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First Financial Bankshares (FFIN)
NASDAQ:FFIN

First Financial Bankshares (FFIN) AI Stock Analysis

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First Financial Bankshares

(NASDAQ:FFIN)

67Neutral
First Financial Bankshares demonstrates strong financial performance with solid revenue growth and a robust balance sheet. However, declining operating cash flow and negative technical indicators present challenges. The stock is fairly valued, supported by a moderate dividend yield. Recent corporate events signal confidence in leadership, but potential risks in cash flow and market momentum warrant a cautious investment approach.

First Financial Bankshares (FFIN) vs. S&P 500 (SPY)

First Financial Bankshares Business Overview & Revenue Model

Company DescriptionFirst Financial Bankshares, Inc. (FFIN) is a financial holding company headquartered in Abilene, Texas. It operates through its subsidiary, First Financial Bank, which provides a wide range of banking products and services across various sectors including commercial banking, consumer banking, and mortgage lending. The company primarily serves individuals, businesses, and professionals in its regional markets across Texas.
How the Company Makes MoneyFirst 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. Continued focus on improving cash flow efficiency and operational profitability will be essential for sustaining growth and financial health.
Income Statement
75
Positive
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
80
Positive
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
65
Positive
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 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
537.04M478.05M520.85M500.57M478.58M
Gross Profit
628.92M478.05M520.85M500.57M478.58M
EBIT
3.74M0.00313.87M271.97M242.37M
EBITDA
0.000.00293.64M285.03M263.08M
Net Income Common Stockholders
223.51M198.98M234.47M227.56M202.03M
Balance SheetCash, Cash Equivalents and Short-Term Investments
4.88B5.01B5.81B7.10B5.12B
Total Assets
13.98B13.11B12.97B13.10B10.90B
Total Debt
121.05M21.05M642.51M671.15M430.09M
Net Debt
-260.00M-515.54M311.83M142.56M-298.99M
Total Liabilities
12.37B11.61B11.71B671.15M430.09M
Stockholders Equity
1.61B1.50B1.27B1.76B1.68B
Cash FlowFree Cash Flow
51.74M267.57M308.16M334.03M194.22M
Operating Cash Flow
51.74M284.82M323.94M353.23M210.67M
Investing Cash Flow
-717.00K127.29M-838.00M-2.61B-1.26B
Financing Cash Flow
-99.75M-206.20M315.82M2.06B1.50B

First Financial Bankshares Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price33.51
Price Trends
50DMA
34.88
Negative
100DMA
36.16
Negative
200DMA
36.56
Negative
Market Momentum
MACD
-0.38
Negative
RSI
48.21
Neutral
STOCH
58.31
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FFIN, the sentiment is Neutral. The current price of 33.51 is above the 20-day moving average (MA) of 32.87, below the 50-day MA of 34.88, and below the 200-day MA of 36.56, indicating a neutral trend. The MACD of -0.38 indicates Negative momentum. The RSI at 48.21 is Neutral, neither overbought nor oversold. The STOCH value of 58.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FFIN.

First Financial Bankshares Risk Analysis

First Financial Bankshares disclosed 52 risk factors in its most recent earnings report. First Financial Bankshares reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

First Financial Bankshares Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
$4.38B22.986.63%3.19%8.10%6.95%
70
Neutral
$5.35B10.259.90%3.40%19.04%
68
Neutral
$4.69B9.489.73%6.34%-0.21%1.69%
68
Neutral
$4.92B12.717.33%4.30%6.39%2.93%
67
Neutral
$4.79B20.7314.60%2.13%16.01%15.70%
VLVLY
66
Neutral
$4.83B12.575.48%5.07%1.60%-18.84%
63
Neutral
$12.46B9.558.14%17103.96%12.70%-4.66%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FFIN
First Financial Bankshares
33.51
3.56
11.89%
CADE
Cadence Bank
29.26
1.48
5.33%
COLB
Columbia Banking System
22.42
3.80
20.41%
GBCI
Glacier Bancorp
40.76
3.94
10.70%
UBSI
United Bankshares
34.29
1.86
5.74%
VLY
Valley National Bancorp
8.60
1.49
20.96%

First Financial Bankshares Corporate Events

Executive/Board ChangesShareholder MeetingsDividends
First Financial Bankshares Increases Quarterly Dividend
Positive
Apr 30, 2025

On April 29, 2025, First Financial Bankshares held its annual shareholders’ meeting in Abilene, Texas, where shareholders elected thirteen directors to the board and ratified the selection of Ernst & Young LLP as the company’s independent auditors. Additionally, the board declared a 5.6% increase in the quarterly cash dividend, set to be paid on July 1, 2025. The meeting also saw the approval of executive compensation, reflecting shareholder confidence in the company’s leadership and strategic direction.

Spark’s Take on FFIN Stock

According to Spark, TipRanks’ AI Analyst, FFIN is a Neutral.

First Financial Bankshares’ strong revenue growth and robust balance sheet are offset by declining operating cash flow and a negative technical outlook. The stock is fairly valued with a moderate dividend yield, making it a balanced but cautious investment opportunity.

To see Spark’s full report on FFIN stock, click here.

Shareholder Meetings
First Financial Bankshares Holds Annual Shareholder Meeting
Neutral
Apr 30, 2025

On April 29, 2025, First Financial Bankshares, Inc. held its Annual Shareholder Meeting in Abilene, Texas. During the meeting, Chairman and CEO F. Scott Dueser presented to shareholders and invited guests.

Spark’s Take on FFIN Stock

According to Spark, TipRanks’ AI Analyst, FFIN is a Neutral.

First Financial Bankshares’ strong revenue growth and robust balance sheet are offset by declining operating cash flow and a negative technical outlook. The stock is fairly valued with a moderate dividend yield, making it a balanced but cautious investment opportunity.

To see Spark’s full report on FFIN stock, click here.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.