First Business Financial Services, Inc. (FBIZ)
Valuation Overview•Is First Business Financial Services, Inc. Overvalued or Undervalued?
Trading at a relative discount to industry peers, suggesting a specific risk premium is applied.
Moderate quality score of 49/100, reflecting stable operating margins and manageable leverage.
Analysts remain bullish, forecasting further upside expansion with consensus targets suggesting solid gains.
Verdict: Average quality business weighed down by significant solvency concerns.
Wall Street is broadly bullish, projecting solid upside. This is paired with healthy capital returns, anchored by a strong, well-covered dividend yield.
FBIZ demonstrates adequate business quality with stable profitability. However, this is severely offset by a highly leveraged balance sheet (Debt/EBITDA > 4.0x) and elevated financial risk.
The company maintains stable top-line performance paired with robust earnings compounding (8.5% EPS 3Y CAGR). The company maintains healthy operational efficiency with a 17.1% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $61.9M | +6.4% | — | — | +12.1% | |
| EBITDA | $0.00 | — | +2.4% | — | — | |
| Net Income | $12.2M | +13.7% | +7.2% | — | +11.8% | |
| EPS (Diluted) | $1.49 | +16.5% | +8.5% | +25.2% | +12.3% | |
| Free Cash Flow | $2.9M | +6.7% | +19.9% | +18.3% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 44.4% | 57.5% | 71.1% | 71.6% |
| Operating Margin | 17.1% | 20.7% | 26.9% | 22.1% |
| Net Margin | 18.7% | 17.1% | 21.4% | 18.5% |
| FCF Margin | 19.3% | 21.8% | 23.5% | 23.8% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $1.42 | $1.44 | +1.4% | ||
| Q1'26 | $1.38 | $1.58 | +14.5% | ||
| Q4'25 | $1.39 | $1.70 | +22.3% | ||
| Q3'25 | $1.35 | $1.35 | +0.0% | ||
| Q2'25 | $1.29 | $1.32 | +2.3% | ||
| Q1'25 | $1.27 | $1.43 | +12.6% | ||
| Q4'24 | $1.19 | $1.24 | +4.2% | ||
| Q3'24 | $1.09 | $1.23 | +12.8% |
Total return is +30.5% (1Y), outperforming the benchmark by +5.5%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +13.9% | +4.6% | — |
| 1Y | +30.5% | +5.5% | +2.7% |
| 3YCAGR | +27.9% | +7.8% | +10.8% |
| 5YCAGR | +20.0% | +6.5% | +18.7% |
| 10YCAGR | +11.0% | -2.8% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about First Business Financial Services, Inc. (FBIZ) valuation, health, and returns.
Based on peer relative multiples, First Business Financial Services, Inc. appears Cheap versus peers compared to industry peers.
First Business Financial Services, Inc. has multiple valuation anchors: Peer Relative Fair Value: $80.03 | Wall Street Analyst Target: $67.00 (implying +11.0% upside). A convergence of these signals offers higher conviction.
First Business Financial Services, Inc. displays fair financial health with a composite quality score of 49/100, supported by a Piotroski F-Score of 8/9, Return on Invested Capital (ROIC) of 7.0%.
First Business Financial Services, Inc. pays a 2.0% dividend yield, covered by a 19% payout ratio with 13 years of growth, supplemented by a 0.3% buyback yield.
First Business Financial Services, Inc.'s current growth trajectory is Decelerating. The company achieved +6.4% 1Y revenue growth and +16.5% 1Y EPS growth, compared to its 3Y revenue CAGR of N/A.
Wall Street consensus is Buy based on 10 analysts, beating EPS expectations in 67% of recent quarters with a 3-quarter streak. The consensus price target represents a +11.0% change from current levels.
Investment risks for First Business Financial Services, Inc. include: -14.6% 1-year max drawdown. Volatility risk is characterized by a beta of 0.66x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.