FS Bancorp (FSBW) AI Stock Analysis

• Market Cap: $286.23M
• Dividend Yield: 3.46%
• Average Volume (3M): 16.67K
• Price to Earnings (P/E): 9.0
• Beta (1Y): 0.80
• Revenue Growth: 5.10%
• EPS Growth: -7.22%
• Country: US
• Employees: 567
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.18
• Shares Outstanding: 7,596,336
• 10 Day Avg. Volume: 12,963
• 30 Day Avg. Volume: 16,669
• PEG Ratio: -2.79
• Price to Book (P/B): 1.07
• Price to Sales (P/S): 1.55
• P/FCF Ratio: 6.43
• Enterprise Value/Market Cap: 2.03
• Enterprise Value/Revenue: 2.69
• Enterprise Value/Gross Profit: 4.00
• Enterprise Value/Ebitda: 11.60
• 1Y Price Target: $41.50
• Price Target Upside: 8.04% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 68 Neutral
• Price Target: $42.00 ▲(9.35% Upside)

FS Bancorp's strong financial performance and attractive valuation are offset by weak technical indicators. The company shows robust revenue growth and efficient cost management, but faces challenges with profitability margins and cash flow trends. The stock's low P/E ratio and high dividend yield suggest it may be undervalued, but bearish technical signals indicate potential short-term downside risk.

FS Bancorp Business Overview & Revenue Model

Company Description

FS Bancorp, Inc. (FSBW) is a bank holding company based in Washington State, primarily engaged in providing a range of financial services through its wholly-owned subsidiary, 1st Security Bank of Washington. The bank offers a variety of products including personal and business banking, residential and commercial lending, and investment services. With a focus on serving local communities, FS Bancorp emphasizes customer relationships and personalized service, catering to both individual and corporate clients across various sectors.

How the Company Makes Money

FS Bancorp generates revenue primarily through interest income from its lending activities, which includes mortgages, commercial loans, and personal loans. The bank earns interest on loans provided to customers, which is typically higher than the interest paid on customer deposits. Additionally, FS Bancorp collects fees from various banking services, including account maintenance fees, transaction fees, and service charges. The bank may also generate income from investment securities and real estate loans. Strategic partnerships with local businesses and community organizations further enhance its customer base and support cross-selling opportunities, contributing to overall earnings.

FS Bancorp Financial Statement Overview

Summary

FS Bancorp is performing well across key financial metrics, with steady revenue growth and profitability. The balance sheet is sound, with a conservative approach to leverage. While cash flow generation is strong, attention is needed on cash flow volatility. Overall, the company is financially stable with room for improvement in operational efficiency.

Income Statement

FS Bancorp shows consistent growth in total revenue with a notable increase from the previous year. The gross profit margin remains solid, indicating effective cost management. However, there is a slight decline in EBIT margin, suggesting pressure on operating efficiency. Net profit margin remains stable, reflecting steady profitability.

Balance Sheet

The company's balance sheet displays a prudent debt-to-equity ratio, highlighting manageable leverage levels. The equity ratio indicates a solid capital structure, supporting financial stability. Return on equity is healthy, showcasing effective use of shareholder funds. However, a reduction in cash reserves could limit liquidity.

Cash Flow

FS Bancorp demonstrates positive free cash flow, indicating strong cash generation capacity. The operating cash flow to net income ratio is robust, reflecting efficient cash operations. However, fluctuations in investing and financing cash flows suggest potential volatility in cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	215.88M	203.71M	185.26M	134.08M	131.08M	142.13M
Gross Profit	145.18M	136.47M	136.59M	113.45M	120.86M	114.38M
EBITDA	49.98M	52.15M	57.92M	50.99M	62.60M	63.47M
Net Income	33.42M	35.02M	36.05M	29.65M	37.41M	39.26M
Balance Sheet
Total Assets	3.18B	3.03B	2.97B	2.63B	2.29B	2.11B
Cash, Cash Equivalents and Short-Term Investments	317.86M	200.75M	194.22M	275.40M	308.39M	281.87M
Total Debt	292.07M	354.96M	60.27M	242.46M	96.71M	117.70M
Total Liabilities	2.88B	2.73B	2.71B	2.40B	2.04B	1.88B
Stockholders Equity	297.20M	295.77M	264.49M	231.70M	247.51M	230.01M
Cash Flow
Free Cash Flow	53.13M	49.19M	76.00M	183.35M	107.03M	-33.70M
Operating Cash Flow	55.77M	50.82M	77.67M	184.90M	109.01M	-32.32M
Investing Cash Flow	-260.48M	-104.20M	77.67M	-504.04M	-310.83M	-270.69M
Financing Cash Flow	204.89M	19.32M	-131.08M	334.09M	136.74M	348.81M

FS Bancorp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 38.41
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FSBW, the sentiment is Negative. The current price of 38.41 is below the 20-day moving average (MA) of 39.24, below the 50-day MA of 40.59, and below the 200-day MA of 39.09, indicating a bearish trend. The MACD of -0.73 indicates Positive momentum. The RSI at 43.10 is Neutral, neither overbought nor oversold. The STOCH value of 36.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FSBW.

FS Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CBAN	74 Outperform	$285.49M	10.19	9.90%	2.76%	7.07%	24.85%
PCB	68 Neutral	$292.30M	9.36	8.63%	3.83%	11.93%	29.49%
FSBW	68 Neutral	$286.23M	8.96	11.31%	3.46%	5.10%	-7.22%
CZNC	68 Neutral	$344.55M	11.05	9.73%	5.82%	8.59%	14.56%
FNLC	68 Neutral	$282.51M	9.19	11.76%	5.79%	12.08%	13.36%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
PLBC	64 Neutral	$288.31M	9.74	12.34%	2.82%	11.98%	-10.12%

FS Bancorp Corporate Events

FS Bancorp Executives Attend Key Banking Conference

FS Bancorp, Inc. announced that key executives, including President Matthew D. Mullet, Chief Retail Banking Officer Kelli Nielsen, and Chief Credit Operations Officer Robert Nesbitt, will attend the Raymond James U.S. Bank and Banking on Technology Conference in Chicago, Illinois, on September 3, 2025. This participation highlights the company’s engagement with industry developments and its commitment to leveraging technology in banking, potentially impacting its operational strategies and stakeholder relations.

FS Bancorp Announces New Bank President and CEO

On August 15, 2025, FS Bancorp announced the appointment of Matthew D. Mullet as President and CEO of 1st Security Bank, effective September 1, 2025. Joseph C. Adams, the current CEO of the Bank, will retire from his position on the same date but will continue as CEO of FS Bancorp until May 2026. This leadership transition is part of a carefully planned succession strategy, with Mullet’s extensive experience in financial services and deep knowledge of the bank’s operations positioning him as a strong leader for the future.

FS Bancorp Declares Regular and Special Dividends

On July 22, 2025, FS Bancorp, Inc. announced a regular quarterly cash dividend of $0.28 per share and a special dividend of $0.22 per share, both payable on August 21, 2025. The company’s second quarter net income for 2025 was reported at $7.7 million, a decrease from $9.0 million in the same quarter of the previous year. Despite the decline in net income, FS Bancorp highlighted growth in loans receivable and share repurchase activity, reflecting confidence in long-term shareholder value. The announcement underscores the company’s commitment to shareholder returns and indicates a strategic focus on balancing growth with capital management.

FS Bancorp Announces New $5M Share Repurchase Plan

On July 9, 2025, FS Bancorp, Inc., the holding company for 1st Security Bank of Washington, announced an additional share repurchase program of up to $5.0 million of its common stock. This initiative follows a previous plan announced in April 2025, which still has $400,000 remaining for repurchase. The repurchase program, set to begin shortly after the announcement, allows for flexibility in purchasing shares in the open market or through private transactions. The decision reflects the company’s strategy to optimize shareholder value and manage capital effectively, considering market conditions and financial performance.