FFIN Intrinsic Value – First Financial Bankshares Reports Lower-Than-Expected Revenue Despite In-Line Earnings

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First Financial Bankshares ($NASDAQ:FFIN) is a Texas-based financial holding company with locations in Colorado, Kansas, Missouri, Oklahoma, and Texas. It is primarily engaged in the business of commercial banking and offers a range of financial services and products to individuals, small and medium-sized businesses, and other customers. Despite lower-than-expected revenue, the company managed to remain in line with their earnings expectations due to cost-cutting measures and improved efficiency. They also reported higher noninterest income, which was driven by growth in service charges on deposits. Their loan portfolio grew 5% compared to the same period the previous year, driven by higher commercial loans.

Overall, First Financial Bankshares managed to remain in line with their quarterly earnings expectations despite lower-than-expected revenue. They have been able to capitalize on cost-saving measures and improved efficiency to help offset the lower revenue. Going forward, investors will be watching to see if the company can continue to grow their loan portfolio and remain profitable.

Price History

The stock opened at $27.9 and closed at $28.6, down by 3.8% from the previous closing price of 29.8. This news caused the stock to decline and reflected investors’ disappointment with the results. Despite the lower-than-expected revenue, the company reported in-line earnings and reaffirmed its previously issued full-year guidance. Despite the decline in stock price, the company’s long-term prospects remain promising and investors may want to consider buying the stock on the dip given the company’s current valuation. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for FFIN. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for FFIN. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for FFIN. More…

Key Ratios Snapshot

Some of the financial key ratios for FFIN are shown below. More…

Analysis – FFIN Intrinsic Value

At GoodWhale, we have conducted an analysis of FIRST FINANCIAL BANKSHARES‘s health. Our proprietary Valuation Line has calculated the fair value of FIRST FINANCIAL BANKSHARES share to be around $42.2. Presently, the stock is traded at a lower price of $28.6, which is a significant undervaluation of 32.2%. More…

Peers

There is intense competition among First Financial Bankshares Inc and its competitors Parkway Bank, First Financial Northwest Inc, CCSB Financial Corp. All these companies are trying to get a larger share of the market by offering competitive products and services. They are all fighting for a larger market share, which has led to increased advertising and promotional expenses.

– Parkway Bank ($NASDAQ:FFNW)

First Financial Northwest is a bank holding company based in Washington state. The company operates through its subsidiary, First Financial Northwest Bank. First Financial Northwest Bank is a full-service community bank that offers a variety of deposit and loan products to businesses and individuals in the Seattle-Tacoma metropolitan area. The company’s market cap as of 2022 is $138.83 million.

– First Financial Northwest Inc ($OTCPK:CCFC)

CCSB Financial Corp is a community bank holding company. The Company’s primary business is the ownership and operation of its subsidiary bank, Citizens Community Bank (the Bank). The Bank provides a range of banking services to individual and corporate customers through its offices located in central and southwestern Virginia.

Summary

First Financial Bankshares reported $0.37 in GAAP earnings per share, which was in line with analyst expectations. The company reported revenue of $124.29M, however this missed expectations by $5.11M. In response, the stock price moved down on the same day.

Investors should take note of the miss in revenue and watch for further developments to assess the company’s future profitability. They should also consider other factors such as the company’s balance sheet and overall market conditions when making their decision on whether or not to invest in the company.