Education
About Us
Working with TipRanks
Follow Us
Five Star Bancorp (FSBC)
:FSBC
Top Page
Five Star
(NASDAQ:FSBC)
74Outperform
Five Star (FSBC) vs. S&P 500 (SPY)
Market Cap
$601.06M
Dividend Yield2.79%
Average Volume (3M)45.77K
Price to Earnings (P/E)12.7
Beta (1Y)1.11
Revenue Growth17.32%
EPS Growth-18.15%
CountryUS
Employees185
SectorFinancial
Sector Strength77
IndustryBanking
Share Statistics
EPS (TTM)2.27
Shares Outstanding21,329,235
10 Day Avg. Volume46,833
30 Day Avg. Volume45,770
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)4.89
Price to Cash Flow (P/CF)8.50
P/FCF Ratio8.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$36.13Price Target Upside25.89% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
Five Star Business Overview & Revenue Model
Company DescriptionFive Star Business Consulting (FSBC) is a leading consultancy firm specializing in strategic business solutions across various sectors, including finance, healthcare, technology, and retail. FSBC provides a range of services such as management consulting, market analysis, digital transformation, and operational optimization to help organizations enhance their performance and achieve their business objectives.
How the Company Makes MoneyFSBC generates revenue primarily through consulting fees charged to clients for their extensive range of services. The company operates on a project basis, where it earns income by delivering tailored solutions and strategic advice. Additional revenue streams include subscription-based access to proprietary industry reports and insights, workshops, and training programs. Significant partnerships with technology providers and industry leaders also contribute to its earnings by enhancing service offerings and expanding client reach.
Five Star Financial Statement Overview
Summary
Five Star demonstrates strong revenue growth and profitability margins with a robust balance sheet characterized by zero debt. However, cash flow conversion efficiency presents a minor area for improvement.Income Statement
Five Star has demonstrated robust revenue growth with a TTM increase of 30.21% compared to the previous year. The company maintains strong profitability margins, evidenced by a gross profit margin of 96.72% and a net profit margin of 29.92% for the TTM. Although EBITDA margin is lower at 30.63%, the EBIT margin remains healthy at 53.23%. These figures indicate a solid financial performance with minor room for improvement in operational efficiency.78
Positive
Balance Sheet
Five Star's balance sheet is strong with zero total debt, indicating low financial risk. The equity ratio stands at 9.78% for the TTM, reflecting a conservative leverage approach. The return on equity is impressive at 11.52%, showcasing effective utilization of shareholders' capital. The company portrays financial stability with substantial cash reserves, aligning well with its strategic objectives.85
Very Positive
Cash Flow
Five Star's cash flow position is stable, with a slight decline in free cash flow growth. The operating cash flow to net income ratio is 0.74, indicating a reasonable conversion of income to cash. However, the free cash flow to net income ratio of 0.74 suggests potential room for improvement in cash generation efficiency. Despite this, the company maintains a positive cash flow trajectory.65
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 94.36M | 124.96M | 117.20M | 108.94M | 83.85M | 73.78M | Gross Profit |
| 90.21M | 6.45M | 3.60M | 102.50M | 83.85M | 73.78M | EBIT |
| 63.14M | 4.04M | 76.08M | 77.71M | 47.15M | 37.26M | EBITDA |
| 77.76M | 0.00 | 0.00 | -1.19M | 47.76M | 37.72M | Net Income Common Stockholders |
| 42.15M | 45.67M | 47.73M | 44.80M | 42.44M | 35.93M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 416.65M | 106.29M | 429.66M | 385.83M | 588.60M | 429.15M | Total Assets |
| 4.05B | 3.61B | 3.59B | 3.23B | 2.56B | 1.95B | Total Debt |
| 80.75M | 80.75M | 249.35M | 177.85M | 28.39M | 28.32M | Net Debt |
| -275.71M | -275.71M | -78.08M | -91.99M | -411.41M | -285.88M | Total Liabilities |
| 3.66B | 3.66B | 3.31B | 2.97B | 2.32B | 1.82B | Stockholders Equity |
| 396.62M | 3.70B | 285.77M | 252.82M | 235.05M | 133.78M |
| Cash Flow | Free Cash Flow | ||||
| 17.44M | 51.16M | 38.26M | 45.49M | 27.94M | 50.64M | Operating Cash Flow |
| 18.22M | 51.79M | 38.91M | 45.98M | 28.66M | 51.48M | Investing Cash Flow |
| -763.80M | -446.74M | -279.28M | -836.92M | -455.01M | -372.63M | Financing Cash Flow |
| 479.73M | 425.73M | 301.95M | 625.61M | 561.19M | 434.28M |
Five Star Technical Analysis
Negative
28.70
Price Trends
30.18
Negative
30.91
Negative
28.59
Negative
Market Momentum
-0.48
Positive
27.19
Positive
13.59
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FSBC, the sentiment is Negative. The current price of 28.7 is below the 20-day moving average (MA) of 30.48, below the 50-day MA of 30.18, and above the 200-day MA of 28.59, indicating a bearish trend. The MACD of -0.48 indicates Positive momentum. The RSI at 27.19 is Positive, neither overbought nor oversold. The STOCH value of 13.59 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FSBC.
Five Star Risk Analysis
Five Star disclosed 51 risk factors in its most recent earnings report. Five Star 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
Five Star Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $601.06M | 12.70 | 13.39% | 2.79% | 17.32% | -18.15% | |
73 Outperform | $3.60B | 16.82 | 14.16% | 1.64% | 12.93% | 1.40% | |
72 Outperform | $1.51B | 9.45 | 10.44% | ― | -3.61% | -29.58% | |
65 Neutral | $2.51B | 16.98 | 4.39% | 4.21% | 6.86% | -12.06% | |
65 Neutral | $839.38M | 10.69 | 9.62% | 2.69% | 17.70% | 3.88% | |
64 Neutral | $13.80B | 10.64 | 9.23% | 4.22% | 17.66% | -7.66% | |
61 Neutral | $9.24B | 13.92 | 8.70% | 3.18% | 4.56% | -13.90% |
* Financial Sector Average
Performance Comparison
FSBC
Five Star
28.18
5.37
23.54%
BANF
BancFirst
108.45
21.72
25.04%
FHN
First Horizon
18.19
3.99
28.10%
SFNC
Simmons 1st Nat'l
19.68
1.33
7.25%
CUBI
Customers Bancorp
48.20
-4.05
-7.75%
FMBH
First Mid-Illinois Bancshares
35.00
5.08
16.98%
Five Star Earnings Call Summary
Earnings Call Date: Jan 27, 2025 | % Change Since: -5.28% | Next Earnings Date: Apr 28, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong year for Five Star Bancorp with significant achievements in market expansion and deposit growth, alongside solid asset quality and capital position. However, there were challenges with increased expenses, decreased non-interest income, and a few other negative financial metrics.Highlights
San Francisco Market Expansion
Successful continuation of San Francisco market expansion including a new full-service office and 18 seasoned professionals added in 2024.
Strong Deposit Growth
Non-wholesale deposits grew by $331.3 million during 2024, with total deposits increasing by $531.1 million or 17.55% year-over-year.
Loan Growth
Loans held for investment increased by $72.1 million or 2.08% from the prior quarter and $451 million or 14.63% year-over-year.
Asset Quality
Non-performing loans remained low at 0.05% of loans held for investment, with an allowance for credit losses at 1.07% of total loans.
Capital Position
Strong capital position with a common equity Tier 1 ratio increase from 10.93% to 11.2% between September 30, 2024, and December 31, 2024.
Awards and Recognition
The bank received multiple awards including the 2023 Raymond James Community Bankers Cup and recognition from S&P Global Market Intelligence.
Lowlights
Decreased Non-Interest Income
Non-interest income decreased to $6.5 million in 2024 from $7.5 million in 2023 due to lower income from equity investments in venture-backed funds.
Increased Non-Interest Expense
Non-interest expense increased to $54.5 million in 2024 from $47.8 million in 2023 due to higher salaries and employee benefits.
Decreased Non-Interest Bearing Deposits
Non-interest-bearing deposits as a percent of total deposits decreased to 25.93% from 27.46% year-over-year.
Other Comprehensive Loss
Reported an other comprehensive loss of $2.6 million in Q4 2024 due to increased unrealized losses on available-for-sale debt securities.
Increased Loans Designated as Substandard or Doubtful
Loans designated as substandard or doubtful increased by approximately $0.8 million from the prior quarter and $0.7 million from the previous year end.
Company Guidance
During the fourth quarter and the year-end call, Five Star Bancorp provided detailed guidance on various financial metrics. The company reported a net income of $13.3 million for the quarter and $45.7 million for the year, with a return on average assets of 1.31% for the quarter and 1.23% for the year. Their return on average equity was 13.48% for the quarter and 12.72% for the year. The net interest margin slightly decreased to 3.36% for the quarter from 3.37% in the prior quarter, while the annual net interest margin was 3.32%. Loan originations reached $263.3 million in the fourth quarter, and deposits increased by $158 million or 4.65% during the same period. The bank maintained a low level of non-performing loans at 0.05% of loans held for investment. Additionally, Five Star Bancorp paid a $0.20 per share dividend each quarter in 2024 and declared a similar dividend for the first quarter of 2025. The company expressed confidence in achieving an 8% growth in both loans and deposits in 2025, emphasizing their strategic focus on market expansion, especially in the San Francisco Bay Area.Five Star Corporate Events
Business Operations and StrategyFinancial Disclosures
Five Star Bancorp Reports Strong Q4 2024 Performance
Positive
Jan 28, 2025
Five Star Bancorp reported a net income of $13.3 million for Q4 2024, showing growth from the previous quarter’s $10.9 million, though the full-year net income of $45.7 million was slightly down from 2023’s $47.7 million. The company has expanded its San Francisco operations, growing deposits to $229.5 million by the end of 2024. The bank maintained a stable net interest margin and managed expenses effectively to achieve an efficiency ratio of 41.21% for Q4 2024. Recognized for its community leadership and strong market presence, Five Star Bank has received numerous awards, including the 2023 Raymond James Community Bankers Cup and high rankings in industry performance.
Dividends
Five Star Bancorp Declares Quarterly Cash Dividend
Positive
Jan 17, 2025
On January 17, 2025, Five Star Bancorp announced a quarterly cash dividend of $0.20 per share, payable on February 10, 2025, to shareholders of record as of February 3, 2025. This decision reflects the company’s ongoing commitment to delivering shareholder value, despite the inherent risks and uncertainties outlined in their forward-looking statements.
Financial Disclosures
Five Star Bancorp to Announce Q4 2024 Results
Neutral
Jan 14, 2025
On January 14, 2025, Five Star Bancorp announced the upcoming release of its financial results for the fourth quarter and year ending December 31, 2024. The results will be disclosed after market close on January 27, 2025, followed by a live webcast for analysts and investors on January 28, 2025. This announcement is significant as it provides stakeholders with insight into the company’s financial performance, potentially impacting its market perception and future strategies.
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.