NasdaqGS:EBTC

Stock Analysis Report

Executive Summary

Enterprise Bancorp, Inc. operates as the holding company for Enterprise Bank and Trust Company that provides banking products and services primarily in the Greater Merrimack Valley, Nashoba Valley, and North Central regions of Massachusetts and Southern New Hampshire.

Rewards

Trading at 8.8% below its fair value

Earnings grew by 18.4% over the past year

Pays a reliable dividend of 2.29%

Risk Analysis

No risks detected for EBTC from our risk checks.


Snowflake Analysis

Flawless balance sheet with solid track record and pays a dividend.


Similar Companies

Share Price & News

How has Enterprise Bancorp's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: EBTC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.1%

EBTC

-1.5%

US Banks

0.06%

US Market


1 Year Return

-2.8%

EBTC

9.7%

US Banks

19.4%

US Market

Return vs Industry: EBTC underperformed the US Banks industry which returned 12.1% over the past year.

Return vs Market: EBTC underperformed the US Market which returned 20.1% over the past year.


Shareholder returns

EBTCIndustryMarket
7 Day-1.1%-1.5%0.06%
30 Day-6.6%-2.8%1.1%
90 Day-1.1%0.3%8.9%
1 Year-0.6%-2.8%12.9%9.7%21.9%19.4%
3 Year-7.3%-12.3%22.5%13.7%48.9%39.3%
5 Year55.8%41.1%72.4%52.8%71.9%53.1%

Price Volatility Vs. Market

How volatile is Enterprise Bancorp's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Enterprise Bancorp undervalued compared to its fair value and its price relative to the market?

9.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EBTC ($30.62) is trading below our estimate of fair value ($33.57)

Significantly Below Fair Value: EBTC is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: EBTC is good value based on its PE Ratio (10.6x) compared to the Banks industry average (12.6x).

PE vs Market: EBTC is good value based on its PE Ratio (10.6x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate EBTC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: EBTC is overvalued based on its PB Ratio (1.2x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Enterprise Bancorp forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

2.2%

Forecasted Banks industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Enterprise Bancorp has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Enterprise Bancorp performed over the past 5 years?

17.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EBTC has high quality earnings.

Growing Profit Margin: EBTC's current net profit margins (26.1%) are higher than last year (24.4%).


Past Earnings Growth Analysis

Earnings Trend: EBTC's earnings have grown by 17.5% per year over the past 5 years.

Accelerating Growth: EBTC's earnings growth over the past year (18.4%) exceeds its 5-year average (17.5% per year).

Earnings vs Industry: EBTC earnings growth over the past year (18.4%) exceeded the Banks industry 12.2%.


Return on Equity

High ROE: EBTC's Return on Equity (11.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Enterprise Bancorp's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: EBTC has a low level of unsold assets or inventory.

Debt Coverage by Assets: EBTC's debt is not covered by short term assets (assets are 0.8x debt).


Financial Institutions Analysis

Asset Level: EBTC's level of assets compared to its equity is moderate.

Allowance for Bad Loans: EBTC has a sufficient allowance for bad loans.

Low Risk Liabilities: EBTC's liabilities are made up of primarily low risk sources of funding.

Loan Level: EBTC has an acceptable proportion of non-loan assets held.

Low Risk Deposits: EBTC's loans are broadly funded by customer deposits.

Level of Bad Loans: EBTC has an appropriate level of bad loans (0.49%)


Next Steps

Dividend

What is Enterprise Bancorp's current dividend yield, its reliability and sustainability?

2.31%

Current Dividend Yield


Dividend Yield vs Market

company2.3%marketbottom25%1.4%markettop25%3.7%industryaverage2.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: EBTC's dividend (2.29%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: EBTC's dividend (2.29%) is low compared to the top 25% of dividend payers in the US market (3.69%).


Stability and Growth of Payments

Stable Dividend: EBTC's dividends per share have been stable in the past 10 years.

Growing Dividend: EBTC's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (22.1%), EBTC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.8yrs

Average management tenure


CEO

Jack Clancy (61yo)

13.1yrs

Tenure

US$1,010,752

Compensation

Mr. John P. Clancy, Jr., also known as Jack, has been the Chief Executive Officer of Enterprise BanCorp., Inc. and Enterprise Bank and Trust Company, Inc. since January 1, 2007. Mr. Clancy served as the Ch ...


CEO Compensation Analysis

Compensation vs Market: Jack's total compensation ($USD1.01M) is below average for companies of similar size in the US market ($USD1.68M).

Compensation vs Earnings: Jack's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
George Duncan
Founder & Executive Chairman of the Board24.1yrsUS$923.56k3.49% $12.5m
John Clancy
CEO & Director13.1yrsUS$1.01m1.39% $5.0m
Richard Main
President & Director31.1yrsUS$649.83k1.97% $7.1m
Stephen Irish
Executive VP0yrsUS$555.08k0.37% $1.3m
James Marcotte
Senior Advisor0.3yrsUS$452.67k0.37% $1.3m
John Koutsos
Secretary & Director6.4yrsUS$52.85k0.29% $1.0m
Luis Pedroso
Assistant Secretary & Director5.8yrsUS$50.72k0.17% $598.4k
Joseph Lussier
Executive VP0.3yrsno data0.054% $193.8k
Keith Soucie
Executive VP & Chief Information Officer0yrsno data0.088% $314.8k
Philip Nyman
General Counsel0yrsno datano data

1.8yrs

Average Tenure

61yo

Average Age

Experienced Management: EBTC's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
George Duncan
Founder & Executive Chairman of the Board24.1yrsUS$923.56k3.49% $12.5m
John Clancy
CEO & Director13.1yrsUS$1.01m1.39% $5.0m
Richard Main
President & Director31.1yrsUS$649.83k1.97% $7.1m
John Koutsos
Secretary & Director6.4yrsUS$52.85k0.29% $1.0m
Luis Pedroso
Assistant Secretary & Director5.8yrsUS$50.72k0.17% $598.4k
James Conway
Vice Chairman & Lead Director4.8yrsUS$70.42k0.35% $1.2m
Carol Reid
Independent Director14.1yrsUS$63.12k0.26% $941.6k
Kenneth Ansin
Director2.6yrsUS$49.92k10.64% $38.2m
John Clementi
Independent Director22.1yrsUS$55.67k0.59% $2.1m
Gino Baroni
Independent Director9.4yrsUS$59.32k0.12% $436.1k

11.8yrs

Average Tenure

64.5yo

Average Age

Experienced Board: EBTC's board of directors are seasoned and experienced ( 11.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: EBTC insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Enterprise Bancorp, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Enterprise Bancorp, Inc.
  • Ticker: EBTC
  • Exchange: NasdaqGS
  • Founded: 1989
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$358.942m
  • Shares outstanding: 11.72m
  • Website: https://www.enterprisebanking.com

Number of Employees


Location

  • Enterprise Bancorp, Inc.
  • 222 Merrimack Street
  • Lowell
  • Massachusetts
  • 1852
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EBTCNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDFeb 2005

Biography

Enterprise Bancorp, Inc. operates as the holding company for Enterprise Bank and Trust Company that provides banking products and services primarily in the Greater Merrimack Valley, Nashoba Valley, and North Central regions of Massachusetts and Southern New Hampshire. The company offers commercial and retail deposit products, including transactional checking accounts, non-transactional savings and money market accounts, commercial sweep products, and term certificates of deposit. It also provides commercial mortgage loans, construction and land development loans, secured and unsecured commercial loans and lines of credit, and letters of credit, as well as equipment lease financing services; and conventional residential mortgage loans, home equity loans and lines, residential construction loans on primary and secondary residences, and secured and unsecured personal loans and lines of credit. In addition, the company offers cash management services; customized investment management and trust services to individuals, family groups, commercial businesses, trusts, foundations, non-profit organizations, and endowments; brokerage and management services to individual investors; and insurance products, such as property and casualty, employee benefits, and risk-management solutions. As of January 24, 2019, it had 24 full-service branches located in the Massachusetts communities of Lowell, Acton, Andover, Billerica, Chelmsford, Dracut, Fitchburg, Lawrence, Leominster, Methuen, Tewksbury, Tyngsborough, and Westford; and the New Hampshire communities of Derry, Hudson, Nashua, Pelham, Salem, and Windham. The company primarily serves business entities, non-profit organizations, professional practices, and individuals. Enterprise Bancorp, Inc. was founded in 1989 and is headquartered in Lowell, Massachusetts. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 00:42
End of Day Share Price2020/02/18 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.