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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#2965
Positioning
Market Dominance
Finance, Insurance, And Real Estate
Banking
$301M
Joseph C. Adams
FS Bancorp, Inc. operates as a bank holding company for 1st Security Bank of Washington. The company operates in Commercial and Consumer Banking; and Home Lending. As of December 31, 2021, it operated 21 full bank service branches and 10 home loan production offices in suburban communities in the greater Puget Sound area.
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Dates updated upon official exchange announcement.
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X-AXIS: EV/EBITDA (LOWER = CHEAPER) | Y-AXIS: ROE (HIGHER = ELITE) | RED CIRCLE = FSBW ANALYSIS TARGET
| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$SII SPROTT INC. | 75 | 91 | 87 | 98 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$PUK PRUDENTIAL PLC | 73 | 88 | 97 | 80 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$NMR NOMURA HOLDINGS INC | 72 | 81 | 92 | 87 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$PSLV Sprott Physical Silver Trust | 69 | 82 | 80 | 98 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$UFCS UNITED FIRE GROUP INC | 68 | 81 | 93 | 76 | 5.0x | 3.5x | 13.2% | 4.1% | 99.9% | 14.7% | 11.1% | 9.2% | 2.1% | 16.0x | $775M | VS | |
$SLF SUN LIFE FINANCIAL INC | 68 | 83 | 95 | 63 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$CBOE Cboe Global Markets, Inc. | 68 | 75 | 63 | 77 | 21.3x | 15.7x | 24.0% | 13.7% | 41.7% | 32.4% | 26.4% | 8.2% | 1.1% | 30.0x | $25.7B | VS | |
$VTMX Vesta Real Estate Corporation, S.A.B. de C.V. | 67 | 69 | 77 | 80 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$PHYS Sprott Physical Gold Trust | 67 | 64 | 82 | 91 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$GLDM World Gold Trust | 66 | 54 | 85 | 92 | 11.3x | 11.3x | - | 20.9% | 100.0% | 97.1% | 554.8% | -19.0% | 0.0% | - | $32.0B | VS | |
$FSBW FS Bancorp, Inc. | 44 | 32 | 59 | 50 | 8.9x | 7.7x | 11.7% | 1.1% | 0.0% | 21.0% | 18.2% | 4245.5% | 3.4% | 968.0x | $301M | ||
| SECTOR BENCH | - | - | - | - | - | 11.9x | 7.8x | 9.0% | 1.3% | 77.7% | 18.1% | 21.9% | 10.7% | 2.0% | 0.5x | - | REF |
FS Bancorp, Inc. (FSBW) receives a "Reduce" rating with a composite score of 44.0/100. It ranks #2965 out of 7,333 stocks in our coverage universe and carries a 2-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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In-line with peers — no strong momentum signal
Fair valuation relative to peers
Weak fundamentals — higher risk of value trap
Low volatility — smoother ride and historically better risk-adjusted returns
Aggressive spending — empire-building risk, dilutive growth
Mid-range overall rating
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Relative valuation derived from Finance, Insurance, And Real Estate sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
Projection based on user-defined inputs. Re-calculated daily against current market data.
Reverse DCF Framework — Mauboussin Methodology
Institutional-grade Reverse DCF analysis. This model identifies the growth hurdles embedded in current market prices. When implied growth is significantly lower than historical or projected rates, a margin of safety may exist. Re-audited daily.
No analyst ratings for FSBW.
View All Ratings| Factor | Global | Sector | Tilt |
|---|---|---|---|
| PROFITABILITY | 32 | 50 | -18DRAG |
| MOMENTUM | 50 | 53 | -3NEUTRAL |
| VALUATION | 59 | 82 | -23DRAG |
| INVESTMENT | 31 | 43 | -12DRAG |
| STABILITY | 62 | 68 | -6DRAG |
| SHORT INT | 41 | 38 | +3NEUTRAL |
Global = full universe. Sector = relative to industry peers. Positive tilt indicates idiosyncratic strength.
ROIC 5.5% vs WACC 9.0% (spread -3.5%)
GM 0% vs sector 78%, OM 21% vs sector 18%
Capital turnover 0.31x
Rev growth 4246%, 10yr history
Interest coverage 0.7x, Net debt/EBITDA 14.4x
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
We rate FS Bancorp, Inc. (FSBW) as a Reduce with a composite score of 44.0/100 at a current price of $40.88. The quantitative profile shows weakness across multiple dimensions, suggesting limited upside potential.
FS Bancorp, Inc. holds a top-quartile position (#0 of 50) within the Finance, Insurance, And Real Estate sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 44.0/100 places it at rank #2965 in our full universe.
No Moat
Medium
Standard
Fair Value
Stable competitive position in a defensive sector.
Leverage of 968% D/E amplifies downside risk.
Below-average quality raises earnings sustainability concerns.
Vulnerability to macroeconomic shocks and interest rate volatility.
FS Bancorp, Inc. represents a reduce based on multi-factor quantitative performance.
FS Bancorp, Inc. receives a Reduce rating from our analysis, with a composite score of 44.0/100 and 2 out of 5 stars, ranking #2965 out of 7,333 stocks. FSBW's factor profile shows weakness across multiple dimensions, suggesting the stock may underperform going forward. Existing holders may want to consider trimming positions or tightening stop-losses.
FSBW's quality score of 32/100 is below average, suggesting challenges with profitability or capital efficiency. The company reports a return on equity of 11.7% (sector avg: 9.0%), gross margins of 0.0% (sector avg: 77.7%), net margins of 18.2% (sector avg: 21.9%). Investors should examine whether management is actively addressing these weaknesses or if they reflect structural industry headwinds.
FSBW's value score of 59/100 indicates the stock is fairly valued based on its current fundamentals. Key valuation metrics include a P/E ratio of 8.93x, an EV/EBITDA of 7.73x, a P/B ratio of 1.05x. At this level, neither a clear bargain nor overpriced, the stock's attractiveness depends more on forward growth expectations and qualitative factors.
FS Bancorp, Inc.'s investment score of 31/100 suggests limited reinvestment activity. Key growth metrics include revenue growth of 4245.5% vs. a sector average of 10.7% and a return on assets of 1.1% (sector: 1.3%). While this can be positive for mature, cash-generative businesses returning capital to shareholders, it may also signal a lack of growth opportunities or management conservatism.
FSBW demonstrates moderate momentum with a score of 50/100, suggesting a neutral price trend without strong directional conviction. Revenue growth stands at 4245.5% year-over-year, while a beta of 0.61 reflects its sensitivity to broader market moves. Moderate momentum may indicate the stock is consolidating or transitioning between trends, warranting close monitoring of upcoming catalysts.
With a stability score of 62/100, FSBW exhibits average financial resilience. Key stability metrics include a beta of 0.61 and a debt-to-equity ratio of 968.00x (sector avg: 0.5x). While the balance sheet is not a major concern, the stock is subject to typical market volatility and may experience sharper drawdowns during risk-off episodes.
The short interest score of 41/100 for FSBW suggests somewhat elevated bearish positioning by institutional traders. Specific risk factors include elevated leverage (D/E: 968.00x), small-cap liquidity risk. With a $301M market cap (small-cap), FS Bancorp, Inc. may experience above-average volatility. Investors should consider whether the short thesis has merit or if it creates a potential short-squeeze opportunity.
FSBW pays a solid dividend yield of 3.4%, contributing an income component to total returns. This compares to a sector average dividend yield of 2.0%. This moderate yield suggests a balance between returning capital to shareholders and retaining earnings for reinvestment — a common profile among quality compounders.
FS Bancorp, Inc. is a small-cap company in the Finance, Insurance, And Real Estate sector, ranked #0 of 50 in its sector (100th percentile) and #2965 of 7,333 overall (60th percentile). Key comparisons include ROE of 11.7% exceeding the 9.0% sector median and operating margins of 21.0% above the 18.1% sector average. This top-quartile standing reflects exceptional competitive strength relative to Finance, Insurance, And Real Estate peers.
While FSBW currently exhibits a REDUCE profile, superior opportunities exist within the FINANCE, INSURANCE, AND REAL ESTATE sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
View Top Finance, Insurance, And Real Estate Alpha →Quant Factor Profile
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Improvement in Investment (31) would have the largest impact on the composite score.
EV/EBITDA IN LINE WITH SECTOR BENCHMARKS
ROE 30% ABOVE SECTOR MEDIAN (FAVORABLE)
Gross Margin 100% BELOW SECTOR MEDIAN
Above 50MA
37.18%
Net New Highs
+51081
Matthew Mullet, CEO and President of 1st Security Bank (FSBW), has been appointed to the Federal Reserve Bank of San Francisco's Seattle Branch Board of Directors, effective February 12, 2026. Mullet, who joined 1st Security in 2011 and became CEO in 2025, will contribute his expertise to monetary policy decisions affecting community banks in the Twelfth Federal Reserve District. The SF Fed's Seattle Branch is part of the system covering nine western states, two territories, and a commonwealth.
MOUNTLAKE TERRACE, Wash., Feb. 12, 2026 (GLOBE NEWSWIRE) -- FS Bancorp, Inc. (NASDAQ: FSBW), the holding company for 1st Security Bank of Washington (“1st Security” or “Bank”) announces the appointment of Matthew Mullet, Bank Chief Executive Officer, to the Seattle Branch Board of Directors for the Federal Reserve Bank of San Francisco (SF Fed). 1st Security Bank is pleased to announce the appointment of Matt Mullet, CEO and President of the Bank, to a directorship with the SF Fed’s Seattle Bran
FS Bancorp (NASDAQ:FSBW) reported strong financial results for the fourth quarter and full year 2025, with net income increasing to $8.4 million or $1.10 per diluted share for Q4. The company announced a quarterly cash dividend of $0.29 per common share and maintained strong regulatory capital ratios. Additionally, FS Bancorp is planning to centralize its headquarters by purchasing a new building and selling its current administrative office.
FS Bancorp (NASDAQ:FSBW) has announced a quarterly dividend increase to $0.29 per share, up 3.6% from the previous $0.28, to be paid on February 19 to shareholders of record on February 6. This marks the 12th consecutive year of dividend increases for the company, supported by a low payout ratio of 25.2%. Despite missing EPS estimates slightly, the bank reported strong revenue, and analysts maintain a "Moderate Buy" rating with an expected future payout ratio of 24.0%.
FS Bancorp (NASDAQ:FSBW) announced net income of $8.4 million, or $1.10 per diluted share, for the fourth quarter of 2025, an increase from $7.4 million the previous year. For the full year 2025, net income was $33.3 million, or $4.29 per diluted share. The company also declared a quarterly cash dividend of $0.29 per share and maintained strong capital ratios.