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Enterprise Financial Services (EFSC)
:EFSC
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Enterprise Financial Services
(NASDAQ:EFSC)
71Outperform
Enterprise Financial Services (EFSC) vs. S&P 500 (SPY)
Market Cap
$2.01B
Dividend Yield1.94%
Average Volume (3M)179.07K
Price to Earnings (P/E)11.3
Beta (1Y)0.86
Revenue Growth10.38%
EPS Growth-4.58%
CountryUS
Employees1,172
SectorFinancial
Sector Strength77
IndustryBanking
Share Statistics
EPS (TTM)4.84
Shares Outstanding36,979,378
10 Day Avg. Volume184,114
30 Day Avg. Volume179,074
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)3.25
Price to Cash Flow (P/CF)9.70
P/FCF Ratio4.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$69.00Price Target Upside27.07% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
Enterprise Financial Services Business Overview & Revenue Model
Company DescriptionEnterprise Financial Services (EFSC) is a diversified financial services company that provides comprehensive banking and related financial solutions. Operating within the financial sector, EFSC offers a range of services including commercial and consumer banking, wealth management, and investment services. The company caters to both individual and business clients, focusing on delivering tailored financial solutions that meet their diverse needs.
How the Company Makes MoneyEFSC generates revenue primarily through interest income from its lending operations, which includes commercial loans, consumer loans, and mortgages. The company also earns non-interest income through fees and commissions associated with its wealth management and investment services, as well as transaction fees from its banking operations. Additionally, EFSC benefits from partnerships with financial technology firms and other institutions that expand its service offerings and client base, contributing to its earnings.
Enterprise Financial Services Financial Statement Overview
Summary
Enterprise Financial Services maintains a strong financial performance with consistent revenue growth and robust profitability. Despite a slight decrease in operating cash flow, the overall cash flow generation remains healthy, supported by stable balance sheet management. Effective debt management and a strong equity base contribute to the company's financial stability.Income Statement
Enterprise Financial Services has shown consistent revenue growth, with a noticeable increase from $287.9M in 2019 to $697.0M in 2024. The company maintains strong profitability as indicated by its net profit margin, although the EBIT and EBITDA margins are unavailable for the latest period. The revenue growth rate from 2023 to 2024 is robust, reflecting the company's ability to expand its market presence and operations.75
Positive
Balance Sheet
The company has a solid equity base with stockholders' equity rising from $867.2M in 2019 to $1.82B in 2024. The debt-to-equity ratio has improved to zero, indicating effective debt management. However, the equity ratio has slightly decreased over the years, suggesting a higher reliance on liabilities. Overall, the balance sheet reflects stability but with a need to monitor equity reliance.68
Positive
Cash Flow
Operating cash flow has been strong, but there was a significant decrease from 2023 to 2024. Despite this, the company generates sufficient free cash flow, indicating efficient operational management. The free cash flow to net income ratio is favorable, suggesting that a substantial portion of net income is converted into cash.72
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 69.70M | 541.19M | 471.35M | 427.94M | 324.50M | Gross Profit |
| 69.70M | 541.19M | 471.35M | 427.94M | 324.50M | EBIT |
| -524.27M | 246.53M | 239.67M | 168.63M | 91.95M | EBITDA |
| 0.00 | 0.00 | 273.47M | 182.78M | 107.61M | Net Income Common Stockholders |
| 185.27M | 194.06M | 203.04M | 133.06M | 74.38M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 2.13B | 1.81B | 1.84B | 3.39B | 1.46B | Total Assets |
| 15.60B | 14.52B | 13.05B | 13.54B | 9.75B | Total Debt |
| 192.75M | 203.62M | 579.55M | 558.76M | 554.72M | Net Debt |
| -270.98M | -230.39M | 280.16M | -1.47B | 9.39M | Total Liabilities |
| 13.77B | 12.80B | 11.53B | 558.76M | 554.72M | Stockholders Equity |
| 1.82B | 1.72B | 1.52B | 1.53B | 1.08B |
| Cash Flow | Free Cash Flow | |||
| 103.95M | 261.68M | 214.71M | 158.07M | 133.25M | Operating Cash Flow |
| 103.95M | 268.24M | 216.64M | 160.57M | 135.51M | Investing Cash Flow |
| 3.52M | -1.35B | -1.38B | -23.11M | -702.83M | Financing Cash Flow |
| -83.93M | 1.18B | -563.19M | 1.35B | 937.76M |
Enterprise Financial Services Technical Analysis
Negative
54.30
Price Trends
58.08
Negative
57.50
Negative
51.73
Positive
Market Momentum
-0.99
Positive
29.93
Positive
10.53
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EFSC, the sentiment is Negative. The current price of 54.3 is below the 20-day moving average (MA) of 58.74, below the 50-day MA of 58.08, and above the 200-day MA of 51.73, indicating a neutral trend. The MACD of -0.99 indicates Positive momentum. The RSI at 29.93 is Positive, neither overbought nor oversold. The STOCH value of 10.53 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EFSC.
Enterprise Financial Services Risk Analysis
Enterprise Financial Services disclosed 45 risk factors in its most recent earnings report. Enterprise Financial Services 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 Financial Services Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $804.22M | 19.29 | 5.04% | 3.89% | 4.64% | -28.68% | |
71 Outperform | $2.01B | 11.29 | 10.47% | 1.94% | 10.38% | -4.58% | |
71 Outperform | $2.14B | 12.91 | 9.86% | 3.05% | 11.04% | -8.38% | |
69 Neutral | $96.68M | 16.34 | 4.82% | 3.88% | 7.55% | -20.61% | |
67 Neutral | $1.41B | 13.47 | 12.16% | 2.89% | 11.44% | -2.75% | |
64 Neutral | $13.80B | 10.64 | 9.23% | 4.22% | 17.66% | -7.66% | |
54 Neutral | $179.89M | 171.12 | 0.66% | 2.62% | 2.28% | -83.16% |
* Financial Sector Average
Performance Comparison
EFSC
Enterprise Financial Services
54.30
15.84
41.19%
BANR
Banner
62.19
17.73
39.88%
FFNW
First Financial Northwest
19.49
-1.00
-4.88%
GABC
German American Bancorp
37.81
5.87
18.38%
HFWA
Heritage Financial
23.41
5.35
29.62%
PROV
Provident Financial Holdings
14.25
0.82
6.11%
Enterprise Financial Services Earnings Call Summary
Earnings Call Date: Jan 27, 2025 | % Change Since: -5.66% | Next Earnings Date: Apr 28, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong overall financial performance with significant growth in deposits and solid credit quality. Despite some challenges in loan demand and a slight increase in non-performing assets, the company is well-positioned for future growth.Highlights
Strong Financial Performance
EFSC reported earnings of $1.28 per diluted share for Q4 2024, compared to $1.16 in Q4 2023. Adjusted return on assets was 1.31%, and pre-provision return on assets was 1.80%.
Deposit Growth
Client deposits increased by $677 million in Q4, marking the fifth growth quarter out of the last six. The cost of deposits declined to 2%, with DDAs increasing to over 34% of total deposits.
Loan Growth
Loan demand increased, with a growth of $140 million or 5% annualized. Life insurance premium finance grew by $158 million or 16.5% for the year.
Capital and Shareholder Returns
Tangible common equity to tangible assets was 9.05%. The dividend was increased by $0.01 per share, and $11 million was returned to shareholders via stock repurchases.
Stable Credit Quality
Net charge-offs were 16 basis points for the full year, an improvement from 37 basis points in 2023. Allowance for credit losses represented 1.34% of unguaranteed total loans.
Lowlights
Slight Decline in EPS Compared to Linked Quarter
EPS for Q4 2024 was $1.28, slightly down from $1.32 in the linked quarter.
Challenges in Loan Demand
Despite an increase, loan demand has not significantly translated into growth, partially due to a $27 million decline in the agricultural portfolio.
Increase in Non-Performing Assets
NPLs to loans and NPAs to total assets showed a slight increase compared to the third quarter, with two relationships being actively managed.
Company Guidance
During the Enterprise Financial Services Corp. Fourth Quarter 2024 Earnings Conference Call, guidance highlighted strong financial performance, with earnings of $1.28 per diluted share compared to $1.32 in the previous quarter and $1.16 in the same quarter of 2023. The company posted an adjusted return on assets of 1.31% and a pre-provision return on assets of 1.80%. Net interest margin remained above 4%, supported by an increase in client deposits, which grew by $677 million in the quarter. Loan demand increased by $140 million, or 5% on an annualized basis, despite a $27 million decline in the agricultural portfolio. Enterprise Financial Services maintained a strong deposit base, with the cost of deposits declining to 2% and DDAs making up over 34% of total deposits. The tangible common equity to tangible assets ratio was stable at 9.05%, and the company achieved a 14.05% adjusted return on tangible common equity. Additionally, the dividend was increased to $0.29 per share for the first quarter of 2025, and $11 million was returned to shareholders through stock repurchases. The company remains focused on strategic growth, diversification, and maintaining strong credit quality, with non-performing loans and assets at modest levels and an allowance for credit losses at 1.34% of unguaranteed total loans.Enterprise Financial Services Corporate Events
Business Operations and StrategyFinancial Disclosures
Enterprise Financial Services Highlights Strategic Growth and Performance
Positive
Feb 11, 2025
EFSC’s recent investor presentation highlights its strong performance and strategic growth initiatives. The company reports a consistent history of delivering results, with a focus on process excellence, automation, and technology investments. The presentation underscores EFSC’s robust risk management processes and diversification strategies, positioning the company well for varying rate environments. The financial metrics as of the fourth quarter of 2024 demonstrate top quartile performance, with notable improvements in net interest margin and adjusted return on average assets. This growth is supported by a seasoned executive leadership team and a customer-focused culture.
Business Operations and StrategyFinancial Disclosures
Enterprise Financial Highlights Geographic Growth Strategy
Positive
Jan 28, 2025
Enterprise Financial Services Corp has released its fourth quarter 2024 investor presentation, highlighting its strategic focus on geographic diversification and market expansion opportunities in high-growth areas like California, Arizona, Nevada, and Texas. The company also boasts a differentiated business model with a robust network of branches and a strong focus on commercial lending and deposits, driving significant loan and deposit growth over the past decade. The company’s leadership team has a strong tenure, and it has received several awards for community service, workplace inclusion, and performance, underscoring its commitment to corporate responsibility and operational excellence.
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.