First Business Financial (FBIZ) AI Stock Analysis

• Market Cap: $479.39M
• Dividend Yield: 2.01%
• Average Volume (3M): 25.29K
• Price to Earnings (P/E): 9.5
• Beta (1Y): 0.74
• Revenue Growth: 8.21%
• EPS Growth: 29.65%
• Country: US
• Employees: 354
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.70
• Shares Outstanding: 8,324,258
• 10 Day Avg. Volume: 17,199
• 30 Day Avg. Volume: 25,287
• PEG Ratio: 0.42
• Price to Book (P/B): 1.15
• Price to Sales (P/S): 1.44
• P/FCF Ratio: 6.59
• Enterprise Value/Market Cap: 1.38
• Enterprise Value/Revenue: 2.39
• Enterprise Value/Gross Profit: 4.19
• Enterprise Value/Ebitda: 10.45
• 1Y Price Target: $61.00
• Price Target Upside: 5.23% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: $61.00 ▲(5.23% Upside)

First Business Financial Services exhibits strong financial performance with robust profitability and effective leverage management. Technical indicators show positive momentum, though caution is advised due to potential overbought conditions. The valuation is attractive with a low P/E ratio. The earnings call reinforced confidence with positive growth and strategic positioning, despite minor concerns about nonrecurring income and external uncertainties.

Positive Factors

Strong Loan and Deposit Growth

The consistent growth in loans and deposits indicates a strong demand for the company's financial products, enhancing its market position and revenue base.

Record Fee Income

Record fee income diversification strengthens revenue streams and reduces reliance on interest income, improving financial resilience.

Improved Asset Quality

Improved asset quality reduces credit risk and potential losses, enhancing the company's stability and long-term profitability.

Negative Factors

Low Gross Profit Margin

A low gross profit margin indicates potential cost management issues, which could hinder profitability if not addressed.

Nonrecurring Income Items

Reliance on nonrecurring income can lead to volatility in earnings, affecting predictability and long-term financial planning.

Government Shutdown Uncertainty

Uncertainty from government shutdowns can disrupt operations and delay revenue from SBA loans, impacting financial performance.

First Business Financial Business Overview & Revenue Model

Company Description

First Business Financial (FBIZ) is a financial services company that focuses on providing a range of banking and financial solutions primarily to small and medium-sized businesses, as well as individual customers. The company operates in the banking sector, offering products such as commercial loans, personal loans, deposit accounts, and treasury management services. FBIZ aims to foster growth in its local communities by delivering tailored financial products and services that cater to the specific needs of its clients.

How the Company Makes Money

First Business Financial generates revenue primarily through interest income from loans, which includes commercial and personal loans offered to businesses and consumers. Additionally, the company earns revenue from fees associated with its deposit accounts and treasury management services, which are charged for account maintenance and transaction processing. Investment income from its securities portfolio also contributes to revenue. Key partnerships with local businesses and community organizations enhance its outreach and customer base, while a strong focus on customer service and tailored financial solutions helps to retain clients and drive growth.

First Business Financial Financial Statement Overview

Summary

First Business Financial demonstrates strong profitability and improving leverage, with consistent revenue growth. Effective expense management and cash generation are evident, though the low gross profit margin and missing equity ratio data suggest areas for improvement.

Income Statement

First Business Financial shows a solid revenue growth trajectory with a TTM revenue growth rate of 2.59%. The gross profit margin is relatively low at 15.22% for TTM, indicating potential cost management issues. However, the net profit margin of 20.34% suggests effective control over expenses. EBIT and EBITDA margins are healthy, reflecting strong operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.77 in TTM from higher levels in previous years, indicating better leverage management. Return on equity is strong at 15.03%, showcasing effective use of equity to generate profits. However, the equity ratio is not provided, which limits a full assessment of financial stability.

Cash Flow

Free cash flow growth is positive at 6.11% in TTM, indicating improved cash generation. The free cash flow to net income ratio is nearly 1, suggesting that net income is effectively translating into cash. However, the operating cash flow to net income ratio is not available, limiting a complete cash flow analysis.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	277.15M	262.38M	226.24M	150.80M	124.09M	118.72M
Gross Profit	158.05M	144.63M	135.71M	131.72M	118.56M	84.81M
EBITDA	63.35M	54.89M	50.77M	56.31M	50.58M	21.77M
Net Income	51.40M	44.24M	37.03M	40.86M	35.76M	16.98M
Balance Sheet
Total Assets	4.03B	3.85B	3.51B	2.98B	2.65B	2.57B
Cash, Cash Equivalents and Short-Term Investments	45.82M	499.09M	436.52M	314.71M	262.81M	240.83M
Total Debt	274.36M	327.98M	339.87M	466.98M	418.93M	435.62M
Total Liabilities	3.68B	3.52B	3.22B	2.72B	2.42B	2.36B
Stockholders Equity	358.32M	328.59M	289.59M	260.64M	232.42M	206.16M
Cash Flow
Free Cash Flow	66.92M	57.27M	49.41M	35.42M	35.60M	26.37M
Operating Cash Flow	67.52M	57.49M	52.29M	38.65M	35.99M	26.64M
Investing Cash Flow	-424.38M	-328.47M	-506.85M	-245.27M	-111.01M	-454.51M
Financing Cash Flow	269.24M	289.17M	491.38M	252.19M	75.22M	417.68M

First Business Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 57.97
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FBIZ, the sentiment is Positive. The current price of 57.97 is above the 20-day moving average (MA) of 54.45, above the 50-day MA of 51.88, and above the 200-day MA of 49.59, indicating a bullish trend. The MACD of 1.78 indicates Negative momentum. The RSI at 73.68 is Negative, neither overbought nor oversold. The STOCH value of 86.55 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FBIZ.

First Business Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RRBI	78 Outperform	$500.39M	12.30	12.03%	0.73%	7.81%	26.91%
FBIZ	76 Outperform	$479.39M	9.47	15.02%	2.01%	8.21%	29.65%
CARE	75 Outperform	$444.39M	15.13	7.71%	―	6.62%	117.46%
HBCP	75 Outperform	$478.14M	10.87	10.86%	1.86%	6.25%	24.92%
KRNY	71 Outperform	$505.61M	16.63	3.92%	5.64%	4.38%	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
COFS	67 Neutral	$478.51M	23.38	6.16%	3.55%	50.36%	-56.64%

First Business Financial Corporate Events

First Business Financial Releases Investor Presentation

On November 10, 2025, First Business Financial Services, Inc. released an investor presentation detailing its recent financial performance and strategic plans. The company reported an 18% growth in pre-tax, pre-provision earnings and a 17% increase in net income for the first half of 2025 compared to the previous year. Notable achievements include a record $3.731 billion in private wealth management assets, 8.4% annualized loan growth, and an 11.4% increase in core deposits. The presentation also highlighted the company’s strategic goals for 2024-2028, focusing on sustainable profitability, operational excellence, and enhancing shareholder value.

First Business Financial Declares Quarterly Dividend

On November 6, 2025, First Business Financial Services, Inc. announced that its Board of Directors declared a quarterly cash dividend of $0.29 per share on its common stock, maintaining the same rate as in July 2025. The dividend, representing a 2.29% yield and a 17% payout ratio based on third-quarter earnings, will be payable on December 3, 2025. Additionally, a dividend of $17.50 per share on the 7% Series A Preferred Stock was declared, payable on December 15, 2025. This announcement reflects the company’s continued commitment to returning value to shareholders.

First Business Financial Reports Strong Q3 Earnings

On October 30, 2025, First Business Bank reported a third-quarter net income of $14.2 million, reflecting a significant increase from the previous quarter and year. The company achieved this through robust loan and deposit growth, record fee income, and improved asset quality, which led to a 13% year-to-date revenue increase and a 16% expansion in tangible book value. The bank’s effective strategies resulted in a stable net interest margin and substantial shareholder value growth, highlighting its strong financial performance and strategic positioning in the industry.