First Interstate BancSystem, Inc.
First Interstate BancSystem, Inc. Fundamental Analysis
First Interstate BancSystem, Inc. (FIBK) shows moderate financial fundamentals with a PE ratio of 11.65, profit margin of 22.67%, and ROE of 8.83%. The company generates $1.3B in annual revenue with weak year-over-year growth of -28.52%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 17.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze FIBK's fundamental strength across five key dimensions:
Efficiency Score
WeakFIBK struggles to generate sufficient returns from assets.
Valuation Score
ExcellentFIBK trades at attractive valuation levels.
Growth Score
ModerateFIBK shows steady but slowing expansion.
Financial Health Score
ModerateFIBK shows balanced financial health with some risks.
Profitability Score
ModerateFIBK maintains healthy but balanced margins.
Key Financial Metrics
Is FIBK Expensive or Cheap?
P/E Ratio
FIBK trades at 11.65 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, FIBK's PEG of 0.34 indicates potential undervaluation.
Price to Book
The market values First Interstate BancSystem, Inc. at 1.02 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.98 times EBITDA. This is generally considered low.
How Well Does FIBK Make Money?
Net Profit Margin
For every $100 in sales, First Interstate BancSystem, Inc. keeps $22.67 as profit after all expenses.
Operating Margin
Core operations generate 29.39 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.83 in profit for every $100 of shareholder equity.
ROA
First Interstate BancSystem, Inc. generates $1.13 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
First Interstate BancSystem, Inc. produces operating cash flow of $295.67M, showing steady but balanced cash generation.
Free Cash Flow
First Interstate BancSystem, Inc. generates strong free cash flow of $268.77M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.76 in free cash annually.
FCF Yield
FIBK converts 8.20% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.65
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.34
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.02
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.55
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.23
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.04
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How FIBK Stacks Against Its Sector Peers
| Metric | FIBK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.65 | 18.99 | Better (Cheaper) |
| ROE | 8.83% | 824.00% | Weak |
| Net Margin | 22.67% | 1603.00% | Weak |
| Debt/Equity | 0.23 | 0.99 | Strong (Low Leverage) |
| Current Ratio | 0.04 | 621.71 | Weak Liquidity |
| ROA | 1.13% | -24664.00% (disorted) | Weak |
FIBK outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews First Interstate BancSystem, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-3.37%
Industry Style: Value, Dividend, Cyclical
DecliningEPS CAGR
16.41%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
-29.25%
Industry Style: Value, Dividend, Cyclical
Declining