FFIN

First Financial Bankshares, Inc.

Finance/Real Estate


Presented:05/19/2023
Price:$26.23
Cap:$3.74B
Current Price:$38.09
Cap:$5.44B

Presented

Date05/19/2023
Price$26.23
Market Cap$3.74B
Ent Value$4.97B
P/E Ratio16.25x
Book Value$9.68
Div Yield2.59%
Shares O/S142.73M
Ave Daily Vol739,161
Short Int7.30%

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 Bank Shares (FFIN), 

Highlights

The presenter is short shares of First Financial Bank Shares (FFIN), due to the company’s outlier valuation status versus any other regional banks. He believes bulls are overlooking many negatives since FFIN has a stellar record of being one of the few banks that's grown profits for 36 consecutive years. Investors seem to have the perspective that this Texas based regional bank is and will continue to be a very stable “sleep-at-night bank”. The presenter disagrees and sees FFIN poised to suffer several headwinds, which include many of the same macro issues facing all regional banks as well as company specific issues. The macro issues mentioned are not unique to FFIN but should still hurt as the company deals with higher interest rates, and slowing loan demand. FFIN also has some bank specific issues including the unwinding of PPP Loans, the prospect of losing the Durbin Amendment exemption, and the complete reliance on the Texas market. With this challenging period ahead the presenter sees FFIN's halo valuation of ~3.5x book and 18x EPS as too rich compared to peers. 

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Request access to DeMatteo Research for full access

Request Access

Already have an account?

Idea Discussion

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Idea Discussions display submitted commentary from our investor community.

To read and participate in the discussion with the presenter and investor base, request access to DeMatteo

Request Access

Already have an account?

An error occurred loading this content. Try again later or contact us.