First Savings Financial Group (FSFG) AI Stock Analysis

• Market Cap: $190.15M
• Dividend Yield: 2.22%
• Average Volume (3M): 14.80K
• Price to Earnings (P/E): 9.8
• Beta (1Y): 0.52
• Revenue Growth: 6.80%
• EPS Growth: 161.37%
• Country: US
• Employees: 250
• Sector: Financial
• Sector Strength: 88
• Industry: Banks - Regional
• EPS (TTM): 2.81
• Shares Outstanding: 6,914,573
• 10 Day Avg. Volume: 23,045
• 30 Day Avg. Volume: 14,803
• PEG Ratio: 0.06
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.76
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 7.44
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $31.50
• Price Target Upside: 14.55% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

FSFG's overall score reflects solid financial performance, particularly in revenue growth and no debt, though it needs improvement in cash flow management. The undervaluation makes it appealing, but current technical indicators suggest bearish sentiment. Corporate strategic shifts are promising but need time to materialize into financial performance.

Positive Factors

Credit Quality

FSFG's credit quality improved with a negative provision for credit losses and very low net charge-offs, indicating strong risk management.

Earnings

FSFG reported core EPS of $0.76, beating consensus expectations due to a wider net interest margin and a positive contribution from the SBA banking segment.

Stock Price Target

The analyst raised the price target to $31 due to higher expected earnings, which is toward the high end of the middle tier of valuations for high-quality Smid-Cap banks.

Negative Factors

Expenses

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

First Savings Financial Group Business Overview & Revenue Model

Company Description

First Savings Financial Group (FSFG) is a publicly traded financial holding company based in the United States. The company primarily operates through its subsidiary, First Savings Bank, which provides a wide range of banking and financial services. FSFG specializes in offering personal and commercial banking products, including savings and checking accounts, loans, mortgages, and investment services. The company serves individuals, businesses, and government entities, focusing on delivering personalized banking solutions to meet diverse financial needs.

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
Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
70.48M	86.92M	111.88M	177.61M	180.51M
	Gross Profit
70.48M	86.92M	111.88M	177.61M	180.51M
	EBIT
67.38M	8.18M	29.17M	39.56M	46.02M
	EBITDA
0.00	10.36M	0.00	40.77M	48.60M
	Net Income Common Stockholders
13.59M	8.17M	15.39M	29.57M	33.35M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
52.14M	30.84M	359.80M	240.11M	235.69M
	Total Assets
2.45B	2.29B	2.06B	1.72B	1.76B
	Total Debt
350.24M	415.98M	357.52M	269.87M	330.65M
	Net Debt
297.61M	385.14M	314.24M	236.44M	296.93M
	Total Liabilities
2.27B	8.93M	1.91B	1.54B	1.61B
	Stockholders Equity
177.12M	150.98M	152.62M	180.38M	157.27M
Cash Flow		Free Cash Flow
90.52M	29.80M	147.98M	109.25M	-147.00M
	Operating Cash Flow
91.20M	32.76M	148.81M	114.89M	-139.69M
	Investing Cash Flow
-203.33M	-263.99M	-506.23M	-55.88M	-339.43M
	Financing Cash Flow
133.43M	220.41M	365.65M	-59.31M	471.42M

First Savings Financial Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 27.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 27.5 is above the 20-day moving average (MA) of 24.58, above the 50-day MA of 24.87, and above the 200-day MA of 24.76, indicating a bullish trend. The MACD of 0.70 indicates Negative momentum. The RSI at 68.78 is Neutral, neither overbought nor oversold. The STOCH value of 80.12 is Negative, 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
CBNA	80 Outperform	$163.32M	7.14	18.94%	―	―	―
ISTR	74 Outperform	$190.03M	8.82	9.12%	2.14%	6.42%	24.08%
FRAF	66 Neutral	$170.74M	14.74	8.16%	3.33%	18.74%	―
BCBP	65 Neutral	$143.99M	55.49	1.40%	7.63%	-5.71%	-90.24%
Sector *	64 Neutral	$12.64B	9.74	8.05%	17044.60%	12.66%	-4.62%
NKSH	60 Neutral	$165.26M	19.07	5.66%	5.81%	16.35%	-39.77%
FSFG	59 Neutral	$190.15M	9.78	11.31%	2.22%	6.80%	161.37%

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.