First Savings Financial Group (FSFG) AI Stock Analysis

• Market Cap: $178.12M
• Dividend Yield: 2.33%
• Average Volume (3M): 8.64K
• Price to Earnings (P/E): 9.4
• Beta (1Y): 0.39
• Revenue Growth: 8.20%
• EPS Growth: 203.53%
• Country: US
• Employees: 250
• Sector: Financial
• Sector Strength: 82
• Industry: Banks - Regional
• EPS (TTM): 2.74
• Shares Outstanding: 6,914,573
• 10 Day Avg. Volume: 8,513
• 30 Day Avg. Volume: 8,637
• PEG Ratio: 0.05
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.40
• Price to Cash Flow (P/CF): 254.20
• P/FCF Ratio: 3.00
• 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: $29.00
• Price Target Upside: 12.75% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

First Savings Financial Group's stock reflects a moderate investment opportunity. Its financial performance is stable, with significant revenue growth and robust EBIT margins. However, challenges in cash flow generation and liquidity need addressing. The technical analysis suggests a bearish trend, while the valuation indicates potential undervaluation, making it appealing for value investors. Corporate strategic shifts and positive future outlooks provide additional support, although not directly impacting the score due to their redundancy with earnings call insights.

Positive Factors

Analyst Recommendations

Analyst reiterates a Buy rating with an expectation of stock price appreciation and a total return of about 22%.

Credit Quality

Credit quality remains solid with minimal net charge-offs, indicating strong financial health.

Financial Performance

The core banking segment continues to perform strongly, contributing positively to EPS with a wider net interest margin.

Negative Factors

Earnings Miss

Higher expenses and a loss in SBA banking led to a miss in core EPS for FSFG.

Fourth Quarter Performance

Fourth quarter results for First Savings Financial Group missed expectations.

First Savings Financial Group Business Overview & Revenue Model

Company Description

First Savings Financial Group, Inc. operates as the bank holding company for First Savings Bank that provides various financial services to consumers and businesses in southern Indiana. The company operates through three segments: Core Banking, SBA Lending, and Mortgage Banking. It accepts deposits, such as checking accounts, NOW and money market accounts, regular savings accounts, and time deposits. The company also provides loans, including one-to four-family residential real estate, commercial real estate, construction, land and land development, multi-family real estate, and commercial business loans, as well as consumer loans, such as automobile loans, home equity lines of credit, unsecured loans, and loans secured by deposits. In addition, it is involved in the mortgage banking; investment activities; and the provision of property and casualty insurance products, and reinsurance to other third-party insurance captives. The company operates 15 branches. First Savings Financial Group, Inc. was incorporated in 2008 and is based in Jeffersonville, Indiana.

How the Company Makes Money

First Savings Financial Group generates revenue primarily through interest income from loans and mortgages, as well as fees from various banking services. The company's key revenue streams include interest earned on loans provided to individuals and businesses, interest from investment securities, and service charges on deposit accounts. Additionally, FSFG earns money through mortgage origination and servicing fees, as well as fees from trust and investment services. The company's earnings are also supported by strategic partnerships and collaborations with other financial institutions to expand its product offerings and enhance customer service.

First Savings Financial Group Financial Statement Overview

Summary

First Savings Financial Group shows strengths in revenue growth and EBIT margins, indicating operational efficiency. The balance sheet is robust with no debt, reducing financial risk. However, the company faces challenges with cash flow generation, potentially impacting liquidity. Net profit margins and equity ratios reveal areas for improvement. Overall, while the company maintains stable operations, it needs to address cash flow and leverage concerns to enhance financial health.

Income Statement

The income statement shows a mixed performance. The TTM gross profit margin is strong at approximately 98.63%, indicating efficient cost management. However, the net profit margin is around 14%, which is moderate. The revenue growth rate from the prior year to TTM is about 52%, showing significant growth. EBIT margin is solid at 42.94%, but EBITDA margin is low at 7.46%. Overall, while revenue and EBIT margins are strong, the net profit margin and EBITDA margin suggest areas for improvement.

Balance Sheet

The balance sheet shows a stable financial position with a strong equity base. The debt-to-equity ratio is effectively zero in TTM, indicating no debt reliance, which reduces financial risk. The return on equity is moderate at 10.73%, reflecting decent profitability. The equity ratio is 7.37%, which is low but typical for a banking institution with high liabilities. The absence of debt and moderate ROE are positive, but the low equity ratio indicates potential risk.

Cash Flow

The cash flow statement reveals challenges with cash generation and utilization. Free cash flow growth from the previous year is negative, indicating reduced cash availability. The operating cash flow to net income ratio is 0.45, suggesting moderate cash conversion efficiency. The free cash flow to net income ratio is 0.43, which is lower than desirable. This highlights issues in translating earnings into cash flow and suggests potential liquidity concerns.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
134.95M	133.91M	86.92M	111.88M	177.61M	180.51M
	Gross Profit
133.10M	133.91M	86.92M	111.88M	177.61M	180.51M
	EBIT
57.93M	67.38M	8.18M	29.17M	39.56M	46.02M
	EBITDA
10.07M	0.00	10.36M	0.00	40.77M	48.60M
	Net Income Common Stockholders
18.90M	13.59M	8.17M	15.39M	29.57M	33.35M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
13.12M	52.14M	30.84M	359.80M	240.11M	235.69M
	Total Assets
494.23M	2.45B	2.29B	2.06B	1.72B	1.76B
	Total Debt
58.80M	350.24M	415.98M	357.52M	269.87M	330.65M
	Net Debt
45.67M	297.61M	385.14M	314.24M	236.44M	296.93M
	Total Liabilities
440.17M	2.27B	8.93M	1.91B	1.54B	1.61B
	Stockholders Equity
54.07M	177.12M	150.98M	152.62M	180.38M	157.27M
Cash Flow		Free Cash Flow
8.14M	90.52M	29.80M	147.98M	109.25M	-147.00M
	Operating Cash Flow
8.44M	91.20M	32.76M	148.81M	114.89M	-139.69M
	Investing Cash Flow
-48.94M	-203.33M	-263.99M	-506.23M	-55.88M	-339.43M
	Financing Cash Flow
83.36M	133.43M	220.41M	365.65M	-59.31M	471.42M

First Savings Financial Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 25.72
• 50DMA: Positive
• 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 FSFG, the sentiment is Positive. The current price of 25.72 is above the 20-day moving average (MA) of 25.13, above the 50-day MA of 24.86, and above the 200-day MA of 23.93, indicating a bullish trend. The MACD of 0.23 indicates Negative momentum. The RSI at 55.67 is Neutral, neither overbought nor oversold. The STOCH value of 56.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FSFG.

First Savings Financial Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FRME	76 Outperform	$2.37B	11.86	8.85%	3.44%	5.54%	-8.57%
ONB	69 Neutral	$6.76B	12.60	9.06%	2.64%	16.39%	-13.25%
BKU	66 Neutral	$2.57B	11.18	9.90%	3.37%	3.42%	30.07%
SFNC	65 Neutral	$2.58B	16.96	4.39%	4.09%	6.86%	-12.06%
Sector *	63 Neutral	$14.35B	9.94	8.94%	4.37%	16.34%	-11.76%
FSFG	62 Neutral	$178.12M	9.39	11.10%	2.33%	8.20%	203.53%
FULT	62 Neutral	$3.30B	11.51	9.69%	3.81%	21.10%	-4.20%

First Savings Financial Group Corporate Events

First Savings Financial Group 2025 Shareholders Meeting Highlights

The 2025 Annual Meeting of Shareholders of First Savings Financial Group, Inc. was held on February 11, 2025. During the meeting, several significant resolutions were passed, including the election of directors, approval of the 2025 Equity Incentive Plan, and the ratification of Forvis Mazars, LLP as the Company’s independent registered public accounting firm. CEO Larry W. Myers highlighted the company’s strategic shifts in 2024, including exiting the mortgage banking business and focusing on deposit growth and core banking. The company’s stock saw a significant rise, closing at $23.90 at the end of FY 2024. Myers expressed optimism about 2025, citing opportunities for further capital accretion and enhancement of shareholder value.