First Business Financial (FBIZ) AI Stock Analysis

• Market Cap: $427.08M
• Dividend Yield: 2.13%
• Average Volume (3M): 27.62K
• Price to Earnings (P/E): 9.1
• Beta (1Y): 0.89
• Revenue Growth: 8.45%
• EPS Growth: 21.74%
• Country: US
• Employees: 354
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.35
• Shares Outstanding: 8,323,470
• 10 Day Avg. Volume: 21,534
• 30 Day Avg. Volume: 27,619
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.37
• Enterprise Value/Revenue: 2.17
• Enterprise Value/Gross Profit: 3.89
• Enterprise Value/Ebitda: 9.98
• 1Y Price Target: $57.50
• Price Target Upside: 9.15% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 76 Outperform
• Price Target: $56.00 ▲(6.30% Upside)

First Business Financial exhibits strong financial performance with robust profitability and attractive valuation metrics. The earnings call provided positive insights into growth areas, although some risks were identified. Technical indicators suggest neutral momentum, which slightly tempers the overall score.

First Business Financial Business Overview & Revenue Model

Company Description

First Business Financial Services, Inc. operates as the bank holding company for First Business Bank that provides commercial banking products and services for small and medium-sized businesses, business owners, executives, professionals, and high net worth individuals. The company offers deposit products, such as non-interest-bearing transaction accounts, interest-bearing transaction accounts, money market accounts, time deposits, and certificates of deposit, as well as credit cards. It also provides loan products, including commercial real estate loans, commercial and industrial loans, small business administration loans, and direct financing leases, as well as consumer and other loans comprising home equity, first and second mortgage, and other personal loans for professional and executive clients. The company offers commercial lending, asset-based lending, equipment financing, accounts receivable financing, vendor financing, floorplan financing, treasury management services, and company retirement plans; trust and estate administration, financial planning, investment management, and private banking services; and investment portfolio administrative, asset-liability management, and asset-liability management process validation services for other financial institutions. First Business Financial Services, Inc. was founded in 1909 and is headquartered in Madison, Wisconsin.

How the Company Makes Money

First Business Financial generates revenue through multiple streams, primarily from interest income on loans and investment portfolios. The company offers various loan products, including commercial loans, real estate financing, and consumer loans, which contribute significantly to its interest earnings. Additionally, FBIZ earns fees from its wealth management and investment advisory services, including asset management fees and commissions on investment products. The bank also generates income through service fees associated with deposit accounts and transaction services. Strategic partnerships with other financial institutions and service providers enhance its product offerings, thereby increasing customer acquisition and retention, which further bolsters its earnings.

First Business Financial Financial Statement Overview

Summary

First Business Financial shows strong revenue growth and profitability with a robust net profit margin of 17.6% and a healthy return on equity of 14.4%. However, the low equity ratio of 8.6% and slight decline in gross profit margin indicate potential risks in cost efficiency and market volatility.

Income Statement

First Business Financial has demonstrated strong revenue growth with a TTM increase of 1.2% and consistent profitability, as evidenced by a net profit margin of 17.6% and an EBIT margin of 20.4%. The gross profit margin remains robust at 55.9%, indicating effective cost management. However, the slight decline in gross profit margin over time suggests potential pressure on cost efficiency.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio of 0.82, indicating a balanced approach to leveraging. Return on equity is healthy at 14.4%, reflecting efficient use of equity capital. However, the equity ratio of 8.6% suggests a relatively low proportion of equity financing, which could pose risks in volatile markets.

Cash Flow

Cash flow analysis reveals a positive trajectory with a 4.8% growth in free cash flow. The operating cash flow to net income ratio is low at 1.9%, suggesting potential room for improvement in cash generation relative to earnings. The free cash flow to net income ratio of 1.0 indicates that the company is effectively converting its earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	270.15M	262.38M	226.24M	150.80M	124.09M	118.72M
Gross Profit	150.95M	144.63M	135.71M	131.72M	118.56M	84.81M
EBITDA	58.80M	54.89M	50.77M	56.31M	50.58M	21.77M
Net Income	47.53M	44.24M	37.03M	40.86M	35.76M	16.98M
Balance Sheet
Total Assets	4.00B	3.85B	3.51B	2.98B	2.65B	2.57B
Cash, Cash Equivalents and Short-Term Investments	505.57M	499.09M	436.52M	314.71M	262.81M	240.83M
Total Debt	284.02M	327.98M	339.87M	466.98M	418.93M	435.62M
Total Liabilities	3.66B	3.52B	3.22B	2.72B	2.42B	2.36B
Stockholders Equity	344.80M	328.59M	289.59M	260.64M	232.42M	206.16M
Cash Flow
Free Cash Flow	63.07M	57.27M	49.41M	35.42M	35.60M	26.37M
Operating Cash Flow	62.90M	57.49M	52.29M	38.65M	35.99M	26.64M
Investing Cash Flow	-377.97M	-328.47M	-506.85M	-245.27M	-111.01M	-454.51M
Financing Cash Flow	357.19M	289.17M	491.38M	252.19M	75.22M	417.68M

First Business Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 52.68
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 52.68 is above the 20-day moving average (MA) of 51.85, above the 50-day MA of 50.67, and above the 200-day MA of 48.80, indicating a bullish trend. The MACD of 0.48 indicates Positive momentum. The RSI at 59.36 is Neutral, neither overbought nor oversold. The STOCH value of 41.18 is Neutral, 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
TCBX	79 Outperform	554.45M	13.66	11.46%	―	10.44%	62.82%
NRIM	78 Outperform	494.17M	11.17	15.46%	2.74%	27.34%	39.43%
FBIZ	76 Outperform	$427.08M	9.13	14.31%	2.13%	8.45%	21.74%
GCBC	75 Outperform	398.09M	12.78	0.00%	1.50%	13.07%	25.72%
COFS	65 Neutral	448.65M	24.09	3.27%	3.69%	38.01%	-58.08%
FFIC	64 Neutral	470.87M	-12.08	-5.09%	6.12%	-7.00%	-233.54%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

First Business Financial Corporate Events

First Business Financial Declares Quarterly Cash Dividend

On July 31, 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 the previous quarter. This dividend represents a yield of 2.43% and a payout ratio of 21% based on second quarter 2025 earnings. Additionally, a dividend of $17.50 per share was declared on its 7% Series A Preferred Stock. These dividends reflect the company’s stable financial performance and commitment to returning value to its shareholders.

First Business Financial Reports Strong First Half 2025

On July 29, 2025, First Business Financial Services, Inc. released an investor presentation detailing its recent operating performance and financial condition. 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. Key highlights include a record $3.731 billion in private wealth management assets, an 8.4% annualized loan growth, and an 11.4% increase in core deposits. The company’s strategic plan aims to build long-term shareholder value by focusing on deposit efficiency, profitability, and operational excellence, while maintaining a strong culture and fostering innovative client relationships.

First Business Financial Reports Strong Q2 2025 Performance

On July 24, 2025, First Business Financial Services, Inc. reported a strong financial performance for the second quarter of 2025, with a net income of $11.2 million, reflecting growth in loans, deposits, and private wealth management. The company achieved significant growth in operating revenue and net income, supported by an effective relationship-based growth strategy and operational efficiency, contributing to a 14% increase in tangible book value from the previous year.