Enterprise Bancorp
Market Cap
US$358.9m
Last Updated
2020/02/19 00:42 UTC
Data Sources
Company Financials
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
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
| EBTC | Industry | Market | |
|---|---|---|---|
| 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 Year | 55.8%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
2 weeks ago | Simply Wall St
Is It Smart To Buy Enterprise Bancorp, Inc. (NASDAQ:EBTC) Before It Goes Ex-Dividend?2 weeks ago | Simply Wall St
Peter Rayno Just Bought Shares In Enterprise Bancorp, Inc. (NASDAQ:EBTC)1 month ago | Simply Wall St
Enterprise Bancorp (NASDAQ:EBTC) Shareholders Have Enjoyed A 49% Share Price GainValuation
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
- Examine whether Enterprise Bancorp is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
- Explore growth companies in the Banks industry.
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
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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder & Executive Chairman of the Board | 24.1yrs | US$923.56k | 3.49% $12.5m | |
| CEO & Director | 13.1yrs | US$1.01m | 1.39% $5.0m | |
| President & Director | 31.1yrs | US$649.83k | 1.97% $7.1m | |
| Executive VP | 0yrs | US$555.08k | 0.37% $1.3m | |
| Senior Advisor | 0.3yrs | US$452.67k | 0.37% $1.3m | |
| Secretary & Director | 6.4yrs | US$52.85k | 0.29% $1.0m | |
| Assistant Secretary & Director | 5.8yrs | US$50.72k | 0.17% $598.4k | |
| Executive VP | 0.3yrs | no data | 0.054% $193.8k | |
| Executive VP & Chief Information Officer | 0yrs | no data | 0.088% $314.8k | |
| General Counsel | 0yrs | no data | no 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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder & Executive Chairman of the Board | 24.1yrs | US$923.56k | 3.49% $12.5m | |
| CEO & Director | 13.1yrs | US$1.01m | 1.39% $5.0m | |
| President & Director | 31.1yrs | US$649.83k | 1.97% $7.1m | |
| Secretary & Director | 6.4yrs | US$52.85k | 0.29% $1.0m | |
| Assistant Secretary & Director | 5.8yrs | US$50.72k | 0.17% $598.4k | |
| Vice Chairman & Lead Director | 4.8yrs | US$70.42k | 0.35% $1.2m | |
| Independent Director | 14.1yrs | US$63.12k | 0.26% $941.6k | |
| Director | 2.6yrs | US$49.92k | 10.64% $38.2m | |
| Independent Director | 22.1yrs | US$55.67k | 0.59% $2.1m | |
| Independent Director | 9.4yrs | US$59.32k | 0.12% $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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| EBTC | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Feb 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.Â
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/19 00:42 |
| End of Day Share Price | 2020/02/18 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.