FB Financial (FBK) AI Stock Analysis

• Market Cap: $2.01B
• Dividend Yield: 1.75%
• Average Volume (3M): 217.07K
• Price to Earnings (P/E): 17.4
• Beta (1Y): 1.30
• Revenue Growth: 1.71%
• EPS Growth: -3.44%
• Country: US
• Employees: 1,490
• Sector: Financial
• Sector Strength: 79
• Industry: Banks - Regional
• EPS (TTM): 2.47
• Shares Outstanding: 46,617,706
• 10 Day Avg. Volume: 318,384
• 30 Day Avg. Volume: 217,072
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 5.00
• Price to Cash Flow (P/CF): 22.80
• P/FCF Ratio: 6.60
• 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: $58.75
• Price Target Upside: 44.03% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

FB Financial's strong revenue growth, operational efficiency, and strategic expansion initiatives are significant positives. However, bearish technical trends and challenges in cash flow growth and competitive pressures in the deposit market temper the overall score. The valuation is balanced, and recent corporate events present both opportunities and uncertainties.

FB Financial Business Overview & Revenue Model

Company Description

FB Financial Corporation operates as a bank holding company for FirstBank that provides a suite of commercial and consumer banking services to businesses, professionals, and individuals. The company operates in two segments, Banking and Mortgage. It offers checking, demand, money market, and savings accounts; deposit and lending products and services to corporate, commercial, and consumer customers; and time deposits and certificates of deposits, as well as engages in the mortgage origination business. The company also provides owner-occupied and non-owner-occupied real estate commercial, residential real estate 1-4 family mortgage, multi-family residential, commercial and industrial, construction, land acquisition, residential lines of credit, and land development loans; and consumer and other loans, such as car, boat, and other recreational vehicle loans, as well as manufactured homes without real estate and personal lines of credit. In addition, the company offers mortgage banking services through its bank branch networks in the southeastern United States; an internet delivery channel; and trust, insurance, and investment services, as well as online and mobile banking services. As of December 31, 2021, it operated 82 full-service bank branches and 9 limited-service branches locations throughout Tennessee, North Alabama, Southern Kentucky, and North Georgia; and 23 mortgage offices throughout the southeastern United States. The company was formerly known as First South Bancorp, Inc. and changed its name to FB Financial Corporation in 2016. FB Financial Corporation was founded in 1906 and is headquartered in Nashville, Tennessee.

How the Company Makes Money

FB Financial Corporation generates revenue primarily through its commercial and consumer banking operations. Key revenue streams include interest income from loans and investments, fees from deposit accounts, and mortgage banking income. The company earns interest income by lending to individuals and businesses and investing in securities. Non-interest income is generated through service charges, mortgage origination and servicing fees, and wealth management fees. FB Financial benefits from its strategic partnerships and a strong regional presence, which help drive customer growth and enhance its market position. The company also focuses on maintaining a diversified loan portfolio and expanding its product offerings to enhance profitability.

FB Financial Financial Statement Overview

Summary

FB Financial displays strong revenue growth and improved operational efficiency. The balance sheet is healthy with low leverage, indicating financial stability. However, the decline in free cash flow growth and slight pressure on net profit margins suggest areas for improvement. Despite these challenges, the company maintains a solid foundation in revenue generation and debt management.

Income Statement

FB Financial has shown a mixed performance in its income statement. The gross profit margin is solid, consistently reflecting 100% over the years due to total revenue equaling gross profit, which is typical in the banking industry where interest income is the primary component. The net profit margin was 16.0% in 2024, slightly decreasing from 25.2% in 2023, indicating some pressure on profitability. Revenue growth from 2023 to 2024 was robust at 51.9%, but this follows a previous year of revenue decline by 9.3%, suggesting volatility. EBIT margin improved significantly to 98.0% in 2024 from 45.5% in 2023, showing enhanced operational efficiency.

Balance Sheet

The balance sheet of FB Financial reveals strong equity levels with an equity ratio of 11.9% in 2024, indicating a stable funding base. The debt-to-equity ratio improved significantly to 0.04 in 2024, showcasing effective debt management. Return on equity was 7.4% in 2024, down from 8.3% in 2023, suggesting a slight decline in profitability but still a reasonable return for the banking sector. Overall, the balance sheet reflects a solid financial position with low leverage.

Cash Flow

FB Financial's cash flow statement shows some challenges. Free cash flow decreased by 27.3% from 2023 to 2024, indicating potential constraints in cash generation. The operating cash flow to net income ratio of 1.2 in 2024 suggests that operating cash flow adequately supports net income, though lower than previous years. The free cash flow to net income ratio was 1.2 in 2024, hinting at a reasonable conversion of net income into free cash flow, albeit lower compared to some previous years.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
725.54M	477.76M	526.90M	575.63M	567.51M
	Gross Profit
725.54M	475.22M	526.90M	575.63M	567.51M
	EBIT
710.85M	217.25M	236.76M	243.03M	82.45M
	EBITDA
0.00	0.00	172.18M	256.94M	95.32M
	Net Income Common Stockholders
116.03M	120.22M	124.56M	190.28M	63.62M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.66B	763.13M	2.29B	3.35B	2.37B
	Total Assets
13.16B	12.60B	12.85B	12.60B	11.21B
	Total Debt
60.02M	468.35M	485.43M	218.15M	293.51M
	Net Debt
-60.13M	-259.25M	-331.08M	-1.45B	-903.23M
	Total Liabilities
11.59B	11.15B	11.52B	11.16B	9.92B
	Stockholders Equity
1.57B	1.45B	1.33B	1.43B	1.29B
Cash Flow		Free Cash Flow
138.80M	190.84M	778.70M	48.78M	-275.22M
	Operating Cash Flow
138.80M	211.07M	789.33M	54.88M	-269.29M
	Investing Cash Flow
-294.00M	-55.22M	-1.74B	-849.56M	309.42M
	Financing Cash Flow
386.76M	-371.98M	184.10M	1.27B	1.05B

FB Financial Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 40.79
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FBK, the sentiment is Negative. The current price of 40.79 is below the 20-day moving average (MA) of 45.38, below the 50-day MA of 48.28, and below the 200-day MA of 48.29, indicating a bearish trend. The MACD of -0.70 indicates Negative momentum. The RSI at 38.54 is Neutral, neither overbought nor oversold. The STOCH value of 33.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FBK.

FB Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HTH	68 Neutral	$1.89B	16.77	5.25%	2.44%	1.39%	3.30%
SBCF	67 Neutral	$2.02B	16.60	5.64%	3.24%	5.40%	16.13%
FBK	66 Neutral	$2.01B	17.42	7.68%	1.75%	1.71%	-3.44%
PPBI	66 Neutral	$1.93B	12.16	5.34%	6.95%	26.76%	455.85%
Sector *	64 Neutral	$13.44B	9.41	9.19%	4.92%	16.30%	-8.66%
TRMK	61 Neutral	$2.00B	10.05	2.68%	3.02%	-11.99%	-103.10%
SYBT	60 Neutral	$1.98B	17.29	12.74%	1.93%	15.78%	6.02%

FB Financial Corporate Events

FB Financial Announces Passing of Key Shareholder

FB Financial Corporation announced the passing of James W. Ayers on April 1, 2025. Mr. Ayers, who owned approximately 23% of the company’s common stock and was its sole shareholder before its IPO, was instrumental in transforming FirstBank into a leading financial institution in the South. His passing also led to the automatic termination of the Shareholder’s Agreement, which allowed him to designate a portion of the company’s board members.

Spark’s Take on FBK Stock

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

FB Financial demonstrates strong financial fundamentals with solid revenue growth and operational efficiency. The technical analysis indicates some bearish trends, but the company’s strategic initiatives, including the merger with Southern States and positive earnings call highlights, suggest potential for future growth. Valuation is moderate, providing a balanced investment case.

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

FB Financial Announces Merger with Southern States

On March 31, 2025, FB Financial Corporation and Southern States Bancshares, Inc. announced a merger agreement where Southern States will merge into FB Financial. This strategic merger is expected to enhance FB Financial’s market presence in Alabama and Georgia, aligning with its growth strategy. Southern States’ shareholders will receive FB Financial stock, and the merger is anticipated to close by late 2025, pending regulatory and shareholder approvals.

FB Financial to Present at KBW Conference 2025

On February 13, 2025, FB Financial Corporation’s management will present at the KBW Winter Financial Services Conference. This presentation underscores the company’s efforts to engage with stakeholders and highlight its strategic initiatives, potentially impacting its market position and investor relations.

FB Financial Reports Strong Q4 2024 Financial Results

FB Financial Corporation reported its financial results for the fourth quarter of 2024, highlighting a significant increase in net income and earnings per share compared to previous periods. The company experienced growth in both loans and deposits, resulting in increased net interest income and an improved return on average assets, positioning it strongly for 2025.