Enterprise Bancorp (EBTC) AI Stock Analysis

• Market Cap: $480.20M
• Dividend Yield: 2.53%
• Average Volume (3M): 23.37K
• Price to Earnings (P/E): 11.8
• Beta (1Y): 0.94
• Revenue Growth: 14.10%
• EPS Growth: 12.00%
• Country: US
• Employees: 576
• Sector: Financial
• Sector Strength: 82
• Industry: Banks - Regional
• EPS (TTM): 0.83
• Shares Outstanding: 12,508,386
• 10 Day Avg. Volume: 29,318
• 30 Day Avg. Volume: 23,372
• PEG Ratio: 1.64
• Price to Book (P/B): 1.34
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.50
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 76 Outperform
• Price Target: $44.00 ▲( 14.61% Upside)

Enterprise Bancorp's strong financial performance and reasonable valuation are the primary drivers of its positive stock score. The company's robust revenue growth and cash flow management enhance its financial stability, while a moderate technical outlook suggests stability in stock price movements.

Enterprise Bancorp Business Overview & Revenue Model

Company Description

Enterprise 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 Money

Enterprise 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

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

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

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 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
230.27M	161.44M	170.26M	159.66M	147.38M
	Gross Profit
230.27M	161.44M	162.50M	159.66M	147.38M
	EBIT
227.80M	51.24M	65.26M	55.76M	41.63M
	EBITDA
0.00	57.43M	63.18M	63.57M	48.41M
	Net Income Common Stockholders
38.73M	38.06M	42.72M	42.17M	31.46M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.36M	2.09M	267.59M	436.58M	253.78M
	Total Assets
4.83B	4.47B	4.44B	4.45B	4.01B
	Total Debt
236.80M	109.71M	86.81M	88.08M	96.06M
	Net Debt
152.96M	53.12M	-180.78M	-348.49M	-157.72M
	Total Liabilities
4.47B	4.14B	4.16B	4.10B	3.68B
	Stockholders Equity
360.75M	329.12M	282.27M	346.89M	334.43M
Cash Flow		Free Cash Flow
44.06M	51.14M	43.16M	58.05M	33.66M
	Operating Cash Flow
46.53M	57.16M	48.00M	62.23M	40.34M
	Investing Cash Flow
-346.54M	-222.46M	-261.50M	-286.48M	-576.25M
	Financing Cash Flow
327.26M	-45.69M	44.52M	407.04M	725.91M

Enterprise Bancorp Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 38.39
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EBTC, the sentiment is Neutral. The current price of 38.39 is below the 20-day moving average (MA) of 38.87, above the 50-day MA of 37.72, and above the 200-day MA of 36.20, indicating a neutral trend. The MACD of 0.53 indicates Positive momentum. The RSI at 47.39 is Neutral, neither overbought nor oversold. The STOCH value of 8.24 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for EBTC.

Enterprise Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EBTC	76 Outperform	$480.20M	11.75	11.31%	2.53%	14.10%	12.00%
NFBK	71 Outperform	$489.35M	14.96	4.48%	4.53%	10.00%	2.81%
MPB	71 Outperform	$617.32M	9.35	8.38%	2.98%	13.17%	24.36%
PGC	71 Outperform	$476.56M	14.94	5.31%	0.74%	6.72%	-17.45%
FMNB	70 Outperform	$494.97M	10.23	11.69%	5.11%	6.53%	-11.21%
CBNK	66 Neutral	$537.18M	13.05	12.19%	1.17%	18.85%	6.74%
Sector *	64 Neutral	$12.64B	9.78	7.67%	17015.08%	12.23%	-6.02%

Enterprise Bancorp Corporate Events

Enterprise Bancorp Holds Virtual Shareholder Meeting

On May 6, 2025, Enterprise Bancorp, Inc. held its annual meeting of shareholders virtually. During the meeting, shareholders voted to elect six board-nominated directors for a three-year term, approved a non-binding advisory vote on executive compensation, and ratified the appointment of RSM US LLP as the independent registered public accounting firm for the year ending December 31, 2025.