First Mid Bancshares, Inc. (FMBH) Stock Analysis and Metrics

Sector: Financial Services Industry: Banks - Regional CIK: 0000700565

Market Cap 939.37 Mn

P/B 1.01

P/E 10.77

P/S 2.80

ROIC (Qtr) 5.96

Div Yield % 3.10

Rev 1y % (Qtr) 8.35

Total Debt (Qtr) 563.45 Mn

Debt/Equity (Qtr) 0.60

About

First Mid Bancshares, Inc. (FMBH), a financial holding company, operates in the banking, insurance, trust, farm services, investment services, and retirement planning industries. Its subsidiary, First Mid Bank & Trust, N.A., facilitates its business operations. FMBH is listed on the NASDAQ stock exchange under the ticker symbol FMBH. The company's main business activities revolve around providing a range of financial services. These include deposit services, loan services, insurance products, trust and wealth management, farm services, and investment...

First Mid Bancshares, Inc. (FMBH), a financial holding company, operates in the banking, insurance, trust, farm services, investment services, and retirement planning industries. Its subsidiary, First Mid Bank & Trust, N.A., facilitates its business operations. FMBH is listed on the NASDAQ stock exchange under the ticker symbol FMBH.

The company's main business activities revolve around providing a range of financial services. These include deposit services, loan services, insurance products, trust and wealth management, farm services, and investment services. The company's operations span across various regions, including Illinois, Missouri, Wisconsin, and Texas.

FMBH generates revenue primarily through its banking operations, which contribute approximately 69% of its total revenue. The banking segment offers a variety of products and services, such as deposit accounts, commercial and consumer loans, and investment services. The company's focus is on serving a diverse customer base, including individuals, small businesses, and large corporations in its operating markets.

In addition to banking, the company operates four other segments. The insurance segment generates revenue through premiums and commissions by offering property and casualty insurance, life insurance, and group medical insurance. The trust and wealth management segment, generating revenue through fees and commissions, provides trust, farm services, investment services, and retirement planning.

The farm services segment, primarily generating revenue through fees and commissions, offers agricultural lending, farm management, and brokerage services. Lastly, the investment services segment, also generating revenue through fees and commissions, provides investment services, including brokerage services.

FMBH holds a strong position in the industry, boasting a large customer base and a robust brand reputation. The company's competitive advantages include its diversified revenue streams, strong risk management practices, and experienced management team.

The company's customers include individuals, small businesses, and large corporations across its operating markets. The largest customers are primarily located in Illinois, Missouri, Wisconsin, and Texas.

The brand names and/or trade names of FMBH's products and services include its banking operations, insurance products, trust and wealth management services, farm services, and investment services. However, specific product or service names are not mentioned in the provided document.

Price action

Investment thesis

Bull case

Strong tangible asset base of 7.58B provides 13.44x coverage of total debt 563.45M, indicating robust asset backing and low credit risk.
Operating cash flow of 126.94M provides strong 48.54x coverage of stock compensation 2.62M, indicating sustainable incentive practices.
Operating cash flow of 126.94M provides strong 3.18x coverage of operating expenses 39.93M, showing operational efficiency.
Retained earnings of 445.84M provide strong 1.75x coverage of intangibles 255.22M, indicating quality earnings retention.
Free cash flow of 128.76M provides solid 3.22x coverage of operating expenses 39.93M, showing operational efficiency.

Bear case

Operating cash flow of 126.94M barely covers its investment activities of (186.25M), with a coverage ratio of -0.68, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
Operating cash flow of 126.94M provides thin coverage of dividend payments of (23.14M) with a -5.49 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
Cash reserves of 278.14M provide limited coverage of acquisition spending of (2.30M), which is -120.93x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
Free cash flow of 128.76M provides weak coverage of capital expenditures of (1.81M), with a -70.94 ratio suggesting additional external financing needs for growth initiatives.
Free cash flow of 128.76M represents just -22.11x of debt issuance (5.82M), suggesting concerning reliance on leverage rather than internal cash generation for growth.

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
EV to Assets EV to Assets	0.17	0.14
EV to Cash from Ops. EV/CFO	10.27	7.21
EV to Debt EV to Debt	2.31	5.20
EV to EBIT EV/EBIT	11.60	14.98
EV to EBITDA EV/EBITDA	9.85	8.92
EV to Free Cash Flow [EV/FCF] EV/FCF	10.13	8.87
EV to Market Cap EV to Market Cap	1.39	1.04
EV to Revenue EV/Rev	3.89	-3.76
Price to Book Value [P/B] P/B	1.01	1.17
Price to Earnings [P/E] P/E	10.77	15.63

Dividend Metrics	Value	Ind Avg
Dividend Coverage Ratio Div Coverage (Qtr)	3.77	271.44
Dividend Payout Ratio % Div Payout % (Qtr)	26.50	35.28
Dividend per Basic Share Div per Share (Qtr)	0.97	0.89
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr)	18.08	34.52
Interest Coverage Interest Coverage	0.00	-0.05

Growth Metrics	Value	Ind Avg
Capex Growth (1y) % Capex 1y % (Qtr)	142.07	-73.15
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr)	65.86	15.78
Dividend Growth (1y) % Div 1y % (Qtr)	4.30	5.32
EBIAT Growth (1y) % EBIAT 1y % (Qtr)	12.13	110.93
EBITDA Growth (1y) % EBITDA 1y % (Qtr)	9.23	38.80
EBIT Growth (1y) % EBIT 1y % (Qtr)	11.67	61.46
EBT Growth (1y) % EBT 1y % (Qtr)	11.67	61.37
EPS Growth (1y) % EPS 1y % (Qtr)	12.27	76.34
FCF Growth (1y) % FCF 1y % (Qtr)	16.33	161.72
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr)	5.91	14.15

Liquidity Ratios	Value	Ind Avg
Asset Utilization Ratio Asset Util Ratio (Qtr)	0.04	0.04
Cash Payout Ratio Cash Payout (Qtr)	0.18	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)	0.60	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
EBITDA Margin % EBITDA Margin % (Qtr)	39.50	147.97
EBIT Margin % EBIT Margin % (Qtr)	33.55	155.41
EBT Margin % EBT Margin % (Qtr)	33.55	154.66
Gross Margin % Gross Margin % (Qtr)	100.00	97.82
Net Profit Margin % Net Margin % (Qtr)	26.00	115.63

Research Tools

First Mid Bancshares, Inc. (NASDAQ: FMBH)

About

Price action

Investment thesis

Bull case

Bear case

Peer comparison

Industry comparisons

Research Tools

First Mid Bancshares, Inc. (NASDAQ: FMBH)

About

Price action

Investment thesis

Bull case

Bear case

Peer comparison

Industry comparisons

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