First Foundation (FFWM) AI Stock Analysis

• Market Cap: $432.53M
• Dividend Yield: 0.19%
• Average Volume (3M): 569.13K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.22
• Revenue Growth: 3.61%
• EPS Growth: 65.61%
• Country: US
• Employees: 561
• Sector: Financial
• Sector Strength: 73
• Industry: Banks - Regional
• EPS (TTM): 0.09
• Shares Outstanding: 82,386,070
• 10 Day Avg. Volume: 562,841
• 30 Day Avg. Volume: 569,126
• PEG Ratio: -0.38
• Price to Book (P/B): 0.71
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.38
• Enterprise Value/Market Cap: 3.52
• Enterprise Value/Revenue: 0.92
• Enterprise Value/Gross Profit: 3.97
• Enterprise Value/Ebitda: -4.35
• 1Y Price Target: $7.75
• Price Target Upside: 47.62% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 59 Neutral
• Price Target: $5.50 ▲(4.76%Upside)

The overall score reflects financial instability and cash flow issues, offset by a return to profitability and improved net interest margins reported in the earnings call. Technical analysis and valuation provide a mixed view, with the stock's high dividend yield suggesting potential value amidst financial risks.

First Foundation Business Overview & Revenue Model

Company Description

First Foundation Inc. (FFWM) is a financial services company that operates primarily in the banking and wealth management sectors. The company provides a wide range of services, including personal and business banking, trust services, investment management, and financial advisory services. With a focus on delivering personalized solutions, First Foundation aims to cater to the diverse financial needs of its clientele, which includes individuals, families, and businesses.

How the Company Makes Money

First Foundation Inc. makes money through a combination of interest income, fees, and service charges. Its banking operations generate revenue from interest earned on loans and advances given to customers, while simultaneously managing the cost of deposits from which these funds are sourced. The company also earns non-interest income through its wealth management and advisory services, which include fees from investment management, financial planning, and trust services. Additionally, First Foundation benefits from partnerships with other financial institutions to enhance its service offerings and generate additional fee-based income. The company's diversified revenue streams help it manage risk and sustain profitability across various economic cycles.

First Foundation Financial Statement Overview

Summary

The company exhibits financial instability with issues in profitability and cash flow, despite a stable balance sheet. Negative operating and free cash flows are concerning, and revenue growth challenges persist.

Income Statement

The income statement shows a volatile performance with significant swings in profitability. Gross profit margins are high but net income has been negative recently, indicating issues with cost management or revenue generation. Revenue has decreased over the TTM period, reflecting potential challenges in revenue growth. The negative EBITDA margins further highlight operational inefficiencies.

Balance Sheet

The balance sheet reveals a stable equity position with a manageable debt-to-equity ratio, reflecting moderate leverage. Stockholders' equity has been relatively stable, but total assets have slightly declined, indicating a potential need for asset optimization. The equity ratio remains healthy, suggesting a reasonable cushion against liabilities.

Cash Flow

Cash flow analysis indicates negative operating and free cash flows, which could be a concern for liquidity. The operating cash flow to net income ratio is negative, highlighting challenges in converting revenue to cash. Although there has been some investment activity, the financing cash flows suggest a reliance on external funding.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
387.09M	481.54M	174.85M	328.75M	308.90M	243.85M
	Gross Profit
383.37M	53.19M	175.33M	328.21M	291.10M	243.85M
	EBIT
168.16M	-137.38M	15.19M	149.80M	151.78M	118.77M
	EBITDA
-125.02M	-129.41M	15.19M	158.51M	158.63M	125.40M
	Net Income Common Stockholders
-86.30M	-92.41M	-199.06M	110.51M	109.51M	84.37M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.53B	2.33B	2.03B	882.65M	2.31B	1.44B
	Total Assets
12.59B	12.65B	13.33B	13.01B	10.20B	6.96B
	Total Debt
1.85B	1.60B	1.58B	1.37B	210.13M	269.00M
	Net Debt
833.93M	582.70M	255.82M	713.44M	-911.63M	-360.71M
	Total Liabilities
11.53B	11.59B	12.40B	11.88B	9.13B	6.26B
	Stockholders Equity
1.06B	1.05B	925.34M	1.13B	1.06B	695.71M
Cash Flow		Free Cash Flow
-19.65M	-11.51M	-2.39M	96.47M	93.73M	64.58M
	Operating Cash Flow
-16.24M	-8.78M	5.82M	101.05M	96.94M	67.44M
	Investing Cash Flow
336.90M	287.36M	134.88M	-3.25B	-79.37M	-24.90M
	Financing Cash Flow
-894.53M	-589.08M	529.44M	2.68B	474.49M	521.77M

First Foundation Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 5.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FFWM, the sentiment is Neutral. The current price of 5.25 is above the 20-day moving average (MA) of 5.25, above the 50-day MA of 5.11, and below the 200-day MA of 6.04, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 50.92 is Neutral, neither overbought nor oversold. The STOCH value of 69.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FFWM.

First Foundation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FBIZ	78 Outperform	$395.98M	8.65	14.36%	2.44%	12.02%	26.09%
UNTY	77 Outperform	$437.96M	10.24	15.17%	1.28%	6.99%	12.46%
GCBC	71 Outperform	$366.25M	12.83	13.33%	1.67%	14.44%	16.49%
Sector *	64 Neutral	$12.77B	9.71	7.85%	78.05%	12.07%	-7.97%
BSRR	62 Neutral	$378.50M	9.67	11.58%	3.65%	1.99%	17.65%
FFWM	59 Neutral	$432.53M	―	-8.68%	0.19%	3.61%	65.61%
KRNY	50 Neutral	$402.98M	―	-8.86%	7.05%	7.93%	-570.64%

First Foundation Corporate Events

First Foundation Approves Amended Equity Incentive Plan

At its 2025 Annual Meeting of Stockholders on May 29, First Foundation Inc. approved an Amended and Restated 2024 Equity Incentive Plan, increasing the shares available for awards to 4,000,000 and granting additional rights to the plan’s Administrator. The meeting also saw the election of ten directors, the ratification of Crowe LLP as the independent auditor, and approval of executive compensation measures, including an annual advisory vote on executive pay.

The most recent analyst rating on (FFWM) stock is a Buy with a $9.00 price target. To see the full list of analyst forecasts on First Foundation stock, see the FFWM Stock Forecast page.

First Foundation Returns to Profitability in Q1 2025

First Foundation Inc. reported a return to profitability in the first quarter of 2025, driven by an increase in net interest margin and normalized credit costs. The company achieved a fully diluted EPS of $0.08, a significant improvement from the previous quarter’s loss. Key strategic initiatives include reducing commercial real estate concentration, improving deposit quality, and building organic capital. The company also reported strong credit performance with negligible net charge-offs and a stable provision for credit losses.