Business First Bancshares: Hidden Small-Cap Story, Ready To Reverse

Summary

  • Business First Bancshares, Inc. is a $413-million market cap bank holding company for b1BANK, offering various banking products and services.
  • The bank's results for Q2, released on July 27, far exceeded market expectations [EPS and revenue beat].
  • I believe BFST's recent quarterly report showed the bank's resilience and contradicts the overly pessimistic EPS forecasts for the next two years.
  • BFST's price-to-book ratio stands at 0.81x, which is -27.75% below the sector's median value of 1.12x.
  • I think the move in after-hours trading that we are seeing now is too small, in my opinion, to fully reflect what BFST deserves to get for its quarterly results.
  • Looking for a helping hand in the market? Members of Beyond the Wall Investing get exclusive ideas and guidance to navigate any climate. Learn More »

Gang of robber tries to enter vault with a welding torch

mikkelwilliam

Thesis

I happened to come across Business First Bancshares, Inc (NASDAQ:BFST) while looking at the latest news about how various companies have reported in recent days. Many of my subscribers who are interested in the Financials

Hold On. Can't find the equity research you've been looking for?

Now you can get access to the latest and highest-quality analysis of recent Wall Street buying and selling ideas with just one subscription to Beyond the Wall Investing! There is a free trial and a special discount of 10% for you. Join us today!

This article was written by

13.14K Followers
Daniel Sereda is chief investment analyst at a family office whose investments span continents and diverse asset classes. This requires him to navigate through a plethora of information on a daily basis. His expertise is in filtering this wealth of data to extract the most critical ideas. He runs the investing group Beyond the Wall Investing in which he provides access to the same information that institutional market participants prioritize in their analysis. Learn more.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

About BFST Stock

SymbolLast Price% Chg
Market Cap
PE
Yield
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on BFST

Related Stocks

SymbolLast Price% Chg
BFST
--