Enterprise Financial Services (EFSC) AI Stock Analysis

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Enterprise Financial Services

(NASDAQ:EFSC)

Rating:72Outperform

Price Target:―

EFSC's overall stock score reflects strong financial performance and an attractive valuation, which are slightly offset by technical bearish indicators. The positive earnings call supports future growth prospects, balancing some operational challenges. Strategic moves and acquisitions further strengthen its market position.

Enterprise Financial Services (EFSC) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$1.95B

Dividend Yield2.07%

Average Volume (3M)194.74K

Price to Earnings (P/E)10.3

Beta (1Y)0.77

Revenue Growth7.26%

EPS Growth9.76%

CountryUS

Employees1,218

SectorFinancial

Sector Strength82

IndustryBanks - Regional

Share Statistics

EPS (TTM)1.31

Shares Outstanding36,932,680

10 Day Avg. Volume179,296

30 Day Avg. Volume194,739

Financial Highlights & Ratios

PEG Ratio1.75

Price to Book (P/B)1.04

Price to Sales (P/S)0.00

P/FCF Ratio9.13

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$63.00

Price Target Upside19.54% 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 shows strong financial health with consistent revenue growth and profitability. The balance sheet is stable, with a robust equity position and effective debt management, despite a decrease in operating cash flow.

Income Statement

Positive

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.

Balance Sheet

Positive

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.

Cash Flow

Positive

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.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
401.89M	69.70M	541.19M	471.35M	427.94M	324.50M
	Gross Profit
76.03M	531.45M	541.19M	471.35M	427.94M	324.50M
	EBIT
48.98M	231.24M	246.53M	239.67M	168.63M	91.95M
	EBITDA
183.57M	0.00	0.00	273.47M	182.78M	107.61M
	Net Income Common Stockholders
194.83M	185.27M	194.06M	203.04M	133.06M	74.38M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
260.28M	2.13B	1.81B	1.84B	3.39B	1.46B
	Total Assets
15.68B	15.60B	14.52B	13.05B	13.54B	9.75B
	Total Debt
0.00	192.75M	203.62M	579.55M	558.76M	554.72M
	Net Debt
-260.28M	-567.59M	-230.39M	280.16M	-1.47B	9.39M
	Total Liabilities
13.81B	13.77B	12.80B	11.53B	558.76M	554.72M
	Stockholders Equity
1.87B	1.82B	1.72B	1.52B	1.53B	1.08B
Cash Flow		Free Cash Flow
212.93M	239.93M	261.68M	214.71M	158.07M	133.25M
	Operating Cash Flow
217.13M	247.40M	268.24M	216.64M	160.57M	135.51M
	Investing Cash Flow
-615.99M	-796.87M	-1.35B	-1.38B	-23.11M	-702.83M
	Financing Cash Flow
836.83M	880.61M	1.18B	-563.19M	1.35B	937.76M

Enterprise Financial Services Technical Analysis

Technical Analysis Sentiment

Negative

Last Price52.70

Price Trends

50DMA

52.43

Positive

100DMA

55.08

Negative

200DMA

54.19

Negative

Market Momentum

MACD

0.57

Positive

RSI

48.11

Neutral

STOCH

17.76

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 52.7 is below the 20-day moving average (MA) of 53.28, above the 50-day MA of 52.43, and below the 200-day MA of 54.19, indicating a neutral trend. The MACD of 0.57 indicates Positive momentum. The RSI at 48.11 is Neutral, neither overbought nor oversold. The STOCH value of 17.76 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
NBTB	74 Outperform	$2.19B	13.83	9.55%	3.17%	12.11%	16.67%
EFSC	72 Outperform	$1.95B	10.33	10.80%	2.07%	7.26%	9.76%
BUSE	71 Outperform	$2.01B	20.98	3.32%	4.49%	1.05%	-45.72%
HTH	70 Outperform	$1.90B	15.05	5.89%	2.32%	0.59%	14.96%
PPBI	67 Neutral	$2.04B	13.75	4.94%	6.24%	23.12%	1092.18%
SYBT	65 Neutral	$2.17B	17.78	13.18%	1.67%	14.34%	16.24%
Sector *	64 Neutral	$12.64B	9.78	7.67%	17015.08%	12.23%	-6.02%

* Financial Sector Average

Performance Comparison

EFSC

Enterprise Financial Services

52.58

14.72

38.88%

BUSE

First Busey

21.61

-0.37

-1.68%

HTH

Hilltop Holdings

29.62

-0.89

-2.92%

NBTB

NBT Bancorp

41.56

5.64

15.70%

PPBI

Pacific Premier Bancorp

21.05

0.09

0.43%

SYBT

Stock Yards Bancorp

73.40

27.63

60.37%

Enterprise Financial Services Earnings Call Summary

Earnings Call Date:Apr 28, 2025

(Q1-2025)

% Change Since: 1.37%|

Next Earnings Date:Jul 28, 2025

Earnings Call Sentiment Positive

The earnings call highlighted strong financial performance with record earnings and strategic growth through acquisition. However, there were challenges with increased non-performing assets and seasonal declines in deposits and loan paydowns. Despite these lowlights, the overall sentiment is positive due to significant achievements and strong strategic positioning.

Q1-2025 Updates

Positive Updates

Record Earnings and Revenue Growth

Earnings per share increased to $1.31, up from $1.28 in the linked quarter and $1.05 in the first quarter of 2024. Net interest income saw an increase of $1.1 million despite a shorter quarter.

Strategic Acquisition of First Interstate Bank Branches

The acquisition includes 12 branches, with 10 in Arizona, adding approximately $740 million in deposits and $200 million in commercial loans, supporting strategic growth in attractive markets.

Improvement in Deposit Costs

The overall cost of deposits reduced to 1.83%, a decrease of 17 basis points during the quarter.

Strong Loan Origination

Loan originations increased by nearly 40% compared to Q1 of the previous year, with significant growth in C&I and commercial real estate loans.

Stable and Strong Capital Position

Tangible common equity to tangible assets ratio remained stable at 9.30%, with a 14% return on tangible common equity for the first quarter.

Negative Updates

Increase in Non-Performing Assets

Non-performing assets increased to 72 basis points of total assets from 30 basis points, primarily due to loans linked to a business dispute in Southern California.

Seasonal Loan Paydowns

Loan growth was muted by the sale of $30 million of SBA loans and a seasonal decline of $75 million in tax credit business loans.

Seasonal Decline in Deposits

Client balances decreased by $303 million due to typical seasonal outflows, despite offsetting growth in national deposit verticals.

Company Guidance

In the Enterprise Financial Services Corp's 1Q'25 earnings call, President and CEO Jim Lally highlighted several key metrics showcasing strong financial performance. The company reported earnings of $1.31 per diluted share, up from $1.28 in the previous quarter and $1.05 a year ago. This performance contributed to an adjusted return on assets of 1.29% and a pre-provision ROAA of 1.71%. The net interest income (NII) expanded by $1.1 million from the previous quarter, marking the fourth consecutive quarter of NII growth. Loan growth was reported at 3%, equating to $78 million, despite a $30 million sale of SBA loans and a $75 million seasonal decline in tax credit loans. The cost of deposits fell by 17 basis points to 1.83%, while the tangible common equity to tangible assets ratio stood at 9.30%. The company also announced a $0.01 increase in the quarterly dividend to $0.30 per share and repurchased $11 million in common shares. The strategic acquisition of 12 branches from First Interstate Bank, involving $740 million in deposits and $200 million in loans, is expected to enhance EPS in 2026 and aligns with the company's growth strategy.

Enterprise Financial Services Corporate Events

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures

Enterprise Financial Services Reports Strategic Growth and Improvements

Positive

May 2, 2025

Enterprise Financial Services Corp has reported significant growth and strategic improvements, including a focus on process excellence, automation, and technology investments. The company has expanded its deposit base and footprint through acquisitions, improved performance, and tackled challenges such as the COVID-19 pandemic and liquidity crises. With a seasoned executive leadership team, EFSC continues to deliver top quartile performance in net interest margin and maintains effective risk management practices, positioning itself well for different economic environments.

Spark’s Take on EFSC Stock

According to Spark, TipRanks’ AI Analyst, EFSC is a Outperform.

Enterprise Financial Services demonstrates a strong financial performance with consistent revenue growth and profitability, supported by strategic acquisitions and a stable balance sheet. However, the stock faces technical challenges with bearish trends indicated by moving averages. The attractive valuation and positive earnings call sentiment, along with promising corporate events, contribute positively to the stock’s outlook.

To see Spark’s full report on EFSC stock, click here.

Executive/Board ChangesM&A TransactionsBusiness Operations and StrategyFinancial Disclosures

Enterprise Financial Services Announces Leadership Transition

Positive

Apr 28, 2025

On April 28, 2025, Enterprise Financial Services Corp announced a significant leadership transition within Enterprise Bank & Trust, with Scott Goodman moving to a part-time advisory role and Doug Bauche and Kevin Handley stepping into new executive positions. Additionally, Enterprise Bank entered into a Purchase Agreement to acquire 12 branches from First Interstate Bank, a move expected to enhance its market presence in Arizona and Kansas. The acquisition, subject to regulatory approval, is anticipated to close by early fourth quarter of 2025. In the first quarter of 2025, the company reported a net income of $50 million, reflecting a positive financial performance with increased net interest income and a strong return on average assets. The strategic acquisition and leadership changes are poised to strengthen the company’s operational capabilities and market positioning.

Spark’s Take on EFSC Stock

According to Spark, TipRanks’ AI Analyst, EFSC is a Outperform.

Enterprise Financial Services exhibits strong financial performance with consistent revenue growth and a stable balance sheet. The stock is attractively valued with a low P/E ratio and a solid dividend yield. However, technical analysis indicates bearish trends, which may pose short-term challenges. The recent earnings call highlights positive deposit growth and credit quality, suggesting the company is on a solid footing for future growth.

To see Spark’s full report on EFSC stock, click here.

Business Operations and Strategy

Enterprise Financial Services Releases 2025 ESG Report

Positive

Mar 19, 2025

On March 19, 2025, Enterprise Financial Services Corp released its Environmental, Social, and Governance (ESG) Report, highlighting its commitment to community development and sustainability. The company received a $50 million allocation from the U.S. Department of Treasury’s New Markets Tax Credit program to fund projects in underserved communities, marking its third award in four years. Enterprise was recognized for its efforts in disability inclusion, gender diversity on its board, and community service, earning several accolades in 2024, including being named to American Banker’s list of Best Banks to Work For and receiving the Mastercard ‘Doing Well by Doing Good’ award.

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.

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.