Financial Institutions Inc (FIISO) stock analysis

P/E above its 5-year median

Financial Institutions's P/E of 9.8 is above its own 5-year median of 6.5.

P/E below the industry

Financial Institutions's P/E of 9.8 is below the Commercial Banks median of 12.4.

P/S below the industry

Financial Institutions's price-to-sales of 3.04 is below the Commercial Banks median of 3.67.

P/B below the industry

Financial Institutions's price-to-book of 1.21 is below the Commercial Banks median of 1.28.

Trading above fair value

The share price of $39.35 is above our fair value estimate of $36.50.

Margin of safety under 20%

The price is 7.8% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 4.7% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew 0.5% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growth against the industry

Needs revenue for this year and last.

Guidance issued

The latest outlook (full year 2026 loan growth, Apr 23, 2026) was issued for the first time, so it neither adds nor takes away points.

Gross margin trend

Banks and insurers do not report gross profit.

Return on equity under 15%

Return on equity was 13.3% over the last twelve months and averaged 8.9% over five years; we look for 15% on both.

Return on assets over 1%

Return on assets was 1.3%; for a bank or insurer, 1% or more is considered good.

Return on equity above the industry

Financial Institutions's return on equity of 13.3% is above the Commercial Banks median of 11.2%.

Earnings grew over 5 years

Net income grew 14.3% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 32.4% over the last twelve months, against a 5-year average of 16.7%.

Net margin above the industry

Financial Institutions's net margin of 32.4% is above the Commercial Banks median of 30.0%.

Well capitalized

Equity is 10.2% of total assets; 8% or more is a comfortable cushion.

Loans funded by deposits

Needs loans and deposits.

Adequate loan-loss reserve

The allowance for credit losses is not reported.

Efficient operations

Non-interest expense takes 56.4% of revenue; under 60% is efficient for a bank.

Deposits growing

Deposits grew 2.8% over the past year.

Modest borrowings

Borrowings other than deposits are 28.3% of equity.

Pays a dividend

Financial Institutions paid dividends worth 3.2% of the share price over the last twelve months.

Yield below Treasuries

The 3.2% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.9% or more; Financial Institutions yields 3.2%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 30.2% of net income.

Covered by free cash flow

Dividends take 44.4% of free cash flow.