First Savings Financial Group (FSFG) AI Stock Analysis

• Market Cap: $181.14M
• Dividend Yield: 2.44%
• Average Volume (3M): 25.65K
• Price to Earnings (P/E): 9.3
• Beta (1Y): 0.47
• Revenue Growth: 6.80%
• EPS Growth: 161.37%
• Country: US
• Employees: 250
• Sector: Financial
• Sector Strength: 79
• Industry: Banks - Regional
• EPS (TTM): 0.76
• Shares Outstanding: 6,919,136
• 10 Day Avg. Volume: 17,293
• 30 Day Avg. Volume: 25,651
• PEG Ratio: -0.22
• Price to Book (P/B): 1.06
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 1.10
• Enterprise Value/Market Cap: 2.63
• Enterprise Value/Revenue: 1.17
• Enterprise Value/Gross Profit: 5.24
• Enterprise Value/Ebitda: 5.39
• 1Y Price Target: $32.33
• Price Target Upside: 25.31% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 59 Neutral
• Price Target: ―

FSFG's overall score reflects solid financial performance, particularly in revenue growth and no debt, though it needs improvement in cash flow management. The undervaluation makes it appealing, but current technical indicators suggest bearish sentiment. Corporate strategic shifts are promising but need time to materialize into financial performance.

Positive Factors

Earnings

FSFG reported core EPS of $0.76, beating consensus expectations due to a wider net interest margin and a positive contribution from the SBA banking segment.

Stock Price Target

The analyst raised the price target to $31 due to higher expected earnings, which is toward the high end of the middle tier of valuations for high-quality Smid-Cap banks.

Stock Rating

Analyst reiterates a Buy rating with an expectation of stock price appreciation and a total return of about 22%.

Negative Factors

Expenses

Higher expenses and a loss in SBA banking led to a miss in core EPS for FSFG.

First Savings Financial Group Business Overview & Revenue Model

Company Description

First Savings Financial Group, Inc. operates as the bank holding company for First Savings Bank that provides various financial services to consumers and businesses in southern Indiana. The company operates through three segments: Core Banking, SBA Lending, and Mortgage Banking. It accepts deposits, such as checking accounts, NOW and money market accounts, regular savings accounts, and time deposits. The company also provides loans, including one-to four-family residential real estate, commercial real estate, construction, land and land development, multi-family real estate, and commercial business loans, as well as consumer loans, such as automobile loans, home equity lines of credit, unsecured loans, and loans secured by deposits. In addition, it is involved in the mortgage banking; investment activities; and the provision of property and casualty insurance products, and reinsurance to other third-party insurance captives. The company operates 15 branches. First Savings Financial Group, Inc. was incorporated in 2008 and is based in Jeffersonville, Indiana.

How the Company Makes Money

First Savings Financial Group generates revenue primarily through interest income from loans and mortgages, as well as fees from various banking services. The company's key revenue streams include interest earned on loans provided to individuals and businesses, interest from investment securities, and service charges on deposit accounts. Additionally, FSFG earns money through mortgage origination and servicing fees, as well as fees from trust and investment services. The company's earnings are also supported by strategic partnerships and collaborations with other financial institutions to expand its product offerings and enhance customer service.

First Savings Financial Group Financial Statement Overview

Summary

First Savings Financial Group shows strengths in revenue growth and EBIT margins, indicating operational efficiency. The balance sheet is robust with no debt, reducing financial risk. However, the company faces challenges with cash flow generation, potentially impacting liquidity. Net profit margins and equity ratios reveal areas for improvement. Overall, while the company maintains stable operations, it needs to address cash flow and leverage concerns to enhance financial health.

Income Statement

The income statement shows a mixed performance. The TTM gross profit margin is strong at approximately 98.63%, indicating efficient cost management. However, the net profit margin is around 14%, which is moderate. The revenue growth rate from the prior year to TTM is about 52%, showing significant growth. EBIT margin is solid at 42.94%, but EBITDA margin is low at 7.46%. Overall, while revenue and EBIT margins are strong, the net profit margin and EBITDA margin suggest areas for improvement.

Balance Sheet

The balance sheet shows a stable financial position with a strong equity base. The debt-to-equity ratio is effectively zero in TTM, indicating no debt reliance, which reduces financial risk. The return on equity is moderate at 10.73%, reflecting decent profitability. The equity ratio is 7.37%, which is low but typical for a banking institution with high liabilities. The absence of debt and moderate ROE are positive, but the low equity ratio indicates potential risk.

Cash Flow

The cash flow statement reveals challenges with cash generation and utilization. Free cash flow growth from the previous year is negative, indicating reduced cash availability. The operating cash flow to net income ratio is 0.45, suggesting moderate cash conversion efficiency. The free cash flow to net income ratio is 0.43, which is lower than desirable. This highlights issues in translating earnings into cash flow and suggests potential liquidity concerns.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
118.86M	70.48M	86.92M	111.88M	177.61M	180.51M
	Gross Profit
90.89M	70.48M	86.92M	111.88M	179.30M	180.51M
	EBIT
35.23M	22.24M	8.18M	28.34M	39.97M	46.02M
	EBITDA
36.95M	0.00	10.36M	19.76M	38.39M	48.60M
	Net Income Common Stockholders
19.47M	13.59M	8.17M	15.39M	29.57M	33.35M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
272.77M	52.14M	259.07M	359.80M	242.33M	235.69M
	Total Assets
2.38B	2.45B	2.29B	2.09B	1.72B	1.76B
	Total Debt
0.00	350.24M	411.63M	357.52M	269.87M	330.65M
	Net Debt
-28.68M	297.61M	380.29M	314.24M	236.44M	296.93M
	Total Liabilities
2.20B	2.27B	2.14B	1.94B	1.54B	1.61B
	Stockholders Equity
179.19M	177.12M	150.98M	151.56M	180.38M	157.27M
Cash Flow		Free Cash Flow
-33.01M	90.52M	29.80M	147.98M	109.25M	-147.00M
	Operating Cash Flow
-32.06M	91.20M	32.76M	148.81M	114.89M	-139.69M
	Investing Cash Flow
-10.48M	-203.33M	-263.99M	-544.22M	-55.88M	-339.43M
	Financing Cash Flow
8.25M	133.43M	220.41M	403.64M	-59.31M	471.42M

First Savings Financial Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 25.80
• 50DMA: Negative
• 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 FSFG, the sentiment is Negative. The current price of 25.8 is below the 20-day moving average (MA) of 26.82, below the 50-day MA of 25.95, and above the 200-day MA of 25.55, indicating a neutral trend. The MACD of -0.20 indicates Positive momentum. The RSI at 42.09 is Neutral, neither overbought nor oversold. The STOCH value of 34.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FSFG.

First Savings Financial Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CBNA	80 Outperform	$170.21M	7.36	18.94%	―	―	―
ISTR	74 Outperform	$191.68M	8.87	9.12%	2.16%	6.42%	24.08%
FRAF	66 Neutral	$161.52M	13.88	8.16%	3.64%	18.74%	―
BCBP	65 Neutral	$140.56M	54.17	1.40%	7.81%	-5.71%	-90.24%
Sector *	64 Neutral	$12.85B	9.81	7.79%	78.20%	12.23%	-7.93%
NKSH	60 Neutral	$172.19M	19.85	5.66%	5.39%	16.35%	-39.77%
FSFG	59 Neutral	$181.14M	9.31	11.31%	2.44%	6.80%	161.37%

First Savings Financial Group Corporate Events

First Savings Financial Group 2025 Shareholders Meeting Highlights

The 2025 Annual Meeting of Shareholders of First Savings Financial Group, Inc. was held on February 11, 2025. During the meeting, several significant resolutions were passed, including the election of directors, approval of the 2025 Equity Incentive Plan, and the ratification of Forvis Mazars, LLP as the Company’s independent registered public accounting firm. CEO Larry W. Myers highlighted the company’s strategic shifts in 2024, including exiting the mortgage banking business and focusing on deposit growth and core banking. The company’s stock saw a significant rise, closing at $23.90 at the end of FY 2024. Myers expressed optimism about 2025, citing opportunities for further capital accretion and enhancement of shareholder value.