credit facilities to small and mid-sized businesses. Additionally, the company earns fees from asset management services, where it manages investment portfolios for its clients, and from financial advisory services, which include consulting on mergers, acquisitions, and other strategic business decisions. Key partnerships with financial technology firms enhance their service offerings, contributing to an efficient and competitive market presence. The company's earnings are also influenced by economic factors such as interest rates and business investment activities.

First Business Financial Financial Statement Overview

Summary

First Business Financial exhibits robust financial health with strong revenue and profit growth, a solid equity base, and efficient cash flow management. The elimination of debt enhances stability. While profitability and cash flow metrics are positive, the absence of some data points like EBITDA limits the depth of analysis.

Income Statement

First Business Financial shows strong revenue growth with a significant increase from $143.9M in 2023 to $233.1M in 2024, resulting in a Revenue Growth Rate of approximately 62%. The Gross Profit Margin remains stable at 100%, indicating effective cost management. The Net Profit Margin improved to 19%, reflecting enhanced profitability. However, the absence of EBITDA data limits full margin analysis.

Balance Sheet

The company exhibits a solid equity position with Stockholders' Equity rising to $328.6M in 2024. The Debt-to-Equity Ratio has improved to 0 due to the elimination of total debt, enhancing the company's financial stability. The Return on Equity (ROE) stands at approximately 13.5%, which is competitive within the banking industry. The Equity Ratio is at 8.5%, suggesting moderate leverage usage.

Cash Flow

First Business Financial's Free Cash Flow increased by 15.9% from 2023 to 2024, indicating effective cash management. The Operating Cash Flow to Net Income Ratio of 1.3 demonstrates efficient conversion of income into cash. The Free Cash Flow to Net Income Ratio is 1.3, reflecting robust cash flow generation relative to net income.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
175.00M	233.13M	143.90M	127.85M	112.76M	101.62M
	Gross Profit
176.72M	233.13M	143.90M	127.85M	112.76M	101.62M
	EBIT
67.28M	160.84M	0.00	75.19M	47.03M	18.30M
	EBITDA
27.18M	0.00	0.00	56.31M	50.58M	21.77M
	Net Income Common Stockholders
46.57M	44.24M	37.03M	40.86M	35.76M	16.98M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
170.62M	157.70M	139.51M	314.71M	262.81M	240.83M
	Total Assets
3.94B	3.85B	3.51B	2.98B	2.65B	2.57B
	Total Debt
0.00	327.98M	339.87M	466.98M	418.93M	435.62M
	Net Debt
-34.58M	-29.50M	200.36M	364.30M	361.82M	378.71M
	Total Liabilities
3.61B	3.52B	3.22B	2.72B	2.42B	2.36B
	Stockholders Equity
336.06M	328.59M	289.59M	260.64M	232.42M	206.16M
Cash Flow		Free Cash Flow
60.20M	57.27M	49.41M	35.42M	35.60M	26.37M
	Operating Cash Flow
60.11M	57.49M	52.29M	38.65M	35.99M	26.64M
	Investing Cash Flow
-343.17M	-328.47M	-506.85M	-245.27M	-111.01M	-454.51M
	Financing Cash Flow
381.64M	289.17M	491.38M	252.19M	75.22M	417.68M

First Business Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 47.89
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FBIZ, the sentiment is Positive. The current price of 47.89 is above the 20-day moving average (MA) of 46.63, below the 50-day MA of 48.69, and above the 200-day MA of 46.12, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 51.71 is Neutral, neither overbought nor oversold. The STOCH value of 66.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FBIZ.

First Business Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FBIZ	79 Outperform	$397.54M	9.61	14.44%	2.08%	15.98%	19.35%
COFS	73 Outperform	$411.66M	8.47	11.72%	4.00%	21.70%	15.99%
GCBC	63 Neutral	$376.04M	12.85	13.33%	1.58%	14.44%	16.49%
Sector *	63 Neutral	$12.32B	9.52	7.89%	79.24%	12.74%	-4.55%
TCBX	63 Neutral	$390.43M	10.31	11.27%	―	15.07%	53.76%
NRIM	56 Neutral	$429.36M	10.09	16.22%	3.20%	24.20%	47.39%
FFIC	46 Neutral	$413.76M	16.43	-4.49%	7.18%	-3.66%	-196.64%

First Business Financial Corporate Events

First Business Financial Reports Q1 2025 Net Income

On April 24, 2025, First Business Financial Services, Inc. reported a net income of $11.0 million for the first quarter of 2025, reflecting a decrease from the previous quarter but an increase from the same quarter in 2024. The company experienced robust growth in loans and deposits, with loans increasing by 9% and core deposits by 11%. This growth contributed to a 14% expansion in tangible book value from the prior year. The company maintained a strong net interest margin and saw a significant increase in operating revenue, driven by loan growth and a rise in fee income. Private wealth management also expanded, with assets under management reaching a record $3.425 billion. The company’s strategic focus on consistent underwriting and operational efficiency positions it for continued growth, aiming for 10% annual growth in loans, deposits, and revenue.

Spark’s Take on FBIZ Stock

According to Spark, TipRanks’ AI Analyst, FBIZ is a Outperform.

First Business Financial’s overall stock score reflects its strong financial performance and attractive valuation. The company’s robust earnings growth, improved efficiency, and high net promoter score are significant strengths. While technical indicators show some weakness, the stock’s valuation and increasing dividends provide a solid investment case. Potential risks include asset quality concerns in the transportation sector.

To see Spark’s full report on FBIZ stock, click here.

First Business Financial Increases Quarterly Cash Dividend

On February 3, 2025, First Business Financial Services, Inc. announced that its Board of Directors declared a quarterly cash dividend of $0.29 per share on its common stock, reflecting a 16% increase over the previous dividend in October 2024. This marks the 13th consecutive annual dividend increase, with a dividend payout ratio of 17% based on fourth quarter 2024 earnings per share. The dividend is payable on February 28, 2025, to shareholders of record on February 14, 2025. Additionally, a dividend of $17.50 per share was declared on the company’s 7% Series A Preferred Stock, payable on March 17, 2025, to shareholders of record on February 28, 2025.

First Business Financial Reports Record Q4 2024 Earnings

On January 30, 2025, First Business Bank reported a record fourth quarter 2024 net income of $14.2 million, reflecting strong financial performance driven by consistent loan growth and an enhanced net interest margin. The bank’s operating revenue increased to $41.2 million, supported by a 10% loan growth and a 13% expansion in fee income, resulting in a significant improvement in efficiency and tangible book value growth, despite excluding tax and SBA recourse benefits.