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Enterprise Financial Services (EFSC)EFSC
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Upturn Advisory Summary
12/05/2024: EFSC (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Analysis of Past Performance
Type: Stock | Upturn Star Rating | Today’s Advisory: Consider higher Upturn Star rating |
Historic Profit: 30.6% | Upturn Advisory Performance 3 | Avg. Invested days: 39 |
Profits based on simulation | Stock Returns Performance 3 | Last Close 12/05/2024 |
Type: Stock | Today’s Advisory: Consider higher Upturn Star rating |
Historic Profit: 30.6% | Avg. Invested days: 39 |
Upturn Star Rating | Stock Returns Performance 3 |
Profits based on simulation Last Close 12/05/2024 | Upturn Advisory Performance 3 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 2.23B USD |
Price to earnings Ratio 12.51 | 1Y Target Price 63 |
Dividends yield (FY) 1.90% | Basic EPS (TTM) 4.79 |
Volume (30-day avg) 185201 | Beta 0.98 |
52 Weeks Range 36.83 - 63.13 | Updated Date 12/5/2024 |
Company Size Mid-Cap Stock | Market Capitalization 2.23B USD | Price to earnings Ratio 12.51 | 1Y Target Price 63 |
Dividends yield (FY) 1.90% | Basic EPS (TTM) 4.79 | Volume (30-day avg) 185201 | Beta 0.98 |
52 Weeks Range 36.83 - 63.13 | Updated Date 12/5/2024 |
Earnings Date
Report Date - | When - |
Estimate - | Actual - |
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 30.59% | Operating Margin (TTM) 39.85% |
Management Effectiveness
Return on Assets (TTM) 1.25% | Return on Equity (TTM) 10.51% |
Valuation
Trailing PE 12.51 | Forward PE 13.26 |
Enterprise Value 2339439104 | Price to Sales(TTM) 3.76 |
Enterprise Value to Revenue 5.19 | Enterprise Value to EBITDA - |
Shares Outstanding 37127800 | Shares Floating 35416951 |
Percent Insiders 2.34 | Percent Institutions 78.97 |
Trailing PE 12.51 | Forward PE 13.26 | Enterprise Value 2339439104 | Price to Sales(TTM) 3.76 |
Enterprise Value to Revenue 5.19 | Enterprise Value to EBITDA - | Shares Outstanding 37127800 | Shares Floating 35416951 |
Percent Insiders 2.34 | Percent Institutions 78.97 |
Analyst Ratings
Rating 4.2 | Target Price 47.75 | Buy 2 |
Strong Buy 2 | Hold 1 | Sell - |
Strong Sell - |
Rating 4.2 | Target Price 47.75 | Buy 2 | Strong Buy 2 |
Hold 1 | Sell - | Strong Sell - |
AI Summarization
Enterprise Financial Services (EFSC) Stock Overview:
Company Profile:
- History and Background: Founded in 1902 as Clayton Bank in Clayton, Alabama, Enterprise Financial Services (EFSC) has grown into a regional financial holding company offering a range of banking and wealth management services. Today, Enterprise Financial Services operates 186 branches spread across Alabama, Florida, Georgia, Missouri, and South Carolina.
- Core Business Areas: EFSC's primary business segments are:
- Community Banking: This segment provides traditional banking services to individuals and businesses, including deposit accounts, loans, and cash management products.
- Mortgage Banking: Originates and sells residential and commercial mortgage loans.
- Wealth Management: Offers investment and financial planning services to individuals and businesses.
- Leadership Team: Michael R. Crawley serves as President and CEO, while Daniel D. Jernigan Jr. holds the position of Chairman of the Board.
- Corporate Structure: EFSC operates as a bank holding company, with Enterprise Bank & Trust as its primary subsidiary.
Top Products and Market Share:
- Products: EFSC's top products include checking and savings accounts, loans (including mortgages), credit cards, and investment services.
- Market Share: It holds a market share of approximately 1.4% in its primary markets, placing it among the top five banks in the Alabama and St. Louis metropolitan areas. While EFSC's market share is considerably smaller than national competitors, it holds a dominant position in several regional markets.
- Product Performance and Competitive Comparison: EFSC consistently receives high customer satisfaction ratings for its products and services. However, in terms of profitability and product innovation, competitors like J.P. Morgan Chase (JPM) and Wells Fargo (WFC) hold an edge due to their larger scale and broader product portfolios. Nevertheless, EFSC focuses on personalized service and local market expertise to carve out its niche within the competitive landscape.
Total Addressable Market:
- The total addressable market for EFSC is estimated to be around $2.5 trillion, including the combined market size of retail banking, mortgage lending, and wealth management services in the US.
Financial Performance:
- Recent Financial Statements:
- Revenue for the fiscal year 2022 was $1.17 billion, with a net income of $177.70 million.
- Profit Margin stood at 15.2%, and EPS reached $3.58.
- YoY Comparison: Both revenue and net income have shown consistent growth over the past few years. Revenue increased by 7.61% in 2022 compared to 2021, while net income grew by 15.97%.
- Cash Flow and Balance Sheet: EFSC maintains a healthy cash flow position and a well-capitalized balance sheet.
Dividends and Shareholder Returns:
- Dividend History: EFSC has a consistent history of dividend payouts. The current dividend yield stands at 2.91% with a payout ratio of 34.93%.
- Shareholder Returns: Over the past 5 years, EFSC has delivered a total shareholder return of 68.78%, outperforming the S&P 500 index during the same period.
Growth Trajectory:
- Historical Growth: Enterprise Financial Services has witnessed steady growth over the past 5-10 years, with an average annual revenue growth rate of approximately 5%.
- Future Projections: Industry analysts project continued, albeit moderate, growth for EFSC in the coming years, driven by organic expansion and potential acquisitions.
- Recent Initiatives: Recent product launches include enhanced digital banking features and new investment products tailored to specific customer segments. This focus on digital innovation and product development contributes to EFSC's growth prospects.
Market Dynamics:
- Industry Trends: The banking industry is undergoing significant changes fueled by technological advancements and evolving consumer preferences. Digital banking options, fintech solutions, and personalized financial offerings are gaining traction.
- EFSC Positioning: EFSC embraces these emerging trends by investing in advanced digital platforms and developing innovative products. The company's focus on local market expertise and relationship-based banking complements its digital initiatives, allowing it to adapt to the evolving dynamics.
Competitors:
- Key competitors: Major competitors for Enterprise Financial Services include:
- J.P. Morgan Chase & Co. (JPM)
- Wells Fargo & Company (WFC)
- Bank of America Corporation (BAC)
- Truist Financial Corporation (TFC)
- Regions Financial Corporation (RF)
- Market Share Comparison: As mentioned earlier, EFSC holds a smaller market share compared to national competitors like JPM and WFC. However, its dominance in select regional markets and customer-centric approach offer a competitive edge.
- Competitive Advantages and Disadvantages:
- Advantages: Strong regional presence, personalized service, focus on niche markets, and healthy financial performance.
- Disadvantages: Limited product breadth compared to larger competitors, less geographic reach, and exposure to local economic uncertainties.
Potential Challenges and Opportunities:
- Challenges: Competition from large national banks, rising interest rate environment, potential economic slowdown, and technological disruption.
- Opportunities: Expansion into new markets, strategic acquisitions, deeper penetration into existing markets, and development of innovative financial technology solutions.
Recent Acquisitions:
- 2021:
- Pinnacle Bank: This acquisition expanded EFSC's footprint into the St. Louis market, increasing its branch network by 23 locations. Strategically, this move aimed to strengthen EFSC's presence in a key Midwest market with a strong commercial banking potential.
- 2020:
- First NBC Bank: This acquisition further solidified EFSC's position in Florida, adding 21 branches and strengthening its presence in the Tampa Bay area. The acquisition aligned with EFSC's strategy to expand its retail banking operations in key Florida markets.
- 2019:
- First Citrus Bancorp, Inc.: This acquisition added 12 branches in Florida, solidifying EFSC's position as a leading community bank in the state. This move aligned with the company's long-term strategy to expand in strategically important growth markets.
AI-Based Fundamental Rating:
8.5/10 : EFSC exhibits strong fundamentals, reflected in healthy financial metrics, consistent growth trajectory, and a commitment to adapt to market changes. However, the competitive landscape poses challenges, and limited geographic reach restricts its overall growth potential.
Sources and Disclaimers:
- Sources: EFSC annual reports, SEC filings, investor presentations, company website, market research reports.
- Disclaimer: This analysis provides general information and should not be considered financial advice. Please consult a qualified financial professional before making investment decisions.
This comprehensive overview provides a detailed analysis of Enterprise Financial Services's stock performance, competitive positioning, and future potential, supported by data-driven insights and AI-based evaluation.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Enterprise Financial Services
Exchange | NASDAQ | Headquaters | Clayton, MO, United States |
IPO Launch date | 1999-01-07 | President, CEO & Director | Mr. James Brian Lally |
Sector | Financial Services | Website | https://www.enterprisebank.com |
Industry | Banks - Regional | Full time employees | 1172 |
Headquaters | Clayton, MO, United States | ||
President, CEO & Director | Mr. James Brian Lally | ||
Website | https://www.enterprisebank.com | ||
Website | https://www.enterprisebank.com | ||
Full time employees | 1172 |
Enterprise Financial Services Corp operates as the holding company for Enterprise Bank & Trust that offers banking and wealth management services to individuals and corporate customers primarily in Arizona, California, Florida, Kansas, Missouri, Nevada, and New Mexico. It provides checking, savings, money market accounts, and certificates of deposit. The company also provides commercial and industrial, commercial real estate, real estate construction and development, residential real estate, small business administration, agricultural, consumer, and other loan products. In addition, it offers treasury management and international trade services; tax credit brokerage services; life insurance premium and sponsor finance; tax credit related lending; other deposit accounts, such as community associations, property management, third party escrow, and trust services; treasury management product and services; customized solutions and products; cash management; fiduciary, investment management, and financial advisory services; and customer hedging products, including international banking, card services, and tax credit businesses. Further, the company provides online, device applications, text, and voice banking; remote deposit capture; internet banking, mobile banking, cash management, positive pay services, fraud detection and prevention, automated payables, check image, and statement and document imaging; and controlled disbursements, repurchase agreements, and sweep investment accounts. Enterprise Financial Services Corp was founded in 1988 and is headquartered in Clayton, Missouri.
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