Southern First Bancshares (SFST) AI Stock Analysis

• Market Cap: $369.11M
• Dividend Yield: N/A
• Average Volume (3M): 29.38K
• Price to Earnings (P/E): 16.8
• Beta (1Y): 0.95
• Revenue Growth: 4.79%
• EPS Growth: 58.67%
• Country: US
• Employees: 297
• Sector: Financial
• Sector Strength: 72
• Industry: Banks - Regional
• EPS (TTM): 0.81
• Shares Outstanding: 8,180,715
• 10 Day Avg. Volume: 25,732
• 30 Day Avg. Volume: 29,379
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.55
• Enterprise Value/Revenue: 2.64
• Enterprise Value/Gross Profit: 5.56
• Enterprise Value/Ebitda: 17.42
• 1Y Price Target: $49.00
• Price Target Upside: 8.05% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 73 Outperform
• Price Target: $47.00 ▲(3.64% Upside)

Southern First Bancshares demonstrates strong financial performance with robust revenue growth and profitability. The technical analysis indicates a positive trend, while recent corporate events, including strong quarterly results and strategic board appointments, further bolster the company's outlook. However, the valuation is moderate, and the lack of dividend yield may deter some investors.

Southern First Bancshares Business Overview & Revenue Model

Company Description

Southern First Bancshares, Inc. operates as the bank holding company for Southern First Bank that provides various banking products and services to general public in South Carolina, North Carolina, and Georgia. It operates through three segments: Commercial and Retail Banking, Mortgage Banking, and Corporate Operations. The company accepts various deposit products that include checking accounts, commercial checking accounts, and savings accounts, as well as other time deposits, including daily money market accounts and long-term certificates of deposit. Its loan portfolio comprises commercial real estate loans; construction real estate loans; commercial business loans for various lines of businesses, such as the manufacturing, service industry, and professional service areas; consumer real estate and home equity loans; and other consumer loans, including secured and unsecured installment loans and revolving lines of credit. In addition, the company provides other bank services, such as internet banking, cash management, safe deposit boxes, direct deposit, automatic drafts, bill payment, and mobile banking services. It operates through eight retail offices located in Greenville, Charleston, and Columbia; three retail offices located in Raleigh, Greensboro, and Charlotte markets; and one retail office located in Atlanta. The company was incorporated in 1999 and is headquartered in Greenville, South Carolina.

How the Company Makes Money

Southern First Bancshares generates revenue primarily through net interest income, which is the difference between the interest earned on loans and the interest paid on deposits. The bank provides various loan products, including residential mortgages, commercial real estate loans, and consumer loans, which are significant sources of interest income. Additionally, SFST earns non-interest income through service fees on deposit accounts, wealth management services, and other banking fees. The company may also engage in partnerships or collaborations with local businesses to enhance its service offerings and expand its customer base, contributing to its overall revenue stream.

Southern First Bancshares Financial Statement Overview

Summary

Southern First Bancshares exhibits solid financial performance with steady revenue and profit growth. The balance sheet shows moderate leverage, but potential risks due to low equity relative to assets. Strong cash flow generation underpins operational resilience, although cash flow volatility warrants attention. Overall, the company is well-positioned but should focus on improving cost efficiency and maintaining financial stability.

Income Statement

Southern First Bancshares shows consistent revenue growth with a TTM revenue growth rate of 0.81% and a healthy net profit margin of 8.50% for TTM. However, recent declines in gross profit margin from 79.17% in 2022 to 45.23% in TTM suggest some pressure on cost management. EBIT margin improved slightly to 10.90% TTM, indicating operational efficiency gains.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 0.78, demonstrating balanced leverage. Return on equity is strong at 5.41% TTM, although down from prior years, reflecting a stable use of equity to generate profits. The equity ratio of 7.88% TTM indicates a relatively low equity position compared to total assets, suggesting potential risks in financial stability.

Cash Flow

Free cash flow has grown by 43% TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio is robust at 1.97, signifying effective cash conversion. However, significant fluctuations in investing and financing cash flows could suggest volatility in strategic investments and financings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	216.64M	213.32M	187.46M	127.64M	110.26M	122.17M
Gross Profit	102.85M	93.33M	86.25M	101.05M	117.23M	77.56M
EBITDA	32.81M	24.72M	22.24M	41.81M	63.12M	26.01M
Net Income	21.86M	15.53M	13.43M	29.11M	46.71M	18.33M
Balance Sheet
Total Assets	4.31B	4.09B	4.06B	3.69B	2.93B	2.48B
Cash, Cash Equivalents and Short-Term Investments	154.05M	34.87M	46.29M	162.94M	200.61M	173.67M
Total Debt	264.90M	264.90M	311.32M	211.21M	36.11M	61.00M
Total Liabilities	3.96B	3.76B	3.74B	3.40B	2.65B	2.25B
Stockholders Equity	345.46M	330.44M	312.47M	294.51M	277.90M	228.29M
Cash Flow
Free Cash Flow	41.95M	24.77M	16.41M	36.35M	51.56M	13.34M
Operating Cash Flow	42.58M	25.56M	17.65M	50.30M	78.07M	20.62M
Investing Cash Flow	-131.63M	-28.86M	-378.57M	-792.58M	-410.63M	-230.77M
Financing Cash Flow	165.25M	9.99M	346.22M	745.94M	399.08M	183.02M

Southern First Bancshares Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 45.35
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SFST, the sentiment is Positive. The current price of 45.35 is above the 20-day moving average (MA) of 42.15, above the 50-day MA of 40.73, and above the 200-day MA of 37.78, indicating a bullish trend. The MACD of 1.06 indicates Negative momentum. The RSI at 67.36 is Neutral, neither overbought nor oversold. The STOCH value of 89.02 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SFST.

Southern First Bancshares Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PCB	78 Outperform	$319.71M	10.37	8.63%	3.53%	11.93%	29.49%
OBT	78 Outperform	$356.79M	10.44	13.74%	1.88%	6.60%	-16.86%
FNLC	77 Outperform	$304.93M	10.43	11.76%	5.32%	12.08%	9.69%
CBAN	74 Outperform	$299.11M	10.76	9.90%	2.67%	7.07%	24.85%
SFST	73 Outperform	$369.11M	16.83	6.58%	―	4.79%	58.67%
CZFS	72 Outperform	$297.81M	9.29	10.53%	3.16%	2.41%	15.34%
Sector *	68 Neutral	$17.84B	12.03	10.32%	3.73%	9.70%	0.76%

Southern First Bancshares Corporate Events

Southern First Bancshares Reports Strong Q2 2025 Results

Southern First Bancshares reported strong financial results for the second quarter of 2025, with a 24% increase in total revenue compared to the same quarter the previous year. The company achieved significant margin expansion and added three new board members, reflecting its commitment to growth and leadership in the banking sector. The company’s asset quality remains among the best in the industry, and it continues to attract talented bankers, indicating a positive outlook for future growth.

Southern First Bancshares Announces Share Repurchase Plan

Southern First Bancshares, Inc. has announced a share repurchase plan authorizing the buyback of up to $5 million, or approximately 2%, of its common stock. This initiative is aimed at providing capital management opportunities, with the flexibility to adjust based on market conditions, stock prices, and regulatory requirements, although the company is not obligated to repurchase any shares.

Southern First Bancshares Appoints Three New Directors

On June 1, 2025, Southern First Bancshares, Inc. and Southern First Bank announced the appointment of three new directors: Ms. Jennifer S. Cluverius, Mr. Darrin Goss, Sr., and Mr. William M. McClatchey, Jr. These appointments are expected to enhance the company’s governance through their diverse expertise. Ms. Cluverius will serve on the Compensation Committee, Mr. Goss on the Audit Committee, and Mr. McClatchey on the Risk Committee. The new directors bring valuable skills from their respective fields, which are anticipated to positively impact the company’s strategic direction and operational oversight.