First Financial Bankshares (FFIN) AI Stock Analysis

• Market Cap: $4.42B
• Dividend Yield: 2.4%
• Average Volume (3M): 576.56K
• Price to Earnings (P/E): 18.3
• Beta (1Y): 0.95
• Revenue Growth: 12.90%
• EPS Growth: 16.92%
• Country: US
• Employees: 1,400
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.36
• Shares Outstanding: 143,103,870
• 10 Day Avg. Volume: 658,019
• 30 Day Avg. Volume: 576,564
• PEG Ratio: 1.88
• Price to Book (P/B): 3.20
• Price to Sales (P/S): 6.97
• P/FCF Ratio: 17.58
• Enterprise Value/Market Cap: 1.05
• Enterprise Value/Revenue: 5.97
• Enterprise Value/Gross Profit: 8.21
• Enterprise Value/Ebitda: 14.87
• 1Y Price Target: $37.50
• Price Target Upside: 21.40% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 63 Neutral
• Price Target: $33.00 ▲(6.83% Upside)

First Financial Bankshares shows strong financial performance with robust profitability and conservative leverage. However, the stock is currently under bearish technical pressure, trading below key moving averages with weak momentum indicators. The valuation is reasonable but not compelling enough to offset the technical weaknesses.

First Financial Bankshares Business Overview & Revenue Model

Company Description

First Financial Bankshares, Inc. (FFIN) is a financial holding company based in Abilene, Texas, primarily engaged in providing a range of banking and financial services through its subsidiaries. The company operates in the banking sector, offering products such as commercial and consumer loans, deposit services, mortgage banking, and wealth management. With a strong presence in Texas, FFIN focuses on serving individuals, businesses, and institutions, emphasizing personalized service and community involvement.

How the Company Makes Money

First Financial Bankshares generates revenue primarily through net interest income and non-interest income. Net interest income is derived from the difference between interest earned on loans and investments and interest paid on deposits and borrowings. This is a significant revenue stream as the bank offers various loan products, including commercial loans, residential mortgages, and consumer loans. Non-interest income comes from service fees, deposit account fees, wealth management services, and mortgage origination fees. Additionally, FFIN benefits from partnerships with local businesses and community organizations, enhancing its customer base and driving revenue growth through increased deposits and loan demand.

First Financial Bankshares Financial Statement Overview

Summary

First Financial Bankshares exhibits strong financial health with consistent revenue growth and robust profitability metrics. The company maintains a conservative leverage position, enhancing financial stability. However, the decline in free cash flow growth and slight pressure on profit margins warrant attention.

Income Statement

First Financial Bankshares demonstrates strong profitability with a consistent increase in revenue, evidenced by a 3.2% revenue growth rate in the TTM. The company maintains healthy margins, with a gross profit margin of 72.65% and a net profit margin of 31.43% in the TTM. These metrics indicate effective cost management and strong operational performance. However, the slight decline in gross profit margin over the years suggests potential cost pressures.

Balance Sheet

The balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.04 in the TTM, indicating conservative leverage. The return on equity is robust at 14.69%, showcasing efficient use of equity capital. However, the equity ratio is not explicitly provided, which limits a full assessment of asset financing.

Cash Flow

Cash flow analysis reveals a slight decline in free cash flow growth, down by 1.73% in the TTM, which could signal challenges in cash generation. Nonetheless, the company maintains a strong free cash flow to net income ratio of 95.87%, indicating effective conversion of earnings into cash. The operating cash flow to net income ratio is relatively low, suggesting room for improvement in operational cash efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	781.53M	739.21M	622.31M	551.27M	505.62M	491.94M
Gross Profit	567.81M	523.22M	467.42M	502.40M	500.72M	458.18M
EBITDA	313.66M	285.27M	255.88M	293.64M	285.03M	255.16M
Net Income	245.63M	223.51M	198.98M	234.47M	227.56M	202.03M
Balance Sheet
Total Assets	14.38B	13.98B	13.11B	12.97B	13.10B	10.90B
Cash, Cash Equivalents and Short-Term Investments	3.40B	1.05B	5.27B	5.81B	7.10B	5.12B
Total Debt	70.18M	197.02M	404.08M	642.51M	671.15M	430.09M
Total Liabilities	12.64B	12.37B	11.61B	11.71B	11.34B	9.23B
Stockholders Equity	1.74B	1.61B	1.50B	1.27B	1.76B	1.68B
Cash Flow
Free Cash Flow	290.77M	292.92M	267.57M	308.49M	335.95M	194.22M
Operating Cash Flow	303.29M	309.64M	284.82M	324.27M	355.15M	210.67M
Investing Cash Flow	-810.96M	-736.88M	127.29M	-838.00M	-2.61B	-1.26B
Financing Cash Flow	846.66M	654.06M	-206.20M	315.82M	2.06B	1.50B

First Financial Bankshares Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 30.89
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FFIN, the sentiment is Negative. The current price of 30.89 is below the 20-day moving average (MA) of 32.14, below the 50-day MA of 34.16, and below the 200-day MA of 35.07, indicating a bearish trend. The MACD of -0.90 indicates Positive momentum. The RSI at 34.70 is Neutral, neither overbought nor oversold. The STOCH value of 14.19 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FFIN.

First Financial Bankshares Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ABCB	―	$4.91B	12.40	10.34%	1.12%	2.94%	20.88%
AX	―	$4.42B	10.45	17.42%	―	9.00%	-2.90%
AUB	―	$4.63B	17.43	5.42%	4.18%	43.53%	-21.74%
UBSI	―	$5.07B	11.74	8.25%	4.14%	8.85%	15.56%
Sector *	―	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
HWC	―	$4.84B	10.23	11.12%	3.14%	-0.59%	―
FFIN	―	$4.42B	18.30	13.89%	2.40%	12.90%	16.92%