First Financial Bankshares, Inc. (Texas) : FFIN-US: Dividend Analysis : December 15th, 2017 (record date) : By the numbers : December 18, 2017

Our analysis is based on comparing First Financial Bankshares, Inc. (Texas) with the following peers – Southside Bancshares, Inc., Bank of the Ozarks, Prosperity Bancshares, Inc.(R), Texas Capital Bancshares, Inc., International Bancshares Corporation, Cullen/Frost Bankers, Inc., LegacyTexas Financial Group, Inc. and Independent Bank Group, Inc. (SBSI-US, OZRK-US, PB-US, TCBI-US, IBOC-US, CFR-US, LTXB-US and IBTX-US).

First Financial Bankshares, Inc. (Texas)’s dividend yield is 1.65 percent and its dividend payout is 44.31 percent. This compares to a peer average dividend yield of 1.66 percent and a payout level of 31.64 percent. This combination of a relatively lower dividend yield and a higher payout ratio suggest that the dividend payout might not be sustainable. Supporting this is the company’s average dividend quality score of 58 out of a possible score of 100, which points to some weakness in being able to sustain the higher payout ratio.

Dividend Yield
Dividend Quality Score

Dividend Quality Overview

  • Over the last twelve months (prior to September 30, 2017), FFIN-US paid a medium quality dividend, which represents a yield of 1.63% at the current price.
  • Dividend quality trend has not been consistent over the last five years. Dividends were paid during each of these years — of these 3 were medium quality and 2 were low quality.
  • The ending cash balance, with a dividend coverage of 7.14x, provides a substantial cushion in case of a significant reduction of cash flows in the future.
Dividend Quality Score Vs Dividend Yield

Quadrant label definitions. Hover to know more

High Score;High Yield, High Score;Low Yield, Low Score;Low Yield, Low Score;High Yield

Dividend Coverage

Over the last twelve months (prior to September 30, 2017), FFIN-US paid a medium quality dividend.

The source of the company’s cash to support the dividend paid over the last twelve months is operating cash flow (coverage of 3.64x), investing cash flow (coverage of -7.72x), issuance cash flow (coverage of 6.26x) and twelve-month prior cash (coverage of 5.89x), for a total dividend coverage of 8.14x.

FFIN-US’s issuance cash flow includes outflows from net debt repayment (coverage of -3.36x).

Dividend Coverage by Cash Flow (TTM)

These coverage ratio factors imply that the firm’s net cash inflow from issuance was required (in addition to operating and investment cash) to pay the dividend, which suggests a medium dividend quality.

Dividend History

Item 2012-12-31 2013-12-31 2014-12-31 2015-12-31 2016-12-31 Latest
Dividend Yield (%) 3.18 1.17 1.82 1.96 1.51 1.65
Dividend Payout (%) 41.95 41.7 39.57 40.26 44.03 44.31

A complete list of metrics and analysis is available on the company page.

Company Profile

First Financial Bankshares, Inc. (Texas) is a bank holding company, which engages in the provision of financial and community banking services. It offers mortgage loans, savings and checking accounts, auto and equity loans, online and mobile banking, investment and trust management, and retirement plans. The company was founded in 1956 and is headquartered in Abilene, TX.


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