Business First Bancshares, Inc. Fundamental Analysis (NASDAQ: BFST)
Business First Bancshares, Inc. Fundamental Analysis (NASDAQ: BFST)
Business First Bancshares, Inc. (NASDAQ: BFST) shows strong financial fundamentals with a PE ratio of 11.03, profit margin of 20.42%, and ROE of 9.85%. The company generates $0.5B in annual revenue with strong year-over-year growth of 11.84%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 65.3/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze BFST's fundamental strength across five key dimensions:
Efficiency Score
WeakBFST struggles to generate sufficient returns from assets.
Valuation Score
ExcellentBFST trades at attractive valuation levels.
Growth Score
ExcellentBFST delivers strong and consistent growth momentum.
Financial Health Score
ExcellentBFST maintains a strong and stable balance sheet.
Profitability Score
ModerateBFST maintains healthy but balanced margins.
Key Financial Metrics
Is BFST Expensive or Cheap?
P/E Ratio
BFST trades at 11.03 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, BFST's PEG of 0.93 indicates potential undervaluation.
Price to Book
The market values Business First Bancshares, Inc. at 1.01 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 15.96 times EBITDA. This signals the market has high growth expectations.
How Well Does BFST Make Money?
Net Profit Margin
For every $100 in sales, Business First Bancshares, Inc. keeps $20.42 as profit after all expenses.
Operating Margin
Core operations generate 13.08 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.85 in profit for every $100 of shareholder equity.
ROA
Business First Bancshares, Inc. generates $1.04 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Business First Bancshares, Inc. produces operating cash flow of $103.45M, showing steady but balanced cash generation.
Free Cash Flow
Business First Bancshares, Inc. generates strong free cash flow of $99.16M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.03 in free cash annually.
FCF Yield
BFST converts 9.70% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.03
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.93
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.005
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.23
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.59
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.05
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.007
vs 25 benchmark
How BFST Stacks Against Its Sector Peers
| Metric | BFST Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.03 | 21.07 | Better (Cheaper) |
| ROE | 9.85% | 647.00% | Weak |
| Net Margin | 20.42% | -1593.00% (disorted) | Strong |
| Debt/Equity | 0.59 | 0.90 | Strong (Low Leverage) |
| Current Ratio | 2.05 | 911.99 | Strong Liquidity |
| ROA | 1.04% | -578.00% (disorted) | Weak |
BFST outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Business First Bancshares, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
86.54%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
80.15%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
93.02%
Industry Style: Value, Dividend, Cyclical
High Growth