📊 FRST Key Takeaways
Is Primis Financial Corp. (FRST) a Good Investment?
Primis Financial demonstrates strong revenue growth (+79.9% YoY) and solid profitability with 30.7% net margin, but deteriorating interest coverage (0.9x) and weak free cash flow generation (4.5% FCF margin) raise concerns about financial stress and sustainability. The flat net income despite significant revenue growth suggests operational challenges that warrant caution despite headline growth metrics.
Primis Financial shows solid core profitability, with a 36.2% operating margin, 30.7% net margin, 14.5% ROE, and 1.5% ROA, which are healthy for a bank of its size. However, the quality of growth looks mixed because revenue surged 79.9% while net income was flat, and free cash flow remains modest relative to reported earnings. The balance sheet appears adequately capitalized, but weak interest coverage and limited cash flow conversion temper the overall fundamental picture.
Why Buy Primis Financial Corp. Stock? FRST Key Strengths
- Exceptional revenue growth of 79.9% year-over-year demonstrates strong market demand and business expansion
- Healthy net margin of 30.7% and operating margin of 36.2% indicate efficient operations and strong profitability per dollar of revenue
- Solid ROE of 14.5% shows reasonable returns to shareholders on equity capital deployed
- Zero debt-to-equity ratio provides significant financial flexibility and reduces financial risk
- Strong profitability profile with high operating and net margins
- Healthy returns on equity and assets indicate efficient capital deployment
- Solid equity base relative to assets supports balance-sheet resilience
FRST Stock Risks: Primis Financial Corp. Investment Risks
- Critical warning: interest coverage ratio of 0.9x indicates insufficient operating income to cover interest obligations, suggesting financial distress or unsustainable leverage
- Net income remained flat (0% YoY growth) despite 79.9% revenue growth, indicating margin compression or one-time items masking underlying operational deterioration
- Weak free cash flow margin of 4.5% relative to revenue suggests the company is not converting growth into cash returns, raising sustainability concerns
- Low ROA of 1.5% indicates inefficient asset utilization despite strong profitability metrics
- 13 Form 4 filings in last 90 days may indicate elevated insider trading activity requiring scrutiny for insider confidence/concerns
- Net income did not grow despite very strong revenue growth, suggesting weaker growth quality
- Interest coverage of 0.9x points to limited earnings cushion against funding costs
- Operating cash flow and free cash flow are low relative to net income, raising cash conversion concerns
Key Metrics to Watch
- Interest coverage ratio - critical to monitor if company can service debt obligations going forward
- Free cash flow generation - essential to track whether revenue growth converts to actual cash returns
- Net income growth trajectory - determine if flat YoY growth continues or if profitability improves with revenue expansion
- Net margin trend - monitor for further compression which would validate deteriorating operational efficiency
- Return on assets - assess whether asset base is being utilized more efficiently to justify 4.0B total assets
- Net interest margin and provision-driven net income growth
- Capital ratios and interest coverage/funding cost trends
Primis Financial Corp. (FRST) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 4.5% FCF margin may limit capital allocation flexibility. The current ratio below 1.0x warrants monitoring of short-term liquidity.
FRST Profit Margin, ROE & Profitability Analysis
FRST vs Finance Sector: How Primis Financial Corp. Compares
How Primis Financial Corp. compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Primis Financial Corp. Stock Overvalued? FRST Valuation Analysis 2026
Based on fundamental analysis, Primis Financial Corp. appears fundamentally strong relative to the Finance sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Primis Financial Corp. Balance Sheet: FRST Debt, Cash & Liquidity
FRST Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Primis Financial Corp.'s revenue has remained relatively flat over the 5-year period, with a 0% decline. The most recent EPS of $-0.32 indicates the company is currently unprofitable.
FRST Revenue Growth, EPS Growth & YoY Performance
Primis Financial Corp. Dividends, Buybacks & Capital Allocation
FRST SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Primis Financial Corp. (CIK: 0001325670)
📋 Recent SEC Filings
❓ Frequently Asked Questions about FRST
What is the AI rating for FRST?
Primis Financial Corp. (FRST) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 67% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are FRST's key strengths?
Claude: Exceptional revenue growth of 79.9% year-over-year demonstrates strong market demand and business expansion. Healthy net margin of 30.7% and operating margin of 36.2% indicate efficient operations and strong profitability per dollar of revenue. ChatGPT: Strong profitability profile with high operating and net margins. Healthy returns on equity and assets indicate efficient capital deployment.
What are the risks of investing in FRST?
Claude: Critical warning: interest coverage ratio of 0.9x indicates insufficient operating income to cover interest obligations, suggesting financial distress or unsustainable leverage. Net income remained flat (0% YoY growth) despite 79.9% revenue growth, indicating margin compression or one-time items masking underlying operational deterioration. ChatGPT: Net income did not grow despite very strong revenue growth, suggesting weaker growth quality. Interest coverage of 0.9x points to limited earnings cushion against funding costs.
What is FRST's revenue and growth?
Primis Financial Corp. reported revenue of $200.4M.
Does FRST pay dividends?
Primis Financial Corp. pays dividends, with $9.9M distributed to shareholders in the trailing twelve months.
Where can I find FRST SEC filings?
Official SEC filings for Primis Financial Corp. (CIK: 0001325670) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is FRST's EPS?
Primis Financial Corp. has a diluted EPS of $2.49.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is FRST a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Primis Financial Corp. has a HOLD rating with 67% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is FRST stock overvalued or undervalued?
Valuation metrics for FRST: ROE of 14.5% (sector avg: 12%), net margin of 30.7% (sector avg: 25%). Higher ROE suggests strong returns relative to peers.
Should I buy FRST stock in 2026?
Our dual AI analysis gives Primis Financial Corp. a combined HOLD rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is FRST's free cash flow?
Primis Financial Corp.'s operating cash flow is $10.8M, with capital expenditures of $1.7M. FCF margin is 4.5%.
How does FRST compare to other Finance stocks?
Vs Finance sector averages: Net margin 30.7% (avg: 25%), ROE 14.5% (avg: 12%), current ratio N/A (avg: 1.2).