Primis Financial Corp. (NASDAQ: FRST)

Sector: Financial Services Industry: Banks - Regional CIK: 0001325670
Market Cap 320.69 Mn
P/B 0.84
P/E 37.43
P/S 2.32
ROIC (Qtr) 0.60
Div Yield % 3.82
Rev 1y % (Qtr) 37.78
Total Debt (Qtr) 211.13 Mn
Debt/Equity (Qtr) 0.55

About

Primis Financial Corp., also known as FRST, is a bank holding company that operates in the financial services industry, with a focus on providing a range of financial services to individuals and small and medium-sized businesses. The company, which was founded in 2005, has grown to become a leading financial institution in the region, with a strong presence in Virginia and Maryland. Primis Financial Corp. generates revenue primarily through interest income on loans and investments, as well as fee income from deposit accounts and other services....

Read more

Price action

Investment thesis

Bull case

  • Operating cash flow of (71.98M) provides strong 287.85x coverage of stock compensation (250060), indicating sustainable incentive practices.
  • Strong tangible asset base of 3.86B provides 18.26x coverage of total debt 211.13M, indicating robust asset backing and low credit risk.
  • Strong tangible asset base of 3.86B provides 174.52x coverage of acquisition spending 22.09M, enabling strategic growth.
  • Strong tangible asset base of 3.86B provides 38.74x coverage of intangibles 99.52M, indicating robust asset quality.

Bear case

  • Operating cash flow of (71.98M) barely covers its investment activities of 3M, with a coverage ratio of -24.02, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of (71.98M) provides thin coverage of dividend payments of 109 with a -660371.28 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Free cash flow of (75.30M) provides weak coverage of capital expenditures of 3.32M, with a -22.71 ratio suggesting additional external financing needs for growth initiatives.
  • Operating cash flow of (71.98M) provides minimal -34.76x coverage of tax expenses of 2.07M, suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating earnings of 10.64M show weak coverage of depreciation charges of (179072), with a -59.41 ratio indicating high capital intensity and potential reinvestment needs.

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 0.09 0.14
EV to Cash from Ops. EV/CFO -4.93 7.21
EV to Debt EV to Debt 1.68 5.20
EV to EBIT EV/EBIT 33.33 14.98
EV to EBITDA EV/EBITDA 87.83 8.92
EV to Free Cash Flow [EV/FCF] EV/FCF -4.71 8.87
EV to Market Cap EV to Market Cap 1.11 1.04
EV to Revenue EV/Rev 2.56 -3.76
Price to Book Value [P/B] P/B 0.84 1.17
Price to Earnings [P/E] P/E 37.43 15.63
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) -78,605.50 271.44
Dividend Payout Ratio % Div Payout % (Qtr) 114.30 35.28
Dividend per Basic Share Div per Share (Qtr) 0.40 0.89
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) -13.09 34.52
Interest Coverage Interest Coverage 0.00 -0.05
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -336.36 -73.15
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -17.33 15.78
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 5.32
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 923.05 110.93
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 133.72 38.80
EBIT Growth (1y) % EBIT 1y % (Qtr) 377.49 61.46
EBT Growth (1y) % EBT 1y % (Qtr) 377.49 61.37
EPS Growth (1y) % EPS 1y % (Qtr) 975.00 76.34
FCF Growth (1y) % FCF 1y % (Qtr) -178.93 161.72
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 32.04 14.15
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.03 0.04
Cash Payout Ratio Cash Payout (Qtr) 0.00 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) 0.55 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) 7.60 147.97
EBIT Margin % EBIT Margin % (Qtr) 7.69 155.41
EBT Margin % EBT Margin % (Qtr) 7.69 154.66
Gross Margin % Gross Margin % (Qtr) 100.00 97.82
Net Profit Margin % Net Margin % (Qtr) 6.20 115.63