Fact based stock research
First Financial Bankshares (NasdaqGS:FFIN)

US32020R1095

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

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First Financial Bankshares stock research in summary

ffin.com

ANALYSIS: With an Obermatt Combined Rank of 81 (better than 81% compared with investment alternatives), First Financial Bankshares (Regional Banks, USA) shares have much better financial characteristics than comparable stocks. Shares of First Financial Bankshares are low in value (priced high) with a consolidated Value Rank of 1 (worse than 99% of alternatives). But they show above-average growth (Growth Rank of 93) and are safely financed (Safety Rank of 87, which means below-average debt burdens). ...read more

RECOMMENDATION: A Combined Rank of 81, is a strong buy recommendation based on First Financial Bankshares's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company First Financial Bankshares exhibits low value (Obermatt Value Rank of 1), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 93). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 87) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	1
Growth Rank	93
Safety Rank	87
Combined Rank	81

Country	USA
Industry	Regional Banks
Index	NASDAQ, S&P MIDCAP
Size class	Medium

19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: First Financial Bankshares

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	4	1	1	1
GROWTH
GROWTH	23	41	31	93
SAFETY
SAFETY	53	69	74	87
SENTIMENT
SENTIMENT	n/a	1	73	^new
360° VIEW
360° VIEW	n/a	7	30	^new

Most recent update of the stock research: 19-Dec-2024. Financial reporting date used for calculating ranks: 30-Sep-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better First Financial Bankshares is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	4	1	1	1
GROWTH
GROWTH	23	41	31	93
SAFETY
SAFETY	53	69	74	87
COMBINED
COMBINED	13	17	18	81

Last update of combined financial performance: 19-Dec-2024. Stock analysis on combined financial performance: The higher the rank of First Financial Bankshares the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 1 (worse than 99% compared with alternatives), First Financial Bankshares shares are significantly more expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with all four indicators below average for First Financial Bankshares. Price-to-Sales is 1 which means that the stock price compared with what market professionals expect for future profits is higher than 99% of comparable companies, indicating a low value concerning First Financial Bankshares's sales levels. Price-to-Book Capital (also referred to as market-to-book ratio) also has a low Price-to-Book Rank of 1, which means that both reliable company size indicators, sales, and invested capital cannot explain the high stock price of First Financial Bankshares. In addition, the two profit-related value indicators, Price-to-Profit (also referred to as price-earnings, P/E) with a low rank of 3 and Dividend Yield, which is lower than 82% of comparable companies, also make the stock more expensive compared with investment alternatives. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 1, is a sell recommendation based on First Financial Bankshares's stock price compared with the company's operational size and dividend yields. How can market participants pay such a high price for First Financial Bankshares? One reason may be that the company is simply too popular. If enough people want a particular stock, its price can exceed reasonable levels. This is often the case for companies offering new and exciting products and everybody wants a piece of the action. Should you pay a lot for a hot stock such as First Financial Bankshares? It's risky, and even if the stock price continues to grow because of popular demand, it may return to more typical lower levels later. And that return can be sudden and quick, making it impossible for retail investors to exit on time. Sometimes, high prices are deserved. This is the case when it is justified to believe that the company will dominate a market with high profit margins. It has happened in the past for many technology companies and indeed for commercially successful pharmaceutical discoveries. Sometimes they last, sometimes, they get eaten alive. First Financial Bankshares may be such a type of stock. That would mean, retail investors should be careful, only considering investing a small part of their wealth in this exciting category and always being ready to lose more than half, if not all of the investment. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	1	1	1	1
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	1	1	1	3
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	2	1	1	1
DIVIDEND YIELD
DIVIDEND YIELD	37	23	22	18
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	4	1	1	1

Last update of Value Rank: 19-Dec-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of First Financial Bankshares; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 93 (better than 93% compared with alternatives) for 2024, First Financial Bankshares shows one of the highest growth dynamics in its industry. Investors also speak of high momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for First Financial Bankshares. Profit Growth has a rank of 85 which means that currently professionals expect the company to grow its profits more than 85% of its competitors. The same is valid for capital growth and stock returns. Capital Growth has a rank of 79, and Stock Returns has a rank of 81 which means that the stock returns have recently been above 81% of alternative investments. Only revenue growth is low with a Sales Growth has a rank of 45 (55% of its competitors are better). ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 93, is a buy recommendation for growth and momentum investors. The many positive growth indicators indicate a positive growth momentum with only low revenue growth. That can also be attributed to divestments or the sale of unprofitable businesses. If that is the reason, overall growth is well on track to making this stock attractive for growth investors. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	29	43	73	45
PROFIT GROWTH
PROFIT GROWTH	52	18	42	85
CAPITAL GROWTH
CAPITAL GROWTH	n/a	97	4	79
STOCK RETURNS
STOCK RETURNS	39	39	31	81
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	23	41	31	93

Last update of Growth Rank: 19-Dec-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of First Financial Bankshares.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 87 (better than 87% compared with alternatives) for 2024, the company First Financial Bankshares has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of First Financial Bankshares is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above average for First Financial Bankshares. Leverage is at a rank of 82, meaning the company has a below-average debt-to-equity ratio. It has less debt than 82% of its competitors. Liquidity is also good at a rank of 100, meaning the company generates more profit to service its debt than 100% of its competitors. This indicates that the company is on the safer side when it comes to debt service. But Refinancing is lower at a rank of 24, which means that the portion of the debt that is about to be refinanced is above-average. It has more debt in the refinancing stage than 76% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 87 (better than 87% compared with alternatives), First Financial Bankshares has a financing structure that is significantly safer than that of its competitors. The refinancing issues could be a short-term problem, especially if the company has reputation issues. Banks and investors don't like to refinance debt if there are clouds on the horizon. For this reason, investors should look at the refinancing environment for First Financial Bankshares. Does it look safe that debt that is coming due can be covered with new debt? If that is the case, then the financing situation of the company is on the safer side. If not, it may be better to wait until refinancing has been completed and the Refinancing rank is good again. Investors may have a short-term debt challenge with First Financial Bankshares and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	35	52	53	82
REFINANCING
REFINANCING	41	24	25	24
LIQUIDITY
LIQUIDITY	70	100	100	100
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	53	69	74	87

Last update of Safety Rank: 19-Dec-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of First Financial Bankshares and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	1	40	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	23	50	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	58	67	^new
MARKET PULSE
MARKET PULSE	n/a	14	84	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	1	73	^new

Last update of Sentiment Rank: 19-Dec-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for First Financial Bankshares.
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