Esquire Financial Holdings (ESQ) AI Stock Analysis

• Market Cap: $775.33M
• Dividend Yield: 0.68%
• Average Volume (3M): 59.76K
• Price to Earnings (P/E): 17.4
• Beta (1Y): 0.70
• Revenue Growth: 16.18%
• EPS Growth: 13.78%
• Country: US
• Employees: 138
• Sector: Financial
• Sector Strength: 84
• Industry: Banks - Regional
• EPS (TTM): 1.33
• Shares Outstanding: 8,461,494
• 10 Day Avg. Volume: 44,191
• 30 Day Avg. Volume: 59,757
• PEG Ratio: 6.35
• Price to Book (P/B): 2.86
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 19.39
• Enterprise Value/Market Cap: 0.75
• Enterprise Value/Revenue: 1.21
• Enterprise Value/Gross Profit: 5.80
• Enterprise Value/Ebitda: 6.58
• 1Y Price Target: $95.00
• Price Target Upside: 3.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Esquire Financial Holdings displays a strong financial position with significant revenue and profitability improvements, bolstered by strategic initiatives. While the technical indicators suggest short-term caution due to potential overbought conditions, the company's solid growth and strategic positioning in the banking industry offer a favorable long-term outlook.

Positive Factors

Business Trends

Core deposit generation and loan growth were robust, and credit metrics remained pristine, indicating positive business trends.

Loan Growth

Annual loan growth of 15% is expected to continue, driven by litigation-related activities.

Long-term Outlook

The company’s outlook remains very attractive over the long term given the bank’s unique operating model and leading position in a niche market, which should allow continued (low-risk) growth.

Negative Factors

Earnings Outlook

A full valuation could be a headwind to ESQ’s earnings outlook if Fed futures begin pricing in additional rate cuts.

NIM Compression

Lower rates are projected to drive significant NIM compression for ESQ due to its very asset-sensitive balance sheet.

Stock Valuation

The stock is downgraded to Market Perform from Strong Buy due to valuation concerns after a sharp increase in the stock price.

Esquire Financial Holdings Business Overview & Revenue Model

Company Description

Esquire Financial Holdings, Inc. (ESQ) is a financial services company that operates primarily through its subsidiary, Esquire Bank, National Association. The company is based in Jericho, New York, and provides specialized banking solutions tailored to the legal industry, small businesses, and commercial markets. Esquire Financial Holdings offers a suite of banking products, including commercial and consumer loans, deposit products, and cash management services, catering to the unique financial needs of its clients.

How the Company Makes Money

Esquire Financial Holdings generates revenue primarily through interest income derived from its loan portfolio, which includes commercial loans, consumer loans, and lines of credit. The company also earns non-interest income through fees associated with its cash management services, deposit accounts, and other financial products. Esquire's focus on the legal industry provides a niche market advantage, allowing it to offer specialized financial services and products that cater to law firms and attorneys, which contributes to its revenue streams. Additionally, Esquire may engage in strategic partnerships and collaborations within the financial sector to enhance its service offerings and expand its market reach.

Esquire Financial Holdings Financial Statement Overview

Summary

Esquire Financial Holdings demonstrates strong financial health with robust revenue growth, high profitability, and a debt-free balance sheet. The company effectively manages cash flows, although there is room for improvement in free cash flow conversion.

Income Statement

Esquire Financial Holdings has demonstrated robust revenue growth with a revenue increase of 23.36% from 2023 to 2024. The gross profit margin remained strong at 100%, indicating efficient cost management. The net profit margin improved to 38.50% in 2024, reflecting enhanced profitability. EBIT margin also increased significantly, showcasing operational efficiency. However, the absence of EBITDA for 2024 might suggest potential areas for further analysis.

Balance Sheet

The company's balance sheet is strong, with a debt-free status in 2024, enhancing financial stability. The equity ratio of 12.53% suggests moderate reliance on equity financing. The return on equity (ROE) improved to 18.41%, indicating effective utilization of shareholders' funds. The low debt-to-equity ratio supports lower financial risk, but the relatively low equity ratio may limit future leverage opportunities.

Cash Flow

Esquire Financial Holdings shows a stable cash flow position with consistent operating cash flow generation. Free cash flow grew by 7.13% from 2023 to 2024, indicating good cash management. The operating cash flow to net income ratio is nearly 1, demonstrating efficient cash conversion. However, the free cash flow to net income ratio suggests room for improvement in translating earnings into cash.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
113.37M	91.89M	84.27M	64.73M	52.09M
	Gross Profit
113.37M	88.83M	81.48M	62.75M	50.23M
	EBIT
109.86M	59.73M	38.60M	22.71M	17.17M
	EBITDA
0.00	58.42M	41.35M	24.94M	18.79M
	Net Income Common Stockholders
43.66M	41.01M	28.52M	17.93M	12.62M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
368.07M	287.32M	351.77M	297.54M	182.84M
	Total Assets
1.89B	1.62B	1.40B	1.18B	936.71M
	Total Debt
0.00	2.18M	2.81M	2.99M	49.00K
	Net Debt
-126.33M	-165.21M	-161.31M	-146.17M	-65.14M
	Total Liabilities
1.66B	1.42B	1.24B	1.04B	49.00K
	Stockholders Equity
237.09M	198.56M	158.16M	143.74M	126.08M
Cash Flow		Free Cash Flow
39.06M	39.40M	37.56M	27.14M	12.45M
	Operating Cash Flow
42.21M	42.40M	38.80M	30.08M	15.59M
	Investing Cash Flow
-308.27M	-215.40M	-221.50M	-170.49M	-135.44M
	Financing Cash Flow
227.17M	174.09M	197.67M	224.38M	123.23M

Esquire Financial Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 91.64
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ESQ, the sentiment is Positive. The current price of 91.64 is above the 20-day moving average (MA) of 86.24, above the 50-day MA of 79.18, and above the 200-day MA of 73.09, indicating a bullish trend. The MACD of 3.23 indicates Negative momentum. The RSI at 72.63 is Negative, neither overbought nor oversold. The STOCH value of 77.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ESQ.

Esquire Financial Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ESQ	79 Outperform	$775.33M	17.36	19.66%	0.68%	16.18%	13.78%
MCBS	75 Outperform	$736.64M	11.24	16.05%	3.07%	8.80%	30.31%
MBWM	73 Outperform	$745.20M	9.56	13.55%	3.14%	12.26%	-6.93%
HAFC	73 Outperform	$717.54M	11.13	8.82%	4.29%	5.19%	-10.86%
EQBK	72 Outperform	$714.81M	10.35	11.84%	1.40%	40.43%	545.45%
BFST	66 Neutral	$728.42M	10.07	9.77%	2.28%	18.34%	-4.12%
Sector *	64 Neutral	$12.82B	9.87	7.67%	17000.34%	12.39%	-5.85%

Esquire Financial Holdings Corporate Events

Esquire Financial Reports Strong Q1 2025 Growth

Esquire Financial Holdings, Inc. reported significant growth in its first quarter of 2025, with net income rising by 13% to $11.4 million compared to the same period in 2024. The company achieved industry-leading returns on assets and equity, driven by net interest margin expansion and commercial growth, particularly in its national litigation platform. The quarter also saw strong core deposit growth, stable fee income, and a robust capital foundation. Esquire’s strategic initiatives, including a joint venture with Fortress Investment Group and the opening of a Los Angeles private banking branch, position the company for sustained growth. The company was recognized as a ‘Best-Performing U.S. Small Community Bank of 2024’ by S&P Global Market Intelligence, highlighting its resilience and strong performance in a dynamic financial environment.

Spark’s Take on ESQ Stock

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

Esquire Financial Holdings scores well due to its strong financial performance and attractive valuation. The company’s record earnings and strategic growth initiatives are significant positive factors. However, the mixed technical indicators suggest caution in the short term. Overall, Esquire Financial Holdings is positioned favorably for long-term growth within the banking industry.

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