Do First Business Financial Services’ (NASDAQ:FBIZ) Earnings Warrant Your Attention?
Investors are often guided by the idea of discovering ‘the next big thing’, even if that means buying ‘story stocks’ without any revenue, let alone profit. Sometimes these stories can cloud the minds of investors, leading them to invest with their emotions rather than on the merit of good company fundamentals. Loss-making companies are always racing against time to reach financial sustainability, so investors in these companies may be taking on more risk than they should.
In contrast to all that, many investors prefer to focus on companies like First Business Financial Services (NASDAQ:FBIZ), which has not only revenues, but also profits. While this doesn’t necessarily speak to whether it’s undervalued, the profitability of the business is enough to warrant some appreciation – especially if its growing.
If you believe that markets are even vaguely efficient, then over the long term you’d expect a company’s share price to follow its earnings per share (EPS) outcomes. So it makes sense that experienced investors pay close attention to company EPS when undertaking investment research. Over the last three years, First Business Financial Services has grown EPS by 7.0% per year. That might not be particularly high growth, but it does show that per-share earnings are moving steadily in the right direction.
Top-line growth is a great indicator that growth is sustainable, and combined with a high earnings before interest and taxation (EBIT) margin, it’s a great way for a company to maintain a competitive advantage in the market. Not all of First Business Financial Services’ revenue this year is revenue from operations, so keep in mind the revenue and margin numbers used in this article might not be the best representation of the underlying business. While we note First Business Financial Services achieved similar EBIT margins to last year, revenue grew by a solid 11% to US$160m. That’s encouraging news for the company!
You can take a look at the company’s revenue and earnings growth trend, in the chart below. Click on the chart to see the exact numbers.
NasdaqGS:FBIZ Earnings and Revenue History April 1st 2026
Investors are always searching for a vote of confidence in the companies they hold and insider buying is one of the key indicators for optimism on the market. Because often, the purchase of stock is a sign that the buyer views it as undervalued. However, insiders are sometimes wrong, and we don’t know the exact thinking behind their acquisitions.
Any way you look at it First Business Financial Services shareholders can gain quiet confidence from the fact that insiders shelled out US$530k to buy stock, over the last year. When you contrast that with the complete lack of sales, it’s easy for shareholders to be brimming with joyful expectancy. We also note that it was the Independent Director, Ralph Kauten, who made the biggest single acquisition, paying US$478k for shares at about US$47.80 each.
On top of the insider buying, it’s good to see that First Business Financial Services insiders have a valuable investment in the business. To be specific, they have US$26m worth of shares. This considerable investment should help drive long-term value in the business. That amounts to 5.9% of the company, demonstrating a degree of high-level alignment with shareholders.
While insiders are apparently happy to hold and accumulate shares, that is just part of the big picture. That’s because First Business Financial Services’ CEO, Corey Chambas, is paid at a relatively modest level when compared to other CEOs for companies of this size. For companies with market capitalisations between US$200m and US$800m, like First Business Financial Services, the median CEO pay is around US$2.3m.
First Business Financial Services offered total compensation worth US$1.2m to its CEO in the year to December 2025. That comes in below the average for similar sized companies and seems pretty reasonable. CEO compensation is hardly the most important aspect of a company to consider, but when it’s reasonable, that gives a little more confidence that leadership are looking out for shareholder interests. Generally, arguments can be made that reasonable pay levels attest to good decision-making.
As previously touched on, First Business Financial Services is a growing business, which is encouraging. In addition, insiders have been busy adding to their sizeable holdings in the company. That makes the company a prime candidate for your watchlist – and arguably a research priority. Of course, just because First Business Financial Services is growing does not mean it is undervalued. If you’re wondering about the valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry.
Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
