Business First Bancshares (BFST) AI Stock Analysis

• Market Cap: $682.53M
• Dividend Yield: 2.39%
• Average Volume (3M): 122.68K
• Price to Earnings (P/E): 9.5
• Beta (1Y): 1.09
• Revenue Growth: 18.34%
• EPS Growth: -4.12%
• Country: US
• Employees: 849
• Sector: Financial
• Sector Strength: 85
• Industry: Banks - Regional
• EPS (TTM): 2.44
• Shares Outstanding: 29,572,296
• 10 Day Avg. Volume: 132,357
• 30 Day Avg. Volume: 122,683
• PEG Ratio: N/A
• 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: 1.34
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 2.20
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $30.00
• Price Target Upside: 30.15% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

Business First Bancshares demonstrates solid financial performance and attractive valuation, indicating a stable financial position with good growth prospects. Technical analysis suggests caution due to current bearish trends. The earnings call and recent corporate events reflect a balanced outlook with a focus on profitability and strategic growth. Despite some credit quality concerns and deposit outflows, the company remains well-positioned in its industry.

Business First Bancshares Business Overview & Revenue Model

Company Description

Business First Bancshares, Inc. operates as the bank holding company for b1BANK that provides various banking products and services. It offers various deposit products and services, including checking, demand, money market, time, and savings accounts; and certificates of deposits, remote deposit capture, and direct deposit services. The company also provides commercial and industrial loans, such as commercial lines of credit, letters of credit, working capital, term, equipment financing, asset acquisition, expansion and development, borrowing base, and other loan products; construction and development loans; commercial real estate loans; residential real estate loans comprising first and second lien 1-4 family mortgage loans, and home equity lines of credit; and consumer loans, including secured and unsecured installment and term loans. In addition, it offers wealth management products, including mutual funds, annuities, individual retirement accounts, and other financial products, as well as other fiduciary services and private banking products and services. Further, the company provides a range of other financial services comprising debit and credit cards, treasury and cash management, merchant, automated clearing house, lock-box, receivables factoring, correspondent banking, and other treasury services, as well as employee and payroll benefits solutions; and drive-through banking facilities, automated teller machines, night depository, personalized checks, electronic funds transfer, domestic and foreign wire transfer, traveler's checks, vault, loan and deposit sweep accounts, online and mobile banking, e-statements, and bank-by-mail services. As of March 01, 2022, it operates approximately 48 full-service banking centers and three loan production offices across Louisiana, and in the Dallas and Houston markets. Business First Bancshares, Inc. was incorporated in 2006 and is headquartered in Baton Rouge, Louisiana.

How the Company Makes Money

Business First Bancshares generates revenue primarily through interest income from its lending activities, which include commercial, real estate, and consumer loans. The company earns money by charging interest on these loans, which constitutes the majority of its income. Additionally, BFST makes money through non-interest income streams such as service charges on deposit accounts, fees from treasury management and other financial services, and investment securities gains. Strategic partnerships and a commitment to community banking further enhance BFST's ability to drive growth and maintain a stable, diversified revenue base.

Business First Bancshares Financial Statement Overview

Summary

Business First Bancshares exhibits strong financial health with consistent revenue growth and effective cost management reflected in its profit margins. The balance sheet is robust, with substantial equity and no debt as of 2024, reducing financial risk. Cash flow performance is solid, though impacted by investment activities.

Income Statement

Business First Bancshares has demonstrated strong revenue growth over the years, with Total Revenue increasing from $90.9 million in 2019 to $414.8 million in 2024. The Gross Profit Margin remains high at 100% due to the nature of banking revenue. However, the Net Profit Margin has shown some fluctuations, reaching 15.7% in 2024, slightly down from previous years. EBIT margins are unavailable, but the trend in Net Income suggests effective cost management.

Balance Sheet

The company's balance sheet is characterized by a strong equity base, with Stockholders’ Equity increasing steadily to $799.5 million in 2024. The Equity Ratio improved to 10.2% in 2024, indicating a solid equity position relative to Total Assets. The absence of Total Debt in 2024 suggests prudent financial management. Nonetheless, the Debt-to-Equity Ratio in prior years reflected moderate leverage, which has since been mitigated.

Cash Flow

Operating Cash Flow has shown variability but remains positive, with $61.4 million in 2024. The Free Cash Flow to Net Income Ratio is consistent, indicating healthy cash generation relative to earnings. However, the Free Cash Flow Growth Rate has been inconsistent, impacted by significant fluctuations in Investing Cash Flow, reflecting investment activities. Operating Cash Flow to Net Income Ratio remains robust, underscoring efficient cash management.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
414.76M	247.42M	227.54M	186.56M	149.21M
	Gross Profit
414.76M	245.83M	227.54M	186.56M	149.21M
	EBIT
-275.69M	129.73M	103.09M	64.56M	36.78M
	EBITDA
0.00	0.00	0.00	0.00	0.00
	Net Income Common Stockholders
65.11M	71.04M	54.26M	52.14M	29.99M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.21B	377.24M	1.04B	1.09B	789.74M
	Total Assets
7.86B	6.58B	5.99B	4.73B	4.16B
	Total Debt
460.63M	616.19M	525.86M	168.47M	84.17M
	Net Debt
141.54M	390.08M	373.12M	100.09M	-64.97M
	Total Liabilities
7.06B	5.94B	5.41B	4.29B	3.75B
	Stockholders Equity
799.47M	644.26M	580.48M	433.37M	409.96M
Cash Flow		Free Cash Flow
61.40M	80.78M	61.80M	52.47M	26.37M
	Operating Cash Flow
61.40M	92.43M	69.58M	56.44M	29.34M
	Investing Cash Flow
-294.91M	-521.14M	-700.52M	-675.35M	-475.30M
	Financing Cash Flow
326.50M	502.08M	715.31M	538.15M	505.72M

Business First Bancshares Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 23.05
• 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 BFST, the sentiment is Negative. The current price of 23.05 is above the 20-day moving average (MA) of 22.63, below the 50-day MA of 24.20, and below the 200-day MA of 25.18, indicating a neutral trend. The MACD of -0.27 indicates Negative momentum. The RSI at 47.79 is Neutral, neither overbought nor oversold. The STOCH value of 53.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BFST.

Business First Bancshares Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ESQ	79 Outperform	$699.14M	15.70	19.66%	0.74%	16.18%	13.78%
MCBS	75 Outperform	$700.35M	10.70	16.05%	3.06%	8.80%	30.31%
MBWM	73 Outperform	$686.92M	8.81	13.55%	3.35%	12.26%	-6.93%
HAFC	73 Outperform	$691.08M	10.73	8.84%	4.41%	5.19%	-10.86%
BFST	66 Neutral	$682.53M	9.48	9.77%	2.39%	18.34%	-4.12%
CPF	65 Neutral	$696.61M	12.01	10.94%	4.04%	4.39%	4.94%
Sector *	63 Neutral	$12.37B	9.56	7.95%	79.17%	12.62%	-5.26%

Business First Bancshares Corporate Events

Business First Bancshares Reports Strong Q1 2025 Results

On April 24, 2025, Business First Bancshares announced its financial results for the first quarter of 2025, reporting a net income of $19.2 million, an increase from the previous quarter. The company highlighted solid earnings, capital growth, and strategic investments in technology and acquisitions, which are expected to enhance service efficiency. The board declared dividends for both preferred and common shareholders, reflecting strong financial performance. Despite a slight decrease in deposits and some credit quality regression, the company saw improvements in net interest margin and noninterest income, driven by successful loan sales and equity investments.

Spark’s Take on BFST Stock

According to Spark, TipRanks’ AI Analyst, BFST is a Neutral.

Business First Bancshares is fundamentally strong, with a solid financial position and promising growth as highlighted in the earnings call. However, current technical indicators suggest caution due to bearish trends. Valuation metrics show the stock is attractively priced, providing a balance between risk and potential return.

To see Spark’s full report on BFST stock, click here.

Business First Bancshares Appoints Alejandro M. Sanchez as Director

On March 27, 2025, Business First Bancshares, Inc. and its subsidiary b1BANK appointed Alejandro M. Sanchez as an independent director. Mr. Sanchez brings extensive experience from his previous roles, including serving as President and CEO of the Florida Bankers Association and as a director for TRUSTCO BANK. His appointment is expected to enhance the strategic direction of Business First, leveraging his expertise in financial regulation and crisis management.