ServisFirst Bancshares, Inc.
ServisFirst Bancshares, Inc. Fundamental Analysis
ServisFirst Bancshares, Inc. (SFBS) shows strong financial fundamentals with a PE ratio of 14.74, profit margin of 29.35%, and ROE of 16.32%. The company generates $1.0B in annual revenue with moderate year-over-year growth of 4.13%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 65.1/100 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 SFBS's fundamental strength across five key dimensions:
Efficiency Score
WeakSFBS struggles to generate sufficient returns from assets.
Valuation Score
ModerateSFBS shows balanced valuation metrics.
Growth Score
ModerateSFBS shows steady but slowing expansion.
Financial Health Score
ModerateSFBS shows balanced financial health with some risks.
Profitability Score
ExcellentSFBS achieves industry-leading margins.
Key Financial Metrics
Is SFBS Expensive or Cheap?
P/E Ratio
SFBS trades at 14.74 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, SFBS's PEG of 2.07 indicates potential overvaluation.
Price to Book
The market values ServisFirst Bancshares, Inc. at 2.28 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 16.81 times EBITDA. This signals the market has high growth expectations.
How Well Does SFBS Make Money?
Net Profit Margin
For every $100 in sales, ServisFirst Bancshares, Inc. keeps $29.35 as profit after all expenses.
Operating Margin
Core operations generate 26.11 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $16.32 in profit for every $100 of shareholder equity.
ROA
ServisFirst Bancshares, Inc. generates $1.63 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
ServisFirst Bancshares, Inc. generates strong operating cash flow of $355.19M, reflecting robust business health.
Free Cash Flow
ServisFirst Bancshares, Inc. generates strong free cash flow of $350.65M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $6.41 in free cash annually.
FCF Yield
SFBS converts 8.11% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
14.74
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.07
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.28
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.33
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.16
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.01
vs 25 benchmark
How SFBS Stacks Against Its Sector Peers
| Metric | SFBS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 14.74 | 18.99 | Better (Cheaper) |
| ROE | 16.32% | 821.00% | Weak |
| Net Margin | 29.35% | 1914.00% | Weak |
| Debt/Equity | 0.00 | 1.00 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 657.31 | Weak Liquidity |
| ROA | 1.63% | -25084.00% (disorted) | Weak |
SFBS outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews ServisFirst Bancshares, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
142.13%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
60.66%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
82.89%
Industry Style: Value, Dividend, Cyclical
High Growth