FS Bancorp, Inc. (FSBW) AI Stock Analysis

FS Bancorp, Inc. functions as the holding company overseeing 1st Security Bank of Washington, catering to local families, businesses, and industry sectors. The company operates through two distinct segments: Commercial and Consumer Banking, and Home Lending. Its deposit offerings include checking accounts, money market deposits, savings accounts, and certificates of deposit. In lending, the firm provides residential mortgages for one-to-four-family homes, home equity products, non-mortgage business loans, commercial real estate financing, and construction and development loans. Consumer loans include personal lines of credit, credit cards, automobile financing, home improvement loans, and recreational loans.

FS Bancorp grew total revenue from $131.1M in FY2021 to $217.5M in FY2025, supported by a 5-year revenue CAGR of 8.9%. Annual revenue expanded 38.2% in FY2023, 10.0% in FY2024, and 6.8% in FY2025. However, net margin compressed from 28.5% in FY2021 to 15.3% in FY2025 as net income decreased from $37.4M to $33.3M over the same timeframe. Annual operating margin ended FY2025 at 20.6%, compared with 36.2% in FY2021. For the latest quarter ended June 30, 2026, quarterly revenue increased 2.5% year-over-year, while quarterly earnings grew 5.1% year-over-year, contributing to trailing twelve month revenue of $144.9M and diluted EPS of $4.36.

As of June 30, 2026, FS Bancorp held $282.3M in cash and short-term investments against total debt of $380.9M, resulting in net debt of $98.7M. Total assets stood at $3.18B and shareholders' equity was $319.0M, with a debt-to-equity ratio of 1.19 and a current ratio of 408.48. In FY2025, operating cash flow reached $72.3M and free cash flow was $51.9M. The company allocated capital toward $20.4M in capital expenditures, $15.4M in share buybacks, and $10.3M in dividends paid, contributing to a 5-year share count change of -8.7%.

With a market cap of $352.6M and an enterprise value of $675.0M, FS Bancorp trades at a trailing P/E of 10.3x and a forward P/E of 8.9x. These multiples compare to 12.1x and 10.8x for the median of its US-listed Financial Services peers. The stock's price-to-sales ratio stands at 2.4x versus the peer median of 3.2x, while its price-to-book ratio is 1.1x. Over the past year, FSBW achieved a return of 23.3%, outperforming the S&P 500 (SPY) return of 16.8%. Over a 5-year timeframe, FSBW returned 51.6% compared to 83.0% for the S&P 500.

FS Bancorp pays a quarterly dividend with an annualized forward rate of $1.16 per share, representing a dividend yield of 2.58%. The payout ratio is 28.1%, and the company has paid dividends for 14 consecutive years. Over the past 5 years, the annualized dividend growth rate was 20.3%. The most recent ex-dividend date occurred on August 7, 2026.

Wall Street coverage consists of 3 analysts, all maintaining a Hold rating with 0 Buy and 0 Sell ratings. The mean price target is $45.00, representing an upside of 0.3% over the last close of $44.85. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $159.6M and EPS of $4.34, representing 15.3% EPS growth. Over the last 4 quarters, the company beat EPS estimates 1 time. The next earnings date is October 20, 2026.

This page is an AI-written research summary of FS Bancorp, Inc. (FSBW). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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