First Financial Bankshares (FFIN) AI Stock Analysis

• Market Cap: $5.00B
• Dividend Yield: 2.06%
• Average Volume (3M): 477.10K
• Price to Earnings (P/E): 22.4
• Beta (1Y): 1.30
• Revenue Growth: 18.54%
• EPS Growth: 12.22%
• Country: US
• Employees: 1,500
• Sector: Financial
• Sector Strength: 77
• Industry: Banking
• EPS (TTM): 1.56
• Shares Outstanding: 142,977,400
• 10 Day Avg. Volume: 586,983
• 30 Day Avg. Volume: 477,095
• PEG Ratio: 1.83
• Price to Book (P/B): N/A
• Price to Sales (P/S): 9.32
• Price to Cash Flow (P/CF): 14.80
• P/FCF Ratio: 9.90
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $41.00
• Price Target Upside: 16.98% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

First Financial Bankshares scores 60.6, driven by strong financial performance with robust revenue growth and a solid balance sheet. However, technical analysis indicates bearish momentum, and the valuation suggests the stock may be overvalued relative to peers. Investors should monitor cash flow improvements and margin enhancements to mitigate risks.

First Financial Bankshares Business Overview & Revenue Model

Company Description

First Financial Bankshares, Inc. is a bank holding company, which engages in the provision of financial and community banking services. It offers mortgage loans, savings and checking accounts, auto and equity loans, online and mobile banking, investment and trust management, and retirement plans. The company was founded in 1956 and is headquartered in Abilene, TX.

How the Company Makes Money

First Financial Bankshares generates revenue primarily through interest income from loans and securities, as well as non-interest income from fees and service charges. Interest income is derived from the interest charged on various loan products, including commercial, consumer, and real estate loans. Additionally, the company earns interest on its investment portfolio, which consists of government and agency securities. Non-interest income is generated from services such as trust and wealth management, insurance, and other financial services. These revenue streams are complemented by strategic partnerships and an extensive branch network, enabling the company to maintain a strong presence and customer relationships in its regional markets.

First Financial Bankshares Financial Statement Overview

Summary

First Financial Bankshares exhibits strong revenue growth and solid net income performance, reflecting effective cost management. The balance sheet is robust, with no debt and substantial cash reserves, providing stability. However, declining operating cash flow and lower operating margins pose potential risks.

Income Statement

First Financial Bankshares has shown strong revenue growth, with a significant increase from $478 million in 2023 to $628 million in 2024. The gross profit margin remains robust at 100%, indicating efficient cost management. However, the EBIT margin has decreased significantly from previous years, impacting overall profitability. Net income has grown, resulting in an improved net profit margin, highlighting effective bottom-line management despite lower operating margins.

Balance Sheet

The company maintains a strong balance sheet with no total debt in 2024, highlighting financial stability. The equity ratio is solid, and the return on equity is healthy, driven by increased net income. The substantial cash reserves bolster financial resilience. However, the decrease in stockholders' equity from previous years should be monitored.

Cash Flow

Operating cash flow has declined significantly from 2023 to 2024, which could constrain future investments. Free cash flow remained positive, but its growth rate has slowed. The operating cash flow to net income ratio indicates a weaker cash conversion efficiency. Despite this, the company has managed its free cash flow effectively with no capital expenditure, maintaining liquidity.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
537.04M	478.05M	520.85M	500.57M	478.58M
	Gross Profit
628.92M	478.05M	520.85M	500.57M	478.58M
	EBIT
3.74M	0.00	313.87M	271.97M	242.37M
	EBITDA
0.00	0.00	293.64M	285.03M	263.08M
	Net Income Common Stockholders
223.51M	198.98M	234.47M	227.56M	202.03M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.88B	5.01B	5.81B	7.10B	5.12B
	Total Assets
13.98B	13.11B	12.97B	13.10B	10.90B
	Total Debt
121.05M	21.05M	642.51M	671.15M	430.09M
	Net Debt
-260.00M	-515.54M	311.83M	142.56M	-298.99M
	Total Liabilities
12.37B	11.61B	11.71B	671.15M	430.09M
	Stockholders Equity
1.61B	1.50B	1.27B	1.76B	1.68B
Cash Flow		Free Cash Flow
51.74M	267.57M	308.16M	334.03M	194.22M
	Operating Cash Flow
51.74M	284.82M	323.94M	353.23M	210.67M
	Investing Cash Flow
-717.00K	127.29M	-838.00M	-2.61B	-1.26B
	Financing Cash Flow
-99.75M	-206.20M	315.82M	2.06B	1.50B

First Financial Bankshares Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 35.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FFIN, the sentiment is Negative. The current price of 35.05 is below the 20-day moving average (MA) of 36.82, below the 50-day MA of 36.88, and below the 200-day MA of 35.79, indicating a bearish trend. The MACD of -0.51 indicates Positive momentum. The RSI at 32.51 is Neutral, neither overbought nor oversold. The STOCH value of 8.65 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FFIN.

First Financial Bankshares Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CFR	76 Outperform	$7.83B	13.75	15.13%	3.09%	7.81%	-2.49%
HOMB	76 Outperform	$5.50B	13.77	10.38%	2.76%	8.83%	3.77%
PB	70 Outperform	$6.73B	14.00	6.60%	3.20%	11.96%	11.66%
BOKF	68 Neutral	$6.35B	12.15	9.70%	2.27%	11.17%	1.47%
TCBI	66 Neutral	$3.27B	56.71	2.36%	―	8.15%	-64.06%
Sector *	64 Neutral	$13.79B	10.52	9.20%	4.24%	17.25%	-7.60%
FFIN	61 Neutral	$5.00B	22.42	14.39%	2.06%	18.54%	12.22%

First Financial Bankshares Corporate Events

David Bailey Named President of First Financial Bankshares

First Financial Bankshares, Inc. has appointed David Bailey as President, effective January 1, 2025, succeeding F. Scott Dueser who remains CEO and Chairman. Bailey, age 41, brings extensive experience from his roles as Executive Vice President and Chief Banking Officer since March 2024, and has no family or financial ties affecting his appointment.