Red River Bancshares (RRBI) AI Stock Analysis

• Market Cap: $584.97M
• Dividend Yield: 0.73%
• Average Volume (3M): 16.33K
• Price to Earnings (P/E): 11.2
• Beta (1Y): 0.70
• Revenue Growth: 7.81%
• EPS Growth: 26.91%
• Country: US
• Employees: 375
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.73
• Shares Outstanding: 6,577,186
• 10 Day Avg. Volume: 18,921
• 30 Day Avg. Volume: 16,331
• PEG Ratio: 0.38
• Price to Book (P/B): 1.31
• Price to Sales (P/S): 2.81
• P/FCF Ratio: 11.14
• Enterprise Value/Market Cap: 0.94
• Enterprise Value/Revenue: 3.25
• Enterprise Value/Gross Profit: 4.49
• Enterprise Value/Ebitda: 9.85
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 7.12
• Revenue Forecast (FY): $132.04M

• Rating: 80 Outperform
• Price Target: $101.00 ▲(35.83% Upside)
• Action: Reiterated Date: 03/13/26
• Date: Action: Reiterated 03/13/26

The score is primarily driven by strong financial quality—high profitability and an exceptionally low-leverage balance sheet—tempered by slower revenue growth and some cash-flow variability. Technicals are supportive but neutral-to-moderate in momentum, valuation looks reasonable on earnings but with a low dividend yield, and the expanded buyback program adds a modest positive catalyst.

Positive Factors

High Profitability

Sustained high operating and net margins show the bank converts revenue into earnings efficiently. Margins near 25–31% provide a durable earnings buffer that supports reserve building, reinvestment in the franchise, and resilience to credit or interest-rate shocks over multiple quarters.

Conservative Balance Sheet

Exceptionally low leverage grants strong capital flexibility and downside protection. With debt-to-equity around 0.4%, the bank can sustain lending, absorb regional stress, and pursue capital-return actions without straining regulatory capital, supporting durable financial stability.

Solid Free Cash Flow

Near one-to-one free cash flow conversion indicates earnings largely become available cash, enabling repeatable funding for buybacks, loan growth, or reserves. Stable FCF (~$38M) improves long-term capital allocation options and reduces reliance on external financing.

Negative Factors

Slow Revenue Growth

Subdued top-line growth (~2.3% TTM) constrains organic earnings expansion and increases reliance on margin gains or capital returns to boost per-share metrics. Over a multi-quarter horizon, limited revenue momentum can cap scalability and investor-return drivers absent strategic diversification.

Cash-Flow Variability

Year-to-year swings in operating cash flow reduce predictability of internal funding for lending, dividends, or buybacks. This variability makes multi-quarter planning harder and risks curtailing capital deployment during weaker cash periods, limiting consistent shareholder returns.

Regional Concentration

Heavy focus on Louisiana and community banking narrows geographic and industry diversification. Regional economic downturns, local industry shocks, or state-specific regulatory changes could disproportionately affect credit quality and deposit stability versus more geographically diversified regional banks.

Red River Bancshares Business Overview & Revenue Model

Company Description

Red River Bancshares, Inc. operates as a bank holding company for Red River Bank that provides banking products and services to commercial and retail customers in Louisiana. The company provides various deposit products, including checking, saving, money market accounts, and time deposits. It also offers commercial real estate loans; one-to-four family mortgage loans and home equity lines of credit; construction and development loans; commercial and industrial loans; small business administration paycheck protection program loans; tax-exempt loans; consumer loans to individuals for personal, family, and household purposes, including secured and unsecured installment and term loans; home mortgage loans; and lines of credit and standby letters of credit. In addition, the company provides treasury management, private banking, and brokerage; investment advisory, financial planning, and a suite of retirement plans; debit and credit cards, direct deposits, cashier's checks, and wire transfer services; online banking services, including access to account balances, online transfers, online bill payment, and electronic delivery of customer statements; and banking services in person, through ATMs, drive-through facilities, night deposits, telephone, mail, mobile banking, and remote deposits. It operates a network of 27 banking centers throughout Louisiana and two combined loan and deposit production offices in Lafayette and New Orleans, Louisiana. The company was incorporated in 1998 and is headquartered in Alexandria, Louisiana.

How the Company Makes Money

Red River Bancshares generates revenue primarily through interest income from loans and investments, as well as non-interest income from various banking services. Key revenue streams include interest from commercial and consumer loans, mortgage loans, and investment securities. Additionally, the company earns fees from services such as account maintenance, transaction processing, and wealth management. Strategic partnerships with local businesses and community organizations also enhance customer acquisition and retention, contributing to overall earnings. The bank's focus on community lending and personalized service helps drive customer loyalty, which is essential for sustainable revenue growth.

Red River Bancshares Financial Statement Overview

Summary

Strong profitability (TTM net margin ~25%, EBIT margin ~31%) and a very conservatively levered balance sheet (debt-to-equity ~0.4%) support a high score. Offsets include moderating revenue growth (~2.3% TTM) and some volatility in cash-flow indicators despite solid TTM free cash flow (~$38M) and good earnings conversion (~0.97x).

Income Statement

TTM (Trailing-Twelve-Months) results show solid profitability, with net profit margin at ~25% and EBIT margin at ~31%, both improving versus 2024. Revenue growth is positive at ~2.3% TTM, but the growth profile has cooled versus the stronger expansion seen in 2022–2023, and margins have not fully returned to the peak levels posted in 2021–2022.

Balance Sheet

Balance sheet looks conservatively positioned with extremely low debt: debt-to-equity is ~0.4% in TTM (Trailing-Twelve-Months), improving from already-low levels in prior years. Equity has grown (to ~$365M TTM), and return on equity is healthy at ~12.3% TTM, though it remains below the higher profitability achieved in 2022.

Cash Flow

Cash generation is generally sound: free cash flow is ~$38M TTM (Trailing-Twelve-Months) with ~10% growth, and free cash flow is close to net income (~0.97x), indicating good earnings conversion. However, cash flow has been somewhat uneven over the period (including weaker free cash flow growth in several years), and the reported operating cash flow coverage ratio swings widely year to year, which lowers confidence in consistency.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	169.85M	156.78M	138.70M	112.46M	100.82M
Gross Profit	123.22M	107.64M	105.83M	102.98M	93.30M
EBITDA	53.13M	45.60M	45.69M	47.59M	42.61M
Net Income	42.76M	34.23M	34.88M	36.92M	32.95M
Balance Sheet
Total Assets	3.35B	3.15B	3.13B	3.08B	3.22B
Cash, Cash Equivalents and Short-Term Investments	673.00M	286.82M	875.52M	892.80M	1.44B
Total Debt	1.54M	2.86M	3.77M	4.26M	3.84M
Total Liabilities	2.99B	2.83B	2.82B	2.82B	2.93B
Stockholders Equity	365.15M	319.74M	303.85M	265.75M	298.15M
Cash Flow
Free Cash Flow	42.81M	33.41M	35.20M	37.42M	58.84M
Operating Cash Flow	40.11M	38.28M	40.11M	45.87M	62.26M
Investing Cash Flow	-8.74M	-59.16M	-8.74M	-438.70M	-284.68M
Financing Cash Flow	-4.34M	-15.57M	-4.34M	-113.64M	560.08M

Red River Bancshares Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 74.36
• 50DMA: Positive
• 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 RRBI, the sentiment is Positive. The current price of 74.36 is below the 20-day moving average (MA) of 88.34, below the 50-day MA of 84.30, and above the 200-day MA of 69.56, indicating a bullish trend. The MACD of 0.74 indicates Positive momentum. The RSI at 55.34 is Neutral, neither overbought nor oversold. The STOCH value of 69.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RRBI.

Red River Bancshares Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RRBI	80 Outperform	$584.97M	11.15	12.35%	0.73%	7.81%	26.91%
BSVN	74 Outperform	$370.40M	8.99	19.46%	2.40%	-6.72%	19.64%
HBCP	73 Outperform	$464.46M	9.75	11.03%	1.92%	6.25%	24.92%
FBIZ	72 Outperform	$435.50M	8.80	14.27%	2.08%	8.21%	29.65%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
CARE	63 Neutral	$439.96M	12.67	7.65%	―	6.62%	117.46%
COFS	58 Neutral	$412.90M	14.61	6.16%	3.69%	50.36%	-56.64%

Red River Bancshares Corporate Events

Red River Bancshares Expands 2026 Share Repurchase Program

On December 18, 2025, Red River Bancshares, Inc. announced that its board of directors had approved the renewal and expansion of its stock repurchase program, authorizing the company to buy back up to $10 million of its common shares between January 1 and December 31, 2026. The move, positioned by management as a capital management tool to maximize shareholder value, allows Red River to repurchase shares in the open market or through privately negotiated transactions, signaling confidence in the company’s financial position and providing a mechanism to enhance returns for existing shareholders.

The most recent analyst rating on (RRBI) stock is a Buy with a $73.00 price target. To see the full list of analyst forecasts on Red River Bancshares stock, see the RRBI Stock Forecast page.