First Business Financial (FBIZ) AI Stock Analysis

• Market Cap: $454.96M
• Dividend Yield: 2.12%
• Average Volume (3M): 53.80K
• Price to Earnings (P/E): 9.9
• Beta (1Y): 0.94
• Revenue Growth: 12.02%
• EPS Growth: 26.09%
• Country: US
• Employees: 354
• Sector: Financial
• Sector Strength: 82
• Industry: Banks - Regional
• EPS (TTM): 1.32
• Shares Outstanding: 8,318,840
• 10 Day Avg. Volume: 69,193
• 30 Day Avg. Volume: 53,796
• PEG Ratio: 1.54
• Price to Book (P/B): 1.14
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.53
• Enterprise Value/Market Cap: 1.13
• Enterprise Value/Revenue: 0.50
• Enterprise Value/Gross Profit: 3.47
• Enterprise Value/Ebitda: 2.40
• 1Y Price Target: $58.25
• Price Target Upside: 6.51% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 73 Outperform
• Price Target: $63.00 ▲(15.19%Upside)

First Business Financial Services demonstrates strong financial performance and attractive valuation, supported by robust earnings growth and strategic initiatives. Technical indicators show bullish momentum but caution is advised due to overbought signals. The positive earnings call further supports the stock's potential, despite some noted challenges.

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 (FBIZ) generates revenue through a diverse range of financial services tailored to meet the needs of small and medium-sized enterprises. The company's primary revenue streams include interest income from loans and leases, fee income from treasury management and asset-based lending services, and gains from the sale of financial products. Additionally, FBIZ benefits from strategic partnerships with other financial institutions, enhancing its product offerings and market reach. The company focuses on building strong client relationships to ensure a stable and recurring revenue base.

First Business Financial Financial Statement Overview

Summary

First Business Financial displays strong financial health across income, balance sheet, and cash flow metrics. The company shows consistent revenue and profit growth, effective equity utilization, and solid cash flow management. However, attention should be given to maintaining operational efficiency and managing investing activities to sustain long-term growth.

Income Statement

The income statement shows a positive trajectory with steady revenue growth over recent years. The latest TTM data indicates a gross profit margin of 113.07% and a net profit margin of 29.79%, both reflecting strong profitability. Additionally, there is a notable revenue growth rate of 8.57% from 2023 to 2024. However, the EBIT margin stands at 25.83%, showing a slight decline from previous periods, requiring attention to operational efficiency.

Balance Sheet

The balance sheet reveals a stable financial position, indicated by a decreasing debt-to-equity ratio from 1.64 in 2020 to 0.52 in the latest TTM, emphasizing improved financial leverage. The equity ratio remains healthy at 8.52%, showcasing solid equity backing. Return on Equity (ROE) is also robust at 13.86%, demonstrating effective equity utilization. However, caution is advised due to the overall low equity ratio, which could pose risks during economic downturns.

Cash Flow

Cash flow analysis shows consistent operating cash flows, with a recent increase in free cash flow growth to 5.11% year-over-year. The operating cash flow to net income ratio of 1.29 indicates strong cash generation relative to earnings. Additionally, the free cash flow to net income ratio is 1.29, reflecting efficient cash management. However, significant negative investing cash flows may warrant further analysis.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	266.95M	262.38M	226.24M	150.80M	124.09M	118.72M
Gross Profit	148.87M	144.63M	135.71M	131.72M	118.56M	84.81M
EBITDA	57.83M	54.89M	50.77M	56.31M	50.58M	21.77M
Net Income	46.57M	44.24M	37.03M	40.86M	35.76M	16.98M
Balance Sheet
Total Assets	3.94B	3.85B	3.51B	2.98B	2.65B	2.57B
Cash, Cash Equivalents and Short-Term Investments	530.01M	499.09M	436.52M	314.71M	262.81M	240.83M
Total Debt	294.19M	327.98M	339.87M	466.98M	418.93M	435.62M
Total Liabilities	3.61B	3.52B	3.22B	2.72B	2.42B	2.36B
Stockholders Equity	336.06M	328.59M	289.59M	260.64M	232.42M	206.16M
Cash Flow
Free Cash Flow	60.20M	57.27M	49.41M	35.42M	35.60M	26.37M
Operating Cash Flow	60.11M	57.49M	52.29M	38.65M	35.99M	26.64M
Investing Cash Flow	-343.17M	-328.47M	-506.85M	-245.27M	-111.01M	-454.51M
Financing Cash Flow	381.64M	289.17M	491.38M	252.19M	75.22M	417.68M

First Business Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 54.69
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 54.69 is above the 20-day moving average (MA) of 49.64, above the 50-day MA of 48.87, and above the 200-day MA of 47.57, indicating a bullish trend. The MACD of 1.38 indicates Negative momentum. The RSI at 69.24 is Neutral, neither overbought nor oversold. The STOCH value of 90.62 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
TCBX	79 Outperform	$491.22M	13.29	11.27%	―	15.07%	53.76%
GCBC	77 Outperform	$422.78M	14.82	13.33%	1.45%	14.44%	16.49%
FBIZ	73 Outperform	$454.96M	9.94	14.36%	2.12%	12.02%	26.09%
NRIM	73 Outperform	$546.90M	13.15	16.22%	2.58%	23.96%	47.39%
Sector *	67 Neutral	$17.07B	11.91	9.69%	3.75%	11.66%	-9.47%
COFS	67 Neutral	$452.67M	25.09	2.27%	3.71%	24.39%	-56.57%
FFIC	52 Neutral	$429.98M	16.43	-6.53%	6.91%	-5.55%	-242.39%

First Business Financial Corporate Events

First Business Financial Expands Board, Appoints New Director

On May 1, 2025, First Business Financial Services, Inc. expanded its Board of Directors from seven to eight members and appointed Jason R. Graham as a Class II Director. Mr. Graham, a seasoned financial executive with a strong background in financial strategy and capital allocation, was also appointed to the Audit Committee. His extensive experience in financial leadership roles at various companies is expected to contribute significantly to the company’s strategic growth and shareholder value creation.

First Business Financial Announces CEO Retirement Plan

On May 5, 2025, First Business Financial Services, Inc. announced that its CEO, Corey Chambas, will retire on May 2, 2026, with President and COO Dave Seiler set to succeed him. Chambas, who has been with the company since 1993 and CEO since 2006, will remain on the board of directors. The transition is expected to be smooth, with Seiler’s extensive experience in the banking industry and his alignment with the company’s culture and strategic vision. This leadership change is seen as a continuation of the company’s growth and commitment to its stakeholders.

First Business Financial Highlights Strong Q1 2025 Performance

On April 30, 2025, First Business Financial Services, Inc. released an investor presentation highlighting its strong first-quarter performance for 2025. The company reported a 14% growth in tangible book value, driven by robust loan and deposit growth, and stable asset quality. Private wealth management assets reached a record $3.425 billion, with fee income increasing by 12.2% compared to the previous year. The company’s strategic plan aims to build long-term shareholder value by focusing on deposit efficiency, profitability, and operational excellence. Despite challenges in the banking sector, First Business Financial Services maintains a strong market position with a focus on sustainable growth and profitability.

First Business Financial Declares Quarterly Cash Dividend

On April 25, 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 dividend as in January 2025. This dividend, representing a yield of 2.42% and a payout ratio of 22% based on first quarter earnings, will be payable on May 23, 2025, to shareholders of record on May 9, 2025. Additionally, a dividend of $17.50 per share was declared on its 7% Series A Preferred Stock, payable on June 16, 2025, to shareholders of record on May 30, 2025.

First Business Financial Reports Q1 2025 Net Income

On April 24, 2025, First Business Financial Services, Inc. reported a net income of $11.0 million for the first quarter of 2025, reflecting a decrease from the previous quarter but an increase from the same quarter in 2024. The company experienced robust growth in loans and deposits, with loans increasing by 9% and core deposits by 11%. This growth contributed to a 14% expansion in tangible book value from the prior year. The company maintained a strong net interest margin and saw a significant increase in operating revenue, driven by loan growth and a rise in fee income. Private wealth management also expanded, with assets under management reaching a record $3.425 billion. The company’s strategic focus on consistent underwriting and operational efficiency positions it for continued growth, aiming for 10% annual growth in loans, deposits, and revenue.