BayFirst Financial Corp (BAFN) AI Stock Analysis

• Market Cap: $60.90M
• Dividend Yield: 2.23%
• Average Volume (3M): 11.27K
• Price to Earnings (P/E): 6.6
• Beta (1Y): 0.66
• Revenue Growth: 8.22%
• EPS Growth: 111.97%
• Country: US
• Employees: 305
• Sector: Financial
• Sector Strength: 80
• Industry: Banks - Regional
• EPS (TTM): -0.17
• Shares Outstanding: 4,129,027
• 10 Day Avg. Volume: 18,767
• 30 Day Avg. Volume: 11,267
• PEG Ratio: -0.03
• Price to Book (P/B): 0.99
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.11
• Enterprise Value/Market Cap: -0.62
• Enterprise Value/Revenue: -0.08
• Enterprise Value/Gross Profit: -0.60
• Enterprise Value/Ebitda: -0.47
• 1Y Price Target: $15.00
• Price Target Upside: 4.38% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 69 Neutral
• Price Target: $15.50 ▲(7.86%Upside)

BayFirst Financial Corp shows a strong financial foundation with a well-structured balance sheet and attractive valuation metrics. However, technical indicators suggest bearish momentum, and recent corporate events highlight challenges, necessitating cautious optimism. The primary strength lies in its valuation, potentially offering upside if financial and operational challenges are addressed.

BayFirst Financial Corp Business Overview & Revenue Model

Company Description

BayFirst Financial Corp. operates as the bank holding company for First Home Bank that provides commercial and consumer banking services for businesses and individuals. The company offers checking and savings accounts, and certificates of deposit. It also provides home loans, including residential mortgages, home equity loans, and home equity lines of credit; and business lending services comprising minority lending programs, PPP loan forgiveness services, SBA loans, and commercial lending services. In addition, the company offers treasury management, merchant, online, and investment services; and credit cards. As of January 26, 2022, it operated seven full-service office locations in St. Petersburg, Seminole, Pinellas Park, Clearwater, Sarasota, Tampa, and Belleair Bluffs, Florida; and 23 mortgage loan production offices. The company was formerly known as First Home Bancorp, Inc. and changed its name to BayFirst Financial Corp. in May 2021. BayFirst Financial Corp. was founded in 1999 and is headquartered in Saint Petersburg, Florida.

How the Company Makes Money

BayFirst Financial Corp generates revenue primarily through interest income from its lending activities, including commercial and residential mortgage loans. The company also earns money through service charges and fees associated with its deposit accounts and other financial services. Additionally, BayFirst benefits from gain on sale of loans, particularly in its mortgage banking operations. Significant factors contributing to its earnings include its ability to maintain a strong loan portfolio, effective management of interest rate spreads, and strategic partnerships that enhance its service offerings.

BayFirst Financial Corp Financial Statement Overview

Summary

BayFirst Financial Corp has demonstrated strong revenue growth and improved profitability margins, supported by a solid equity base. However, the volatility in cash flows and rising liabilities require attention to ensure long-term financial stability. The company shows a promising trajectory but must manage its cash flow and liabilities prudently.

Income Statement

BayFirst Financial Corp has shown consistent revenue growth from $57.8M in 2022 to $83.8M in 2024, indicating strong top-line growth. The gross profit margin remained high at nearly 100% due to the nature of the banking industry, where the revenue equals gross profit. Net profit margin improved significantly from 9.9% in 2023 to 15% in 2024, reflecting enhanced profitability. EBIT margin also increased, indicating better operational efficiency. However, the absence of EBITDA data limits the analysis.

Balance Sheet

The company's balance sheet displays a strong equity position, with stockholders' equity growing from $91.8M in 2022 to $110.9M in 2024. The debt-to-equity ratio improved significantly, highlighting reduced leverage and a more stable financial structure. The equity ratio is strong, reflecting good asset financing through equity. However, the increase in total liabilities over the years may pose a risk if not managed carefully.

Cash Flow

Cash flow analysis reveals fluctuations, with a notable decrease in operating cash flow in 2024 compared to previous years. Free cash flow was strong in 2023 but dropped to zero in 2024, indicating potential liquidity challenges. The free cash flow to net income ratio is not available for 2024, which limits the assessment of cash flow adequacy relative to net earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	121.90M	125.24M	110.85M	66.41M	65.61M	134.09M
Gross Profit	62.81M	65.73M	68.32M	58.54M	59.55M	106.92M
EBITDA	24.40M	25.71M	14.79M	12.01M	16.05M	21.07M
Net Income	11.44M	12.60M	5.70M	-349.00K	24.62M	12.70M
Balance Sheet
Total Assets	1.29B	1.29B	1.12B	938.89M	917.10M	1.54B
Cash, Cash Equivalents and Short-Term Investments	71.56M	0.00	102.61M	113.28M	143.00M	57.76M
Total Debt	41.88M	22.40M	20.96M	37.37M	12.71M	13.63M
Total Liabilities	1.18B	1.18B	1.02B	847.01M	820.80M	1.47B
Stockholders Equity	110.08M	110.92M	100.71M	91.88M	96.29M	71.07M
Cash Flow
Free Cash Flow	266.30M	388.84M	447.21M	432.19M	482.27M	-110.85M
Operating Cash Flow	266.99M	390.53M	454.80M	440.25M	495.39M	-107.82M
Investing Cash Flow	-364.64M	-515.93M	-641.28M	-510.61M	207.62M	-933.38M
Financing Cash Flow	122.37M	144.80M	178.82M	26.67M	-648.66M	985.98M

BayFirst Financial Corp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 14.37
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BAFN, the sentiment is Negative. The current price of 14.37 is below the 20-day moving average (MA) of 14.53, below the 50-day MA of 14.99, and below the 200-day MA of 14.78, indicating a bearish trend. The MACD of -0.09 indicates Negative momentum. The RSI at 46.28 is Neutral, neither overbought nor oversold. The STOCH value of 54.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BAFN.

BayFirst Financial Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BAFN	69 Neutral	$60.90M	6.60	10.87%	2.23%	8.22%	111.97%
Sector *	68 Neutral	¥724.27B	10.74	7.55%	3.29%	7.97%	15.90%
SSBI	55 Neutral	$77.31M	10.38	-3.20%	1.36%	-3.54%	-138.07%
BYFC	50 Neutral	$70.24M	158.72	0.57%	―	11.84%	-120.17%
FSEA		$53.32M	―	-0.80%	―	―	―
CFSB	54 Neutral	$90.47M	―	>-0.01%	―	13.69%	77.14%
NSTS		$62.97M	―	-1.13%	―	―	―

BayFirst Financial Corp Corporate Events

BayFirst Financial Corp to Release Q2 Results Soon

BayFirst Financial Corp. announced that it will release its second quarter results on July 29, 2025, with a conference call scheduled for July 30, 2025, to discuss the outcomes. This announcement is significant for stakeholders as it provides an opportunity to gain insights into the company’s financial performance and strategic direction, potentially impacting its market position and investor confidence.

BayFirst Financial Holds Annual Shareholder Meeting

On May 15, 2025, BayFirst Financial Corp. held its Annual Meeting of Shareholders, where 62.2% of the outstanding shares were represented. During the meeting, 12 nominees were elected to serve as directors until the 2026 Annual Meeting, with varying numbers of votes for each nominee. Additionally, a proposal to adjourn the meeting for further proxy solicitation was deemed unnecessary, allowing the meeting to conclude without adjournment.

BayFirst Financial Corp Holds Successful Shareholder Meeting

On May 15, 2025, BayFirst Financial Corp. held its Annual Meeting of Shareholders, where all nominees were elected with at least 91% of the votes cast in favor. The approval of the proposal and election of nominees reflect strong shareholder support, potentially impacting the company’s governance and strategic direction positively.

BayFirst Reports Q1 2025 Net Loss Amid Challenges

On April 25, 2025, BayFirst Financial Corp. reported a net loss of $335,000 for the first quarter of 2025, attributed to higher provision expenses and write-downs on loan portfolios. Despite challenges such as slowing demand and economic uncertainties, the company saw improvements in its net interest margin and growth in checking account balances. The company is initiating a strategic review to address balance sheet risks and enhance long-term growth, while continuing to experience stress in small business loans due to macroeconomic conditions.

BayFirst Financial Reports Q1 2025 Net Loss

BayFirst Financial Corp. reported a net loss of $0.3 million for the first quarter of 2025, a significant decline from the previous quarter’s net income of $9.8 million. The company faced challenges due to deteriorating economic conditions, inflationary pressures, and high interest rates, impacting its loan portfolio and resulting in elevated net charge-offs and provision expenses. Despite these challenges, BayFirst saw strong loan growth in its community bank segment and continued to focus on expanding its low-cost deposit accounts to support its loan portfolios. The company remains committed to returning to profitability and enhancing shareholder value by maintaining robust loan oversight and exploring strategies to de-risk its balance sheet.