First US Bancshares (FUSB) AI Stock Analysis

• Market Cap: $74.28M
• Dividend Yield: 1.85%
• Average Volume (3M): 9.09K
• Price to Earnings (P/E): 10.1
• Beta (1Y): 0.37
• Revenue Growth: 5.07%
• EPS Growth: -7.24%
• Country: US
• Employees: 151
• Sector: Financial
• Sector Strength: 84
• Industry: Banks - Regional
• EPS (TTM): 0.29
• Shares Outstanding: 5,738,352
• 10 Day Avg. Volume: 2,075
• 30 Day Avg. Volume: 9,088
• PEG Ratio: -2.11
• Price to Book (P/B): 0.71
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.61
• Enterprise Value/Market Cap: 1.43
• Enterprise Value/Revenue: 0.61
• Enterprise Value/Gross Profit: 2.34
• Enterprise Value/Ebitda: 6.87
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

First US Bancshares demonstrates strong financial performance with robust revenue growth and solid equity. However, technical indicators show bearish momentum, and declining cash flow raises concerns. Valuation metrics suggest the stock is undervalued, while strategic corporate events provide a positive outlook. Addressing cash flow sustainability is crucial for strengthening financial health.

First US Bancshares Business Overview & Revenue Model

Company Description

First US Bancshares, Inc. operates as the bank holding company for First US Bank that provides commercial banking products and services. The company offers non-interest-bearing demand deposits, savings accounts, NOW accounts, money market demand accounts, individual retirement accounts, and time deposits. Its loan products include commercial construction, land, and land development loans comprising residential housing, commercial and industrial use property development loans, raw land purchase and improvement loans, and agricultural production loans; mortgage loans on residential properties and apartment buildings; real estate loans secured by commercial and industrial properties, office or mixed-use facilities, strip shopping centers, or other commercial property; loans and leases to commercial customers; and secured and unsecured personal loans, including automobile loans and other direct consumer installment loans. The company also provides loans secured by personal property items, such as furniture, ATVs, and home appliances, as well as recreational vehicles, boats, and cargo trailers. In addition, it provides letters of credit; and safe deposit box and remote deposit capture services, as well as underwrites credit life, and credit accident and health insurance reinsurance policies. The company serves small-and medium-sized businesses, property managers, business executives, professionals, and other individuals. It operates 15 full-service banking offices in Birmingham, Butler, Calera, Centreville, Gilbertown, Grove Hill, Harpersville, Jackson, Thomasville, Tuscaloosa, and Woodstock, Alabama; Knoxville and Powell, Tennessee; and Rose Hill, Virginia, as well as loan production offices in Mobile, Alabama, and the Chattanooga, Tennessee area. The company was formerly known as United Security Bancshares, Inc. and changed its name to First US Bancshares, Inc. in October 2016. First US Bancshares, Inc. was founded in 1952 and is headquartered in Birmingham, Alabama.

How the Company Makes Money

First US Bancshares makes money primarily through interest income and non-interest income. The interest income is generated from various loans such as commercial, real estate, and consumer loans, where the bank earns interest from borrowers. Non-interest income includes fees and service charges from deposit accounts, investment advisory fees, and other financial services-related charges. The bank also benefits from interest earned on securities and other investments. Key factors contributing to its earnings include effective interest rate management, maintaining a diversified loan portfolio, and strategic customer relationships in its local markets.

First US Bancshares Financial Statement Overview

Summary

First US Bancshares exhibits strong revenue growth and efficient operations with a solid equity base. However, the decline in cash flow generation and room for improvement in net profit margins present moderate risks.

Income Statement

First US Bancshares has demonstrated strong revenue growth, with a significant increase in total revenue from previous years. The gross profit margin is stable, reflecting efficient cost management. However, the net profit margin shows room for improvement, indicating potential cost pressures or margin compression. The EBIT margin is robust, further reflecting operational efficiency.

Balance Sheet

The balance sheet reveals a solid equity position with a low debt-to-equity ratio, indicating financial stability and low leverage risk. Return on equity is commendable, showcasing good profitability relative to shareholders' equity. However, the equity ratio suggests a moderately leveraged position, which is typical for the banking industry.

Cash Flow

The cash flow statement indicates a decline in operating cash flow, which could be a concern if it continues. Free cash flow has decreased, affecting the company's ability to generate cash after capital expenditures. The operating cash flow to net income ratio is healthy, suggesting effective cash conversion from earnings.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
39.73M	40.71M	624.00K	40.49M	40.78M
	Gross Profit
39.73M	40.41M	624.00K	40.49M	40.78M
	EBIT
10.75M	11.25M	13.27M	5.73M	3.53M
	EBITDA
0.00	13.05M	10.89M	7.76M	0.00
	Net Income Common Stockholders
8.17M	8.48M	6.86M	4.45M	2.71M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
178.52M	148.55M	160.95M	192.13M	179.41M
	Total Assets
1.10B	1.07B	994.67M	958.30M	890.51M
	Total Debt
20.87M	20.80M	30.76M	20.70M	10.02M
	Net Debt
-26.34M	-29.48M	612.00K	-40.55M	-84.40M
	Total Liabilities
1.00B	982.35M	909.53M	868.24M	10.31M
	Stockholders Equity
98.62M	90.59M	85.14M	90.06M	86.68M
Cash Flow		Free Cash Flow
5.66M	11.60M	11.27M	9.00M	5.14M
	Operating Cash Flow
7.76M	13.07M	12.53M	9.82M	6.09M
	Investing Cash Flow
-30.35M	-60.45M	-80.20M	-108.31M	-66.06M
	Financing Cash Flow
19.52M	67.51M	36.58M	65.32M	97.35M

First US Bancshares Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FUSB, the sentiment is Positive. The current price of 13 is above the 20-day moving average (MA) of 12.70, below the 50-day MA of 13.02, and above the 200-day MA of 12.26, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 54.26 is Neutral, neither overbought nor oversold. The STOCH value of 65.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FUSB.

First US Bancshares Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BOTJ	72 Outperform	$63.61M	9.64	10.25%	3.57%	12.23%	-25.92%
AUBN	70 Neutral	$72.04M	10.70	8.32%	5.24%	22.78%	722.30%
Sector *	64 Neutral	$12.82B	9.87	7.67%	17000.34%	12.39%	-5.85%
LSBK	63 Neutral	$86.38M	17.55	5.61%	4.72%	1.75%	22.21%
FUSB	62 Neutral	$74.28M	10.07	8.10%	1.85%	5.07%	-7.24%
IROQ	59 Neutral	$81.00M	23.66	4.35%	1.65%	11.65%	67.39%
UBCP	59 Neutral	$75.47M	10.50	11.29%	5.49%	5.81%	-22.37%

First US Bancshares Corporate Events

First US Bancshares Highlights Strategic Growth Focus

On March 31, 2025, First US Bancshares presented an investor update highlighting its strategic focus on consistent growth in earnings per share, return on assets, and return on equity. The company aims to maintain a strong credit culture and expand its digital offerings to optimize its branch footprint. The presentation also emphasized the importance of maintaining a diversified balance sheet and exploring potential market growth in regions such as Alabama, Florida, and Georgia. The announcement underscores the company’s commitment to enhancing franchise value and adapting to changing market conditions, which could impact its operations and stakeholder interests.

Spark’s Take on FUSB Stock

According to Spark, TipRanks’ AI Analyst, FUSB is a Neutral.

First US Bancshares presents a solid financial performance with strong revenue growth and efficient operations. While the stock appears undervalued, caution is advised due to declining cash flow and technical indicators suggesting overselling pressures. Strategic initiatives and corporate events bolster the outlook, but addressing cash flow sustainability remains crucial.

To see Spark’s full report on FUSB stock, click here.

First US Bancshares Launches 2025 Cash Incentive Program

On February 10, 2025, First US Bancshares’ Compensation Committee announced the establishment of a 2025 Cash Incentive Program aimed at rewarding certain executive officers and key employees. This program ties cash bonuses to achieving specific financial performance targets, such as pre-tax income and return on assets, with potential adjustments based on extraordinary events or noncompliance with financial reporting standards. The program reflects the company’s strategic focus on financial performance and growth, with implications for motivating leadership and aligning their goals with shareholder interests.