FS Bancorp (FSBW) AI Stock Analysis

• Market Cap: $329.91M
• Dividend Yield: 3.05%
• Average Volume (3M): 16.67K
• Price to Earnings (P/E): 10.7
• Beta (1Y): 0.74
• Revenue Growth: 4.43%
• EPS Growth: -12.94%
• Country: US
• Employees: 567
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.18
• Shares Outstanding: 7,518,462
• 10 Day Avg. Volume: 12,963
• 30 Day Avg. Volume: 16,669
• PEG Ratio: -2.79
• Price to Book (P/B): 1.07
• Price to Sales (P/S): 1.55
• P/FCF Ratio: 6.43
• Enterprise Value/Market Cap: 1.76
• Enterprise Value/Revenue: 2.64
• Enterprise Value/Gross Profit: 3.96
• Enterprise Value/Ebitda: 11.00
• 1Y Price Target: $41.00
• Price Target Upside: -6.56% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: $46.00 ▲(4.83% Upside)

FS Bancorp's strong financial performance and attractive valuation are the primary drivers of its overall score. The company's effective cash flow management and solid profitability support its financial health. The technical indicators suggest a stable market position, while the new share repurchase program indicates a commitment to enhancing shareholder value.

Positive Factors

Cash Flow Management

Strong cash flow management indicates efficient operations and financial stability, enabling the company to reinvest in growth opportunities and maintain liquidity.

Share Repurchase Program

The share repurchase program reflects a commitment to enhancing shareholder value and suggests confidence in the company's financial health and future prospects.

Deposit Growth

Deposit growth strengthens the bank's funding base, reducing reliance on more expensive borrowing and supporting lending capacity, which is crucial for long-term growth.

Negative Factors

Net Income Decline

A decline in net income can signal potential challenges in maintaining profitability, which may impact the company's ability to invest in growth and return capital to shareholders.

Declining Gross Profit Margin

A declining gross profit margin suggests rising costs or pricing pressures, which could erode profitability if not managed effectively.

Low Equity Ratio

A low equity ratio increases financial risk, especially in a rising interest rate environment, potentially impacting the company's financial stability.

FS Bancorp Business Overview & Revenue Model

Company Description

FS Bancorp (FSBW) is a bank holding company based in the United States, primarily engaged in providing a wide range of financial services through its subsidiary, 1st Security Bank of Washington. The company operates in the banking sector, focusing on retail banking, commercial banking, and mortgage lending. FS Bancorp offers various products, including personal and business checking and savings accounts, loans, mortgages, and investment services, catering to both individual and business clients.

How the Company Makes Money

FS Bancorp generates revenue primarily through interest income earned on its loan portfolio, which includes personal, commercial, and mortgage loans. The company also earns non-interest income through fees associated with deposit accounts, mortgage origination, and other financial services. Additionally, FS Bancorp benefits from its investment securities portfolio, which contributes to interest income. The bank's focus on community banking allows it to build strong relationships with clients, leading to a stable deposit base and a lower cost of funds. Strategic partnerships with local businesses and real estate developers also enhance its lending capabilities and overall earnings.

FS Bancorp Financial Statement Overview

Summary

FS Bancorp demonstrates strong revenue growth and efficient cost management, though profitability margins have faced some pressure. The balance sheet remains stable with balanced leverage, while cash flow metrics indicate effective cash management despite recent declines in free cash flow growth.

Income Statement

FS Bancorp's income statement shows a strong gross profit margin of 67.25% TTM, indicating efficient cost management. However, the net profit margin has decreased to 15.48% TTM from 17.19% in the previous year, suggesting some pressure on profitability. Revenue growth is robust at 93.5% TTM, reflecting strong business expansion. EBIT and EBITDA margins have slightly declined, indicating potential challenges in operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.98 TTM, showing a balanced approach to leveraging. Return on equity is healthy at 11.32% TTM, though slightly down from the previous year, indicating effective use of equity. The equity ratio stands at 9.36% TTM, suggesting a moderate reliance on equity financing.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth by 6.95% TTM, indicating potential cash generation challenges. The operating cash flow to net income ratio is strong at 6.85 TTM, showing good cash conversion. The free cash flow to net income ratio remains high at 95.26% TTM, suggesting efficient cash management despite recent declines.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	219.50M	203.71M	185.26M	134.08M	131.08M	142.13M
Gross Profit	146.52M	136.47M	136.59M	113.45M	120.86M	114.38M
EBITDA	52.72M	52.15M	57.92M	50.99M	62.60M	63.47M
Net Income	32.31M	35.02M	36.05M	29.65M	37.41M	39.26M
Balance Sheet
Total Assets	3.21B	3.03B	2.97B	2.63B	2.29B	2.11B
Cash, Cash Equivalents and Short-Term Investments	258.63M	200.75M	194.22M	275.40M	308.39M	281.87M
Total Debt	185.94M	354.96M	60.27M	242.46M	96.71M	117.70M
Total Liabilities	2.91B	2.73B	2.71B	2.40B	2.04B	1.88B
Stockholders Equity	300.51M	295.77M	264.49M	231.70M	247.51M	230.01M
Cash Flow
Free Cash Flow	95.99M	49.19M	76.00M	183.35M	107.03M	-33.70M
Operating Cash Flow	101.04M	50.82M	77.67M	184.90M	109.01M	-32.32M
Investing Cash Flow	-280.91M	-104.20M	77.67M	-504.04M	-310.83M	-270.69M
Financing Cash Flow	200.81M	19.32M	-131.08M	334.09M	136.74M	348.81M

FS Bancorp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 43.88
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FSBW, the sentiment is Positive. The current price of 43.88 is above the 20-day moving average (MA) of 41.13, above the 50-day MA of 39.69, and above the 200-day MA of 39.07, indicating a bullish trend. The MACD of 1.05 indicates Negative momentum. The RSI at 71.79 is Negative, neither overbought nor oversold. The STOCH value of 92.13 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FSBW.

FS Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CBAN	80 Outperform	$391.66M	11.56	9.63%	2.50%	6.92%	26.93%
FNLC	78 Outperform	$317.17M	10.05	11.86%	5.16%	10.46%	18.70%
CZNC	77 Outperform	$391.29M	12.57	9.42%	5.10%	5.76%	21.85%
PCB	77 Outperform	$341.69M	9.99	9.38%	3.34%	10.93%	42.68%
PLBC	76 Outperform	$319.26M	10.74	12.34%	2.61%	11.98%	-10.12%
FSBW	75 Outperform	$329.91M	10.71	10.77%	3.05%	4.43%	-12.94%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

FS Bancorp Corporate Events

FS Bancorp Announces New Share Repurchase Program

On October 27, 2025, FS Bancorp, Inc. announced that its Board of Directors authorized an additional share repurchase program of up to $5.0 million of the company’s common stock. This program, which will run until October 27, 2026, allows for repurchases in the open market or through private transactions, with management exercising discretion over timing and pricing based on market conditions and the company’s financial performance. The initiative reflects the company’s strategic focus on optimizing shareholder value and adapting to market dynamics.

FS Bancorp Reports Q3 Net Income Decline

On October 21, 2025, FS Bancorp, Inc. announced a third-quarter net income of $9.2 million, a decrease from $10.3 million in the same quarter of the previous year. The company declared its 51st consecutive quarterly cash dividend of $0.28 per share, payable on November 20, 2025. The quarter saw a 5.2% increase in total deposits and a significant reduction in borrowings by 44.8%. Despite a decrease in consumer loans, the company maintained a strong net interest margin and continued to focus on shareholder returns through dividends and share repurchases.