Southern First Bancshares Inc (NASDAQ: SFST)

Sector: Financial Services Industry: Banks - Regional CIK: 0001090009
Market Cap 417.93 Mn
P/B 1.17
P/E 15.99
P/S 3.82
ROIC (Qtr) 4.19
Div Yield % 0.00
Rev 1y % (Qtr) 27.40
Total Debt (Qtr) 264.90 Mn
Debt/Equity (Qtr) 0.74

About

Price action

Investment thesis

Bull case

  • Strong tangible asset base of 4.36B provides 16.45x coverage of total debt 264.90M, indicating robust asset backing and low credit risk.
  • Operating cash flow of 30.74M provides strong 13.57x coverage of stock compensation 2.27M, indicating sustainable incentive practices.
  • Robust free cash flow of 30.24M exceeds capital expenditure of 499000 by 60.60x, indicating strong organic growth funding capability.
  • Retained earnings of 241.59M represent substantial 0.68x of equity 356.35M, indicating strong internal capital generation.
  • Operating cash flow of 30.74M provides strong 61.60x coverage of capital expenditure 499000, enabling organic growth.

Bear case

  • Operating cash flow of 30.74M barely covers its investment activities of (166.77M), with a coverage ratio of -0.18, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Retained earnings of 241.59M provide limited buffer against comprehensive income items of (8.43M), which is -28.67x, indicating elevated exposure to market risks.
  • R&D investment of 0 represents just 0x of SG&A expenses of 58.89M, indicating potential underinvestment in innovation relative to administrative overhead.
  • Other operating expenses of 16.77M consume 0.55x of operating cash flow 30.74M, indicating potential cost control issues affecting cash generation.
  • R&D spending of 0 represents just 0x of capital expenditure 499000, indicating potential underinvestment in innovation relative to physical assets.

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 13.40 7.21
EV to Debt EV to Debt 1.55 5.20
EV to EBIT EV/EBIT 12.21 14.98
EV to EBITDA EV/EBITDA 10.77 8.92
EV to Free Cash Flow [EV/FCF] EV/FCF 13.62 8.87
EV to Market Cap EV to Market Cap 0.99 1.04
EV to Revenue EV/Rev 3.76 -3.76
Price to Book Value [P/B] P/B 1.17 1.17
Price to Earnings [P/E] P/E 15.99 15.63
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 271.44
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 35.28
Dividend per Basic Share Div per Share (Qtr) 0.00 0.89
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 34.52
Interest Coverage Interest Coverage 0.00 -0.05
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 27.58 -73.15
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 8.57 15.78
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 5.32
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 85.76 110.93
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 64.92 38.80
EBIT Growth (1y) % EBIT 1y % (Qtr) 83.75 61.46
EBT Growth (1y) % EBT 1y % (Qtr) 83.75 61.37
EPS Growth (1y) % EPS 1y % (Qtr) 86.21 76.34
FCF Growth (1y) % FCF 1y % (Qtr) -9.84 161.72
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 21.32 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) 0.74 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) 35.00 147.97
EBIT Margin % EBIT Margin % (Qtr) 30.83 155.41
EBT Margin % EBT Margin % (Qtr) 30.83 154.66
Gross Margin % Gross Margin % (Qtr) 100.00 97.82
Net Profit Margin % Net Margin % (Qtr) 23.90 115.63