Breaking Down FS Bancorp, Inc. (FSBW) Financial Health: Key Insights for Investors

Are you keeping a close watch on your investments and looking for a detailed analysis of FS Bancorp, Inc. (FSBW)? With total assets of over $3 billion as of December 31, 2024, and a recent report of $7.4 million in net income for the fourth quarter of 2024, how does FSBW's financial health stack up? Considering the increase in the quarterly dividend to $0.28 per share and a tangible book value per share of $36.02, let's dive into the key insights that can help you make informed decisions about FSBW.

FS Bancorp, Inc. (FSBW) Revenue Analysis

To understand the financial health of FS Bancorp, Inc. (FSBW), a detailed analysis of its revenue streams is essential. This encompasses identifying the primary sources of revenue, examining year-over-year growth rates, determining the contribution of different business segments, and scrutinizing any significant shifts in revenue composition.

FS Bancorp, Inc., as a financial institution, primarily generates revenue through the following avenues:

• Interest Income: This is derived from loans, including commercial, residential, and consumer loans. The interest rates and the volume of loans significantly impact this revenue stream.
• Service Fees and Other Charges: Revenue from various services such as account maintenance, transaction fees, and other banking services.
• Investment Securities: Income from investment portfolios, including gains or losses on the sale of securities.

Analyzing the year-over-year revenue growth rate provides insights into the company's performance and its ability to expand its business. Monitoring historical trends, calculating percentage increases or decreases, and comparing these figures with industry benchmarks are crucial steps.

Understanding which business segments contribute the most to FS Bancorp, Inc.'s overall revenue is also critical. The primary segments are typically:

• Commercial Banking: Revenue from loans and services to businesses.
• Retail Banking: Revenue from services to individual customers.
• Wealth Management: If applicable, revenue from managing assets and providing financial advice.

A comprehensive revenue analysis also involves identifying any significant changes in the revenue streams. This includes:

• New Products or Services: Introduction of new offerings that impact revenue.
• Regulatory Changes: Changes in banking regulations affecting fee structures or lending practices.
• Market Conditions: Economic factors influencing loan demand and interest rates.

Here's a hypothetical table illustrating a potential revenue breakdown for FS Bancorp, Inc. (Please note that this is for illustrative purposes and does not reflect actual data):

For further insights into the investor profile of FS Bancorp, Inc., you might find this resource helpful: Exploring FS Bancorp, Inc. (FSBW) Investor Profile: Who’s Buying and Why?

FS Bancorp, Inc. (FSBW) Profitability Metrics

Analyzing the profitability of FS Bancorp, Inc. (FSBW) involves examining several key metrics that provide insights into the company's financial health and operational efficiency. These metrics include gross profit margin, operating profit margin, and net profit margin. Additionally, trends in these ratios over time, comparison with industry averages, and analysis of operational efficiency offer a comprehensive view.

For the year 2024, FS Bancorp, Inc. reported a net income of $35.0 million, or $4.36 per diluted share. This compares to a net income of $36.1 million, or $4.56 per diluted share, for 2023.

Key profitability ratios and data for the third quarter of 2024 include:

• Return on assets (ratio of net income to average total assets): 1.38%
• Net interest margin (NIM): Increased to 4.35% for the third quarter of 2024, compared to 4.29% in the previous quarter.

The latest available financial data from Nasdaq indicates that for the year 2024:

• Total Revenue: $206.393 million
• Cost of Revenue: $53.163 million
• Net Income: $35.024 million

Further insights into FSBW's profitability can be gleaned from its financial ratios. As of December 2024:

• Gross Profit Margin: 100.00%
• Operating Profit Margin: 97.09%
• Pretax Profit Margin: 22.50%
• Net Profit Margin: 18.95%
• Return on Assets (ROA): 1.16%
• Return on Equity (ROE): 11.84%

The company's financial leverage ratio was 10.24 as of December 2024.

Here's a look at FS Bancorp, Inc.'s Income Statement data:

For more detailed insights, you can refer to: Breaking Down FS Bancorp, Inc. (FSBW) Financial Health: Key Insights for Investors.

FS Bancorp, Inc. (FSBW) Debt vs. Equity Structure

Understanding how FS Bancorp, Inc. (FSBW) finances its growth involves analyzing its debt and equity structure. This provides insights into the company's financial risk and stability.

As of the fiscal year 2024, FS Bancorp, Inc. (FSBW) reported the following regarding its debt levels:

• Long-term debt: Specific figures for long-term debt were not available in the provided search results for fiscal year 2024.
• Short-term debt: Similarly, the exact amount of short-term debt for fiscal year 2024 was not found in the search results.

To get the precise figures, consulting FS Bancorp, Inc.'s (FSBW) latest financial statements or SEC filings would be necessary.

The debt-to-equity ratio is a crucial metric for assessing a company's financial leverage. It indicates the proportion of debt FS Bancorp, Inc. (FSBW) uses to finance its assets relative to the value of shareholders' equity. Without the specific debt and equity figures for 2024 from the provided search results, calculating the exact ratio and comparing it to industry standards is not possible. Typically, a lower debt-to-equity ratio suggests a more financially stable company.

Information regarding recent debt issuances, credit ratings, or refinancing activities for FS Bancorp, Inc. (FSBW) in fiscal year 2024 was not available in the provided search results. These details would usually be announced through press releases or filings with the SEC.

The balance between debt and equity financing is critical for sustainable growth. While debt can provide leverage and potentially increase returns, excessive debt can also increase financial risk. Equity financing, on the other hand, dilutes ownership but is generally less risky. Without specific data for FS Bancorp, Inc. (FSBW) in 2024, it's challenging to comment on the effectiveness of their capital structure decisions.

For further insights into FS Bancorp, Inc.'s (FSBW) values and strategic direction, you might find this link helpful: Mission Statement, Vision, & Core Values of FS Bancorp, Inc. (FSBW).

FS Bancorp, Inc. (FSBW) Liquidity and Solvency

Analyzing FS Bancorp, Inc.'s financial health involves a close look at its liquidity and solvency. These metrics provide insights into the company's ability to meet its short-term and long-term obligations.

Liquidity Ratios:

The current and quick ratios are key indicators of a company's liquidity position. These ratios assess FS Bancorp, Inc.'s ability to cover its short-term liabilities with its current assets.

• Current Ratio: Measures a company's ability to pay short-term obligations with its current assets.
• Quick Ratio: Similar to the current ratio but excludes inventories, providing a more conservative view of liquidity.

Working Capital Trends:

Monitoring working capital trends helps in understanding the operational efficiency and short-term financial health of FS Bancorp, Inc. Working capital is the difference between a company's current assets and current liabilities.

Cash Flow Statement Overview:

A review of the cash flow statement provides insights into the sources and uses of cash. The cash flow statement is divided into three main sections:

• Operating Activities: Cash flow from the normal day-to-day business operations.
• Investing Activities: Cash flow related to the purchase and sale of long-term assets.
• Financing Activities: Cash flow related to debt, equity, and dividends.

Analyzing these cash flow trends can reveal whether FS Bancorp, Inc. is generating enough cash from its operations to sustain and grow the business.

Potential Liquidity Concerns or Strengths:

By examining the trends in liquidity ratios, working capital, and cash flow, it’s possible to identify potential liquidity concerns or strengths. For instance, a declining current ratio or negative operating cash flow could signal potential issues, while increasing cash reserves and a strong current ratio would indicate financial strength.

FS Bancorp, Inc. (FSBW) Valuation Analysis

Determining whether FS Bancorp, Inc. (FSBW) is overvalued or undervalued requires a multifaceted approach, incorporating key financial ratios, stock performance analysis, and analyst opinions. Let's delve into these critical aspects to provide a clearer picture for investors. Also, you can explore more about the investor profile of FS Bancorp, Inc. (FSBW) here: Exploring FS Bancorp, Inc. (FSBW) Investor Profile: Who’s Buying and Why?

One of the primary methods for assessing valuation involves examining ratios like the price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA). These ratios offer insights into how the market values FS Bancorp, Inc. (FSBW) relative to its earnings, book value, and operational cash flow. However, as of now, specific updated ratio data for the 2024 fiscal year for FS Bancorp, Inc. (FSBW) is unavailable. For accurate and up-to-date ratio analysis, investors should consult financial data providers such as Yahoo Finance, Bloomberg, or reputable investment analysis platforms.

Analyzing the stock price trends over the past 12 months (or longer) provides a historical perspective on market sentiment and investor confidence. Recent data indicates:

• On April 21, 2024, FS Bancorp, Inc. (FSBW) had a stock price of $24.75.
• The 52-week high was $25.85, and the 52-week low was $20.60.

These figures help illustrate the volatility and overall trend of the stock. Further analysis, incorporating moving averages and other technical indicators, could offer deeper insights.

For financial institutions like FS Bancorp, dividend yield and payout ratios are essential metrics, when applicable. These metrics reflect the company's profitability and its commitment to returning value to shareholders.

Analyst consensus can provide a summarized view of professional opinions on FS Bancorp, Inc. (FSBW)'s stock valuation. These ratings typically range from 'buy' to 'sell', reflecting analysts' expectations for the stock's future performance. As of current reports:

• MarketBeat reported a consensus rating of 'hold'.
• According to TipRanks, the analyst consensus is a 'moderate buy'.

It’s important to consider that analyst ratings are subjective and based on various factors, including financial models and macroeconomic forecasts.

FS Bancorp, Inc. (FSBW) Risk Factors

FS Bancorp, Inc. (FSBW) faces a variety of internal and external risks that could significantly impact its financial health. These risks span across industry competition, regulatory changes, and overall market conditions. Understanding these factors is crucial for investors assessing the company's stability and future prospects.

Industry Competition: The financial services industry is highly competitive. FS Bancorp, Inc. (FSBW) competes with other community banks, regional banks, credit unions, and non-bank financial service providers. Increased competition can put pressure on interest rates, reduce loan volume, and increase operating costs, all of which can negatively impact profitability. Maintaining a competitive edge requires ongoing investment in technology, customer service, and innovative products.

Regulatory Changes: Banks are heavily regulated, and changes in regulations can significantly affect FS Bancorp, Inc. (FSBW)'s operations and financial performance. Regulatory bodies such as the Federal Deposit Insurance Corporation (FDIC) and the Consumer Financial Protection Bureau (CFPB) can introduce new rules related to capital requirements, lending practices, and consumer protection. Compliance with these regulations can be costly and time-consuming. For example, changes in capital requirements may force FS Bancorp, Inc. (FSBW) to hold more capital, reducing the amount available for lending and investment.

Market Conditions: Economic downturns, interest rate fluctuations, and other market factors can significantly impact FS Bancorp, Inc. (FSBW). A recession can lead to increased loan defaults and reduced demand for financial services. Rising interest rates can decrease the value of fixed-rate assets and increase borrowing costs. Unfavorable market conditions can reduce the company's profitability and threaten its financial stability.

Recent earnings reports and filings may highlight specific operational, financial, or strategic risks. These could include:

• Credit Risk: The risk that borrowers will default on their loans. This is a primary risk for any lending institution.
• Interest Rate Risk: The risk that changes in interest rates will negatively impact the value of assets and liabilities.
• Liquidity Risk: The risk that the company will not have enough cash to meet its obligations.
• Operational Risk: The risk of loss resulting from inadequate or failed internal processes, people, and systems, or from external events.
• Strategic Risk: The risk associated with poor business decisions or ineffective implementation of strategies.

Mitigation strategies and plans are essential for managing these risks. Some common strategies include:

• Diversification of Loan Portfolio: Spreading loans across different industries and geographic regions to reduce the impact of defaults in any one area.
• Interest Rate Hedging: Using financial instruments to protect against adverse movements in interest rates.
• Maintaining Adequate Capital Reserves: Ensuring that the company has enough capital to absorb unexpected losses.
• Strengthening Internal Controls: Implementing robust internal controls to prevent fraud and errors.
• Regular Risk Assessments: Conducting regular assessments to identify and evaluate potential risks.

Effective risk management is critical for FS Bancorp, Inc. (FSBW) to maintain its financial health and deliver long-term value to shareholders. Investors should closely monitor how the company identifies, assesses, and mitigates these risks.

Learn more about FS Bancorp, Inc. (FSBW) and its investors: Exploring FS Bancorp, Inc. (FSBW) Investor Profile: Who’s Buying and Why?

FS Bancorp, Inc. (FSBW) Growth Opportunities

FS Bancorp, Inc. (FSBW) exhibits several key growth drivers that suggest promising future prospects. These include strategic initiatives, market conditions, and financial performance indicators that warrant attention from investors.

Analysis of key growth drivers:

• Product Innovations: FSBW has been proactive in enhancing its service offerings to cater to evolving customer needs. Specific details on new products introduced in 2024 and their impact on revenue are essential to gauge the effectiveness of this driver.
• Market Expansions: Evaluating FSBW’s strategy for expanding its market presence, including any new geographic regions targeted or customer segments addressed, is crucial. Information on the success of these expansions in terms of market share and revenue growth is vital.
• Acquisitions: FSBW's acquisition strategy, if any, and how these acquisitions contribute to the company's overall growth. Details regarding recent acquisitions, their financial impact, and integration strategies would provide a clearer picture.

Future revenue growth projections and earnings estimates:

While specific figures for 2024 revenue growth projections and earnings estimates aren't available, understanding the consensus estimates from financial analysts is valuable. These estimates typically consider factors like market trends, economic conditions, and company-specific initiatives. Investors should look for credible sources providing these projections and assess the underlying assumptions.

Strategic initiatives or partnerships that may drive future growth:

• FSBW may be focusing on digital transformation to improve customer experience and operational efficiency. Details on investments in technology and their expected impact on growth are important.
• Partnerships with fintech companies or other financial institutions could expand FSBW’s service offerings or market reach. Information on any recent partnerships and their strategic rationale would be insightful.
• FSBW's commitment to community development and corporate social responsibility could enhance its reputation and attract socially conscious investors. Examples of such initiatives and their impact on brand image and customer loyalty would be beneficial.

Competitive advantages that position the company for growth:

FS Bancorp, Inc. (FSBW) operates in a competitive landscape, and its ability to differentiate itself is crucial for sustained growth. Here are some potential competitive advantages:

• Strong local presence: FSBW's deep roots in the communities it serves could provide a competitive edge through established relationships and local market knowledge.
• Customer service excellence: A reputation for providing exceptional customer service could lead to higher customer retention and attract new customers through referrals.
• Efficient operations: Streamlined processes and cost management could result in higher profitability and allow for reinvestment in growth initiatives.

Investors can find more insights and analysis at: Breaking Down FS Bancorp, Inc. (FSBW) Financial Health: Key Insights for Investors