First Financial Bankshares Inc. Common Stock (FFIN)

FairStock Score: 57/100 — STEADY

Key Financials

Strengths

• Solid return on equity of 14.6% above cost of capital
• Healthy net profit margin of 11.5% showing consistent profitability
• Attractive 2.8% dividend yield providing steady income returns

Concerns

• Altman Z-Score of 0.4 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

First Financial Bankshares Inc. Common Stock is a small-cap financial services company valued at $4.6 billion. The business generates $622 million in annual revenue with a 11.5% net margin. From a quality standpoint, First shows distressed Altman Z-Score of 0.4 warrants caution and adequate 15% ROE. On valuation, the stock is reasonably priced at 16.9x earnings, with trades above its Graham Number with a negative 37% margin. Growth dynamics show revenue growing at 12.2% and profit growth of 17.6%. The 2.8% dividend yield adds an income component for patient holders. Our composite FairStock Score of 57/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the financial services space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer