First Financial Bankshares Inc (FFIN, Financial) has experienced a notable surge in its stock price, with a 12.73% gain over the past week and an impressive 21.64% increase over the last three months. Currently, the company boasts a market capitalization of $5.2 billion. According to GuruFocus, the stock is now fairly valued at $36.91, a slight adjustment from its previous status as modestly undervalued when the GF Value was at $38.72.
Overview of First Financial Bankshares Inc
First Financial Bankshares Inc, a stalwart in the banking industry, operates exclusively in Texas. The company's business model focuses on full-service commercial banking through its subsidiaries. Its diverse loan portfolio includes segments such as Commercial and Industrial, Municipal, Agricultural, and various types of Real Estate loans, among others. This strategic focus has allowed First Financial to maintain a robust presence in its market.
Assessing Profitability
First Financial Bankshares holds a Profitability Rank of 6/10, indicating a solid competitive stance in the banking sector. The company's Return on Equity (ROE) stands at 14.33%, which is higher than 75.51% of its peers in the industry. Additionally, its Return on Assets (ROA) of 1.54% surpasses 78.36% of industry counterparts. Remarkably, First Financial has sustained profitability for the past decade, outperforming 99.93% of 1531 companies in the sector.
Growth Metrics
The company's Growth Rank is 5/10, reflecting moderate growth. Over the past five years, First Financial has seen a 5.50% increase in revenue per share, better than 45.02% of its industry peers. However, the 3-year metrics show a slight decline, with a -0.10% growth rate in revenue per share and a -0.90% growth rate in EPS without NRI. Despite these mixed signals, the company's long-term growth trajectory remains stable.
Competitive Landscape
When compared to its closest competitors, First Financial Bankshares stands strong. Glacier Bancorp Inc (GBCI, Financial) has a market cap of $4.89 billion, Columbia Banking System Inc (COLB, Financial) is valued at $4.92 billion, and Hancock Whitney Corp (HWC, Financial) at $4.66 billion. These figures place First Financial at a competitive advantage in terms of market capitalization and financial stability within the banking sector.
Conclusion
First Financial Bankshares Inc has demonstrated robust financial health and a strong market position. The company's recent stock price rally is backed by solid profitability metrics and a competitive stance in the industry. With its consistent performance and strategic market positioning, First Financial presents a compelling case for investors looking for stability and potential growth in the banking sector.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
