Five Star (FSBC) AI Stock Analysis

• Market Cap: $794.01M
• Dividend Yield: 2.15%
• Average Volume (3M): 56.96K
• Price to Earnings (P/E): 13.8
• Beta (1Y): 0.83
• Revenue Growth: 22.24%
• EPS Growth: 18.63%
• Country: US
• Employees: 205
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.77
• Shares Outstanding: 21,367,388
• 10 Day Avg. Volume: 50,554
• 30 Day Avg. Volume: 56,962
• PEG Ratio: -0.71
• Price to Book (P/B): 1.53
• Price to Sales (P/S): 2.86
• P/FCF Ratio: 11.85
• Enterprise Value/Market Cap: 0.91
• Enterprise Value/Revenue: 3.11
• Enterprise Value/Gross Profit: 5.55
• Enterprise Value/Ebitda: 9.68
• 1Y Price Target: $38.00
• Price Target Upside: 1.99% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 2.75
• Revenue Forecast (FY): $155.73M

• Rating: 80 Outperform
• Price Target: $40.00 ▲(7.35% Upside)

Five Star Bancorp's strong financial performance and positive earnings call are the most significant factors driving the score. Technical indicators and valuation also support a favorable outlook, despite some operational challenges.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, enhancing long-term financial stability.

Loan and Deposit Growth

Robust loan and deposit growth reflects strong customer trust and market position, supporting future revenue and profitability.

Asset Quality and Capitalization

High asset quality and strong capitalization ensure financial resilience and regulatory compliance, safeguarding long-term operations.

Negative Factors

Increased Noninterest Expense

Rising noninterest expenses can pressure margins and reduce profitability, necessitating cost management for sustainable growth.

Challenge in Replicating Deposit Growth

Slower deposit growth could limit funding for future lending activities, potentially impacting revenue and market competitiveness.

High Payoff and Paydown Activity

High payoff and paydown activity can disrupt loan growth and revenue stability, requiring strategic adjustments to maintain financial performance.

Five Star Business Overview & Revenue Model

Company Description

Five 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 Money

Five Star (FSBC) generates revenue through multiple streams, primarily from its hospitality services, which include room bookings, food and beverage sales, and event management services. The company charges competitive rates for its accommodations and upsells additional services such as spa treatments and guided tours. Additionally, FSBC collaborates with corporate clients for event hosting and catering services, creating significant revenue opportunities from large-scale events. Strategic partnerships with travel agencies and online booking platforms further enhance visibility and sales, driving more customers to its properties and services.

Five Star Financial Statement Overview

Summary

Five Star Bancorp shows strong financial performance with robust revenue growth and profitability. The balance sheet is stable with low leverage, and cash flows are generally healthy. However, there are slight cost pressures and a need to improve operating cash flow efficiency.

Income Statement

Five Star has demonstrated strong revenue growth with a 5.48% increase in the TTM period. The company maintains solid profitability metrics, with a Gross Profit Margin of 56.22% and a Net Profit Margin of 22.23%. The EBIT and EBITDA margins are also robust at 31.32% and 31.92%, respectively, indicating efficient operations. However, the slight decline in Gross Profit Margin compared to previous years suggests potential cost pressures.

Balance Sheet

The balance sheet reflects a stable financial position with a manageable Debt-to-Equity Ratio of 0.20, indicating low leverage. The Return on Equity (ROE) stands at 12.89%, showcasing effective use of equity to generate profits. The Equity Ratio is healthy, suggesting a strong equity base relative to total assets. However, the declining trend in ROE over the years could be a concern if it continues.

Cash Flow

Five Star's cash flow position is solid, with a Free Cash Flow Growth Rate of 2.6% in the TTM period. The Operating Cash Flow to Net Income Ratio is low at 0.018, which may indicate some inefficiencies in cash generation relative to net income. However, the Free Cash Flow to Net Income Ratio is nearly 1, reflecting strong cash conversion. The company needs to focus on improving operating cash flow efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	232.94M	212.20M	180.70M	123.79M	87.82M	82.96M
Gross Profit	130.78M	118.01M	113.20M	102.24M	82.15M	64.78M
EBITDA	74.94M	66.60M	68.23M	64.49M	47.76M	37.72M
Net Income	51.88M	45.67M	47.73M	44.80M	42.44M	35.93M
Balance Sheet
Total Assets	4.41B	4.05B	3.59B	3.23B	2.56B	1.95B
Cash, Cash Equivalents and Short-Term Investments	543.26M	454.66M	435.52M	385.83M	588.60M	429.15M
Total Debt	81.71M	80.75M	249.35M	177.85M	28.39M	28.32M
Total Liabilities	4.00B	3.66B	3.31B	2.97B	2.32B	1.82B
Stockholders Equity	416.74M	396.62M	285.77M	252.82M	235.05M	133.78M
Cash Flow
Free Cash Flow	68.12M	51.16M	38.26M	45.49M	27.94M	50.64M
Operating Cash Flow	68.78M	51.79M	38.91M	45.98M	28.66M	51.48M
Investing Cash Flow	-503.25M	-446.74M	-279.28M	-836.92M	-455.01M	-372.63M
Financing Cash Flow	727.92M	425.73M	301.95M	625.61M	561.19M	434.28M

Five Star Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 37.26
• 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 FSBC, the sentiment is Positive. The current price of 37.26 is above the 20-day moving average (MA) of 34.76, above the 50-day MA of 34.17, and above the 200-day MA of 30.31, indicating a bullish trend. The MACD of 0.66 indicates Negative momentum. The RSI at 66.41 is Neutral, neither overbought nor oversold. The STOCH value of 93.70 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FSBC.

Five Star Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FSBC	80 Outperform	$794.01M	13.79	13.95%	2.15%	22.24%	18.63%
MPB	79 Outperform	$666.31M	11.80	7.31%	2.56%	12.09%	-15.97%
THFF	78 Outperform	$760.57M	10.27	12.46%	3.18%	16.57%	69.64%
TRST	78 Outperform	$824.66M	14.93	8.35%	3.33%	5.75%	20.52%
GSBC	77 Outperform	$730.99M	10.86	11.18%	2.50%	0.67%	17.88%
BFST	76 Outperform	$824.20M	10.75	10.39%	2.06%	17.99%	11.08%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Five Star Corporate Events

Five Star Bank Enters Change in Control Agreements

On November 4, 2025, Five Star Bank entered into change in control agreements with two of its executive officers, Heather Luck and Michael Rizzo. These agreements outline the compensation and benefits the executives will receive if their employment is terminated following a qualifying change in control, including severance payments and accelerated vesting of equity awards. The agreements are set to expire on December 31, 2028, if no qualifying change in control occurs.

Five Star Bancorp Reports Strong Q3 2025 Earnings

Five Star Bancorp reported a net income of $16.3 million for the third quarter of 2025, marking an increase from previous quarters. The company achieved significant growth in loans and deposits, with a notable increase in non-wholesale deposits. The bank’s efficiency ratio improved, and a new office was opened in Walnut Creek, California, to meet regional demand. The company’s strategy of organic growth and focus on customer experience has driven its financial performance, positioning it well in the banking industry.

Five Star Bancorp Declares Quarterly Cash Dividend

On October 17, 2025, Five Star Bancorp announced a quarterly cash dividend of $0.20 per share, payable on November 10, 2025, to shareholders of record as of November 3, 2025. This announcement reflects the company’s ongoing commitment to returning value to its shareholders and may impact its financial positioning and stakeholder relations.

Five Star Announces Q3 2025 Earnings Release Date

On October 14, 2025, Five Star Bancorp announced the dates for its third quarter 2025 earnings release and webcast. The company will report its financial results after the market closes on October 27, 2025, with a live webcast for analysts and investors scheduled for October 28, 2025. This announcement is significant for stakeholders as it provides insights into the company’s financial health and future prospects.