First Business Financial Services, Inc. Fundamental Analysis (NASDAQ: FBIZ)
First Business Financial Services, Inc. Fundamental Analysis (NASDAQ: FBIZ)
First Business Financial Services, Inc. (NASDAQ: FBIZ) shows moderate financial fundamentals with a PE ratio of 10.76, profit margin of 19.93%, and ROE of 14.87%. The company generates $0.3B in annual revenue with moderate year-over-year growth of 6.43%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 73.8/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze FBIZ's fundamental strength across five key dimensions:
Efficiency Score
WeakFBIZ struggles to generate sufficient returns from assets.
Valuation Score
ExcellentFBIZ trades at attractive valuation levels.
Growth Score
ExcellentFBIZ delivers strong and consistent growth momentum.
Financial Health Score
ExcellentFBIZ maintains a strong and stable balance sheet.
Profitability Score
ModerateFBIZ maintains healthy but balanced margins.
Key Financial Metrics
Is FBIZ Expensive or Cheap?
P/E Ratio
FBIZ trades at 10.76 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, FBIZ's PEG of 0.76 indicates potential undervaluation.
Price to Book
The market values First Business Financial Services, Inc. at 1.52 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 7.45 times EBITDA. This is generally considered low.
How Well Does FBIZ Make Money?
Net Profit Margin
For every $100 in sales, First Business Financial Services, Inc. keeps $19.93 as profit after all expenses.
Operating Margin
Core operations generate 23.11 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.87 in profit for every $100 of shareholder equity.
ROA
First Business Financial Services, Inc. generates $1.30 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
First Business Financial Services, Inc. produces operating cash flow of $69.17M, showing steady but balanced cash generation.
Free Cash Flow
First Business Financial Services, Inc. generates strong free cash flow of $68.53M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $8.23 in free cash annually.
FCF Yield
FBIZ converts 10.88% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.76
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.76
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.52
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.15
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.48
vs 25 benchmark
Current Ratio
Current assets to current liabilities
40.17
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How FBIZ Stacks Against Its Sector Peers
| Metric | FBIZ Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.76 | 20.31 | Better (Cheaper) |
| ROE | 14.87% | 615.00% | Weak |
| Net Margin | 19.93% | 1102.00% | Weak |
| Debt/Equity | 0.48 | 0.82 | Strong (Low Leverage) |
| Current Ratio | 40.17 | 800.80 | Strong Liquidity |
| ROA | 1.30% | -26.00% (disorted) | Weak |
FBIZ outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews First Business Financial Services, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
141.72%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
204.58%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
138.05%
Industry Style: Value, Dividend, Cyclical
High Growth