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Enterprise Bancorp Inc (EBTC)
NASDAQ:EBTC
US Market

Enterprise Bancorp (EBTC) AI Stock Analysis

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Enterprise Bancorp

(NASDAQ:EBTC)

68Neutral
Enterprise Bancorp shows strong financial health with solid revenue growth and no debt, enhancing its stability. However, the decline in operating cash flow warrants attention. Technically, the stock shows mixed momentum signals. Its valuation appears reasonable with a decent dividend yield, making it a balanced investment opportunity.

Enterprise Bancorp (EBTC) vs. S&P 500 (SPY)

Enterprise Bancorp Business Overview & Revenue Model

Company DescriptionEnterprise Bancorp, Inc. operates as the holding company of Enterprise Bank and Trust Company that provides commercial banking products and services. It offers commercial and retail deposit products, including checking accounts, limited-transactional savings and money market accounts, commercial sweep products, and term certificates of deposit. The company also provides commercial real estate, commercial and industrial, commercial construction, residential, and consumer loans, as well as home equity loans and lines of credit. In addition, the company offers cash management services; wealth advisory and management services that include customized investment management and trust services to individuals, family groups, commercial businesses, trusts, foundations, non-profit organizations, and endowments; brokerage and management services to individual investors; insurance services; and voice, online, and mobile banking services. As of January 27, 2022, it had 26 full-service branches located in the Massachusetts communities of Acton, Andover, Billerica, Chelmsford, Dracut, Fitchburg, Lawrence, Leominster, Lexington, Lowell, Methuen, North Andover, Tewksbury, Tyngsborough, and Westford; and in the New Hampshire communities of Derry, Hudson, Nashua, Pelham, Salem, and Windham. The company was founded in 1989 and is headquartered in Lowell, Massachusetts.
How the Company Makes MoneyEnterprise Bancorp generates revenue primarily through interest income from its lending activities, which include commercial real estate loans, commercial and industrial loans, residential mortgages, and consumer loans. The company also earns non-interest income through fees and commissions related to its deposit services, wealth management, and cash management offerings. Additionally, Enterprise Bancorp benefits from strategic partnerships and local community engagement, which enhance its market presence and customer base, contributing to its overall financial performance.

Enterprise Bancorp Financial Statement Overview

Summary
Enterprise Bancorp demonstrates a strong financial performance with increasing revenue and profitability. The absence of debt in recent years enhances financial resilience. Cash flow management shows improvements, but the decline in operating cash flow requires monitoring. The company is well-positioned within the banking industry, though careful attention to cash flows is necessary to sustain its growth trajectory.
Income Statement
75
Positive
Enterprise Bancorp has demonstrated steady revenue growth over the years, with a notable increase in total revenue from 2023 to 2024. The gross profit margin remains strong at 100%, indicating cost efficiency. However, the lack of reported EBITDA for 2024 is a concern. Net income has shown minor fluctuations, but overall, profitability metrics such as EBIT and net profit margins are robust.
Balance Sheet
80
Positive
The balance sheet reflects a solid financial position with no reported debt in 2024, significantly improving the debt-to-equity ratio. Stockholders' equity has grown consistently, enhancing the equity ratio. The company maintains a strong asset base, although total assets saw a decline in 2024. The absence of debt strengthens the company's financial stability.
Cash Flow
70
Positive
Free cash flow has increased significantly from 2023 to 2024, showcasing effective cash management. The operating cash flow to net income ratio is positive, indicating that net income is well supported by cash operations. However, the overall cash flow from operations has decreased, which could indicate future liquidity challenges if not addressed.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
230.27M161.44M170.26M159.66M147.38M
Gross Profit
230.27M161.44M162.50M159.66M147.38M
EBIT
227.80M51.24M65.26M55.76M41.63M
EBITDA
0.0057.43M63.18M63.57M48.41M
Net Income Common Stockholders
38.73M38.06M42.72M42.17M31.46M
Balance SheetCash, Cash Equivalents and Short-Term Investments
2.36M2.09M267.59M436.58M253.78M
Total Assets
4.83B4.47B4.44B4.45B4.01B
Total Debt
236.80M109.71M86.81M88.08M96.06M
Net Debt
152.96M53.12M-180.78M-348.49M-157.72M
Total Liabilities
4.47B4.14B4.16B4.10B3.68B
Stockholders Equity
360.75M329.12M282.27M346.89M334.43M
Cash FlowFree Cash Flow
44.06M51.14M43.16M58.05M33.66M
Operating Cash Flow
46.53M57.16M48.00M62.23M40.34M
Investing Cash Flow
-346.54M-222.46M-261.50M-286.48M-576.25M
Financing Cash Flow
327.26M-45.69M44.52M407.04M725.91M

Enterprise Bancorp Technical Analysis

Technical Analysis Sentiment
Positive
Last Price37.20
Price Trends
50DMA
38.40
Negative
100DMA
39.71
Negative
200DMA
35.47
Positive
Market Momentum
MACD
-0.27
Negative
RSI
56.14
Neutral
STOCH
91.05
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EBTC, the sentiment is Positive. The current price of 37.2 is above the 20-day moving average (MA) of 35.60, below the 50-day MA of 38.40, and above the 200-day MA of 35.47, indicating a neutral trend. The MACD of -0.27 indicates Negative momentum. The RSI at 56.14 is Neutral, neither overbought nor oversold. The STOCH value of 91.05 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EBTC.

Enterprise Bancorp Risk Analysis

Enterprise Bancorp disclosed 47 risk factors in its most recent earnings report. Enterprise Bancorp reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Enterprise Bancorp Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
MPMPB
71
Outperform
$562.29M10.098.38%2.75%13.17%24.36%
70
Outperform
$496.14M10.2711.69%5.21%6.53%-11.21%
68
Neutral
$470.45M11.5611.31%2.61%13.97%12.00%
PGPGC
66
Neutral
$491.64M15.515.31%0.72%6.72%-17.45%
66
Neutral
$517.36M12.5012.19%1.20%18.85%6.74%
65
Neutral
$455.78M13.964.48%4.93%10.00%2.81%
63
Neutral
$12.46B9.568.14%17044.64%12.63%-4.25%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
EBTC
Enterprise Bancorp
37.76
13.79
57.53%
FMNB
Farmers National Banc Oh
13.19
1.40
11.87%
MPB
Mid Penn Bancorp
29.07
8.70
42.71%
NFBK
Northfield Bancorp
10.68
2.22
26.24%
PGC
Peapack-Gladstone Financial
27.94
5.13
22.49%
CBNK
Capital Bancorp
31.06
11.38
57.83%

Enterprise Bancorp Corporate Events

M&A Transactions
Enterprise Bancorp Announces Merger with Independent Bank
Neutral
Dec 20, 2024

Enterprise Bancorp, Inc. has announced a merger agreement with Independent Bank Corp., where Enterprise will merge into Independent, making Independent the surviving corporation. As part of this transaction, Enterprise Bank has entered into a Retention Bonus Agreement with Joseph R. Lussier, offering him a $100,000 retention bonus to be paid in two installments, contingent on his continued employment through the merger’s completion.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.