Esquire Financial Holdings (ESQ) AI Stock Analysis

• Market Cap: $868.71M
• Dividend Yield: 0.66%
• Average Volume (3M): 64.09K
• Price to Earnings (P/E): 18.8
• Beta (1Y): 0.65
• Revenue Growth: 16.76%
• EPS Growth: 12.84%
• Country: US
• Employees: 138
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.38
• Shares Outstanding: 8,538,558
• 10 Day Avg. Volume: 85,983
• 30 Day Avg. Volume: 64,090
• PEG Ratio: 2.80
• Price to Book (P/B): 2.62
• Price to Sales (P/S): 4.50
• P/FCF Ratio: 15.91
• Enterprise Value/Market Cap: 0.76
• Enterprise Value/Revenue: 4.39
• Enterprise Value/Gross Profit: 5.19
• Enterprise Value/Ebitda: 10.06
• 1Y Price Target: $110.00
• Price Target Upside: 7.78% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 79 Outperform
• Price Target: ―

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

Revenue Growth

Strong revenue growth indicates effective market penetration and product demand, supporting long-term business expansion and stability.

Debt-Free Balance Sheet

A debt-free balance sheet enhances financial stability and flexibility, allowing the company to invest in growth opportunities without financial strain.

Strategic Initiatives

Strategic initiatives like partnerships and expansion into new markets position the company for sustained growth and competitive advantage.

Negative Factors

Free Cash Flow Conversion

Limited free cash flow conversion may hinder the company's ability to reinvest in business operations and growth, affecting long-term financial health.

Equity Ratio

A relatively low equity ratio may limit future leverage opportunities, potentially constraining growth and financial maneuverability.

Absence of EBITDA

Lack of EBITDA data can obscure true operational performance, making it harder to assess profitability and efficiency over time.

Esquire Financial Holdings Business Overview & Revenue Model

Company Description

Esquire Financial Holdings, Inc. operates as the bank holding company for Esquire Bank, National Association that provides commercial banking products and services to legal industry and small businesses, and commercial and retail customers in the United States. The company offers checking, savings, money market, and time deposits, as well as certificates of deposit. It also provides commercial loans, including short-term financing for inventory, receivables, the purchase of supplies, or other operating needs arising during the normal course of business, as well as loans to its qualified merchant customers; commercial lines of credit; consumer loans consisting of post-settlement consumer and structured settlement loans to plaintiffs and claimants, as well as loans to individuals for debt consolidation, medical expenses, living expenses, payment of outstanding bills, or other consumer needs; and real estate loans, such as multifamily, 1-4 family residential, commercial real estate, and construction loans, as well as merchant services. As of January 25, 2022, the company operated a full-service branch in Jericho, New York; and an administrative office in Boca Raton, Florida. Esquire Financial Holdings, Inc. was founded in 2006 and is headquartered in Jericho, New York.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	149.92M	138.27M	121.64M	85.92M	65.56M	53.28M
Gross Profit	126.84M	120.12M	109.00M	80.78M	57.77M	45.84M
EBITDA	65.41M	62.57M	58.42M	41.35M	24.94M	18.79M
Net Income	46.41M	43.66M	41.01M	28.52M	17.93M	12.62M
Balance Sheet
Total Assets	2.06B	1.89B	1.62B	1.40B	1.18B	936.71M
Cash, Cash Equivalents and Short-Term Investments	420.35M	368.07M	287.32M	273.39M	297.54M	182.84M
Total Debt	0.00	0.00	0.00	0.00	0.00	49.00K
Total Liabilities	1.80B	1.66B	1.42B	1.24B	1.04B	810.64M
Stockholders Equity	263.56M	237.09M	198.56M	158.16M	143.74M	126.08M
Cash Flow
Free Cash Flow	43.45M	39.06M	39.40M	37.56M	27.14M	12.45M
Operating Cash Flow	48.51M	42.21M	42.40M	38.80M	30.08M	15.59M
Investing Cash Flow	-326.10M	-308.27M	-215.40M	-221.50M	-170.49M	-135.44M
Financing Cash Flow	287.83M	227.17M	174.09M	197.67M	224.38M	123.23M

Esquire Financial Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 102.06
• 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 ESQ, the sentiment is Positive. The current price of 102.06 is above the 20-day moving average (MA) of 100.34, above the 50-day MA of 98.55, and above the 200-day MA of 87.53, indicating a bullish trend. The MACD of 1.58 indicates Negative momentum. The RSI at 55.66 is Neutral, neither overbought nor oversold. The STOCH value of 36.30 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	$868.71M	18.82	19.30%	0.66%	16.76%	12.84%
EQBK	79 Outperform	$789.67M	10.16	10.56%	1.55%	31.22%	533.61%
MCBS	75 Outperform	$715.57M	10.90	15.15%	3.39%	4.92%	20.83%
HAFC	72 Outperform	$743.51M	11.44	8.50%	4.29%	3.34%	-1.93%
BFST	72 Outperform	$704.23M	9.43	9.07%	2.37%	16.88%	3.07%
MBWM	70 Outperform	$729.89M	8.93	12.89%	3.29%	8.72%	-0.45%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

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.