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Five Star (FSBC)
NASDAQ:FSBC
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Five Star
(NASDAQ:FSBC)
Rating:78Outperform
Price Target:
$32.00
▲( 15.32% Upside)
Five Star (FSBC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$592.77M
Dividend Yield2.85%
Average Volume (3M)48.91K
Price to Earnings (P/E)12.2
Beta (1Y)0.88
Revenue Growth17.35%
EPS Growth-13.53%
CountryUS
Employees205
SectorFinancial
Sector Strength81
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.62
Shares Outstanding21,360,990
10 Day Avg. Volume43,278
30 Day Avg. Volume48,908
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)1.46
Price to Sales (P/S)0.00
P/FCF Ratio13.81
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$33.33Price Target Upside20.11% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Five Star Business Overview & Revenue Model
Company DescriptionFive Star Bancorp operates as the bank holding company for Five Star Bank that provides a range of banking products and services to small and medium-sized businesses, professionals, and individuals. The company accepts various deposits, such as money market, noninterest-bearing and interest checking accounts, savings accounts, and time deposits. Its loan products include commercial and residential real estate loans; commercial loans; commercial land loans; farmland loans; commercial and residential construction loans; and consumer and other loans. The company also offers debit cards; and remote deposit capture, online and mobile banking, and direct deposit services. It operates through seven branch offices and two loan production offices in Northern California. Five Star Bancorp was founded in 1999 and is headquartered in Rancho Cordova, California.
How the Company Makes MoneyFSBC generates revenue primarily through consulting fees charged to clients for their extensive range of services. The company operates on a project basis, where it earns income by delivering tailored solutions and strategic advice. Additional revenue streams include subscription-based access to proprietary industry reports and insights, workshops, and training programs. Significant partnerships with technology providers and industry leaders also contribute to its earnings by enhancing service offerings and expanding client reach.
Five Star Financial Statement Overview
Summary
Five Star exhibits a strong financial position with significant revenue growth and robust profitability margins. Its balance sheet is notably healthy with no debt, ensuring low financial risk. While the cash flow metrics indicate stability, there is potential for enhancing cash conversion efficiency. Overall, the company is well-positioned in the banking industry, with sound financial management supporting its growth strategy.Income Statement
Five Star has demonstrated robust revenue growth with a TTM increase of 30.21% compared to the previous year. The company maintains strong profitability margins, evidenced by a gross profit margin of 96.72% and a net profit margin of 29.92% for the TTM. Although EBITDA margin is lower at 30.63%, the EBIT margin remains healthy at 53.23%. These figures indicate a solid financial performance with minor room for improvement in operational efficiency.78
Positive
Balance Sheet
Five Star's balance sheet is strong with zero total debt, indicating low financial risk. The equity ratio stands at 9.78% for the TTM, reflecting a conservative leverage approach. The return on equity is impressive at 11.52%, showcasing effective utilization of shareholders' capital. The company portrays financial stability with substantial cash reserves, aligning well with its strategic objectives.85
Very Positive
Cash Flow
Five Star's cash flow position is stable, with a slight decline in free cash flow growth. The operating cash flow to net income ratio is 0.74, indicating a reasonable conversion of income to cash. However, the free cash flow to net income ratio of 0.74 suggests potential room for improvement in cash generation efficiency. Despite this, the company maintains a positive cash flow trajectory.65
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 196.52M | 124.96M | 117.20M | 108.94M | 83.85M | 73.78M | Gross Profit |
| 169.91M | 6.45M | 3.60M | 102.50M | 83.85M | 73.78M | EBIT |
| 51.85M | 4.04M | 76.08M | 77.71M | 47.15M | 37.26M | EBITDA |
| 72.83M | 0.00 | 0.00 | -1.19M | 47.76M | 37.72M | Net Income Common Stockholders |
| 48.15M | 45.67M | 47.73M | 44.80M | 42.44M | 35.93M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 3.54B | 106.29M | 429.66M | 385.83M | 588.60M | 429.15M | Total Assets |
| 3.40B | 4.05B | 3.59B | 3.23B | 2.56B | 1.95B | Total Debt |
| 199.07M | 80.75M | 249.35M | 177.85M | 28.39M | 28.32M | Net Debt |
| -158.48M | -275.71M | -78.08M | -91.99M | -411.41M | -285.88M | Total Liabilities |
| 3.14B | 3.66B | 3.31B | 2.97B | 2.32B | 1.82B | Stockholders Equity |
| 260.66M | 396.62M | 285.77M | 252.82M | 235.05M | 133.78M |
| Cash Flow | Free Cash Flow | ||||
| 43.09M | 51.16M | 38.26M | 45.49M | 27.94M | 50.64M | Operating Cash Flow |
| 41.54M | 51.79M | 38.91M | 45.98M | 28.66M | 51.48M | Investing Cash Flow |
| 3.14B | -446.74M | -279.28M | -836.92M | -455.01M | -372.63M | Financing Cash Flow |
| 550.30M | 425.73M | 301.95M | 625.61M | 561.19M | 434.28M |
Five Star Technical Analysis
Negative
27.75
Price Trends
27.44
Positive
28.68
Negative
29.23
Negative
Market Momentum
0.37
Positive
46.50
Neutral
19.55
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FSBC, the sentiment is Negative. The current price of 27.75 is below the 20-day moving average (MA) of 28.21, above the 50-day MA of 27.44, and below the 200-day MA of 29.23, indicating a neutral trend. The MACD of 0.37 indicates Positive momentum. The RSI at 46.50 is Neutral, neither overbought nor oversold. The STOCH value of 19.55 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FSBC.
Five Star Risk Analysis
Five Star disclosed 51 risk factors in its most recent earnings report. Five Star 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
Five Star Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $592.77M | 12.22 | 13.78% | 2.85% | 17.35% | -13.53% | |
78 Outperform | $590.94M | 11.60 | 7.63% | 4.63% | 5.63% | -3.82% | |
77 Outperform | $599.01M | 10.65 | 11.12% | 1.69% | 13.48% | 8.31% | |
66 Neutral | $560.52M | 13.35 | 6.12% | 5.72% | 5.10% | -24.91% | |
65 Neutral | $604.86M | 11.02 | 10.02% | 3.76% | 16.84% | -1.03% | |
64 Neutral | $12.66B | 9.79 | 7.67% | 17015.07% | 12.23% | -6.06% | |
57 Neutral | $592.87M | ― | -8.74% | 3.40% | -27.65% | -343.61% |
* Financial Sector Average
Performance Comparison
FSBC
Five Star
27.60
4.98
22.02%
THFF
First Financial Indiana
51.04
15.34
42.97%
HTBK
Heritage Commerce
9.04
1.31
16.95%
MOFG
Midwestone Financial Group
28.30
7.71
37.45%
SMBC
Southern Missouri Bancorp
53.01
11.45
27.55%
TRST
TrustCo Bank
31.07
4.16
15.46%
Five Star Earnings Call Summary
Earnings Call Date:Apr 28, 2025
(Q1-2025)
| % Change Since: 3.35%|
Next Earnings Date:Jul 28, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong loan growth and improved net interest margins, driven by effective deposit management and a robust sales force. However, there were concerns with an increase in substandard loans and a decrease in non-interest income. Despite these challenges, the overall performance and strategic growth initiatives suggest a positive outlook.Q1-2025 Updates
Positive Updates
Strong Loan Growth
Total loans held for investment increased by $89.1 million or 2.52% from the prior quarter, with a significant increase in the commercial real estate segment.
Improved Net Interest Margin
Net interest margin improved by nine basis points to 3.45% for the quarter, primarily driven by a lower average cost of deposits.
Deposit Growth
Deposits increased by $178.4 million or 5.0% compared to the previous quarter, with non-wholesale deposits increasing by $48.4 million.
Low Non-performing Loans
Non-performing loans remained low at 0.05% of loans held for investment.
Recognition and Awards
Five Star Bancorp ranked third on the S&P Global Market Intelligence list of best performing community banks and received multiple local business accolades.
Negative Updates
Increase in Substandard Loans
Loans designated as substandard or doubtful increased to approximately $3.7 million from $2.6 million in the previous quarter.
Decrease in Non-interest Income
Non-interest income decreased to $1.4 million in the first quarter from $1.7 million in the previous quarter, primarily due to a reduction in income from equity investments.
Slight Decrease in Non-interest-bearing Deposits
Non-interest-bearing deposits as a percentage of total deposits decreased slightly to 24.99% from 25.93%.
Provision for Credit Losses
Recorded a $1.9 million provision for credit losses, reflecting adjustments to expectations for credit losses based on economic trends.
Company Guidance
During the first quarter of 2025, Five Star Bancorp demonstrated robust financial performance and strategic growth. The company expanded into the San Francisco Bay Area, adding four seasoned professionals to support this venture, and increased non-wholesale deposits by $48.4 million. The bank reported a 50.03% LTV on commercial real estate, a 42.58% efficiency ratio, and a $0.20 per share dividend. Total loans held for investment rose by $89.1 million, a 2.52% increase from the previous quarter, with average loan yields up to 6.02%. The commercial real estate segment grew to 81.11% of the loan portfolio. Despite a rise in loans designated as substandard or doubtful to $3.7 million, asset quality remained strong with non-performing loans steady at 0.05%. Deposits increased by $178.4 million or 5% quarter-over-quarter, driven by non-interest-bearing and interest-bearing deposits, while the cost of total deposits decreased by 10 basis points to 248 basis points. The bank's net income was $13.1 million, with a return on average assets of 1.3% and a return on average equity of 13.28%. As the company moves forward, it remains confident in its resilience and continued growth.Five Star Corporate Events
Financial Disclosures
Five Star Reports Q1 2025 Financial Results
Positive
Apr 29, 2025
On April 28, 2025, Five Star Bancorp announced its financial results for the first quarter of 2025, reporting a net income of $13.1 million, slightly down from the previous quarter but up from the same period in 2024. The company experienced significant growth in deposits and loans, with total deposits increasing by $178.4 million and loans by $89.1 million. The bank’s operations in the San Francisco Bay Area saw substantial growth, contributing to a strong financial performance and a ranking as the third best-performing bank in its asset category by S&P Global Market Intelligence.
Executive/Board Changes
Five Star Approves New Executive Compensation Program
Neutral
Apr 23, 2025
On April 17, 2025, Five Star Bancorp’s Board of Directors approved a new long-term incentive compensation program for its executive officers, which includes performance-based and service-based restricted stock units. This initiative aims to align executives’ interests with shareholders and strengthen the company’s pay-for-performance philosophy, with vesting conditions tied to the company’s performance relative to peers and executive retention.
Dividends
Five Star Bancorp Declares Quarterly Cash Dividend
Positive
Apr 21, 2025
On April 21, 2025, Five Star Bancorp announced a quarterly cash dividend of $0.20 per share of common stock, payable on May 12, 2025, to shareholders of record as of May 5, 2025. This decision reflects the company’s ongoing commitment to returning value to its shareholders and could potentially enhance its attractiveness to investors, reinforcing its position in the banking industry.
Financial Disclosures
Five Star Announces Q1 2025 Earnings Release Date
Neutral
Apr 15, 2025
On April 15, 2025, Five Star Bancorp announced the dates for its first quarter 2025 earnings release and webcast. The company will report its financial results for the quarter ended March 31, 2025, after the market closes on April 28, 2025, with a live webcast scheduled for April 29, 2025, to discuss the results.
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.