FS Bancorp, Inc. (FSBW) stock analysis

P/E above its 5-year median

FS Bancorp's P/E of 11.3 is above its own 5-year median of 8.7.

P/E below the industry

FS Bancorp's P/E of 11.3 is below the Savings Institutions median of 13.7.

P/S below the industry

FS Bancorp's price-to-sales of 2.02 is below the Savings Institutions median of 3.77.

P/B below the industry

FS Bancorp's price-to-book of 0.96 is below the Savings Institutions median of 1.04.

Trading below fair value

The share price of $43.10 is below our fair value estimate of $44.32.

Margin of safety under 20%

The price is 2.8% below fair value, less than the 20% cushion we look for.

Revenue growing 10%+ a year

Revenue grew 263% a year over the last three fiscal years.

EPS growing under 10% a year

Diluted EPS grew 5.1% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -9.9% over the last twelve months, against a 5-year average of -3.2% a year.

Growing slower than the industry

Revenue grew 6.9% over the last twelve months; the Savings Institutions median is 9.0%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin trend

Banks and insurers do not report gross profit.

Return on equity under 15%

Return on equity was 9.2% over the last twelve months and averaged 13.2% over five years; we look for 15% on both.

Return on assets under 1%

Return on assets was 0.8%; for a bank or insurer, 1% or more is considered good.

Return on equity above the industry

FS Bancorp's return on equity of 9.2% is above the Savings Institutions median of 6.1%.

Earnings shrank over 5 years

Net income shrank 3.2% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 18.4% over the last twelve months, against a 5-year average of 600%.

Net margin below the industry

FS Bancorp's net margin of 18.4% is below the Savings Institutions median of 20.3%.

Well capitalized

Equity is 9.1% of total assets; 8% or more is a comfortable cushion.

Loans exceed deposits

Loans equal 105% of deposits, so the bank relies on other borrowing.

Adequate loan-loss reserve

The allowance for credit losses is 1.2% of loans; we look for at least 1%.

High cost base

Non-interest expense takes 69.4% of revenue; under 60% is efficient for a bank.

Deposits growing

Deposits grew 6.7% over the past year.

Heavy borrowings

Borrowings other than deposits are 112% of equity.

Pays a dividend

FS Bancorp paid dividends worth 2.7% of the share price over the last twelve months.

Yield below Treasuries

The 2.7% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; FS Bancorp yields 2.7%.

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 29.5% of net income.

Covered by free cash flow

Dividends take 9.7% of free cash flow.