First Financial Bankshares, Inc.
First Financial Bankshares, Inc. Fundamental Analysis
First Financial Bankshares, Inc. (FFIN) shows strong financial fundamentals with a PE ratio of 17.25, profit margin of 31.14%, and ROE of 14.20%. The company generates $0.8B in annual revenue with strong year-over-year growth of 11.71%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 64.0/100 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 FFIN's fundamental strength across five key dimensions:
Efficiency Score
WeakFFIN struggles to generate sufficient returns from assets.
Valuation Score
ExcellentFFIN trades at attractive valuation levels.
Growth Score
ExcellentFFIN delivers strong and consistent growth momentum.
Financial Health Score
ModerateFFIN shows balanced financial health with some risks.
Profitability Score
ModerateFFIN maintains healthy but balanced margins.
Key Financial Metrics
Is FFIN Expensive or Cheap?
P/E Ratio
FFIN trades at 17.25 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, FFIN's PEG of 1.28 indicates fair valuation.
Price to Book
The market values First Financial Bankshares, Inc. at 2.34 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 15.76 times EBITDA. This signals the market has high growth expectations.
How Well Does FFIN Make Money?
Net Profit Margin
For every $100 in sales, First Financial Bankshares, Inc. keeps $31.14 as profit after all expenses.
Operating Margin
Core operations generate 38.04 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.20 in profit for every $100 of shareholder equity.
ROA
First Financial Bankshares, Inc. generates $1.71 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
First Financial Bankshares, Inc. generates strong operating cash flow of $321.36M, reflecting robust business health.
Free Cash Flow
First Financial Bankshares, Inc. generates strong free cash flow of $305.88M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.13 in free cash annually.
FCF Yield
FFIN converts 6.71% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
17.25
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.28
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.34
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.37
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.05
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.07
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.16
vs 25 benchmark
How FFIN Stacks Against Its Sector Peers
| Metric | FFIN Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 17.25 | 18.85 | Neutral |
| ROE | 14.20% | 808.00% | Weak |
| Net Margin | 31.14% | 2312.00% | Weak |
| Debt/Equity | 0.05 | 1.01 | Strong (Low Leverage) |
| Current Ratio | 0.07 | 615.45 | Weak Liquidity |
| ROA | 1.71% | -23789.00% (disorted) | Weak |
FFIN outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews First Financial Bankshares, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
66.61%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
24.57%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
51.03%
Industry Style: Value, Dividend, Cyclical
High Growth