📊 FSBW Key Takeaways
Is FS Bancorp, Inc. (FSBW) a Good Investment?
FS Bancorp exhibits critical financial distress signals with an interest coverage ratio of 0.7x, meaning operating income cannot cover interest expenses—a sustainability red flag. Despite 51.3% revenue growth, net income declined 4.9% YoY, indicating severe margin compression or cost pressures, compounded by dangerously low ROE (2.5%) and ROA (0.2%) that signal profound asset inefficiency.
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% year-over-year demonstrates expansion in core business
- Positive free cash flow of $8.4M with 17.1% FCF margin shows cash generation
- Moderate debt-to-equity ratio of 0.59x indicates leverage is not excessive
- 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
- Critical interest coverage ratio of 0.7x cannot service debt obligations from operating income—indicates insolvency risk
- Extremely low ROE (2.5%) and ROA (0.2%) demonstrate severe capital inefficiency and poor asset utilization
- Net income declined 4.9% despite 51.3% revenue growth, suggesting deteriorating profitability or one-time charges indicating earnings quality issues
- 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
- Interest coverage ratio—must improve above 2.5x to demonstrate debt sustainability
- Return on equity and return on assets—recovery from current distressed levels essential
- Margin trend analysis—clarify whether revenue growth can translate to net income growth
- 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 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 SELL from Claude (SELL) and ChatGPT (HOLD) with 80% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are FSBW's key strengths?
Claude: Strong revenue growth of 51.3% year-over-year demonstrates expansion in core business. Positive free cash flow of $8.4M with 17.1% FCF margin shows cash generation. 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: Critical interest coverage ratio of 0.7x cannot service debt obligations from operating income—indicates insolvency risk. Extremely low ROE (2.5%) and ROA (0.2%) demonstrate severe capital inefficiency and poor asset utilization. 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 $49.3M.
Does FSBW pay dividends?
FS Bancorp, Inc. pays dividends, with $2.2M 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 $1.02.
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 May 2026, FS Bancorp, Inc. has a SELL rating with 80% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is FSBW stock overvalued or undervalued?
Valuation metrics for FSBW: ROE of 2.5% (sector avg: 12%), net margin of 15.9% (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 SELL 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 $8.7M, with capital expenditures of $273.0K. FCF margin is 17.1%.
How does FSBW compare to other Finance stocks?
Vs Finance sector averages: Net margin 15.9% (avg: 25%), ROE 2.5% (avg: 12%), current ratio N/A (avg: 1.2).