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Esquire Financial Holdings (ESQ)
:ESQ
US Market

Esquire Financial Holdings (ESQ) AI Stock Analysis

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Esquire Financial Holdings

(NASDAQ:ESQ)

79Outperform
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 (ESQ) vs. S&P 500 (SPY)

Esquire Financial Holdings Business Overview & Revenue Model

Company DescriptionEsquire 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 MoneyEsquire 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 robust balance sheet with no debt. The cash flows are efficiently managed, with room for improvement in free cash flow conversion. Overall, the company is well-positioned within the banking industry with a stable outlook and growth opportunities.
Income Statement
85
Very Positive
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
82
Very Positive
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
78
Positive
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 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
113.37M91.89M84.27M64.73M52.09M
Gross Profit
113.37M88.83M81.48M62.75M50.23M
EBIT
109.86M59.73M38.60M22.71M17.17M
EBITDA
0.0058.42M41.35M24.94M18.79M
Net Income Common Stockholders
43.66M41.01M28.52M17.93M12.62M
Balance SheetCash, Cash Equivalents and Short-Term Investments
368.07M287.32M351.77M297.54M182.84M
Total Assets
1.89B1.62B1.40B1.18B936.71M
Total Debt
0.002.18M2.81M2.99M49.00K
Net Debt
-126.33M-165.21M-161.31M-146.17M-65.14M
Total Liabilities
1.66B1.42B1.24B1.04B49.00K
Stockholders Equity
237.09M198.56M158.16M143.74M126.08M
Cash FlowFree Cash Flow
42.21M39.40M37.56M27.14M12.45M
Operating Cash Flow
42.21M42.40M38.80M30.08M15.59M
Investing Cash Flow
-308.27M-215.40M-221.50M-170.49M-135.44M
Financing Cash Flow
227.17M174.09M197.67M224.38M123.23M

Esquire Financial Holdings Technical Analysis

Technical Analysis Sentiment
Positive
Last Price82.92
Price Trends
50DMA
76.73
Positive
100DMA
79.32
Positive
200DMA
71.33
Positive
Market Momentum
MACD
2.30
Negative
RSI
60.66
Neutral
STOCH
66.48
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 82.92 is above the 20-day moving average (MA) of 79.17, above the 50-day MA of 76.73, and above the 200-day MA of 71.33, indicating a bullish trend. The MACD of 2.30 indicates Negative momentum. The RSI at 60.66 is Neutral, neither overbought nor oversold. The STOCH value of 66.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ESQ.

Esquire Financial Holdings Risk Analysis

Esquire Financial Holdings disclosed 45 risk factors in its most recent earnings report. Esquire Financial Holdings 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

Esquire Financial Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
ESESQ
79
Outperform
$699.14M15.7019.66%0.74%16.18%13.78%
75
Outperform
$700.35M10.7016.05%3.06%8.80%30.31%
73
Outperform
$686.92M8.8113.55%3.35%12.26%-6.93%
73
Outperform
$688.06M10.688.84%4.49%5.19%-10.86%
72
Outperform
$622.26M8.8911.84%1.49%40.43%545.45%
66
Neutral
$682.53M9.489.77%2.46%18.34%-4.12%
63
Neutral
$12.46B9.558.14%17103.96%12.70%-4.66%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ESQ
Esquire Financial Holdings
82.92
35.76
75.83%
HAFC
Hanmi Financial
22.87
7.95
53.28%
MBWM
Mercantile Bank
42.31
6.03
16.62%
EQBK
Equity Bancshares
38.49
5.49
16.64%
BFST
Business First Bancshares
23.05
2.82
13.94%
MCBS
MetroCity Bankshares
27.57
4.02
17.07%

Esquire Financial Holdings Corporate Events

Business Operations and StrategyFinancial Disclosures
Esquire Financial Reports Strong Q1 2025 Growth
Positive
Apr 24, 2025

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.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.