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Enterprise Financial Services Corp. (EFSC)
NASDAQ:EFSC
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Enterprise Financial Services
(NASDAQ:EFSC)
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Rating:70Outperform
Price Target:
$62.00
â–²(9.25% Upside)
The score is driven primarily by solid profitability/capital strength but weighed down by weak TTM revenue and free cash flow growth. Valuation is a notable positive (low P/E plus dividend), while the earnings call supports the outlook via margin and growth guidance but highlights near-term credit risk. Technicals are modestly supportive with neutral momentum.
Positive Factors
Conservative leverage and capital
A low debt-to-equity ratio and solid capital metrics provide durable financial flexibility; conservatively levered balance sheet helps absorb credit stress, supports continued lending, dividends and buybacks, and reduces refinancing and solvency risk over the medium term.
Strong net interest margin and NII
Sustained NIM near 4.2% and expanding net interest income underpin core profitability across lending cycles. Stable margin driven by lower funding costs and loan mix supports durable net revenue generation and funds capital returns and reinvestment over coming quarters.
Robust deposit gathering and funding mix
Consistent deposit inflows, higher noninterest-bearing share and lower cost of deposits strengthen funding stability. A healthier deposit mix reduces margin volatility and funds mid-single-digit loan growth without reliance on costly wholesale funding long term.
Negative Factors
Sharp revenue and free cash flow decline
Severe TTM declines in revenue and FCF raise execution and earnings-quality concerns. Persistent weakness could constrain investment, limit organic growth and capital returns, and increase sensitivity to adverse credit or interest-rate scenarios over the medium term.
Elevated NPAs, OREO and charge-off volatility
A marked rise in NPAs and transferred OREO increases earnings and operational drag; large recent charge-offs and uncertain timing of asset resolutions can pressure provisions, capital and underwriting discipline, representing a multi-quarter overhang on credit costs.
Noninterest income volatility and efficiency pressure
Variable noninterest income and rising noninterest expense from acquisition integration compress operating leverage. Sustained efficiency ratio pressure and unpredictable fee-related revenue make earnings more exposed to cyclical headwinds and slow structural margin recovery.
Enterprise Financial Services (EFSC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.08B
Dividend Yield2.2%
Average Volume (3M)168.22K
Price to Earnings (P/E)10.6
Beta (1Y)0.65
Revenue Growth6.59%
EPS Growth9.36%
CountryUS
Employees1,218
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.45
Shares Outstanding37,010,910
10 Day Avg. Volume260,264
30 Day Avg. Volume168,220
Financial Highlights & Ratios
PEG Ratio-2.52
Price to Book (P/B)1.15
Price to Sales (P/S)2.59
P/FCF Ratio8.78
Enterprise Value/Market Cap0.92
Enterprise Value/Revenue2.23
Enterprise Value/Gross Profit3.36
Enterprise Value/Ebitda6.73
Forecast
1Y Price Target
$64.00Price Target Upside12.78% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Enterprise Financial Services Business Overview & Revenue Model
Company DescriptionEnterprise 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 MoneyEFSC 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 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 Earnings Call Summary
Earnings Call Date:Jan 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 27, 2026
Earnings Call Sentiment Positive
The call conveyed mostly positive operating and financial momentum: stronger-than-expected earnings, expanding net interest income and margin, robust deposit gathering, successful integration of a strategic branch acquisition, and continued capital returns and tangible book value growth. Counterbalancing these positives are elevated NPAs/OREO and a Q4 spike in net charge-offs driven largely by the resolution of a major Southern California relationship, some noninterest income volatility and one-time acquisition-related expense pressure. Management communicated a clear action plan and timeline to resolve the largest credit items and expects NPAs to normalize within 1–2 quarters while defending margin and pursuing mid-single-digit loan growth in 2026.Q4-2025 Updates
Positive Updates
Strong Quarterly and Annual Earnings
Q4 diluted EPS of $1.45, up from $1.19 in the linked quarter (+21.8%) and $1.28 in Q4 2024 (+13.3%). Full-year 2025 net income of $201 million or $5.31 per diluted share. Adjusted Q4 EPS was $1.36, up $0.16 from the prior-quarter adjusted EPS of $1.20 (+13.3%).
Robust Net Interest Income and Margin
Net interest income expanded to $168 million in Q4, an increase of $10 million vs. the linked quarter and $22 million YoY. Quarterly net interest margin was 4.26% (tax equivalent), up 3 basis points from the prior quarter. Management expects NIM run-rate around 4.2% into 2026.
Balance Sheet Growth Exceeds Target
Balance sheet grew 11% for 2025 (exceeding mid- to high-single-digit goal). Loans grew $217 million in Q4 and $580 million for the year; adjusted organic loan growth was in line with mid-single-digit expectations when accounting for SBA sales, OREO transfers and participations sold.
Exceptional Deposit Growth and Funding Mix
Deposits grew $1.0 billion in Q4 and ~11% year-over-year (~$1.5 billion), including $609 million from the branch acquisition. Organic deposit growth for the year was 6.5% (~$854 million). Noninterest-bearing deposits increased (DDA to total deposits improved to 33.4%) and quarterly cost of deposits declined to 1.64%.
Strategic Branch Acquisition and Successful Integration
Branch purchase in Arizona and Kansas accelerated market strategy, contributed materially to Q4 NII and deposits (approx. $609 million acquired deposits), and management reports positive feedback from onboarding clients and associates.
Capital Returns and Tangible Book Value Growth
Tangible book value per share of $41.37 remained stable vs. the linked quarter and grew ~11% for the year. Repurchased ~258,000 shares in 2025 (avg $54.60) and repurchased 67,000 shares in Q4 (avg $52.64). Increased annual dividend by $0.16 to $1.22 for 2025 and raised quarterly dividend by $0.01 for early 2026.
Solid Capital and Profitability Metrics
Tangible common equity to tangible assets ~9.07% (9.1% reported), common equity Tier 1 ratio 11.6%, return on average assets ~1.27%-1.3% and return on tangible common equity ~14% in Q4 — demonstrating strong capital and earnings generation.
Progress Toward Resolving Major Real Estate Relationship
Following a favorable bankruptcy ruling, 6 of 7 Southern California properties were moved into OREO in December. Management expects receipt of purchase-sale agreements and anticipates materially reducing NPAs and OREO over the next 1–2 quarters, with proceeds at or above carrying value expected on several assets.
Diversified Loan Portfolio and Specialty Lending Momentum
Commercial-related categories (C&I, owner-occupied CRE, SBA, sponsor finance) represent just over 50% of the portfolio; specialty lines like SBA owner-occupied CRE originations topped $250 million for the year and life insurance premium finance and tax credit finance grew, with the Southwest market showing outperformance.
Negative Updates
Elevated Nonperforming Assets and OREO
Nonperforming assets rose to 95 basis points of total assets in Q4 (from 83 bps prior quarter). OREO increased due to foreclosure activity; company acknowledges current NPA level is not consistent with historical quality and aims to reduce NPAs to ~35–40 bps in 1–2 quarters.
Spike in Net Charge-Offs in Q4
Net charge-offs were $20.7 million in Q4 versus $4.1 million in the linked quarter. Full-year net charge-offs were 21 basis points of average loans (vs. 16 bps prior year); adjusted full-year NCOs were 18 bps excluding the Southern California foreclosures.
Volatility and Shortfall in Noninterest Income
Q4 noninterest income of $25.4 million decreased $23.2 million from the linked quarter (largely due to prior quarter tax credit recapture). No SBA gain-on-sale revenue recorded in Q4 (government shutdown impact); SBA gains expected to grow modestly (~5%) in 2026 but the line remains variable.
Higher Noninterest Expenses and Efficiency Pressure
Noninterest expense rose to $115 million in Q4 (+$4.7 million QoQ) driven by one-time branch acquisition costs ($2.5M) and incremental operating expenses from the acquired branches ($4.2M). Core efficiency ratio was 58.3%. Management expects full-year expense run-rate near $423M plus ~$18M for branches and expense growth ~5%.
Credit Loss Drivers and Specific Problem Credits
Beyond the OREO foreclosures, specific charge-offs included an ~$8.5 million charge on a $10 million Southern California C&I loan and charges on sponsor finance and multifamily credits. Timing for resolution of some migrated assets (e.g., a San Diego residential-secured $6M nonaccrual) is uncertain.
Some Segment Contraction and Loan Mix Shifts
Sponsor finance and construction & land development contracted as sponsors monetized portfolio companies and developers completed projects. Reported organic growth was muted by SBA sales ($78M), OREO transfers (~$70M) and exit of certain loan participations.
Minor Capital Ratio Impact from Acquisition
Tangible common equity declined modestly from 9.6% to 9.1% following the branch acquisition (management labeled the transaction modestly dilutive on a per-share basis though offset by strong earnings and securities fair value improvements).
Company Guidance
Management guided to a roughly 4.2% net interest margin run rate and about $420M of net interest income for 2026, with balance sheet growth of roughly 6–8% (loan growth mid-single-digit) funded by deposit gathering (organic deposit growth ~6.5% y/y; Q4 deposits +$1.0B, +11% y/y including $609M acquired; quarter organic deposit inflow $432M with 63% noninterest-bearing), a loan-to-deposit ratio near 81%, and a December cost of deposits of ~1.6–1.64%; they assumed three Fed funds cuts in the outlook. Expense guidance is roughly $423M of core run-rate expense plus ~$18M annualized from acquired branches (expenses expected to grow ~5%; Q4 core efficiency ~58.3%). Capital and shareholder actions include maintaining tangible common equity ~9.1% (TCE/tangible assets 9.07%), CET1 11.6%, tangible book value per share $41.37 (+11% y/y), a Q1 2026 dividend of $0.33, ongoing repurchases (258k shares repurchased in 2025; ~1.1M shares still authorized). Credit guidance expects NPAs to decline from 95 bps to ~35–40 bps in 1–2 quarters, allowance for credit losses ~1.19% of loans (1.29% adj), and lower net charge-offs and provisioning versus 2025 (2025 net charge-offs 21 bps, adjusted 18 bps).Enterprise Financial Services Financial Statement Overview
Summary
Profitable with a stable, conservatively levered balance sheet (D/E 0.34; ROE 10.29%), but fundamentals are pressured by a sharp TTM revenue decline (-64.74%) and steep free cash flow growth drop (-78.49%). Cash generation remains relatively strong versus net income (FCF/NI 96.22%), yet low operating cash flow conversion is a watch item.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.65
Positive
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.72
Positive
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.58
Neutral
| 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
Positive
56.75
Price Trends
55.22
Positive
55.66
Positive
54.95
Positive
Market Momentum
0.40
Negative
54.70
Neutral
58.19
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 56.75 is above the 20-day moving average (MA) of 55.57, above the 50-day MA of 55.22, and above the 200-day MA of 54.95, indicating a bullish trend. The MACD of 0.40 indicates Negative momentum. The RSI at 54.70 is Neutral, neither overbought nor oversold. The STOCH value of 58.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $2.23B | 12.80 | 8.87% | 3.33% | 11.63% | 5.58% | |
74 Outperform | $2.36B | 21.20 | 6.39% | 1.69% | -5.72% | -3.86% | |
74 Outperform | $1.99B | 14.24 | 13.69% | 1.88% | 11.74% | 26.27% | |
71 Outperform | $2.08B | 10.79 | 10.28% | 2.97% | 6.98% | 15.08% | |
70 Outperform | $2.08B | 10.57 | 10.25% | 2.20% | 6.59% | 9.36% | |
68 Neutral | $2.16B | 16.59 | 5.33% | 4.11% | 41.45% | -41.16% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
EFSC
Enterprise Financial Services
57.35
-1.19
-2.03%
BANR
Banner
61.84
-6.69
-9.76%
FBNC
First Bancorp
57.93
14.46
33.26%
BUSE
First Busey
24.65
1.41
6.08%
NBTB
NBT Bancorp
44.43
-1.67
-3.62%
SYBT
Stock Yards Bancorp
67.69
-4.74
-6.54%
Enterprise Financial Services Corporate Events
Business Operations and StrategyFinancial Disclosures
Enterprise Financial Highlights Strong Growth and Capital Foundations
Positive
Jan 29, 2026
In an investor presentation dated January 2026, Enterprise Financial Services Corp outlined its differentiated business model, emphasizing a strong capital foundation, consistent growth, and a decade-long compounding of tangible book value per share, supported by a 10-year CAGR of TBV per share of 10.1% and a 13.3% return on average tangible common equity year-to-date 2025. The company highlighted its balanced loan portfolio of $11.8 billion and diversified deposit base, top-quartile 2025 net interest margin performance, successful integration of multiple FDIC-assisted acquisitions that expanded its footprint and deposits since 2013, and ongoing investments in technology, process efficiency and risk management, positioning EFSC as a high-performing, mid-sized commercial bank with a seasoned leadership team and a customer-focused culture aimed at sustaining strong profitability and operational resilience.
The most recent analyst rating on (EFSC) stock is a Hold with a $61.00 price target. To see the full list of analyst forecasts on Enterprise Financial Services stock, see the EFSC Stock Forecast page.
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.