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Relative valuation derived from Financials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 61.4GRADE B
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
12.3%
Sector: 8.5%
Dividend Analysis audit
INCOME
2.50%
Trailing Yield
$2.50
Per $100 Invested
Solid dividend yield for income-focused strategies.
Est. Payout Ratio
38%SAFE
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, FIVE STAR BANCORP (FSBC) receives a "Hold" rating with a composite score of 56.5/100, ranked #390 out of 4446 stocks. Key factor scores: Quality 61/100, Value 72/100, Momentum 60/100. This is quantitative analysis only — not investment advice.
FIVE STAR BANCORP (FSBC) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does FIVE STAR BANCORP Do?
Five Star Bancorp operates as the bank holding company for Five Star Bank that provides a range of banking products and services to small and medium-sized businesses, professionals, and individuals. The company accepts various deposits, such as money market, noninterest-bearing and interest checking accounts, savings accounts, and time deposits. Its loan products include commercial and residential real estate loans; commercial loans; commercial land loans; farmland loans; commercial and residential construction loans; and consumer and other loans. The company also offers debit cards; and remote deposit capture, online and mobile banking, and direct deposit services. It operates through seven branch offices and two loan production offices in Northern California. Five Star Bancorp was founded in 1999 and is headquartered in Rancho Cordova, California. FIVE STAR BANCORP (FSBC) is classified as a small-cap stock in the Financials sector, specifically within the Banking industry. The company is led by CEO James E. Beckwith and employs approximately 180 people. With a market capitalization of $814M, FSBC is one of the notable companies in the Financials sector.
FIVE STAR BANCORP (FSBC) Stock Rating — Hold (April 2026)
As of April 2026, FIVE STAR BANCORP receives a Hold rating with a composite score of 56.5/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.FSBC ranks #390 out of 4,446 stocks in our coverage universe. Within the Financials sector, FIVE STAR BANCORP ranks #132 of 891 stocks, placing it in the top quartile of its Financials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
FSBC Stock Price and 52-Week Range
FIVE STAR BANCORP (FSBC) currently trades at $40.16. The stock lost $0.59 (1.4%) in the most recent trading session. The 52-week high for FSBC is $42.26, which means the stock is currently trading -5.0% from its annual peak. The 52-week low is $22.22, putting the stock 80.7% above its annual trough. Recent trading volume was 37K shares, suggesting relatively thin trading activity.
Is FSBC Overvalued or Undervalued? — Valuation Analysis
FIVE STAR BANCORP (FSBC) carries a value factor score of 72/100 in the Blank Capital model, suggesting the stock trades at a meaningful discount to its fundamental earning power. The trailing price-to-earnings ratio is 15.09x, compared to the Financials sector average of 14.88x — a premium of 1%. The price-to-book ratio stands at 1.86x, versus the sector average of 1.22x. The price-to-sales ratio is 3.52x, compared to 0.90x for the average Financials stock. On an enterprise value basis, FSBC trades at 10.71x EV/EBITDA, versus 3.26x for the sector.
Based on these multiples, FIVE STAR BANCORP appears attractively valued relative to both its sector peers and the broader market. Value-oriented investors may find the current entry point compelling, particularly if the company's fundamental quality metrics also score well.
FIVE STAR BANCORP Profitability — ROE, Margins, and Quality Score
FIVE STAR BANCORP (FSBC) earns a quality factor score of 61/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 12.3%, compared to the Financials sector average of 8.5%, which is within a healthy range. Return on assets (ROA) comes in at 1.1% versus the sector average of 1.2%.
On a margin basis, FIVE STAR BANCORP reports gross margins of 0.0%. The operating margin is 32.2% (sector: 21.8%). Net profit margin stands at 23.2%, versus 17.7% for the average Financials stock. Revenue growth is running at 32.3% on a trailing basis, compared to 9.4% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
FSBC Debt, Balance Sheet, and Financial Health
FIVE STAR BANCORP has a debt-to-equity ratio of 967.0%, compared to the Financials sector average of 121.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 1.10x, suggesting adequate working capital coverage. Total debt on the balance sheet is $74M. Cash and equivalents stand at $44M.
FSBC has a beta of 0.69, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for FIVE STAR BANCORP is 84/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
FIVE STAR BANCORP Revenue and Earnings History — Quarterly Trend
In TTM 2026, FIVE STAR BANCORP reported revenue of $235M and earnings per share (EPS) of $2.90. Net income for the quarter was $55M. Gross margin was 0.0%. Operating income came in at $76M.
In FY 2025, FIVE STAR BANCORP reported revenue of $249M and earnings per share (EPS) of $2.90. Net income for the quarter was $62M. Revenue grew 97.3% year-over-year compared to FY 2024. Operating income came in at $84M.
In Q3 2025, FIVE STAR BANCORP reported revenue of $65M and earnings per share (EPS) of $0.77. Net income for the quarter was $16M. Revenue grew 23.1% year-over-year compared to Q3 2024. Operating income came in at $22M.
In Q2 2025, FIVE STAR BANCORP reported revenue of $61M and earnings per share (EPS) of $0.68. Net income for the quarter was $15M. Revenue grew 23.6% year-over-year compared to Q2 2024. Operating income came in at $20M.
Over the past 8 quarters, FIVE STAR BANCORP has demonstrated a growth trajectory, with revenue expanding from $49M to $235M. Investors analyzing FSBC stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
FSBC Dividend Yield and Income Analysis
FIVE STAR BANCORP (FSBC) currently pays a dividend yield of 2.5%. At this yield, a $10,000 investment in FSBC stock would generate approximately $$250.00 in annual dividend income. This compares to the Financials sector average dividend yield of 2.5%, meaning FSBC offers above-average income for its sector. With a net margin of 23.2%, the dividend appears well-covered by earnings, suggesting sustainable payouts going forward.
FSBC Momentum and Technical Analysis Profile
FIVE STAR BANCORP (FSBC) has a momentum factor score of 60/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 24/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 17/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
FSBC vs Competitors — Financials Sector Ranking and Peer Comparison
Comparing FSBC against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full FSBC vs S&P 500 (SPY) comparison to assess how FIVE STAR BANCORP stacks up against the broader market across all factor dimensions.
FSBC Next Earnings Date
No upcoming earnings date has been announced for FIVE STAR BANCORP (FSBC) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy FSBC? — Investment Thesis Summary
FIVE STAR BANCORP presents a balanced picture with arguments on both sides. The quality score of 61/100 indicates above-average profitability and business fundamentals. The value score of 72/100 suggests attractive pricing relative to fundamentals. Price momentum is positive at 60/100, suggesting the trend favors buyers. Low volatility (stability score 84/100) reduces downside risk.
In summary, FIVE STAR BANCORP (FSBC) earns a Hold rating with a composite score of 56.5/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on FSBC stock.
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Institutional Research Dossier
FIVE STAR BANCORP (FSBC) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
Five Star Bancorp (FSBC) currently holds a 'Hold' rating, a reflection of its solid profitability metrics offset by concerns regarding its aggressive growth strategy and high debt levels. While the bank demonstrates strong operational efficiency and superior margins compared to its peers, the elevated debt-to-equity ratio and negative free cash flow raise questions about its long-term financial sustainability and capital allocation decisions.
The bank's valuation appears attractive based on P/E and EV/EBITDA multiples relative to the sector, but this is tempered by the risks associated with its rapid expansion and reliance on debt financing. Investors should closely monitor the bank's ability to maintain its profitability while managing its debt burden and navigating the competitive landscape of the Northern California banking market.
Business Strategy & Overview
Five Star Bancorp operates as a community bank focused on serving small and medium-sized businesses, professionals, and individuals in Northern California. The bank's core strategy revolves around providing personalized banking services and building strong relationships with its customers. This localized approach allows them to cater to the specific needs of the region's economy, which is characterized by a mix of agriculture, technology, and small businesses.
The bank generates revenue primarily through interest income from its loan portfolio, which includes commercial real estate, commercial, farmland, and construction loans. They also earn fees from deposit accounts and other banking services. The company's growth strategy appears to be centered on expanding its loan portfolio and increasing its deposit base through organic growth and strategic branch expansion within Northern California.
Five Star Bancorp differentiates itself from larger national banks by offering a more personalized and responsive service model. This allows them to compete effectively for smaller business clients who may be underserved by larger institutions. The bank also emphasizes its local expertise and understanding of the Northern California market, which gives it an advantage in assessing credit risk and identifying growth opportunities.
However, the bank's reliance on a relatively small geographic area also presents a concentration risk. Economic downturns or industry-specific challenges in Northern California could disproportionately impact the bank's loan portfolio and profitability. Furthermore, the increasing competition from larger regional and national banks, as well as fintech companies, poses a threat to the bank's market share and growth prospects.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
32.3%
Sector: 9.4%
+245% VS SCTR
Economic Moat Analysis
Five Star Bancorp's economic moat can be classified as Narrow. While the bank exhibits some characteristics of a competitive advantage, they are not strong enough to warrant a Wide moat rating. The primary source of their moat stems from switching costs and local market knowledge.
Switching Costs: Community banks often benefit from established relationships with their customers, particularly small businesses. These relationships create a degree of stickiness, as businesses are often reluctant to switch banks due to the hassle of transferring accounts, lines of credit, and other financial services. This is especially true for businesses that value personalized service and local expertise.
Local Market Knowledge: Five Star Bancorp's focus on Northern California provides them with a deep understanding of the local economy and business environment. This allows them to make more informed lending decisions and tailor their services to the specific needs of the region. This local expertise is difficult for larger national banks to replicate.
However, these advantages are not insurmountable. Larger banks with greater resources can invest in building relationships and developing local expertise. Furthermore, the rise of fintech companies is disrupting the banking industry and making it easier for customers to switch banks. The intense competition within the banking sector, particularly in attracting and retaining deposits, limits the bank's pricing power and profitability.
The bank's relatively small size and limited geographic footprint also constrain its ability to achieve significant economies of scale. This puts them at a disadvantage compared to larger banks with lower operating costs. Therefore, while Five Star Bancorp possesses a narrow moat based on switching costs and local market knowledge, its competitive advantage is not particularly strong or durable.
Financial Health & Profitability
Five Star Bancorp demonstrates a mixed financial profile. The company's revenue growth has been impressive, with a 32.3% increase compared to the sector average of 9.3%. This growth is further highlighted by the significant jump from $126.16M in FY2024 to $248.93M in FY2025. However, the company's free cash flow is concerning, with a TTM value of $-25.18M, indicating that the company is currently burning cash.
Profitability metrics are strong, with a net margin of 23.2% compared to the sector average of 17.8%, and an operating margin of 32.2% compared to the sector average of 22.0%. The ROE of 12.3% is also significantly higher than the sector average of 8.5%, indicating efficient use of equity. The quarterly financial history shows consistent profitability, with net income ranging from $10.63M to $16.34M per quarter in the recent periods.
The balance sheet presents a point of concern. While the current ratio of 1.10 indicates sufficient liquidity, the debt-to-equity ratio of 967.00 is exceptionally high compared to the sector average of 115.00. This high leverage increases the company's financial risk and vulnerability to interest rate fluctuations. The total debt of $74.00M against a cash balance of $44.15M further emphasizes the company's reliance on debt financing.
The trend in operating margin shows some volatility. While the FY2025 operating margin is strong at 33.6%, it is significantly higher than the 5.1% reported in FY2024. This suggests that the company's profitability is subject to fluctuations and may not be sustainable in the long term. The absence of gross margin data for most periods makes it difficult to assess the underlying drivers of profitability.
Valuation Assessment
Five Star Bancorp's valuation presents a mixed picture. The company's P/E ratio of 12.5x is lower than the sector average of 15.5x, suggesting that the stock may be undervalued relative to its earnings. Similarly, the EV/EBITDA ratio of 2.3x is significantly lower than the sector average of 3.5x, further indicating a potential undervaluation based on its enterprise value and operating cash flow.
However, these seemingly attractive multiples must be considered in the context of the company's high debt levels and negative free cash flow. The high debt-to-equity ratio increases the company's financial risk and could limit its future growth potential. The negative free cash flow suggests that the company is not generating enough cash to cover its operating and investment needs, which could necessitate further borrowing or equity dilution.
The company's impressive revenue growth of 32.3% should also be factored into the valuation assessment. High-growth companies often trade at higher multiples, but the sustainability of this growth is uncertain, particularly given the company's reliance on debt financing. A discounted cash flow (DCF) analysis would be necessary to determine the intrinsic value of the stock, but the negative free cash flow makes this analysis challenging.
Overall, Five Star Bancorp's valuation appears attractive based on simple multiples, but a deeper analysis reveals significant risks associated with its financial health and growth strategy. The stock may be fairly valued, but it is not a clear bargain given the uncertainties surrounding its future performance. Investors should carefully weigh the potential upside against the downside risks before investing in this stock.
Risk & Uncertainty
Five Star Bancorp faces several specific risks that could negatively impact its business and financial performance. One of the most significant risks is its high debt-to-equity ratio. This high leverage increases the company's vulnerability to interest rate fluctuations and economic downturns. If interest rates rise or the economy weakens, the company may struggle to service its debt, which could lead to financial distress.
Another risk is geographic concentration. The bank operates primarily in Northern California, which exposes it to the economic conditions and industry-specific challenges of that region. A downturn in the Northern California economy or a decline in the value of real estate could significantly impact the bank's loan portfolio and profitability.
Competition in the banking industry is intense, particularly in attracting and retaining deposits. Larger regional and national banks, as well as fintech companies, are increasingly competing for the same customers. This competition could put pressure on the bank's margins and limit its growth potential.
Regulatory risk is also a concern. Banks are subject to extensive regulation, and changes in regulations could increase the bank's compliance costs or restrict its business activities. Furthermore, the bank's rapid growth could attract increased regulatory scrutiny.
Bulls Say / Bears Say
The Bull Case
BULL VIEWFive Star Bancorp's superior profitability metrics, including higher ROE and net margin compared to the sector, demonstrate efficient operations and strong management.
BULL VIEWThe bank's impressive revenue growth indicates a successful expansion strategy and increasing market share in the attractive Northern California market.
BULL VIEWThe relatively low P/E and EV/EBITDA multiples suggest that the stock is undervalued and offers significant upside potential as the market recognizes its growth prospects.
The Bear Case
BEAR VIEWFive Star Bancorp's extremely high debt-to-equity ratio poses a significant financial risk and increases its vulnerability to interest rate hikes and economic downturns.
BEAR VIEWThe negative free cash flow indicates that the company is not generating enough cash to cover its operations and investments, raising concerns about its long-term sustainability.
BEAR VIEWThe bank's geographic concentration in Northern California exposes it to regional economic risks and limits its diversification.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score FSBC and 4,400+ other equities.
FIVE STAR BANCORP exhibits a 143% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
1.1%
Sector: 1.2%
Gross Margin
Pricing power and cost efficiency
0.0%
Sector: 0.0%
Operating Margin
Core business profitability
32.2%
Sector: 21.8%
Net Margin
Bottom-line profitability
23.2%
Sector: 17.7%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield2.48%
Yield Delta+1%
Income Projection audit
A $10,000 investment would generate approximately $250 annually in dividends at the current trailing rate.
