📊 FSBW Key Takeaways
Is FS Bancorp, Inc. (FSBW) a Good Investment?
FS Bancorp demonstrates solid fundamentals with strong revenue growth of 51.3% YoY and healthy net margins of 16.9%, though net income growth moderated to 1.7% YoY. The company maintains a conservative debt-to-equity ratio of 0.61x with solid free cash flow generation of $51.9M, but modest ROA of 1.0% and declining EPS suggest operational efficiency and earnings power need improvement.
FS Bancorp shows solid core profitability and healthy cash generation, with operating income, ROE, and free cash flow indicating a fundamentally viable franchise. However, the quality of recent growth is mixed because revenue rose sharply while net income grew only modestly and diluted EPS declined, suggesting margin pressure and limited bottom-line operating leverage. The balance sheet appears manageable, but modest interest coverage and leverage still warrant caution.
Why Buy FS Bancorp, Inc. Stock? FSBW Key Strengths
- Strong revenue growth of 51.3% YoY indicates market expansion and business momentum
- Healthy net profit margin of 16.9% and operating margin of 20.8% demonstrate pricing power and cost control
- Robust free cash flow of $51.9M with 26.3% FCF margin provides capital flexibility
- Conservative leverage with 0.61x debt-to-equity ratio and manageable long-term debt of $186.5M
- Strong revenue growth and positive operating profitability
- Healthy free cash flow generation with a strong FCF margin
- Acceptable bank-style profitability with 10.8% ROE and 1.0% ROA
FSBW Stock Risks: FS Bancorp, Inc. Investment Risks
- Earnings growth severely lagged revenue growth (1.7% net income vs 51.3% revenue growth) suggests operational leverage deterioration or one-time costs
- Low return on assets of 1.0% and modest ROE of 10.8% indicate suboptimal asset utilization for a financial institution
- Diluted EPS declined 1.6% YoY despite revenue growth, signaling shareholder value dilution or earnings pressure
- Interest coverage ratio of 2.8x is adequate but not robust; vulnerable to rising rates or credit deterioration
- Revenue growth is not translating efficiently into net income and EPS growth
- Interest coverage of 2.8x leaves limited cushion if funding costs stay elevated
- Leverage and relatively low cash balances reduce flexibility under stress
Key Metrics to Watch
- Net income growth rate relative to revenue growth to assess operational leverage recovery
- Return on assets and return on equity trends to monitor profitability improvement
- Interest coverage ratio and debt service capacity amid changing rate environment
- Free cash flow sustainability and capital allocation decisions
- Net interest margin and operating margin trend
- EPS growth relative to revenue growth
FS Bancorp, Inc. (FSBW) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 26.3% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
FSBW Profit Margin, ROE & Profitability Analysis
FSBW vs Finance Sector: How FS Bancorp, Inc. Compares
How FS Bancorp, Inc. compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is FS Bancorp, Inc. Stock Overvalued? FSBW Valuation Analysis 2026
Based on fundamental analysis, FS Bancorp, Inc. has mixed fundamental signals 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.
FS Bancorp, Inc. Balance Sheet: FSBW Debt, Cash & Liquidity
FSBW Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: FS Bancorp, Inc.'s revenue has grown significantly by 58% over the 5-year period, indicating strong business expansion. The most recent EPS of $4.56 reflects profitable operations.
FSBW Revenue Growth, EPS Growth & YoY Performance
FSBW Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2024 | $1.2M | $9.0M | $1.13 |
| Q1 2024 | $914.0K | $8.2M | $1.04 |
| Q3 2023 | $812.0K | $8.5M | $1.08 |
| Q2 2023 | $809.0K | $6.7M | $0.83 |
| Q1 2023 | $759.0K | $6.9M | $0.83 |
| Q3 2022 | $777.0K | $8.3M | $0.98 |
| Q2 2022 | $758.0K | $6.7M | $0.83 |
| Q1 2022 | $688.0K | $6.9M | $0.81 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
FS Bancorp, Inc. Dividends, Buybacks & Capital Allocation
FSBW SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for FS Bancorp, Inc. (CIK: 0001530249)
📋 Recent SEC Filings
❓ Frequently Asked Questions about FSBW
What is the AI rating for FSBW?
FS Bancorp, Inc. (FSBW) has a Combined AI Rating of BUY from Claude (BUY) and ChatGPT (HOLD) with 76% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are FSBW's key strengths?
Claude: Strong revenue growth of 51.3% YoY indicates market expansion and business momentum. Healthy net profit margin of 16.9% and operating margin of 20.8% demonstrate pricing power and cost control. ChatGPT: Strong revenue growth and positive operating profitability. Healthy free cash flow generation with a strong FCF margin.
What are the risks of investing in FSBW?
Claude: Earnings growth severely lagged revenue growth (1.7% net income vs 51.3% revenue growth) suggests operational leverage deterioration or one-time costs. Low return on assets of 1.0% and modest ROE of 10.8% indicate suboptimal asset utilization for a financial institution. ChatGPT: Revenue growth is not translating efficiently into net income and EPS growth. Interest coverage of 2.8x leaves limited cushion if funding costs stay elevated.
What is FSBW's revenue and growth?
FS Bancorp, Inc. reported revenue of $197.2M.
Does FSBW pay dividends?
FS Bancorp, Inc. pays dividends, with $10.3M distributed to shareholders in the trailing twelve months.
Where can I find FSBW SEC filings?
Official SEC filings for FS Bancorp, Inc. (CIK: 0001530249) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is FSBW's EPS?
FS Bancorp, Inc. has a diluted EPS of $4.29.
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 FSBW a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, FS Bancorp, Inc. has a BUY rating with 76% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is FSBW stock overvalued or undervalued?
Valuation metrics for FSBW: ROE of 10.8% (sector avg: 12%), net margin of 16.9% (sector avg: 25%). Compare these metrics with sector averages to assess valuation.
Should I buy FSBW stock in 2026?
Our dual AI analysis gives FS Bancorp, Inc. a combined BUY rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is FSBW's free cash flow?
FS Bancorp, Inc.'s operating cash flow is $72.3M, with capital expenditures of $20.4M. FCF margin is 26.3%.
How does FSBW compare to other Finance stocks?
Vs Finance sector averages: Net margin 16.9% (avg: 25%), ROE 10.8% (avg: 12%), current ratio N/A (avg: 1.2).