Enterprise Financial Services (EFSC) AI Stock Analysis

• Market Cap: $2.08B
• Dividend Yield: 2.17%
• Average Volume (3M): 151.99K
• Price to Earnings (P/E): 10.9
• Beta (1Y): 0.63
• Revenue Growth: 6.59%
• EPS Growth: 9.36%
• Country: US
• Employees: 1,218
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.19
• Shares Outstanding: 37,010,910
• 10 Day Avg. Volume: 212,894
• 30 Day Avg. Volume: 151,993
• PEG Ratio: -2.52
• Price to Book (P/B): 1.15
• Price to Sales (P/S): 2.59
• P/FCF Ratio: 8.78
• Enterprise Value/Market Cap: 1.30
• Enterprise Value/Revenue: 3.14
• Enterprise Value/Gross Profit: 4.74
• Enterprise Value/Ebitda: 9.47
• 1Y Price Target: $64.00
• Price Target Upside: 12.80% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Neutral
• Price Target: $61.00 ▲(7.51% Upside)

Enterprise Financial Services Corp. exhibits strong financial performance with robust profitability and strategic growth initiatives. The technical indicators support a positive outlook, and the valuation is attractive. However, challenges with nonperforming assets and legal expenses present potential risks. The company's strategic focus on growth and market expansion, coupled with a solid capital foundation, suggests a balanced approach to managing these challenges.

Positive Factors

Strategic Branch Acquisition

The acquisition of branches in Arizona and Kansas City strengthens EFSC's market presence, providing growth opportunities and expanding access to existing markets, which supports long-term revenue growth.

Strong Capital Foundation

A strong capital foundation ensures financial stability and supports strategic growth initiatives, enabling EFSC to withstand economic fluctuations and invest in expansion opportunities.

Leadership Changes

Strategic leadership changes align with EFSC's long-term goals, enhancing its ability to drive commercial revenue operations and adapt to evolving market conditions.

Negative Factors

Nonperforming Assets

The rise in nonperforming assets indicates potential credit risk and could impact future profitability if not managed effectively, posing a challenge to financial stability.

Decline in Revenue Growth

A decline in revenue growth can hinder EFSC's ability to invest in new opportunities and maintain competitive positioning, potentially affecting long-term sustainability.

Legal and Loan Expenses

Increased legal and loan expenses can strain EFSC's financial resources, reducing profitability and limiting the ability to allocate funds towards growth initiatives.

Enterprise Financial Services Business Overview & Revenue Model

Company Description

Enterprise Financial Services Corp operates as the financial holding company for Enterprise Bank & Trust that offers banking and wealth management services to individuals and corporate customers. The company offers checking, savings, and money market accounts, and certificates of deposit. It also provides commercial and industrial, commercial real estate, construction and land development, residential real estate, agricultural, and consumer loans. In addition, the company offers treasury management and international trade services; tax credit brokerage services consisting of the acquisition of tax credits and sale of these tax credits to clients; and financial and estate planning, investment management, and trust services to businesses, individuals, institutions, retirement plans, and non-profit organizations. Further, it offers fiduciary, financial advisory, and merchant processing services; and debit and credit cards. Additionally, the company provides international banking, insurance, internet and mobile banking, remote deposit capture, positive pay, fraud detection and prevention, automated payable, check imaging, and statement and document imaging services; and cash management products, controlled disbursements, repurchase agreements, and sweep investment accounts. It operates banking locations and administrative offices in Arizona, California, Kansas, Missouri, Nevada, and New Mexico market areas, as well as a network of SBA loan production offices and deposit production offices in various states. Enterprise Financial Services Corp was founded in 1988 and is headquartered in Clayton, Missouri.

How the Company Makes Money

EFSC generates revenue through multiple key streams, primarily from interest income on loans, fees from banking services, and management fees from investment products. The company issues various types of loans, including commercial loans, personal loans, and mortgages, which provide significant interest income. Additionally, EFSC earns fees from account maintenance, transaction services, and advisory services. The firm's investment management division contributes to its revenue through management fees based on assets under management (AUM) and performance fees linked to investment performance. Strategic partnerships with fintech companies enhance EFSC's service offerings and customer reach, further bolstering its revenue potential. Overall, the company's diversified portfolio and focus on SME clients position it favorably within the competitive financial services landscape.

Enterprise Financial Services Financial Statement Overview

Summary

Enterprise Financial Services shows strong profitability and a stable balance sheet with a conservative leverage position. However, significant declines in revenue and free cash flow growth present potential risks.

Income Statement

The income statement shows a significant decline in revenue growth rate in the TTM period, with a negative growth of -64.74%. However, the company maintains strong profitability metrics, with a high net profit margin of 67.21% and an EBIT margin of 63.93% in the TTM. Despite the revenue drop, the company has managed to maintain profitability, indicating effective cost management.

Balance Sheet

The balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.34 in the TTM, indicating conservative leverage. The return on equity is moderate at 10.29%, showing efficient use of equity to generate profits. The equity ratio is strong, suggesting a solid capital structure.

Cash Flow

Cash flow analysis reveals a significant decline in free cash flow growth of -78.49% in the TTM, which is a concern. However, the free cash flow to net income ratio remains high at 96.22%, indicating that the company is still generating substantial cash relative to its net income. The operating cash flow to net income ratio is low, suggesting potential challenges in converting income into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	859.70M	814.41M	743.52M	533.66M	421.60M	347.26M
Gross Profit	569.18M	509.94M	504.58M	493.09M	385.18M	247.08M
EBITDA	284.68M	241.32M	257.87M	273.47M	182.78M	103.81M
Net Income	195.41M	185.27M	194.06M	203.04M	133.06M	74.38M
Balance Sheet
Total Assets	16.40B	15.60B	14.52B	13.05B	13.54B	9.75B
Cash, Cash Equivalents and Short-Term Investments	2.12B	875.37M	2.05B	1.83B	3.39B	1.46B
Total Debt	667.62M	437.37M	453.81M	579.55M	558.76M	554.72M
Total Liabilities	14.42B	13.77B	12.80B	11.53B	12.01B	8.67B
Stockholders Equity	1.98B	1.82B	1.72B	1.52B	1.53B	1.08B
Cash Flow
Free Cash Flow	191.81M	239.93M	261.68M	214.71M	158.07M	133.25M
Operating Cash Flow	202.65M	247.40M	268.24M	216.64M	160.57M	135.51M
Investing Cash Flow	-1.38B	-796.87M	-1.31B	-1.38B	-23.11M	-702.83M
Financing Cash Flow	1.22B	880.61M	1.18B	-563.19M	1.35B	937.76M

Enterprise Financial Services Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 56.74
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EFSC, the sentiment is Positive. The current price of 56.74 is above the 20-day moving average (MA) of 55.05, above the 50-day MA of 54.28, and above the 200-day MA of 54.53, indicating a bullish trend. The MACD of 0.72 indicates Negative momentum. The RSI at 56.99 is Neutral, neither overbought nor oversold. The STOCH value of 51.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EFSC.

Enterprise Financial Services Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BANR	79 Outperform	$2.28B	12.21	10.28%	2.90%	6.98%	15.08%
FBNC	75 Outperform	$2.20B	22.25	6.39%	1.69%	-5.72%	-3.86%
NBTB	74 Outperform	$2.31B	14.69	8.87%	3.21%	11.63%	5.58%
BUSE	72 Outperform	$2.23B	22.04	5.33%	3.97%	41.45%	-41.16%
EFSC	70 Neutral	$2.08B	10.93	10.25%	2.17%	6.59%	9.36%
SYBT	69 Neutral	$2.03B	15.06	13.69%	1.85%	11.74%	26.27%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Enterprise Financial Services Corporate Events

Enterprise Financial Services Highlights Strategic Growth Focus

Enterprise Financial Services Corp has presented its investor materials, highlighting its strategic focus on growth through diversified banking services and geographic expansion. The company has successfully expanded its deposit base and footprint through acquisitions and has maintained consistent growth and performance improvements, even amidst challenges like COVID and a banking liquidity crisis. With a strong capital foundation and a seasoned leadership team, EFSC continues to optimize its operations and deliver value to stakeholders.

Enterprise Financial Services Announces Trading Blackout Period

Enterprise Financial Services Corp announced a blackout period for its EFSC Incentive Savings Plan starting November 24, 2025, due to a change in service provider. During this period, plan participants and company executives will face restrictions on trading EFSC Common Stock and other securities, impacting their ability to manage investments and transactions.

Enterprise Financial Services Foreclosure Proceedings Update

In response to investor inquiries, Enterprise Financial Services Corp disclosed that Enterprise Bank & Trust has seven commercial real estate loans totaling $68.4 million to special purpose entities in Southern California. These loans were previously reported as nonperforming assets due to a business dispute leading to bankruptcy filings in early 2025. The bank initiated foreclosure proceedings in August 2025 and expects to recover the full loan amounts due to its senior secured position.

Enterprise Financial Services Expands with Branch Acquisition

On October 14, 2025, Enterprise Financial Services Corp announced that its subsidiary, Enterprise Bank & Trust, completed the acquisition of twelve branches from First Interstate Bank, with ten located in Arizona and two in Kansas. This acquisition, effective October 10, 2025, involved the assumption of approximately $645 million in deposits and the purchase of about $300 million in performing loans. The transaction is expected to enhance Enterprise’s market presence in Arizona and the Kansas City area, providing new growth opportunities and expanding access to existing markets, while delivering long-term value to shareholders.

Enterprise Financial Announces Key Leadership Changes

On October 1, 2025, Enterprise Financial Services Corp announced significant leadership changes as part of its growth and succession planning. Scott Goodman transitioned to Vice-Chairman of EB&T, while Doug Bauche was promoted to Chief Banking Officer, and Kevin Handley became Chief Credit Officer. Keene Turner and Troy Dumlao also received promotions, reflecting the company’s strategic focus on strengthening its executive team to enhance commercial revenue operations. These changes are expected to impact the company’s operations positively, aligning leadership roles with its long-term strategic goals.