ServisFirst Bancshares (SFBS) AI Stock Analysis

• Market Cap: $3.97B
• Dividend Yield: 1.82%
• Average Volume (3M): 239.87K
• Price to Earnings (P/E): 15.6
• Beta (1Y): 0.95
• Revenue Growth: 3.97%
• EPS Growth: 24.91%
• Country: US
• Employees: 636
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.30
• Shares Outstanding: 54,621,834
• 10 Day Avg. Volume: 331,604
• 30 Day Avg. Volume: 239,871
• PEG Ratio: 2.08
• Price to Book (P/B): 2.86
• Price to Sales (P/S): 4.73
• P/FCF Ratio: 18.61
• Enterprise Value/Market Cap: 1.47
• Enterprise Value/Revenue: 5.84
• Enterprise Value/Gross Profit: 11.79
• Enterprise Value/Ebitda: 18.33
• 1Y Price Target: $88.00
• Price Target Upside: 21.13% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 5.1
• Revenue Forecast (FY): $567.07M

• Rating: 74 Outperform
• Price Target: $82.00 ▲(12.87% Upside)

ServisFirst Bancshares demonstrates strong financial performance and strategic growth, particularly highlighted in the earnings call. However, challenges in revenue growth and valuation metrics slightly temper the overall score.

Positive Factors

Profitability and Revenue Growth

The significant growth in net income and return on equity highlights strong profitability, indicating effective management and operational efficiency.

Cash Flow Management

Robust cash flow management with high free cash flow to net income ratio ensures financial flexibility and supports future investments.

Dividend Increase

The dividend increase reflects strong cash generation and commitment to shareholder returns, enhancing investor confidence and long-term value.

Negative Factors

Loan Growth Challenges

Below-expectation loan growth indicates potential challenges in expanding the loan portfolio, which could impact future revenue growth.

Increased Nonperforming Assets

Rising nonperforming assets can strain financial health, indicating potential risk in asset quality and necessitating careful risk management.

Revenue Growth Decline

A decline in revenue growth suggests challenges in maintaining market competitiveness and could pressure future profitability if not addressed.

ServisFirst Bancshares Business Overview & Revenue Model

Company Description

ServisFirst Bancshares, Inc. is a bank holding company headquartered in Birmingham, Alabama. The company operates through its wholly-owned subsidiary, ServisFirst Bank, which provides a wide range of banking services including commercial banking, personal banking, and wealth management. ServisFirst Bancshares primarily serves businesses and individuals in the southeastern United States, focusing on delivering high-quality financial products and exceptional customer service.

How the Company Makes Money

ServisFirst Bancshares generates revenue primarily through net interest income, which is derived from the interest earned on loans and other interest-earning assets minus the interest paid on deposits and borrowings. Key revenue streams include commercial loans, residential mortgages, and consumer loans. Additionally, the bank earns non-interest income from fees related to banking services, wealth management, and investment services. Significant partnerships with local businesses and organizations enhance its customer base and drive growth in deposits and loans, contributing further to its earnings.

ServisFirst Bancshares Financial Statement Overview

Summary

ServisFirst Bancshares exhibits strong profitability and cash flow management, with effective leverage control. Despite challenges in revenue growth, the company maintains solid margins and returns, positioning it well within the regional banking sector.

Income Statement

ServisFirst Bancshares shows strong profitability with a TTM net profit margin of 25.56% and a gross profit margin of 49.54%. However, the revenue growth rate has declined by 23.8% in the TTM, indicating potential challenges in revenue generation. Despite this, the company maintains solid EBIT and EBITDA margins, reflecting operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.87 in the TTM, down from 1.27 in 2024, indicating better leverage management. Return on equity remains strong at 15.05%, showcasing effective use of equity to generate profits. However, the equity ratio is not provided, limiting a full assessment of asset financing.

Cash Flow

ServisFirst Bancshares demonstrates robust cash flow management with a free cash flow growth rate of 24.33% in the TTM. The free cash flow to net income ratio is high at 97.9%, indicating efficient conversion of income into cash flow. However, the operating cash flow to net income ratio is not available, which could provide further insights into cash flow stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	999.21M	977.12M	828.82M	580.46M	437.43M	413.90M
Gross Profit	495.04M	456.07M	407.79M	454.43M	374.11M	320.48M
EBITDA	318.37M	283.77M	249.02M	312.95M	257.74M	218.31M
Net Income	255.39M	227.24M	206.85M	251.50M	207.73M	169.57M
Balance Sheet
Total Assets	17.58B	17.35B	16.13B	14.60B	15.45B	11.93B
Cash, Cash Equivalents and Short-Term Investments	1.72B	2.82B	2.86B	1.46B	5.01B	3.10B
Total Debt	1.55B	2.06B	1.32B	1.68B	1.78B	916.29M
Total Liabilities	15.80B	15.73B	14.69B	13.30B	14.30B	10.94B
Stockholders Equity	1.78B	1.62B	1.44B	1.30B	1.15B	992.35M
Cash Flow
Free Cash Flow	324.67M	248.27M	193.39M	268.98M	256.88M	188.99M
Operating Cash Flow	323.62M	252.91M	197.30M	272.63M	266.33M	191.29M
Investing Cash Flow	-1.14B	-948.53M	-200.43M	-2.64B	-1.56B	-1.41B
Financing Cash Flow	833.24M	941.16M	1.32B	-1.04B	3.31B	2.80B

ServisFirst Bancshares Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 72.65
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SFBS, the sentiment is Negative. The current price of 72.65 is below the 20-day moving average (MA) of 72.69, above the 50-day MA of 72.30, and below the 200-day MA of 76.96, indicating a neutral trend. The MACD of 0.47 indicates Negative momentum. The RSI at 49.04 is Neutral, neither overbought nor oversold. The STOCH value of 25.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SFBS.

ServisFirst Bancshares Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AUB	79 Outperform	$5.22B	19.62	5.42%	3.80%	43.53%	-21.74%
ABCB	78 Outperform	$5.30B	13.42	10.34%	1.02%	2.20%	20.88%
AX	78 Outperform	$4.96B	11.71	16.65%	―	1.66%	-9.31%
SFBS	74 Outperform	$3.97B	15.55	15.24%	1.82%	3.97%	24.91%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
IBOC	67 Neutral	$4.38B	10.43	14.31%	1.99%	0.99%	4.94%
BANF	64 Neutral	$3.75B	16.02	14.11%	1.66%	6.55%	12.94%

ServisFirst Bancshares Corporate Events

ServisFirst Bancshares Increases Quarterly Dividend by 13.4%

On December 15, 2025, ServisFirst Bancshares, Inc. announced an increase in its quarterly cash dividend by 13.4%, raising it from $0.335 to $0.38 per share. This decision reflects the company’s ongoing commitment to returning value to its shareholders, with the dividend payable on January 13, 2026, to stockholders of record as of January 2, 2026.

ServisFirst Bancshares Updates Investor Presentation for Growth

ServisFirst Bancshares, Inc. has updated its investor presentation to include current quarter financial data, reflecting its continued growth and strategic focus on expanding in metropolitan markets. The company’s consistent profitability and asset growth, along with its disciplined business strategy, highlight its strong market positioning and commitment to shareholder value, as evidenced by significant increases in tangible book value and stock price since its inception.

ServisFirst Bancshares Reports Strong Q3 2025 Earnings

On October 20, 2025, ServisFirst Bancshares announced its third-quarter earnings for 2025, highlighting significant financial growth. The company reported a 7.9% increase in loans and a 7.3% rise in deposits year-over-year. Adjusted diluted earnings per share rose by 18.2% compared to the same quarter in 2024. The net interest margin improved to 3.09%, and the return on average common stockholders’ equity increased to 16.21%. The company also maintained strong liquidity with $1.77 billion in cash and cash equivalents. These results reflect the company’s solid profitability across all regions and markets, with newer offices reaching profitability.

ServisFirst Bancshares to Release Q3 2025 Results

On September 26, 2025, ServisFirst Bancshares announced it will release its third-quarter 2025 financial results on October 20, 2025. The company will host a live audio webcast to discuss these results, potentially impacting stakeholders by providing insights into the company’s financial health and strategic direction.