Primis Financial (FRST) AI Stock Analysis

• Market Cap: $347.49M
• Dividend Yield: 3.06%
• Average Volume (3M): 78.85K
• Price to Earnings (P/E): 5.7
• Beta (1Y): 0.89
• Revenue Growth: 9.90%
• EPS Growth: N/A
• Country: US
• Employees: 592
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.10
• Shares Outstanding: 24,644,384
• 10 Day Avg. Volume: 73,083
• 30 Day Avg. Volume: 78,846
• PEG Ratio: -0.17
• Price to Book (P/B): 0.82
• Price to Sales (P/S): 1.13
• P/FCF Ratio: 15.70
• Enterprise Value/Market Cap: 1.62
• Enterprise Value/Revenue: 2.11
• Enterprise Value/Gross Profit: 4.29
• Enterprise Value/Ebitda: 43.37
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: $14.00 ▲(3.55% Upside)

The score is held back primarily by weak reported financial performance (declining revenue, thin margins, and poor free-cash-flow trend) and a high P/E valuation. Offsetting these, recent earnings-call commentary and corporate updates indicate a meaningful profitability turnaround and improving operating momentum, while technical indicators are neutral-to-mildly positive.

Positive Factors

Improved Return Metrics

Improved return metrics indicate enhanced efficiency in asset utilization and shareholder equity, supporting long-term profitability.

Mortgage Division Expansion

The expansion of the mortgage division boosts revenue potential and market presence, contributing to sustained business growth.

Sale-Leaseback Transaction

The sale-leaseback transaction strengthens the balance sheet, enhances capital levels, and supports strategic growth initiatives.

Negative Factors

Declining Revenue

Declining revenue growth poses a risk to sustained profitability and indicates challenges in maintaining competitive market positioning.

Credit Concerns

Credit concerns with nonaccrual loans could lead to increased risk and financial instability, affecting long-term financial health.

Negative Free Cash Flow Growth

Negative cash flow growth indicates potential liquidity issues, limiting the company's ability to invest in growth and manage debt.

Primis Financial Business Overview & Revenue Model

Company Description

Primis Financial (FRST) is a financial services company specializing in mortgage banking and related financial services. The company primarily operates in the residential mortgage market, offering a range of products including conventional mortgages, government-backed loans, and refinancing options. Primis is committed to providing innovative solutions to enhance the borrowing experience, utilizing technology to streamline the application and approval processes.

How the Company Makes Money

Primis Financial generates revenue primarily through interest income on loans it originates and services. The company earns money by charging borrowers interest on the mortgages it provides, which can include both fixed and variable rates depending on the loan products. Additionally, Primis may generate revenue through origination fees, which are charged at the time of loan closing. The company also benefits from servicing fees earned on the loans it manages over time. Significant partnerships with financial institutions and technology platforms further enhance its operational efficiencies and market reach, contributing to its overall earnings.

Primis Financial Financial Statement Overview

Summary

Earnings improved with TTM net income turning positive and leverage appearing moderate, but the recovery looks fragile due to sharply negative TTM revenue growth and a major deterioration in cash generation (TTM operating and free cash flow both meaningfully negative), raising funding/execution risk.

Income Statement

Profitability has improved meaningfully in TTM (Trailing-Twelve-Months), with net income turning positive ($8.6M) after losses in 2023–2024, and margins moving back into positive territory (net margin ~3.2%). However, the recovery looks fragile: revenue growth is sharply negative in TTM, and profitability is still well below the stronger 2020–2021 period (when net margins were ~23%–30%).

Balance Sheet

Leverage appears moderate for the recent period (TTM debt-to-equity ~0.55) and equity has grown versus 2024, supporting balance-sheet resilience. That said, leverage has been volatile historically (debt-to-equity peaked above 1.0 in 2022), and returns on equity are currently low (TTM ~2.3%), indicating the balance sheet is not being converted into strong shareholder returns yet.

Cash Flow

Cash generation is the key weakness: TTM (Trailing-Twelve-Months) operating cash flow and free cash flow are both negative (about -$52.5M and -$53.7M), a major reversal from positive cash flow in prior annual periods (2020–2024). While free cash flow growth is shown as strongly positive in TTM, the absolute level remains meaningfully negative, creating higher funding and execution risk if the negative trend persists.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	266.01M	254.11M	237.87M	141.64M	123.71M	131.40M
Gross Profit	130.90M	96.74M	111.42M	108.78M	110.47M	85.81M
EBITDA	12.96M	-19.98M	-2.09M	24.77M	47.61M	26.91M
Net Income	8.57M	-16.20M	-7.83M	14.15M	31.11M	22.98M
Balance Sheet
Total Assets	3.95B	3.69B	3.86B	3.57B	3.41B	3.09B
Cash, Cash Equivalents and Short-Term Investments	242.35M	243.22M	305.97M	314.17M	801.50M	349.42M
Total Debt	221.19M	128.56M	160.72M	432.52M	211.49M	239.63M
Total Liabilities	3.57B	3.33B	3.46B	3.18B	3.00B	2.70B
Stockholders Equity	382.15M	351.76M	376.16M	388.97M	411.88M	390.55M
Cash Flow
Free Cash Flow	-53.66M	18.34M	26.89M	11.42M	24.86M	25.11M
Operating Cash Flow	-52.47M	19.53M	28.82M	12.43M	27.32M	26.20M
Investing Cash Flow	111.19M	108.30M	-312.76M	-616.86M	10.53M	-200.81M
Financing Cash Flow	-72.11M	-140.88M	283.63M	152.10M	296.21M	338.87M

Primis Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.52
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FRST, the sentiment is Positive. The current price of 13.52 is above the 20-day moving average (MA) of 13.51, above the 50-day MA of 12.80, and above the 200-day MA of 10.88, indicating a bullish trend. The MACD of 0.24 indicates Positive momentum. The RSI at 61.68 is Neutral, neither overbought nor oversold. The STOCH value of 49.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FRST.

Primis Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TSBK	79 Outperform	$308.30M	10.16	11.48%	2.91%	8.17%	21.95%
PKBK	76 Outperform	$327.69M	8.94	11.15%	2.84%	12.91%	21.72%
CHMG	72 Outperform	$296.10M	19.64	5.69%	2.40%	-6.25%	-38.79%
FDBC	72 Outperform	$268.18M	9.57	11.95%	3.61%	17.97%	68.34%
ISBA	68 Neutral	$364.77M	20.23	8.27%	2.13%	7.29%	33.75%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
FRST	58 Neutral	$347.49M	5.66	2.25%	3.06%	9.90%	―

Primis Financial Corporate Events

Primis Financial Delivers Strong Q4 Turnaround and Dividend

On January 29, 2026, Primis Financial Corp. reported a sharp turnaround in profitability for the fourth quarter and full year 2025, posting net income available to common shareholders of $30 million, or $1.20 per diluted share, for the quarter ended December 31, 2025, versus a net loss of $23 million a year earlier, and full-year 2025 net income of $61 million compared with a net loss in 2024. Management highlighted improved fundamentals across the balance sheet, including 10% asset growth, 14% loan growth, higher noninterest-bearing deposits, stronger capital and tangible book value, and an 18% rise in net interest income with net interest margin expanding to 3.28%. Core community banking performance benefited from lower deposit costs, zero brokered deposits, low reliance on FHLB borrowings, and growing noninterest-bearing balances supported by proprietary technology such as the V1BE platform, which Primis plans to license to other banks. Strategic business lines delivered strong momentum: Primis Mortgage nearly doubled activity with an 84% jump in closed volume and a swing to profitability; mortgage warehouse balances rose almost fourfold year over year with meaningful associated noninterest-bearing deposits; and Panacea Financial expanded loans and deposits while executing loan sales to sustain growth without overburdening the balance sheet. The bank’s digital platform maintained about $1 billion in deposits while significantly lowering funding costs and increasing small-business balances, and the board declared a quarterly cash dividend of $0.10 per share payable February 27, 2026 to shareholders of record on February 13, 2026, underscoring confidence in the company’s strengthened earnings profile and capital position.

The most recent analyst rating on (FRST) stock is a Hold with a $14.50 price target. To see the full list of analyst forecasts on Primis Financial stock, see the FRST Stock Forecast page.

Primis Financial Announces New Share Repurchase Authorization

On December 18, 2025, Primis Financial Corp.’s board of directors reauthorized a stock repurchase program allowing the company to buy back up to 750,000 shares of its common stock between December 18, 2025 and December 18, 2026. The company, which had previously repurchased 79,549 shares at an average price of $10 under an earlier plan, said purchases may be executed in the open market, through privately negotiated transactions or via Rule 10b5-1 trading plans, with the scale and timing of buybacks dependent on share price performance, market conditions, regulatory constraints and available liquidity; the program is discretionary, may be changed or terminated at any time, and does not commit Primis to repurchase a specific number of shares, underscoring flexible capital management rather than a fixed return-of-capital schedule for shareholders.

The most recent analyst rating on (FRST) stock is a Hold with a $12.50 price target. To see the full list of analyst forecasts on Primis Financial stock, see the FRST Stock Forecast page.

Primis Financial Completes Sale-Leaseback for $50 Million Gain

On December 5, 2025, Primis Bank completed a sale-leaseback transaction involving 18 retail banking branches, generating a pre-tax gain of approximately $50 million. This strategic move is part of Primis Financial‘s broader effort to restructure its balance sheet, improve earnings, and bolster capital levels to support future growth. The transaction is expected to enhance the company’s financial metrics, including an increase in tangible book value and earnings per share. Additionally, Primis plans to restructure its investment and insurance portfolios and refinance its debt, aiming to further strengthen its financial position and operational efficiency.

The most recent analyst rating on (FRST) stock is a Hold with a $12.50 price target. To see the full list of analyst forecasts on Primis Financial stock, see the FRST Stock Forecast page.