FFIN

First Financial Bankshares, Inc.

Finance/Real Estate


Presented:01/31/2022
Price:$46.99
Cap:$6.69B
Current Price:$38.09
Cap:$5.44B

Presented

Date01/31/2022
Price$46.99
Market Cap$6.69B
Ent Value$7.75B
P/E Ratio29.56x
Book Value$12.34
Div Yield1.23%
Shares O/S142.47M
Ave Daily Vol402,874
Short Int6.05%

Current

Price$38.09
Market Cap$5.44B
First Financial Bankshares, Inc. is a bank holding company, which engages in the provision of financial and community banking services. It offers mortgage loans, savings and checking accounts, auto and equity loans, online and mobile banking, investment and trust management, and retirement plans. The company was founded in 1956 and is headquartered in Abilene, TX.

Publicly traded companies mentioned herein: First Financial Bankshares Inc (FFIN)

Highlights

The presenter is short shares of First Financial Bankshares Inc (FFIN), a ~7B market cap company which trades at ~5x P/TB and >30x earnings. At that valuation, investors may be thinking this is an exciting growth story. However, this is a relatively sleepy brick-and-mortar bank in Texas. The stock is up ~70% from pre-COVID levels based on a technical factor and some favorable one-time earnings tailwinds. Ultimately, he sees this as a bet against brick-and-mortar regional banks with incremental attractiveness given FFIN’s tech-like valuation, tailwind roll-offs, and a sleepy shareholder base. This could lead to 30% downside assuming a reversion from an overly generous valuation and additional downside using peer multiples. 

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Idea Discussion

Commentor 1 - 2 weeks ago

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