Fact based stock research
First Financial Northwest (NasdaqGS:FFNW)

US32022K1025

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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.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

First Financial Northwest stock research in summary

ffnwb.com

ANALYSIS: With an Obermatt Combined Rank of 1 (worse than 99% compared with investment alternatives), First Financial Northwest (Regional Banks, USA) shares have lower financial characteristics compared with similar stocks. Shares of First Financial Northwest are low in value (priced high) with a consolidated Value Rank of 7 (worse than 93% of alternatives), show below-average growth (Growth Rank of 7), and are riskily financed (Safety Rank of 4), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 1, is a sell recommendation based on First Financial Northwest's financial characteristics. As the company First Financial Northwest's key financial metrics all exhibit below-average performance, such as low value (Obermatt Value Rank of 7), low growth (Obermatt Growth Rank of 7), and risky financing practices (Obermatt Safety Rank of 4), it is a somewhat questionable stock investment, where the risk of paying too much for the shares is significant, unless the company has an exceptionally bright future. Such poor financial performance sometimes indicates that the company's business is all concentrated in some distant future. This is sometimes the case for high-tech or biotechnology companies. If they own properties that only provide cash flows in the future, the stock may look excessively expensive and risky today. In such cases, the Obermatt Method has limited value as it is based on facts we can observe today. If the facts are all in the future, stock investing becomes guesswork, and this should only be a driver in a limited number of investments that should only amount to a small fraction of a safe portfolio. 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	7
Growth Rank	7
Safety Rank	4
Combined Rank	1

Country	USA
Industry	Regional Banks
Index	Sound Pay USA, NASDAQ
Size class	XX-Large

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

Further information

Multiple opinions. One number.

Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.

Why popular stocks have low ratings

It’s easier said than done. When your stock drops, it’s easy to want to sell it and find a better performer. Think twice, or even three times, before trading. Those fees (especially the hidden ones) can eat up your gains.

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

Research History: First Financial Northwest

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	75	79	55	7
GROWTH
GROWTH	19	31	12	7
SAFETY
SAFETY	31	13	24	4
SENTIMENT
SENTIMENT	n/a	94	63	^new
360° VIEW
360° VIEW	n/a	61	16	^new

Most recent update of the stock research: 14-Nov-2024. Financial reporting date used for calculating ranks: 30-Jun-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better First Financial Northwest is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	75	79	55	7
GROWTH
GROWTH	19	31	12	7
SAFETY
SAFETY	31	13	24	4
COMBINED
COMBINED	28	21	6	1

Last update of combined financial performance: 14-Nov-2024. Stock analysis on combined financial performance: The higher the rank of First Financial Northwest the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 7 (worse than 93% compared with alternatives), First Financial Northwest 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 Northwest. Price-to-Sales is 6 which means that the stock price compared with what market professionals expect for future profits is higher than 94% of comparable companies, indicating a low value concerning First Financial Northwest's sales levels. Price-to-Book Capital (also referred to as market-to-book ratio) also has a low Price-to-Book Rank of 36, which means that both reliable company size indicators, sales, and invested capital cannot explain the high stock price of First Financial Northwest. In addition, the two profit-related value indicators, Price-to-Profit (also referred to as price-earnings, P/E) with a low rank of 1 and Dividend Yield, which is lower than 73% 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 7, is a sell recommendation based on First Financial Northwest'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 Northwest? 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 Northwest? 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 Northwest 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)	63	71	48	6
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	41	36	1	1
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	90	93	87	36
DIVIDEND YIELD
DIVIDEND YIELD	61	65	67	27
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	75	79	55	7

Last update of Value Rank: 14-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of First Financial Northwest; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 7 (better than 7% compared with alternatives), First Financial Northwest shows one of the most restricted growth dynamics in its industry. There is little momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four indicators below average for First Financial Northwest. Sales Growth has a below market rank of 18, which means that, currently, professionals expect the company to grow less than 82% of its competitors. The same is valid for Capital Growth, with a rank of 3, and Profit Growth, with a rank of 1. Currently, professionals expect the company to grow its profits less than 99% of its competitors). Only shareholders are optimistic. Stock Returns are above average at a rank of 99, which means that the stock returns have recently been above 99% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 7, is a sell recommendation for growth and momentum investors. That picture may be the result for a company that has reached the bottom. All went south for First Financial Northwest, and it still looks bad, but some investors already see light at the end of the tunnel, rewarding the stock with recent above-market stock returns. It could also mean that investors are correcting an overreaction to negative news. If that were the case, the positive stock returns are not yet a sign of recovery. Investors should look closely at the Value and Sentiment indicators before they make a stock purchasing decision, because growth is unlikely to be the driving argument behind this investment. 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, especially since the growth performance is low here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	16	44	8	18
PROFIT GROWTH
PROFIT GROWTH	100	60	4	1
CAPITAL GROWTH
CAPITAL GROWTH	n/a	9	71	3
STOCK RETURNS
STOCK RETURNS	55	55	37	99
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	19	31	12	7

Last update of Growth Rank: 14-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of First Financial Northwest.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 4 (better than 4% compared with alternatives), the company First Financial Northwest has much riskier financing practices than comparable other companies, which means that their overall debt burden is significantly above the industry average. This doesn't mean that the business of First Financial Northwest is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for First Financial Northwest and the other two below average. Leverage is at a rank of 57 meaning the company has a below-average debt-to-equity ratio. It has less debt than 57% of its competitors.Refinancing is at a rank of 29, which means that the portion of the debt about to be refinanced is above-average. It has more debt in the refinancing stage than 71% of its competitors. Liquidity is at a rank of 4, meaning that the company generates less profit to service its debt than 96% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 4 (worse than 96% compared with alternatives), First Financial Northwest has a financing structure that is significantly riskier than that of its competitors. This is an indication that the company is on the riskier side when it comes to debt service. There is only below-market average liquidity, and a short-term refinancing issue might be around the corner. But in the long-term, the debt levels of First Financial Northwest are on the safer side. Investors may have a short-term debt challenge and liquidity issues with First Financial Northwest 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	10	64	79	57
REFINANCING
REFINANCING	92	34	39	29
LIQUIDITY
LIQUIDITY	19	5	7	4
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	31	13	24	4

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of First Financial Northwest 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	80	89	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	50	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	84	14	^new
MARKET PULSE
MARKET PULSE	n/a	90	89	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	94	63	^new

Last update of Sentiment Rank: 14-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for First Financial Northwest.
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