Based on the key indicators related to First Business' liquidity, profitability, solvency, and operating efficiency, First Business Financial is not in a good financial situation at this time. It has a very high probability of going through financial hardship in February. At this time, First Business' Short and Long Term Debt Total is fairly stable compared to the past year. Retained Earnings is likely to rise to about 320.9 M in 2026, whereas Common Stock Shares Outstanding is likely to drop slightly above 7.4 M in 2026. Key indicators impacting First Business' financial strength include:
The financial analysis of First Business is a critical element in measuring its lifeblood. Investors should not minimize First Business' ability to pay suppliers or employees on time, ensuring interest payments are not accumulating.
Understanding current and past First Business Financials, including the trends in assets, liabilities, equity and income are directly related to making proper and timely investing decisions. All of First Business' financial statements are interrelated, with each one affecting the others. For example, an increase in First Business' assets may result in an increase in income on the income statement.
Please note, the imprecision that can be found in First Business' accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of First Business Financial. Check First Business' Beneish M Score to see the likelihood of First Business' management manipulating its earnings.
First Business Stock Summary
First Business competes with Home Bancorp, Northfield Bancorp, Red River, Civista Bancshares, and Capital Bancorp. First Business Financial Services, Inc. operates as the bank holding company for First Business Bank that provides commercial banking products and services for small and medium-sized businesses, business owners, executives, professionals, and high net worth individuals. First Business Financial Services, Inc. was founded in 1909 and is headquartered in Madison, Wisconsin. First Business operates under BanksRegional classification in the United States and is traded on NASDAQ Exchange. It employs 333 people.
An income statement is very similar to a cash flow statement, but instead of showing net revenue minus expenses, it only includes earnings before interest and taxes (EBIT). This number does not have all of the same line items that are on a cash flow statement, but it leaves out non-cash expenses like depreciation and amortization. For example, if you bought $100 worth of goods from Walmart (WMT) using your debit card that has an interest rate of 20%, then paid off the balance at the end of the month with a credit card that charges 30% interest, you would have an income statement showing EBIT of $80 because your expenses are lower than the amount that went into your pocket.
Cash flow analysis captures how much money flows into and out of First Business Financial. It measures of how well First is doing because it can show the actual money that comes into and out of the Company from sales instead of measuring expenses against revenue to determine earnings. You have to read the cash flow statement in three sections. The first section shows how much money First Business brought in, usually known as net revenue or sales. This is different from earnings because it does not include expenses when determining net revenue for use on this part of the cash flow statement. Next, are operating activities, which show how much money First had leftover after paying for its expenses. This number can be calculated in two ways: by subtracting the total of all operating expenses from net revenue or by adding up changes to cash and other assets or liabilities on this part of the statement. The third section is about investing activities, which shows what First Business has done with the money that it received from the sale of assets or what it spent to acquire new ones. This section can be broken down into two parts: investing in existing businesses (in other words, buying more stock) and investing in non-business activities like paying off debt or making acquisitions.
Comparative valuation techniques use various fundamental indicators to help in determining First Business's current stock value. Our valuation model uses many indicators to compare First Business value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across First Business competition to find correlations between indicators driving First Business's intrinsic value. More Info.
First Business Financial is rated # 3 in return on equity category among its peers. It is rated # 4 in return on asset category among its peers reporting about 0.09 of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for First Business Financial is roughly 11.53 . At this time, First Business' Return On Equity is fairly stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the First Business' earnings, one of the primary drivers of an investment's value.
First Business Financial Systematic Risk
First Business' systematic risk plays a vital role in portfolio allocation when considering its stock to be added to a well-diversified portfolio. First Business volatility which cannot be eliminated through diversification, requires returns over the risk-free rate. Over the long run, a well-diversified portfolio provides returns that match its exposure to systematic risk. In this case, investors face a trade-off between expected returns and systematic risk and, therefore, can only reduce a portfolio's exposure to systematic risk by sacrificing expected returns on the portfolio.
The output start index for this execution was three with a total number of output elements of fifty-eight. The Beta measures systematic risk based on how returns on First Business Financial correlated with the market. If Beta is less than 0 First Business generally moves in the opposite direction as compared to the market. If First Business Beta is about zero movement of price series is uncorrelated with the movement of the benchmark. if Beta is between zero and one First Business Financial is generally moves in the same direction as, but less than the movement of the market. For Beta = 1 movement of First Business is generally in the same direction as the market. If Beta > 1 First Business moves generally in the same direction as, but more than the movement of the benchmark.
Today, most investors in First Business Stock are looking for potential investment opportunities by analyzing not only static indicators but also various First Business' growth ratios. Consistent increases or decreases in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's growth growth rates may not be enough to decide which company is a better investment. That's why investors frequently use static breakdown of First Business growth as a starting point in their analysis.
Along with financial statement analysis, the daily predictive indicators of First Business help investors to analyze its daily demand and supply, volume, patterns, and price swings to determine the real value of First Business Financial. We use our internally-developed statistical techniques to arrive at the intrinsic value of First Business Financial based on widely used predictive technical indicators. In general, we focus on analyzing First Stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build First Business's daily price indicators and compare them against related drivers.
When running First Business' price analysis, check to measure First Business' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy First Business is operating at the current time. Most of First Business' value examination focuses on studying past and present price action to predict the probability of First Business' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move First Business' price. Additionally, you may evaluate how the addition of First Business to your portfolios can decrease your overall portfolio volatility.