Equity Bancshares (EQBK) AI Stock Analysis

• Market Cap: $871.41M
• Dividend Yield: 1.34%
• Average Volume (3M): 74.86K
• Price to Earnings (P/E): 37.7
• Beta (1Y): 0.86
• Revenue Growth: 6.45%
• EPS Growth: 8.32%
• Country: US
• Employees: 810
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): -1.55
• Shares Outstanding: 19,076,412
• 10 Day Avg. Volume: 93,324
• 30 Day Avg. Volume: 74,857
• PEG Ratio: 0.01
• Price to Book (P/B): 1.12
• Price to Sales (P/S): 2.03
• P/FCF Ratio: 10.15
• Enterprise Value/Market Cap: 0.67
• Enterprise Value/Revenue: 1.96
• Enterprise Value/Gross Profit: 4.07
• Enterprise Value/Ebitda: 7.26
• 1Y Price Target: $48.67
• Price Target Upside: 6.55% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 2.74
• Revenue Forecast (FY): $266.93M

• Rating: 70 Neutral
• Price Target: $49.00 ▲(7.27% Upside)

Equity Bancshares' overall stock score reflects a mix of strategic growth potential and current financial challenges. The company's technical indicators are strong, suggesting positive market sentiment, but high valuation and recent financial losses pose risks. Strategic expansions and corporate events provide a positive outlook, but the company must address its financial performance to improve its stock score.

Positive Factors

Strategic Expansion

The merger with Frontier Holdings expands Equity Bancshares' market presence into Nebraska, potentially increasing its customer base and revenue opportunities.

Improved Net Interest Margin

An improved net interest margin indicates better profitability from lending activities, enhancing long-term financial performance.

Share Repurchase Plan

The share repurchase plan provides flexibility in capital management and can enhance shareholder value over time by reducing outstanding shares.

Negative Factors

Declining Revenue

Declining revenue growth can hinder long-term financial health, reducing the company's ability to invest in growth opportunities and maintain profitability.

High M&A Costs

High merger and acquisition costs can strain financial resources and impact short-term profitability, potentially affecting future investment capacity.

Rising Debt Levels

Increased debt levels can limit financial flexibility and increase risk, potentially impacting long-term stability and growth capabilities.

Equity Bancshares Business Overview & Revenue Model

Company Description

Equity Bancshares, Inc. operates as the bank holding company for Equity Bank that provides a range of banking, mortgage banking, and financial services to individual and corporate customers. The company accepts various demand, savings, money market, and time deposits. Its loan products include commercial and industrial, commercial real estate-backed, commercial lines of credit, working capital, term, equipment financing, acquisition, expansion and development, borrowing base, real estate construction, homebuilder, agricultural, government guaranteed, and other loan products to national and regional companies, restaurant franchisees, hoteliers, real estate developers, manufacturing and industrial companies, agribusiness companies, and other businesses. The company's loan products also comprise various consumer loans to individuals and professionals, including residential real estate loans, home equity loans and lines of credit, installment loans, unsecured and secured personal lines of credit, overdraft protection, and letters of credit. It also provides debit cards; online banking solutions, such as access to account balances, online transfers, online bill payment, and electronic delivery of customer statements; mobile banking solutions comprising remote check deposits with mobile bill pay; ATMs; and treasury management, wire transfer, automated clearing house, and stop payment services. In addition, the company offers cash management deposit products, such as lockbox, remote deposit capture, positive pay, reverse positive pay, account reconciliation services, zero balance accounts, and sweep accounts, as well as banking services through telephone, mail, and personal appointments. As of December 31, 2021, it operated a network of 69 branches in Arkansas, Kansas, Missouri, and Oklahoma. The company was founded in 2002 and is headquartered in Wichita, Kansas.

How the Company Makes Money

Equity Bancshares generates revenue primarily through interest income from loans and fees associated with various banking services. The company's key revenue streams include interest income from commercial, residential, and consumer loans, which typically represent the largest portion of its earnings. Additionally, Equity Bank earns non-interest income through service fees, transaction fees, and wealth management services. The company also benefits from its strategic partnerships with local businesses and community organizations, enhancing its market reach and customer loyalty. Overall, the bank's diversified financial services portfolio and focus on customer relationships contribute significantly to its revenue generation.

Equity Bancshares Financial Statement Overview

Summary

Equity Bancshares faces challenges with declining revenue and profit margins, coupled with moderate leverage and reduced return on equity. While cash flow generation is relatively strong, the decline in free cash flow growth is concerning. The company should focus on reversing the negative revenue trend, improving profitability, and managing leverage to strengthen its financial position.

Income Statement

Equity Bancshares has shown a mixed performance in its income statement. The TTM data indicates a decline in revenue growth rate by 10.6%, which is concerning. However, the company maintains a reasonable EBIT margin of 23.9% and a net profit margin of 5.9%. Historical data shows fluctuating profit margins, with a significant drop in gross profit margin from 66.7% in 2024 to 48.1% in the TTM. The company needs to address the declining revenue and profit margins to improve its financial health.

Balance Sheet

The balance sheet of Equity Bancshares reflects moderate leverage with a debt-to-equity ratio of 0.70 in the TTM, up from 0.53 in 2024. The return on equity has decreased to 2.8% in the TTM, indicating reduced profitability for shareholders. The equity ratio remains stable, suggesting a balanced approach to financing. The company should focus on improving its ROE and managing debt levels to enhance financial stability.

Cash Flow

The cash flow statement shows a decline in free cash flow growth by 8.7% in the TTM, which is a negative indicator. The free cash flow to net income ratio remains strong at 90.1%, suggesting efficient cash generation relative to net income. However, the operating cash flow to net income ratio is low, indicating potential challenges in converting income into cash. The company should aim to improve cash flow generation to support operations and growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	296.94M	326.51M	224.68M	220.28M	186.81M	177.04M
Gross Profit	142.81M	217.67M	135.63M	194.99M	180.59M	129.88M
EBITDA	80.10M	88.54M	11.05M	79.65M	73.34M	-66.33M
Net Income	17.63M	62.62M	7.82M	57.69M	52.48M	-74.97M
Balance Sheet
Total Assets	6.36B	5.33B	5.03B	4.98B	5.14B	4.01B
Cash, Cash Equivalents and Short-Term Investments	1.60B	1.19B	1.28B	1.29B	1.59B	1.15B
Total Debt	498.44M	312.80M	380.50M	281.73M	151.89M	133.86M
Total Liabilities	5.64B	4.74B	4.58B	4.57B	4.64B	3.61B
Stockholders Equity	711.89M	592.92M	452.86M	410.06M	500.63M	407.65M
Cash Flow
Free Cash Flow	70.50M	65.35M	60.39M	70.58M	97.60M	34.01M
Operating Cash Flow	80.11M	73.84M	76.53M	74.07M	102.70M	43.62M
Investing Cash Flow	359.11M	123.73M	232.17M	-214.18M	-315.34M	96.00M
Financing Cash Flow	24.71M	-192.93M	-34.03M	-15.41M	191.90M	51.78M

Equity Bancshares Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 45.68
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EQBK, the sentiment is Positive. The current price of 45.68 is above the 20-day moving average (MA) of 45.48, above the 50-day MA of 42.94, and above the 200-day MA of 40.35, indicating a neutral trend. The MACD of 1.04 indicates Positive momentum. The RSI at 54.72 is Neutral, neither overbought nor oversold. The STOCH value of 46.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EQBK.

Equity Bancshares Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HFWA	79 Outperform	$832.96M	14.78	6.43%	3.91%	8.27%	54.96%
CPF	78 Outperform	$868.94M	13.33	11.65%	3.39%	1.22%	15.97%
HBT	78 Outperform	$823.20M	10.58	13.78%	3.21%	3.86%	12.33%
MCB	74 Outperform	$806.64M	13.60	8.80%	0.38%	6.48%	8.78%
EQBK	70 Neutral	$871.41M	37.74	2.90%	1.34%	6.45%	8.32%
CCNE	69 Neutral	$792.03M	13.55	6.51%	2.68%	11.13%	-15.28%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Equity Bancshares Corporate Events

Equity Bancshares Announces Quarterly Cash Dividend

On December 10, 2025, Equity Bancshares, Inc. announced a quarterly cash dividend of $0.18 per share of common stock. This dividend will be distributed on January 15, 2026, to shareholders recorded by December 31, 2025.

Equity Bancshares Gains Approval for Frontier Merger

Equity Bancshares, Inc. has received all necessary regulatory approvals to proceed with its merger with Frontier Holdings, LLC, as per the agreement dated August 29, 2025. The merger is anticipated to be finalized by December 2025 or early January 2026, pending customary closing conditions and the approval of Frontier’s members.

Equity Bancshares Reports Q3 Loss Amid Strategic Moves

Equity Bancshares reported a net loss of $29.7 million for the third quarter of 2025, primarily due to merger-related expenses and bond portfolio repositioning. Despite the loss, the company completed its acquisition of NBC Oklahoma, contributing significantly to loan and deposit balances. The merger and other strategic moves, including a definitive agreement with Frontier Holdings LLC, position Equity Bancshares for future growth and expansion into new markets.

Equity Bancshares Announces Share Repurchase Plan Approval

On September 11, 2025, Equity Bancshares, Inc.’s Board of Directors approved a share repurchase plan for up to 1,000,000 shares of its outstanding common stock. The program, which runs from October 1, 2025, to September 30, 2026, received non-objection from the Federal Reserve Bank of Kansas City on September 23, 2025. This move allows Equity Bancshares flexibility in managing its capital structure, potentially enhancing shareholder value.

Equity Bancshares Declares Quarterly Cash Dividend

On September 11, 2025, Equity Bancshares, Inc. announced a quarterly cash dividend of $0.18 per share of common stock. This dividend will be distributed to shareholders on October 15, 2025, with the record date set for September 30, 2025.