First Financial Bankshares (FFIN) AI Stock Analysis

• Market Cap: $4.10B
• Dividend Yield: 2.42%
• Average Volume (3M): 773.17K
• Price to Earnings (P/E): 16.9
• Beta (1Y): 0.82
• Revenue Growth: 12.90%
• EPS Growth: 16.92%
• Country: US
• Employees: 1,400
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.51
• Shares Outstanding: 143,228,600
• 10 Day Avg. Volume: 1,144,798
• 30 Day Avg. Volume: 773,175
• PEG Ratio: 1.20
• Price to Book (P/B): 2.23
• Price to Sales (P/S): 5.18
• P/FCF Ratio: 13.92
• Enterprise Value/Market Cap: 0.74
• Enterprise Value/Revenue: 3.69
• Enterprise Value/Gross Profit: 5.14
• Enterprise Value/Ebitda: 9.52
• 1Y Price Target: $36.00
• Price Target Upside: 25.65% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): 1.99
• Revenue Forecast (FY): $689.54M

• Rating: 73 Outperform
• Price Target: $32.00 ▲(11.69% Upside)
• Action: Reiterated Date: 02/26/26
• Date: Action: Reiterated 02/26/26

The score is driven primarily by strong financial performance—especially the significantly strengthened balance sheet and steady profitability—tempered by margin/ROE normalization and uneven cash-flow growth. Technical signals are neutral-to-soft, while valuation is reasonable with a moderate P/E and a solid dividend yield. The CEO succession plan adds a modest positive for continuity.

Positive Factors

Balance-sheet conservatism

Material deleveraging and rising equity strengthen capital flexibility and loss-absorbing capacity. A near-zero debt-to-equity reduces refinancing and liquidity risk, supporting sustainable lending capacity and regulatory resilience across a 2–6 month horizon and beyond for core banking operations.

Consistent revenue and margins

Sustained top-line growth paired with healthy EBIT/net margins indicates durable profitability from core lending and fee activities. Such margin levels provide operating cushion to withstand moderate adverse rate or credit cycles while funding investment and dividend priorities.

Planned internal CEO succession

An organized handover to a 22-year internal executive preserves institutional knowledge and strategic continuity. Maintaining the former CEO as Executive Chairman through 2028 reduces execution risk, aiding consistent strategic delivery and client/employee relationships over the medium term.

Negative Factors

Margin compression versus peak years

A meaningful decline from earlier peak margins suggests structural pressures in earnings mix, pricing, or expense/credit normalization. Persistently lower margins could constrain incremental profitability and limit reinvestment or ROE recovery absent strategic shifts or efficiency gains.

Eased return on equity

Lower ROE signals reduced efficiency in converting equity into earnings, which can pressure shareholder returns and strategic options. If ROE remains subdued, management may face trade-offs between growth, capital build, and dividend policy over the medium term.

Uneven cash-flow growth and scale coverage

While cash conversion improved recently, prior negative free cash flow years and relatively modest OCF versus balance-sheet size signal volatility in cash generation. This unevenness can constrain consistent capital deployment or buffer capacity during credit stress periods.

First Financial Bankshares Business Overview & Revenue Model

Company Description

First Financial Bankshares, Inc., through its subsidiaries, provides commercial banking products and services in Texas. The company accepts checking, savings and money market accounts, and time deposits; commercial and industrial, municipal, agricultural, construction and development, farm, non-owner occupied and owner-occupied commercial real estate, residential, and consumer auto and non-auto loans to businesses, professional individuals, and farm and ranch operations. It also provides drive-in and night deposit, remote deposit capture, internet and mobile banking, payroll cards, transmitting funds, and other customary commercial banking services, as well as automated teller machines and safe deposit facilities. In addition, the company offers personal trust services, including wealth management, administration of estates, testamentary trusts, revocable and irrevocable trusts, and agency accounts; and securities brokerage services, as well as administer retirements and employee benefits accounts, such as 401(k) profit-sharing plans and IRAs. Further, the company provides asset management and technology services. As of December 31, 2021, it had 78 financial centers across Texas. First Financial Bankshares, Inc. was founded in 1890 and is headquartered in Abilene, Texas.

How the Company Makes Money

FFIN makes money primarily through traditional banking activities conducted by its bank subsidiary. The largest revenue driver is typically net interest income: the bank earns interest and fees on loans (e.g., commercial loans, real estate loans, consumer loans) and on interest-earning securities, and pays interest on deposits and other funding sources; the spread between these (net interest margin) generates earnings. A second major contributor is noninterest income (fees and service charges) from banking services such as deposit account service charges and other customer-related fees; additional noninterest income may come from other banking-related sources, but specific line-item details beyond broadly described bank fees are not available here and are therefore null. The company’s profitability is influenced by loan and deposit growth, credit performance (provision for credit losses), the level and shape of interest rates (which affects pricing on loans, deposits, and securities), and operating efficiency (noninterest expense). Significant partnerships specifically driving earnings are not available here and are therefore null.

First Financial Bankshares Financial Statement Overview

Summary

Strong overall fundamentals: steady revenue growth and solid profitability (2025 net margin ~30.7%, EBIT margin ~37.5%). Balance sheet is a key strength with sharply improved leverage (debt-to-equity ~0.01 in 2025) and rising equity, though ROE has eased (~13% in 2025 vs. higher in prior years) and margins have compressed from 2021–2022 peaks. Cash flow is reliable and tracks earnings, but growth has been uneven.

Income Statement

Revenue has grown steadily from 2020 to 2025 (annual growth positive each year, accelerating to 2.85% in 2025), and profitability remains strong with a 2025 net margin of ~30.7% and EBIT margin of ~37.5%. The main weakness is margin compression versus 2021–2022 (net margin down from ~45%–43% to ~31% in 2025), indicating a less favorable earnings mix or cost/credit normalization despite continued top-line growth.

Balance Sheet

Leverage has improved materially, with debt-to-equity declining from ~0.51 (2022) to ~0.01 (2025) alongside rising equity ($1.92B in 2025 vs. $1.61B in 2024) and a larger asset base ($15.45B in 2025). Returns are solid but not expanding, with return on equity around ~13% in 2025 (down from ~13.9% in 2024 and ~18.5% in 2022), suggesting improved balance-sheet conservatism but slightly lower efficiency in converting equity into earnings.

Cash Flow

Cash generation is consistent, with operating cash flow of ~$299M in 2025 and free cash flow matching operating cash flow, and free cash flow closely tracking earnings (free cash flow to net income ~1.0 in 2025 and ~0.94–0.95 in prior years). Weaknesses include uneven free cash flow growth (negative in 2022–2023 before recovering in 2024–2025) and a low operating cash flow figure relative to the company’s overall balance-sheet scale (as reflected by the provided coverage ratio remaining around ~2–3%).

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	825.80M	739.21M	622.31M	551.27M	505.62M
Gross Profit	593.11M	523.22M	467.42M	502.40M	500.72M
EBITDA	319.94M	285.27M	255.88M	293.64M	285.03M
Net Income	253.59M	223.51M	198.98M	234.47M	227.56M
Balance Sheet
Total Assets	15.45B	13.98B	13.11B	12.97B	13.10B
Cash, Cash Equivalents and Short-Term Investments	1.08B	1.05B	5.27B	5.81B	7.10B
Total Debt	21.68M	197.02M	404.08M	642.51M	671.15M
Total Liabilities	13.53B	12.37B	11.61B	11.71B	11.34B
Stockholders Equity	1.92B	1.61B	1.50B	1.27B	1.76B
Cash Flow
Free Cash Flow	307.14M	292.92M	267.57M	308.49M	335.95M
Operating Cash Flow	320.58M	309.64M	284.82M	324.27M	355.15M
Investing Cash Flow	-1.04B	-736.88M	127.29M	-838.00M	-2.61B
Financing Cash Flow	1.03B	654.06M	-206.20M	315.82M	2.06B

First Financial Bankshares Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 28.65
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 28.65 is below the 20-day moving average (MA) of 30.47, below the 50-day MA of 31.74, and below the 200-day MA of 33.02, indicating a bearish trend. The MACD of -0.89 indicates Positive momentum. The RSI at 29.46 is Positive, neither overbought nor oversold. The STOCH value of 17.56 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
AX	78 Outperform	$4.71B	9.54	16.59%	―	1.66%	-9.31%
FFIN	73 Outperform	$4.10B	16.86	14.16%	2.42%	12.90%	16.92%
ABCB	71 Outperform	$5.07B	12.33	10.41%	1.02%	2.20%	20.88%
HWC	70 Outperform	$5.00B	10.54	11.06%	2.74%	-0.78%	25.39%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
AUB	63 Neutral	$4.87B	11.17	6.10%	3.83%	43.53%	-21.74%
UBSI	61 Neutral	$5.50B	11.61	8.60%	3.77%	8.83%	15.49%

First Financial Bankshares Corporate Events

First Financial Bankshares Announces CEO Transition and Succession

On January 27–28, 2026, First Financial Bankshares, Inc. and its subsidiary First Financial Bank announced a planned leadership transition under which David Bailey, a 22-year company veteran who has risen from teller to senior executive roles, will become President and Chief Executive Officer of both entities effective February 1, 2026. He succeeds longtime CEO F. Scott Dueser, who, under a transition and retirement agreement signed January 27, 2026, will step down as CEO on February 1 and continue as Executive Chairman in an advisory capacity through the company’s 2028 annual meeting, with a stepped-down compensation structure and continued participation in key benefit and equity programs. The structured handover, with Dueser remaining on the board and active in governance, signals an emphasis on continuity, internal succession planning, and stable leadership for stakeholders as the Texas-focused banking group navigates its next phase of growth.

The most recent analyst rating on (FFIN) stock is a Hold with a $36.00 price target. To see the full list of analyst forecasts on First Financial Bankshares stock, see the FFIN Stock Forecast page.