FS Bancorp (FSBW) AI Stock Analysis

• Market Cap: $285.80M
• Dividend Yield: 2.84%
• Average Volume (3M): 13.50K
• Price to Earnings (P/E): 8.7
• Beta (1Y): 0.83
• Revenue Growth: 9.75%
• EPS Growth: -2.90%
• Country: US
• Employees: 574
• Sector: Financial
• Sector Strength: 77
• Industry: Banking
• EPS (TTM): 4.40
• Shares Outstanding: 7,817,172
• 10 Day Avg. Volume: 11,510
• 30 Day Avg. Volume: 13,496
• PEG Ratio: 0.89
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.02
• Price to Cash Flow (P/CF): -113.60
• P/FCF Ratio: 4.70
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $45.00
• Price Target Upside: 25.35% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

FS Bancorp exhibits robust financial performance with strong revenue growth and profitability metrics. However, declining cash flow and mixed technical indicators suggest caution. The stock's valuation is appealing, providing potential upside for long-term investors despite short-term uncertainties.

FS Bancorp Business Overview & Revenue Model

Company Description

FS Bancorp, Inc. (FSBW) is a bank holding company primarily functioning through its wholly-owned subsidiary, 1st Security Bank of Washington. The company operates in the financial services sector, offering a range of banking products and services. These include personal and business banking solutions, mortgage lending, and consumer loans. FS Bancorp serves customers through a network of branches and digital banking platforms, focusing on personalized service and community engagement.

How the Company Makes Money

FS Bancorp generates revenue primarily through its banking operations, which include interest income from loans and investments, and non-interest income from fees and service charges. Interest income is derived from personal and commercial loans, as well as mortgage lending, with the interest rates and repayment terms set to ensure profitability. Non-interest income comes from account maintenance fees, transaction fees, and other banking services. The company's earnings are influenced by factors such as interest rate fluctuations, loan demand, and economic conditions. Additionally, strategic partnerships with financial service providers and investment portfolios contribute to its revenue streams.

FS Bancorp Financial Statement Overview

Summary

FS Bancorp demonstrates strong revenue growth and profitability, with high gross and net profit margins. The balance sheet shows moderate leverage, but a low equity ratio poses some risk. Cash flow generation is strong, though recent declines in free cash flow could limit future financial flexibility.

Income Statement

FS Bancorp has demonstrated strong revenue growth with a Revenue Growth Rate of 43.1% TTM and 16.1% in 2023. Both Gross Profit Margin and Net Profit Margin are robust at 94.5% and 18.8% TTM, respectively, indicating high profitability. The EBIT Margin of 24.3% TTM also highlights operational efficiency despite a decrease from the previous year. Overall, the company shows a positive growth trajectory and stable profitability, which is a strength in the banking industry.

Balance Sheet

The company's balance sheet shows a moderate Debt-to-Equity Ratio of 0.76 TTM, suggesting a balanced approach to leverage. Return on Equity is healthy at 12.9% TTM, reflecting effective use of equity to generate profits. The Equity Ratio stands at 9.7% TTM, which is on the lower side, potentially indicating a higher reliance on liabilities. This could be a risk factor in terms of financial stability, but current metrics suggest manageable leverage.

Cash Flow

Operating Cash Flow to Net Income Ratio of 0.92 TTM indicates strong cash generation relative to net income, although this is a decline from the previous annual report. Free Cash Flow has decreased significantly, with a negative growth rate of -56.6% TTM compared to 2023. This decrease in Free Cash Flow could pose a risk for future investments and debt servicing capabilities, despite historically strong cash generation.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
198.84M	139.02M	119.67M	121.36M	127.41M	90.27M
	Gross Profit
187.91M	139.02M	119.67M	121.36M	127.41M	90.27M
	EBIT
48.23M	68.23M	64.72M	47.42M	49.85M	28.13M
	EBITDA
27.64M	0.00	50.99M	62.60M	63.47M	40.16M
	Net Income Common Stockholders
37.41M	36.05M	29.65M	37.41M	39.26M	22.72M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
-17.08M	65.69M	275.40M	308.39M	281.87M	192.74M
	Total Assets
2.98B	2.97B	2.63B	2.29B	2.11B	1.71B
	Total Debt
150.12M	150.12M	242.46M	96.71M	180.99M	99.96M
	Net Debt
60.26M	60.26M	196.31M	59.68M	77.13M	33.28M
	Total Liabilities
2.72B	2.71B	2.40B	97.90M	181.04M	101.93M
	Stockholders Equity
264.49M	264.49M	231.70M	247.51M	230.01M	200.24M
Cash Flow		Free Cash Flow
32.96M	76.00M	183.35M	107.03M	-33.70M	6.71M
	Operating Cash Flow
34.49M	77.67M	184.90M	109.01M	-32.32M	9.18M
	Investing Cash Flow
-77.48M	77.67M	-504.04M	-310.83M	-270.69M	-55.20M
	Financing Cash Flow
2.66M	-131.08M	334.09M	136.74M	348.81M	59.02M

FS Bancorp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 35.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FSBW, the sentiment is Negative. The current price of 35.9 is below the 20-day moving average (MA) of 38.48, below the 50-day MA of 39.62, and below the 200-day MA of 40.62, indicating a bearish trend. The MACD of -0.88 indicates Positive momentum. The RSI at 32.13 is Neutral, neither overbought nor oversold. The STOCH value of 14.36 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FSBW.

FS Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BANR	71 Outperform	$2.14B	12.91	9.86%	3.05%	11.04%	-8.38%
FSBW	68 Neutral	$285.80M	8.71	12.35%	2.84%	9.75%	-2.90%
GSBC	65 Neutral	$645.66M	10.86	10.55%	2.80%	8.68%	-6.27%
CVBF	64 Neutral	$2.66B	13.52	9.35%	4.20%	2.84%	-9.63%
Sector *	64 Neutral	$13.80B	10.64	9.23%	4.22%	17.66%	-7.66%
COLB	63 Neutral	$5.14B	9.82	10.55%	5.75%	7.84%	54.79%
HMST	44 Neutral	$163.48M	―	-30.86%	0.98%	-18.33%	-422.59%

FS Bancorp Corporate Events

FS Bancorp Executives to Attend 2025 Janney CEO Forum

FS Bancorp, Inc.’s President and other top executives will attend the 2025 Janney CEO Forum on January 29-30, 2025, in Scottsdale, Arizona. This participation is significant for FS Bancorp as it offers an opportunity to present investor materials and engage with key financial stakeholders, potentially impacting the company’s market positioning and stakeholder relations.