BankFirst Capital (BFCC), mcap=$207m

BFCC pitch:
– BankFirst is a growing, well-run bank that has made three material acquisitions over the past 16 months at no cost to shareholders thanks to ECIP funds grant.
– Trade at 6x forward PE – far too cheap for a bank that has nearly doubled EPS over the last 4 years.
– Proven to be adept at M&A, and has excess capital for further acquisitions.
– The bank has solid operating metrics with NIM of 4.09%, ROA of 1-1.2%, ROE around 10%, and a ~65% efficiency ratio.
– Serial acquirer over the years with good results for shareholders.

BFCC valuation:
– The bank is in a good position to earn $6+ in EPS for 2023 (vs $5.24 EPS run-rate for Q4’22).
– At 10x multiple, taret of $60/share.

Exp. gain: +50% to $60/share.

Full write-up (free guest account required):