First Financial Bankshares (FFIN) AI Stock Analysis

• Market Cap: $5.36B
• Dividend Yield: 1.92%
• Average Volume (3M): 450.45K
• Price to Earnings (P/E): 23.2
• Beta (1Y): 1.04
• Revenue Growth: 16.01%
• EPS Growth: 15.70%
• Country: US
• Employees: 1,400
• Sector: Financial
• Sector Strength: 77
• Industry: Banks - Regional
• EPS (TTM): 0.43
• Shares Outstanding: 143,050,320
• 10 Day Avg. Volume: 540,002
• 30 Day Avg. Volume: 450,451
• PEG Ratio: 8.37
• Price to Book (P/B): 3.88
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.92
• Enterprise Value/Market Cap: 0.91
• Enterprise Value/Revenue: 2.28
• Enterprise Value/Gross Profit: 9.01
• Enterprise Value/Ebitda: 4.41
• 1Y Price Target: $36.00
• Price Target Upside: -2.36% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 68 Neutral
• Price Target: $39.00 ▲(5.78%Upside)

First Financial Bankshares presents a stable financial performance with robust margins and low leverage, contributing positively to the score. Technical analysis shows mixed signals with limited momentum. The valuation suggests the stock may be slightly overvalued, impacting the score negatively. Positive corporate events provide additional support to the stock's potential.

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

First Financial Bankshares generates revenue primarily through interest income and non-interest income. Interest income is derived from loans and investment securities, constituting a significant portion of the company's earnings. Non-interest income comes from fees and service charges related to deposit accounts, wealth management services, and trust operations. Additionally, the company benefits from strategic acquisitions that expand its reach and customer base, further enhancing its income potential. The stability and growth of its earnings are supported by maintaining strong customer relationships and adhering to prudent lending practices.

First Financial Bankshares Financial Statement Overview

Summary

First Financial Bankshares demonstrates solid financial performance with strong margins and low leverage. The company shows strong gross and net profit margins, a positive revenue growth, and maintains robust cash flow. However, there is a noticeable decline in EBIT margins and a slight decrease in return on equity.

Income Statement

The company shows strong gross profit and net profit margins, with the latest TTM figures indicating a gross profit margin of 90.9% and a net profit margin of 38.1%. Revenue growth is positive with a 12.3% increase from the previous period. However, the EBIT margin has declined significantly in the latest TTM, impacting overall profitability.

Balance Sheet

The balance sheet reflects a solid equity base with an equity ratio of 11.7% in the latest TTM. The debt-to-equity ratio is low at 0.05, indicating low leverage. However, the return on equity has seen a slight decrease to 13.8%, suggesting moderate returns on shareholder investments.

Cash Flow

Operating cash flow remains stable, with a slight increase in free cash flow. The free cash flow to net income ratio is impressive at 1.28, indicating strong cash generation relative to profits. However, the growth rate of free cash flow is moderate at 1.0%, and the operating cash flow to net income ratio is 1.34, showing good cash conversion efficiency.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
575.20M	628.92M	481.18M	551.27M	505.62M	477.70M
	Gross Profit
539.52M	523.22M	478.05M	502.40M	500.57M	458.18M
	EBIT
301.42M	271.85M	241.77M	295.79M	271.97M	242.37M
	EBITDA
295.83M	285.27M	255.88M	293.64M	285.03M	255.16M
	Net Income Common Stockholders
231.46M	223.51M	198.98M	234.47M	227.56M	202.03M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.99B	4.88B	5.27B	5.81B	7.10B	0.00
	Total Assets
14.31B	13.98B	13.11B	12.97B	13.10B	10.90B
	Total Debt
83.58M	121.05M	404.08M	642.51M	671.15M	430.09M
	Net Debt
-232.94M	-566.39M	-515.54M	-309.63M	-507.54M	-729.08M
	Total Liabilities
12.63B	12.37B	11.61B	11.71B	11.34B	9.23B
	Stockholders Equity
1.68B	1.61B	1.50B	1.27B	1.76B	1.68B
Cash Flow		Free Cash Flow
295.90M	292.92M	267.57M	308.49M	335.95M	194.22M
	Operating Cash Flow
310.82M	309.64M	284.82M	324.27M	355.15M	210.67M
	Investing Cash Flow
-798.15M	-736.88M	127.29M	-838.00M	-2.61B	-1.26B
	Financing Cash Flow
825.83M	654.06M	-206.20M	315.82M	2.06B	1.50B

First Financial Bankshares Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 36.87
• 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 FFIN, the sentiment is Positive. The current price of 36.87 is above the 20-day moving average (MA) of 35.70, above the 50-day MA of 34.40, and above the 200-day MA of 36.58, indicating a bullish trend. The MACD of 0.58 indicates Negative momentum. The RSI at 59.69 is Neutral, neither overbought nor oversold. The STOCH value of 81.11 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FFIN.

First Financial Bankshares Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CADE	74 Outperform	$5.74B	11.00	9.90%	3.54%	19.04%	―
GBCI	74 Outperform	$4.95B	23.32	6.63%	3.03%	8.10%	6.95%
VLY	71 Outperform	$5.09B	13.24	5.48%	4.92%	1.48%	-18.84%
FFIN	68 Neutral	$5.36B	23.20	14.60%	1.92%	16.01%	15.70%
UBSI	68 Neutral	$5.26B	13.74	7.30%	4.06%	6.39%	2.93%
COLB	67 Neutral	$5.06B	10.17	9.73%	6.09%	-0.21%	1.69%
Sector *	65 Neutral	$12.93B	9.81	7.84%	78.03%	12.20%	-7.74%

First Financial Bankshares Corporate Events

First Financial Bankshares Increases Quarterly Dividend

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.

First Financial Bankshares Holds Annual Shareholder Meeting

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.