Enterprise Bancorp (EBTC) AI Stock Analysis

• Market Cap: $495.83M
• Dividend Yield: 2.52%
• Average Volume (3M): 22.04K
• Price to Earnings (P/E): 12.1
• Beta (1Y): 0.96
• Revenue Growth: 14.10%
• EPS Growth: 12.00%
• Country: US
• Employees: 576
• Sector: Financial
• Sector Strength: 81
• Industry: Banks - Regional
• EPS (TTM): 0.83
• Shares Outstanding: 12,508,000
• 10 Day Avg. Volume: 30,766
• 30 Day Avg. Volume: 22,037
• PEG Ratio: 2.45
• Price to Book (P/B): 1.24
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.00
• Enterprise Value/Market Cap: 1.15
• Enterprise Value/Revenue: 0.57
• Enterprise Value/Gross Profit: 3.32
• Enterprise Value/Ebitda: 2.54
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: $43.00 ▲(8.48%Upside)

Enterprise Bancorp's overall stock score is primarily driven by its strong financial performance and reasonable valuation. The company's effective leverage management and cash flow generation contribute positively. Technical indicators are neutral, indicating a balanced market sentiment. The approved merger deal, while not included in the weighted score, is a positive strategic move that could benefit the company's future growth.

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 derived from its lending activities. This includes interest from commercial, residential mortgage, and consumer loans. A significant portion of revenue also comes from non-interest income, which encompasses fees from deposit services, wealth management, and trust services. The bank benefits from strong customer relationships and local market expertise, which help drive deposits and loan growth. By actively managing its interest rate risk and maintaining a diverse loan portfolio, Enterprise Bancorp optimizes its net interest margin, a critical factor in its profitability. Strategic partnerships with local businesses and community organizations further enhance its revenue streams, supporting sustainable financial performance.

Enterprise Bancorp Financial Statement Overview

Summary

Enterprise Bancorp demonstrates strong financial performance with consistent profitability, effective leverage management, and robust cash flow generation. The company has shown positive revenue growth and maintains stable margins, supported by a strong equity base.

Income Statement

Enterprise Bancorp shows strong profitability with a consistent gross profit margin of approximately 91% in the TTM (Trailing-Twelve-Months) period. Net profit margin improved from 18.2% in 2024 to 18.0% in TTM, indicating stable profitability. Revenue growth is positive, with a 37.4% increase from 2023 to 2024. EBIT and EBITDA margins are robust, reflecting operational efficiency.

Balance Sheet

The debt-to-equity ratio is low at 0.46, indicating conservative leverage. Return on equity (ROE) is strong at 10.5% in the TTM period, showing effective use of equity. The equity ratio is slightly improved at 7.9%, suggesting a stable capital structure with a slight increase in shareholder equity.

Cash Flow

The operating cash flow to net income ratio is 1.20, indicating healthy cash generation relative to profits. Free cash flow growth is robust, rising by 13.3% from 2024 to the TTM period. The free cash flow to net income ratio is strong at 1.23, demonstrating effective cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	258.37M	253.15M	218.66M	179.38M	167.14M	162.09M
Gross Profit	172.24M	168.76M	161.44M	164.46M	157.89M	134.88M
EBITDA	59.58M	57.24M	57.43M	63.18M	63.57M	48.41M
Net Income	40.66M	38.73M	38.06M	42.72M	42.17M	31.46M
Balance Sheet
Total Assets	4.90B	4.83B	4.47B	4.44B	4.45B	4.01B
Cash, Cash Equivalents and Short-Term Investments	95.53M	97.53M	717.71M	267.59M	436.58M	253.78M
Total Debt	178.09M	236.80M	89.71M	86.81M	88.08M	96.06M
Total Liabilities	4.52B	4.47B	4.14B	4.16B	4.10B	3.68B
Stockholders Equity	385.36M	360.75M	329.12M	282.27M	346.89M	334.43M
Cash Flow
Free Cash Flow	48.06M	44.06M	51.14M	43.16M	58.05M	33.65M
Operating Cash Flow	49.75M	46.53M	57.16M	48.00M	62.23M	40.33M
Investing Cash Flow	-325.54M	-346.54M	-222.46M	-261.50M	-286.48M	-576.25M
Financing Cash Flow	214.70M	327.26M	-45.69M	44.52M	407.04M	725.91M

Enterprise Bancorp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 39.64
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 39.64 is above the 20-day moving average (MA) of 39.51, above the 50-day MA of 38.73, and above the 200-day MA of 37.51, indicating a bullish trend. The MACD of 0.19 indicates Positive momentum. The RSI at 52.44 is Neutral, neither overbought nor oversold. The STOCH value of 88.95 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EBTC.

Enterprise Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MPB	76 Outperform	$668.06M	10.12	8.38%	2.71%	13.17%	24.36%
EBTC	74 Outperform	$495.83M	12.14	11.31%	2.52%	14.10%	12.00%
CBNK	74 Outperform	$567.16M	13.78	12.19%	1.17%	18.85%	6.74%
FMNB	74 Outperform	$535.44M	11.07	11.69%	4.78%	6.53%	-10.99%
NFBK	70 Outperform	$509.81M	15.59	4.48%	4.32%	10.00%	2.81%
PGC	68 Neutral	$514.16M	16.12	5.31%	0.69%	6.72%	-17.45%
Sector *	67 Neutral	$16.84B	11.72	9.71%	3.76%	11.61%	-9.60%

Enterprise Bancorp Corporate Events

Enterprise Bancorp Completes Merger with Independent Bank Corp.

On July 1, 2025, Enterprise Bancorp, Inc. completed a merger with Independent Bank Corp., resulting in Enterprise merging into Independent and Enterprise Bank merging into Rockland Trust. As a result of the merger, Enterprise Common Stock was delisted from Nasdaq, and Independent intends to deregister Enterprise’s stock with the SEC. The merger also led to changes in board positions, with former Enterprise directors joining Independent and Rockland Trust boards.

Enterprise Bancorp Gains Approval for Merger Deal

On June 4, 2025, Enterprise Bancorp and Independent Bank Corp. announced that they have received all necessary regulatory approvals for their proposed transaction, which is expected to close on July 1, 2025. This merger is anticipated to enhance their community-oriented banking services, combining their shared values and commitment to serving customers and communities, with expanded opportunities for growth.

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.