Bank First Corp (NASDAQ: BFC)

Sector: Financial Services Industry: Banks - Regional CIK: 0001746109
Market Cap 1.22 Bn
P/B 1.95
P/E 17.31
P/S 7.25
ROIC (Qtr) 8.80
Div Yield % 4.67
Rev 1y % (Qtr) 6.82
Total Debt (Qtr) 221.94 Mn
Debt/Equity (Qtr) 0.35

About

Bank First Corp, also known as BFC, is a bank holding company headquartered in Wisconsin with a rich history dating back to 1894. Through its subsidiary, Bank First, N.A., it operates as a national banking association with 26 branches spread across Wisconsin. The company's primary business activities encompass providing a broad spectrum of financial services, incorporating retail and commercial banking, mortgage banking, and investment services. Bank First Corp's revenue is predominantly derived from its lending activities, which comprise commercial...

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Price action

Investment thesis

Bull case

  • Strong tangible asset base of 4.21B provides 18.99x coverage of total debt 221.94M, indicating robust asset backing and low credit risk.
  • Operating cash flow of 64.28M provides strong 30.25x coverage of stock compensation 2.12M, indicating sustainable incentive practices.
  • Robust free cash flow of 52.13M exceeds capital expenditure of 12.14M by 4.29x, indicating strong organic growth funding capability.
  • Cash reserves of 126.18M provide ample 47.83x coverage of acquisition spending 2.64M, enabling strategic growth opportunities.
  • Strong free cash flow of 52.13M provides 19.76x coverage of acquisition spending 2.64M, indicating disciplined M&A strategy.

Bear case

  • Operating cash flow of 64.28M barely covers its investment activities of (197M), with a coverage ratio of -0.33, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 64.28M provides thin coverage of dividend payments of (52.54M) with a -1.22 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Retained earnings of 403.04M provide limited buffer against comprehensive income items of (6.16M), which is -65.44x, indicating elevated exposure to market risks.
  • Operating cash flow of 64.28M is outpaced by equity issuance of (21.32M) (-3.01 ratio), indicating concerning reliance on equity markets for funding operations.
  • R&D investment of 0 represents just 0x of SG&A expenses of 59.76M, indicating potential underinvestment in innovation relative to administrative overhead.

Peer comparison

Companies in the Banks - Regional
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 USB Us Bancorp \De\ 84.44 Bn 12.40 3.25 77.98 Bn
2 PNC Pnc Financial Services Group, Inc. 84.36 Bn 13.61 3.73 62.34 Bn
3 NU Nu Holdings Ltd. 81.47 Bn 32.21 5.79 4.49 Bn
4 NWG NatWest Group plc 66.53 Bn 9.88 3.05 169.04 Bn
5 TFC Truist Financial Corp 64.60 Bn 13.18 3.53 71.11 Bn
6 MTB M&T Bank Corp 32.73 Bn 12.47 3.60 14.99 Bn
7 FITB Fifth Third Bancorp 31.96 Bn 14.15 3.93 18.94 Bn
8 FCNCA First Citizens Bancshares Inc /De/ 28.98 Bn 12.78 3.26 40.00 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.28 0.14
EV to Cash from Ops. EV/CFO 19.05 7.21
EV to Debt EV to Debt 5.52 5.20
EV to EBIT EV/EBIT 14.07 14.98
EV to EBITDA EV/EBITDA 12.95 8.92
EV to Free Cash Flow [EV/FCF] EV/FCF 23.49 8.87
EV to Market Cap EV to Market Cap 1.00 1.04
EV to Revenue EV/Rev 7.26 -3.76
Price to Book Value [P/B] P/B 1.95 1.17
Price to Earnings [P/E] P/E 17.31 15.63
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 1.34 271.44
Dividend Payout Ratio % Div Payout % (Qtr) 74.50 35.28
Dividend per Basic Share Div per Share (Qtr) 5.30 0.89
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 99.98 34.52
Interest Coverage Interest Coverage 0.00 -0.05
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -235.31 -73.15
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -38.27 15.78
Dividend Growth (1y) % Div 1y % (Qtr) 278.57 5.32
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -14.80 110.93
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -21.15 38.80
EBIT Growth (1y) % EBIT 1y % (Qtr) -16.09 61.46
EBT Growth (1y) % EBT 1y % (Qtr) -16.09 61.37
EPS Growth (1y) % EPS 1y % (Qtr) -12.65 76.34
FCF Growth (1y) % FCF 1y % (Qtr) 0.79 161.72
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -12.13 14.15
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.04 0.04
Cash Payout Ratio Cash Payout (Qtr) 0.69 0.26
Cash Ratio Cash Ratio 0.00 0.00
Current Ratio Current Ratio 0.00 0.01
Debt to Equity Ratio Debt/Equity (Qtr) 0.35 0.53
Interest Cover Ratio Interest Cover Ratio 0.00 -0.05
Times Interest Earned Times Interest Earned 0.00 -0.05
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 56.00 147.97
EBIT Margin % EBIT Margin % (Qtr) 51.57 155.41
EBT Margin % EBT Margin % (Qtr) 51.57 154.66
Gross Margin % Gross Margin % (Qtr) 100.00 97.82
Net Profit Margin % Net Margin % (Qtr) 41.90 115.63