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Enterprise Financial Services
(NASDAQ:EFSC)
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Rating:74Outperform
Price Target:
$74.00
â–²(12.14% Upside)
Action:Reiterated
Date:08/01/26
EFSC’s score is driven primarily by solid profitability and balance-sheet positioning, but tempered by a notable recent deterioration in cash flow. The technical picture is favorable with an established uptrend, and valuation looks reasonable (P/E ~13 with a ~2% yield). The latest earnings call and recent corporate actions add support via raised guidance, margin/funding improvements, and shareholder returns, partially offset by higher expense guidance and moderating repricing tailwinds.
Positive Factors
Sustained Profitability & Margins
EFSC’s above-average operating margins and steady profitability provide durable earnings capacity. High operating leverage and recent efficiency improvements (quarterly efficiency ~47.5%) support cash generation and resilience through credit cycles, underpinning long-term return generation.
Negative Factors
Weak Free Cash Flow
A large decline in trailing free cash flow materially reduces financial flexibility for growth, buybacks or shock absorption. Even with reasonable earnings-to-FCF conversion (~0.94), weaker absolute cash generation heightens reliance on external funding or capital markets for strategic actions.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained Profitability & Margins
EFSC’s above-average operating margins and steady profitability provide durable earnings capacity. High operating leverage and recent efficiency improvements (quarterly efficiency ~47.5%) support cash generation and resilience through credit cycles, underpinning long-term return generation.
Read all positive factors
Enterprise Financial Services Key Performance Indicators (KPIs)
Any
Wealth Management Trust Assets Under Management
Indicates the total value of assets managed in trust accounts, reflecting the company's strength in wealth management and its ability to attract and retain high-net-worth clients.
Indicates the total value of assets managed in trust accounts, reflecting the company's strength in wealth management and its ability to attract and retain high-net-worth clients.
Data provided by:
The Fly
The FlyEnterprise Financial Services (EFSC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.39B
Dividend Yield1.96%
Average Volume (3M)168.22K
Price to Earnings (P/E)13.1
Beta (1Y)0.77
Revenue Growth7.89%
EPS Growth-4.69%
CountryUS
Employees1,370
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)5.07
Shares Outstanding36,258,000
10 Day Avg. Volume260,264
30 Day Avg. Volume168,220
Financial Highlights & Ratios
PEG Ratio1.00
Price to Book (P/B)0.98
Price to Sales (P/S)2.19
P/FCF Ratio11.00
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$70.67Price Target Upside7.09% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)5.33
Revenue Forecast (FY)$772.91M
Enterprise Financial Services Business Overview & Revenue Model
Company Description
Enterprise Financial Services Corp (EFSC) serves as the parent financial holding company for Enterprise Bank & Trust. Through this subsidiary, it delivers a comprehensive array of banking and wealth management solutions to both individual and corp...
How the Company Makes Money
EFSC primarily earns revenue through its banking subsidiary by (1) net interest income and (2) noninterest income. Net interest income is generated from the spread between interest earned on interest-earning assets—primarily commercial loans (incl...
Enterprise Financial Services Earnings Call Summary
Earnings Call Date:Jul 22, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 26, 2026
Earnings Call Sentiment Positive
The call emphasizes broad executional progress: expanding margins, accelerating loan and core deposit growth, improving credit metrics, stronger profitability and raised revenue/loan guidance. There are measured risks: higher expense guidance tied to compensation and investments, a diminishing time-deposit repricing tailwind, increasing competition in certain lending niches, and remaining nonperformers. Overall, positives around earnings power, funding improvement, capital strength and margin expansion materially outweigh the noted headwinds.Positive Updates
Quarterly Profitability Improvement
GAAP net income of $12.4 million ($1.52 per share) in Q2 vs $11.3 million ($1.41) in Q1, representing a sequential increase in net income of about 9.7% and EPS up ~7.8%.
Negative Updates
Higher Expense Guidance and Compensation Pressure
Full-year noninterest expense guidance raised to $65 million-$67 million (management cited targeted investments in talent, technology and higher compensation tied to performance). This raises the run-rate risk of higher expenses if top-line momentum moderates.
Read all updates
Q2-2026 Updates
Positive
Negative
Quarterly Profitability Improvement
GAAP net income of $12.4 million ($1.52 per share) in Q2 vs $11.3 million ($1.41) in Q1, representing a sequential increase in net income of about 9.7% and EPS up ~7.8%.
Read all positive updates
Company Guidance
Bankwell raised full-year guidance to loan growth of 5%–7% and increased net interest income guidance to $115M–$117M, while affirming noninterest income at $12M–$13M and raising noninterest expense to $65M–$67M; management said the higher expense guide should not negatively impact the efficiency ratio and implies an updated efficiency range roughly 50.0%–52.8%. They pointed to continued margin momentum (NIM up 30 bps to 3.58% in Q2 with further expansion expected into Q3), highlighted that $0.6B of time deposits were repriced in H1 at a 36‑bp improvement (≈$2.3M annualized benefit that will moderate by Q4), and noted balance‑sheet rate sensitivity: about 43% ($1.3B) of loans are now floating (vs. 23% at end‑2024), roughly $1.6B of loans reprice immediately while $250M of Fed‑funds‑indexed deposits move with them, and the gap should narrow over 12 months as $1.1B of time deposits mature and reprice.Enterprise Financial Services Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 988.36M | 912.39M | 814.41M | 743.52M | 533.66M | 421.60M |
| Gross Profit | 698.48M | 624.38M | 509.94M | 504.58M | 493.09M | 385.18M |
| EBITDA | 283.59M | 291.48M | 241.32M | 257.87M | 273.47M | 182.78M |
| Net Income | 190.32M | 201.37M | 185.27M | 194.06M | 203.04M | 133.06M |
Balance Sheet | ||||||
| Total Assets | 17.40B | 17.30B | 15.60B | 14.52B | 13.05B | 13.54B |
| Cash, Cash Equivalents and Short-Term Investments | 273.88M | 213.87M | 875.37M | 2.05B | 1.83B | 3.39B |
| Total Debt | 682.08M | 508.55M | 437.37M | 453.81M | 579.55M | 558.76M |
| Total Liabilities | 15.36B | 15.26B | 13.77B | 12.80B | 11.53B | 12.01B |
| Stockholders Equity | 2.04B | 2.04B | 1.82B | 1.72B | 1.52B | 1.53B |
Cash Flow | ||||||
| Free Cash Flow | 86.94M | 181.53M | 239.93M | 261.68M | 214.71M | 158.07M |
| Operating Cash Flow | 92.21M | 193.51M | 247.40M | 268.24M | 216.64M | 160.57M |
| Investing Cash Flow | -329.90M | -1.08B | -796.87M | -1.31B | -1.38B | -23.11M |
| Financing Cash Flow | 461.22M | 803.17M | 880.61M | 1.18B | -563.19M | 1.35B |
Enterprise Financial Services Risk Analysis
Enterprise Financial Services disclosed 44 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $2.75B | 12.84 | 11.26% | 2.82% | 14.46% | 46.90% | |
80 Outperform | $2.37B | 11.56 | 10.65% | 2.85% | 2.88% | 15.51% | |
78 Outperform | $2.65B | 20.99 | 9.51% | 3.45% | 35.96% | 113.24% | |
75 Outperform | $2.54B | 16.88 | 13.56% | 1.56% | 9.31% | 15.23% | |
74 Outperform | $2.39B | 13.08 | 9.42% | 1.97% | 7.89% | -4.69% | |
74 Outperform | $2.61B | 72.26 | 8.01% | 1.50% | 4.15% | 36.77% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
EFSC
Enterprise Financial Services
66.31
13.26
25.00%
BANR
Banner
70.41
10.19
16.92%
FBNC
First Bancorp
62.87
14.43
29.80%
BUSE
First Busey
30.86
9.42
43.93%
NBTB
NBT Bancorp
52.65
13.03
32.89%
SYBT
Stock Yards Bancorp
85.10
12.53
17.26%
Enterprise Financial Services Corporate Events
Business Operations and StrategyFinancial Disclosures
Enterprise Financial Services Highlights Q2 2026 Growth Momentum
Positive
Jul 27, 2026
In a July 2026 investor presentation, Enterprise Financial Services Corp outlined its unique value proposition as a focused commercial bank serving privately owned businesses through a diversified mix of regional and national lending and deposit v...
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresPrivate Placements and Financing
Enterprise Financial Services Expands Share Buyback, Raises Dividend
Positive
Jul 22, 2026
On July 20, 2026, Enterprise Financial Services Corp’s board authorized the repurchase of up to 2,000,000 additional common shares, lifting its existing buyback capacity to roughly 5% of shares outstanding and underscoring continued capital ...
Business Operations and StrategyPrivate Placements and Financing
Enterprise Financial Services Issues Subordinated Notes to Boost Capital
Positive
Jun 17, 2026
On June 17, 2026, Enterprise Financial Services Corp issued and sold $175 million of 6.25% fixed-to-floating rate subordinated notes due 2036, generating approximately $172.8 million in net proceeds after underwriting discounts. The notes carry a ...
Business Operations and StrategyFinancial Disclosures
Enterprise Financial Services Highlights Growth Strategy in Investor Presentation
Positive
Jun 9, 2026
On June 9, 2026, Enterprise Financial Services Corp released a fixed-income oriented investor presentation outlining its financial profile, strategic priorities and growth trajectory, highlighting $17.2 billion in total assets, a $2.2 billion mark...
Executive/Board ChangesShareholder Meetings
Enterprise Financial Services Shareholders Back Board and Governance
Positive
May 15, 2026
Enterprise Financial Services Corp held its 2026 annual meeting of stockholders on May 13, 2026, at which all twelve director nominees were elected to one-year terms expiring in 2027, each receiving strong majority support. Stockholders also ratif...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.