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FS Bancorp
(NASDAQ:FSBW)
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Rating:63Neutral
Price Target:
$47.00
â–²(9.68% Upside)
Action:Reiterated
Date:10/23/26
The score is primarily held back by mixed financial performance—material TTM revenue decline, margin compression, higher leverage, and weaker free-cash-flow conversion—despite steady net income. Technicals are mildly supportive with price above key moving averages and a positive MACD, and valuation is favorable with a low-teens P/E and a ~2.6% dividend yield. Corporate events add modest support via the acquisition and buyback plan but are tempered by near-term earnings pressure from merger costs.
Positive Factors
Acquisition expands regional banking scale
The Pacific West acquisition materially expands FS Bancorp’s asset, deposit, and lending base while extending its presence into Oregon. Greater scale can deepen customer relationships, broaden future revenue opportunities, and strengthen the company’s regional community-banking platform.
Negative Factors
Revenue and operating margin deterioration
The sharp TTM revenue decline and lower operating margins indicate that recent earnings power is weaker than in the prior two years. If this persists, reduced profitability could constrain organic investment, capital flexibility, and the bank’s ability to absorb operating pressures.
Read all positive and negative factors
Positive Factors
Negative Factors
Acquisition expands regional banking scale
The Pacific West acquisition materially expands FS Bancorp’s asset, deposit, and lending base while extending its presence into Oregon. Greater scale can deepen customer relationships, broaden future revenue opportunities, and strengthen the company’s regional community-banking platform.
Read all positive factors
FS Bancorp (FSBW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$344.35M
Dividend Yield2.63%
Average Volume (3M)31.88K
Price to Earnings (P/E)11.3
Beta (1Y)0.65
Revenue Growth5.90%
EPS Growth-7.04%
CountryUS
Employees593
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)4.45
Shares Outstanding7,862,148
10 Day Avg. Volume31,401
30 Day Avg. Volume31,880
Financial Highlights & Ratios
PEG Ratio-3.04
Price to Book (P/B)1.01
Price to Sales (P/S)1.42
P/FCF Ratio5.96
Enterprise Value/Market Cap2.12
Enterprise Value/Revenue4.09
Enterprise Value/Gross Profit7.07
Enterprise Value/Ebitda20.34
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)4.34
Revenue Forecast (FY)$159.55M
FS Bancorp Business Overview & Revenue Model
Company Description
FS Bancorp, Inc. functions as the holding company for 1st Security Bank of Washington, delivering a comprehensive suite of banking and financial services. These offerings cater to families, local and regional businesses, and specialized industry s...
How the Company Makes Money
FS Bancorp primarily earns money through its banking subsidiary by (1) generating net interest income and (2) collecting noninterest income, while incurring operating and funding costs. Net interest income is typically the largest driver: the bank...
FS Bancorp Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
56
Neutral
Cash Flow
60
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 178.70M | 217.51M | 203.71M | 185.26M | 134.08M | 131.08M |
| Gross Profit | 103.32M | 144.75M | 136.47M | 136.59M | 113.45M | 120.86M |
| EBITDA | 35.92M | 56.68M | 52.15M | 57.92M | 50.99M | 62.60M |
| Net Income | 33.36M | 33.35M | 35.02M | 36.05M | 29.65M | 37.41M |
Balance Sheet | ||||||
| Total Assets | 3.18B | 3.20B | 3.03B | 2.97B | 2.63B | 2.29B |
| Cash, Cash Equivalents and Short-Term Investments | 282.30M | 302.17M | 200.75M | 194.22M | 275.40M | 308.39M |
| Total Debt | 380.95M | 141.08M | 354.96M | 60.27M | 242.46M | 96.71M |
| Total Liabilities | 2.86B | 2.89B | 2.73B | 2.71B | 2.40B | 2.04B |
| Stockholders Equity | 318.96M | 307.69M | 295.77M | 264.49M | 231.70M | 247.51M |
Cash Flow | ||||||
| Free Cash Flow | 98.12M | 51.94M | 49.19M | 76.00M | 183.35M | 107.03M |
| Operating Cash Flow | 117.70M | 72.31M | 50.82M | 77.67M | 184.90M | 109.01M |
| Investing Cash Flow | -86.60M | -206.43M | -104.20M | 77.67M | -504.04M | -310.83M |
| Financing Cash Flow | -34.58M | 130.70M | 19.32M | -131.08M | 334.09M | 136.74M |
FS Bancorp Technical Analysis
Neutral
42.85
Price Trends
43.72
Positive
43.19
Positive
41.62
Positive
Market Momentum
0.11
Positive
45.36
Neutral
58.60
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FSBW, the sentiment is Neutral. The current price of 42.85 is below the 20-day moving average (MA) of 44.26, below the 50-day MA of 43.72, and above the 200-day MA of 41.62, indicating a neutral trend. The MACD of 0.11 indicates Positive momentum. The RSI at 45.36 is Neutral, neither overbought nor oversold. The STOCH value of 58.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FSBW.
FS Bancorp Risk Analysis
FS Bancorp disclosed 31 risk factors in its most recent earnings report. FS Bancorp 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
FS Bancorp Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $442.32M | 10.51 | 15.86% | 2.03% | 24.22% | 39.38% | |
73 Outperform | $406.45M | 9.88 | 10.64% | 2.97% | 6.34% | 35.15% | |
69 Neutral | $414.18M | 10.34 | 13.69% | 4.09% | 2.06% | 24.58% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $504.87M | 14.25 | 10.27% | 3.98% | 25.09% | 12.79% | |
64 Neutral | $433.33M | 12.38 | 9.04% | 2.33% | 16.31% | 4.61% | |
63 Neutral | $344.35M | 11.25 | 9.14% | 2.63% | 5.90% | -7.04% |
* Financial Sector Average
FSBW
FS Bancorp
43.77
5.83
15.38%
CZNC
Citizens & Northern
28.15
9.57
51.54%
CBAN
Colony Bankcorp
20.42
4.28
26.53%
FNLC
First Bancorp
36.70
12.62
52.39%
PLBC
Plumas Bancorp
63.56
23.54
58.80%
PCB
PCB Bancorp
28.94
8.23
39.75%
FS Bancorp Corporate Events
Business Operations and StrategyExecutive/Board Changes
FS Bancorp appoints CEO Matthew Mullet to boards
Positive
Oct 23, 2026
On October 22, 2026, FS Bancorp, Inc., the holding company for 1st Security Bank of Washington, appointed President and Chief Executive Officer Matthew D. Mullet to the Boards of Directors of both the Company and the Bank. The governance nominatin...
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresM&A Transactions
FS Bancorp Reports Lower Q3 Earnings Amid Merger Costs
Negative
Oct 21, 2026
On October 21, 2026, FS Bancorp reported third-quarter 2026 net income of $4.9 million, or $0.63 per diluted share, down from $7.9 million in the prior quarter and $9.2 million a year earlier, reflecting merger-related costs and Home Lending weakn...
Business Operations and StrategyStock Buyback
FS Bancorp Announces $5 Million Share Repurchase Plan
Positive
Aug 24, 2026
On August 24, 2026, FS Bancorp, Inc., the holding company for 1st Security Bank of Washington, said its board had authorized a share repurchase program of up to $5.0 million of its outstanding common stock. The buyback, which can be executed in op...
Business Operations and StrategyM&A Transactions
FS Bancorp Completes Acquisition of Pacific West Bancorp
Positive
Aug 21, 2026
Effective August 19, 2026, FS Bancorp, Inc., parent of 1st Security Bank of Washington, completed its acquisition of Pacific West Bancorp, the parent of Pacific West Bank of Portland, Oregon, merging Pacific West Bank into 1st Security Bank of Was...
Business Operations and Strategy
FS Bancorp Highlights Strategy at Western Bank Summit
Positive
Aug 11, 2026
FS Bancorp, Inc. announced that President and Chief Executive Officer Matthew D. Mullet, Executive Vice President and Chief Risk Officer and CRA Officer Erin Burr, and Executive Vice President and Chief Lending Officer Benjamin G. Crowl will atten...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.