First Business Financial (FBIZ) AI Stock Analysis

• Market Cap: $391.40M
• Dividend Yield: 2.21%
• Average Volume (3M): 29.86K
• Price to Earnings (P/E): 9.1
• Beta (1Y): 1.07
• Revenue Growth: 15.98%
• EPS Growth: 19.35%
• Country: US
• Employees: 349
• Sector: Financial
• Sector Strength: 82
• Industry: Banks - Regional
• EPS (TTM): 5.22
• Shares Outstanding: 8,301,126
• 10 Day Avg. Volume: 37,711
• 30 Day Avg. Volume: 29,864
• PEG Ratio: 0.47
• 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: $61.25
• Price Target Upside: 28.19% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

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.

First Business Financial Business Overview & Revenue Model

Company Description

First Business Financial (FBIZ) is a niche financial services firm specializing in providing tailored financial solutions for small to mid-sized businesses. Operating within the financial services sector, FBIZ offers a range of products including commercial banking, asset management, and financial advisory services. With a focus on personalized customer service, the company aims to support the growth and financial stability of its clients through innovative and flexible financial products.

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 demonstrates strong financial health with significant revenue and profit growth, a strong equity base, and effective cash flow management. The elimination of debt enhances stability, although 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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
233.13M	143.90M	127.85M	112.76M	101.62M
	Gross Profit
233.13M	143.90M	127.85M	112.76M	101.62M
	EBIT
160.84M	0.00	75.19M	47.03M	18.30M
	EBITDA
0.00	0.00	56.31M	50.58M	21.77M
	Net Income Common Stockholders
44.24M	37.03M	40.86M	35.76M	16.98M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
157.70M	139.51M	314.71M	262.81M	240.83M
	Total Assets
3.85B	3.51B	2.98B	2.65B	2.57B
	Total Debt
327.98M	339.87M	466.98M	418.93M	435.62M
	Net Debt
-29.50M	200.36M	364.30M	361.82M	378.71M
	Total Liabilities
3.52B	3.22B	2.72B	2.42B	2.36B
	Stockholders Equity
328.59M	289.59M	260.64M	232.42M	206.16M
Cash Flow		Free Cash Flow
57.27M	49.41M	35.42M	35.60M	26.37M
	Operating Cash Flow
57.49M	52.29M	38.65M	35.99M	26.64M
	Investing Cash Flow
-328.47M	-506.85M	-245.27M	-111.01M	-454.51M
	Financing Cash Flow
289.17M	491.38M	252.19M	75.22M	417.68M

First Business Financial Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 47.78
• 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 Negative. The current price of 47.78 is below the 20-day moving average (MA) of 48.01, below the 50-day MA of 50.24, and above the 200-day MA of 45.10, indicating a neutral trend. The MACD of -0.66 indicates Negative momentum. The RSI at 44.13 is Neutral, neither overbought nor oversold. The STOCH value of 25.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FBIZ.

First Business Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FBIZ	75 Outperform	$391.40M	9.07	13.98%	2.21%	15.98%	19.35%
WABC	69 Neutral	$1.35B	9.75	16.67%	3.48%	-5.00%	-14.23%
BOH	67 Neutral	$2.74B	19.94	9.73%	4.06%	4.63%	-16.29%
HBNC	66 Neutral	$663.74M	18.76	4.78%	4.24%	10.94%	26.35%
CMA	65 Neutral	$7.75B	11.79	10.72%	4.81%	-6.54%	-21.90%
Sector *	63 Neutral	$14.35B	9.94	8.94%	4.37%	16.34%	-11.76%

First Business Financial Corporate Events

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.