Taking everything into account, SFBS scores 4 out of 10 in our fundamental rating. SFBS was compared to 383 industry peers in the Banks industry. While SFBS is still in line with the averages on profitability rating, there are concerns on its financial health. SFBS is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year SFBS was profitable.
In the past year SFBS had a positive cash flow from operations.
Each year in the past 5 years SFBS has been profitable.
Of the past 5 years SFBS 4 years had a positive operating cash flow.

1.2 Ratios

With an excellent Return On Assets value of 1.45%, SFBS belongs to the best of the industry, outperforming 86.68% of the companies in the same industry.
SFBS's Return On Equity of 14.33% is amongst the best of the industry. SFBS outperforms 91.91% of its industry peers.

		Industry Rank	Sector Rank
ROA	1.45%
ROE	14.33%
ROIC	N/A

ROA(3y)1.38%

ROA(5y)1.44%

ROE(3y)14.46%

ROE(5y)16.16%

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

With an excellent Profit Margin value of 47.95%, SFBS belongs to the best of the industry, outperforming 99.48% of the companies in the same industry.
SFBS's Profit Margin has been stable in the last couple of years.
The Operating Margin and Gross Margin are not available for SFBS so they could not be analyzed.

		Industry Rank	Sector Rank
OM	N/A
PM (TTM)	47.95%
GM	N/A

OM growth 3YN/A

OM growth 5YN/A

PM growth 3Y-0.46%

PM growth 5Y1.32%

GM growth 3YN/A

GM growth 5YN/A

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

SFBS does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, SFBS has about the same amount of shares outstanding.
The number of shares outstanding for SFBS has been increased compared to 5 years ago.
Compared to 1 year ago, SFBS has an improved debt to assets ratio.

2.2 Solvency

The Debt to FCF ratio of SFBS is 4.86, which is a neutral value as it means it would take SFBS, 4.86 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 4.86, SFBS is not doing good in the industry: 70.50% of the companies in the same industry are doing better.
SFBS has a Debt/Equity ratio of 0.87. This is a neutral value indicating SFBS is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.87, SFBS is doing worse than 83.55% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	0.87
Debt/FCF	4.86
Altman-Z	N/A

ROIC/WACCN/A

WACC13.23%

2.3 Liquidity

		Industry Rank	Sector Rank
Current Ratio	N/A
Quick Ratio	N/A

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 26.20% over the past year.
SFBS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.90% yearly.
The Revenue has grown by 16.76% in the past year. This is quite good.
Measured over the past years, SFBS shows a quite strong growth in Revenue. The Revenue has been growing by 8.85% on average per year.

EPS 1Y (TTM)26.2%

EPS 3Y4.43%

EPS 5Y10.9%

EPS Q2Q%32.77%

Revenue 1Y (TTM)16.76%

Revenue growth 3Y3.7%

Revenue growth 5Y8.85%

Sales Q2Q%-8.65%

3.2 Future

The Earnings Per Share is expected to grow by 14.72% on average over the next years. This is quite good.
The Revenue is expected to grow by 14.06% on average over the next years. This is quite good.

EPS Next Y18.77%

EPS Next 2Y14.72%

EPS Next 3YN/A

EPS Next 5YN/A

Revenue Next Year18.75%

Revenue Next 2Y14.06%

Revenue Next 3YN/A

Revenue Next 5YN/A

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 15.29 indicates a correct valuation of SFBS.
Compared to the rest of the industry, the Price/Earnings ratio of SFBS indicates a slightly more expensive valuation: SFBS is more expensive than 69.45% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of SFBS to the average of the S&P500 Index (28.82), we can say SFBS is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 12.87, the valuation of SFBS can be described as correct.
Based on the Price/Forward Earnings ratio, SFBS is valued a bit more expensive than 66.06% of the companies in the same industry.
SFBS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.95.

		Industry Rank	Sector Rank
PE	15.29
Fwd PE	12.87

4.2 Price Multiples

SFBS's Price/Free Cash Flow is on the same level as the industry average.

		Industry Rank	Sector Rank
P/FCF	13.72
EV/EBITDA	N/A

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as SFBS's earnings are expected to grow with 14.72% in the coming years.

PEG (NY)0.81

PEG (5Y)1.4

EPS Next 2Y14.72%

EPS Next 3YN/A

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5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 1.86%, SFBS has a reasonable but not impressive dividend return.
SFBS's Dividend Yield is slightly below the industry average, which is at 2.60.
Compared to an average S&P500 Dividend Yield of 1.82, SFBS has a dividend comparable with the average S&P500 company.

		Industry Rank	Sector Rank
Dividend Yield	1.86%

5.2 History

On average, the dividend of SFBS grows each year by 21.67%, which is quite nice.
SFBS has been paying a dividend for at least 10 years, so it has a reliable track record.

Dividend Growth(5Y)21.67%

Div Incr Years0

Div Non Decr Years0

5.3 Sustainability

27.78% of the earnings are spent on dividend by SFBS. This is a low number and sustainable payout ratio.
SFBS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.

DP27.78%

EPS Next 2Y14.72%

EPS Next 3YN/A

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SERVISFIRST BANCSHARES INC / SFBS FAQ

Can you provide the ChartMill fundamental rating for SERVISFIRST BANCSHARES INC?

ChartMill assigns a fundamental rating of 4 / 10 to SFBS.

Can you provide the valuation status for SERVISFIRST BANCSHARES INC?

ChartMill assigns a valuation rating of 4 / 10 to SERVISFIRST BANCSHARES INC (SFBS). This can be considered as Fairly Valued.

What is the profitability of SFBS stock?

SERVISFIRST BANCSHARES INC (SFBS) has a profitability rating of 4 / 10.

Can you provide the PE and PB ratios for SFBS stock?

The Price/Earnings (PE) ratio for SERVISFIRST BANCSHARES INC (SFBS) is 15.29 and the Price/Book (PB) ratio is 2.46.

What is the earnings growth outlook for SERVISFIRST BANCSHARES INC?

The Earnings per Share (EPS) of SERVISFIRST BANCSHARES INC (SFBS) is expected to grow by 18.77% in the next year.