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 7.9% below its fair value

Earnings have grown 17.5% per year over the past 5 years

Pays a reliable dividend of 1.97%

Risk Analysis

No risks detected for EBTC from our risk checks.


Snowflake Analysis

Flawless balance sheet with proven 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

2.4%

EBTC

-2.3%

US Banks

-1.5%

US Market


1 Year Return

0.5%

EBTC

11.4%

US Banks

21.7%

US Market

Return vs Industry: EBTC underperformed the US Banks industry which returned 21.7% over the past year.

Return vs Market: EBTC underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

EBTCIndustryMarket
7 Day2.4%-2.3%-1.5%
30 Day-2.4%-5.4%1.4%
90 Day9.5%2.1%7.9%
1 Year2.7%0.5%14.7%11.4%24.3%21.7%
3 Year4.5%-1.1%28.6%19.5%49.5%39.9%
5 Year65.6%50.0%78.5%58.5%72.6%53.5%

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?

2.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EBTC ($32.45) is trading below our estimate of fair value ($35.23)

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 (11.9x) compared to the Banks industry average (12.8x).

PE vs Market: EBTC is good value based on its PE Ratio (11.9x) compared to the US market (18.9x).


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 (1.3x) 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?

2.4%

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 (25.4%) are higher than last year (21%).


Past Earnings Growth Analysis

Earnings Trend: EBTC's earnings have grown by 16.8% per year over the past 5 years.

Accelerating Growth: EBTC's earnings growth over the past year (27.3%) exceeds its 5-year average (16.8% per year).

Earnings vs Industry: EBTC earnings growth over the past year (18.4%) underperformed the Banks industry 24.5%.


Return on Equity

High ROE: EBTC's Return on Equity (11%) 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?

2.14%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Enterprise Bancorp before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company2.1%marketbottom25%1.4%markettop25%3.7%industryaverage2.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: EBTC's dividend (1.97%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: EBTC's dividend (1.97%) is low compared to the top 25% of dividend payers in the US market (3.66%).


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 (23%), 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

What is the CEO of Enterprise Bancorp's salary, the management and board of directors tenure and is there insider trading?

1.7yrs

Average management tenure


CEO

Jack Clancy (61yo)

13yrs

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 ($USD1.01M) is below average for companies of similar size in the US market ($USD1.70M).

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


Management Age and Tenure

1.7yrs

Average Tenure

61yo

Average Age

Experienced Management: EBTC's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Age and Tenure

11.7yrs

Average Tenure

64.5yo

Average Age

Experienced Board: EBTC's board of directors are seasoned and experienced ( 11.7 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$2124 Jan 20
Gino Baroni
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares0.69
Max PriceUS$29.95
BuyUS$1,96504 Dec 19
Luis Pedroso
EntityIndividual
Role
Member of the Board of Directors
Assistant Secretary & Director
Shares62
Max PriceUS$31.69
BuyUS$5,89404 Dec 19
Michael Putziger
EntityIndividual
Shares186
Max PriceUS$31.69
SellUS$9,43405 Nov 19
Ryan Dunn
EntityIndividual
Shares309
Max PriceUS$30.53
SellUS$16,50601 Nov 19
Ryan Dunn
EntityIndividual
Shares541
Max PriceUS$30.51
SellUS$1,77220 Sep 19
Diane Silva
EntityIndividual
Shares56
Max PriceUS$31.65
SellUS$29,89120 Sep 19
Diane Silva
EntityIndividual
Shares944
Max PriceUS$31.66
BuyUS$1,93905 Sep 19
Luis Pedroso
EntityIndividual
Role
Member of the Board of Directors
Assistant Secretary & Director
Shares65
Max PriceUS$29.84
BuyUS$5,84805 Sep 19
Michael Putziger
EntityIndividual
Shares196
Max PriceUS$29.84
BuyUS$28,47829 Jul 19
George Duncan
EntityIndividual
Role
Chairman of the Board
Founder & Executive Chairman of the Board
Shares1,000
Max PriceUS$28.48
BuyUS$5,80005 Jun 19
Michael Putziger
EntityIndividual
Shares203
Max PriceUS$28.57
BuyUS$1,91405 Jun 19
Luis Pedroso
EntityIndividual
Role
Member of the Board of Directors
Assistant Secretary & Director
Shares67
Max PriceUS$28.57
BuyUS$1,90206 Mar 19
Luis Pedroso
EntityIndividual
Role
Member of the Board of Directors
Assistant Secretary & Director
Shares59
Max PriceUS$32.23
BuyUS$5,80106 Mar 19
Michael Putziger
EntityIndividual
Shares180
Max PriceUS$32.23

Ownership Breakdown

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


Management Team

  • Jim Marcotte (61yo)

    Senior Advisor

    • Tenure: 0.3yrs
    • Compensation: US$452.67k
  • Richard Main (72yo)

    President & Director

    • Tenure: 31yrs
    • Compensation: US$649.83k
  • Jack Clancy (61yo)

    CEO & Director

    • Tenure: 13yrs
    • Compensation: US$1.01m
  • Luis Pedroso (59yo)

    Assistant Secretary & Director

    • Tenure: 5.7yrs
    • Compensation: US$50.72k
  • Joe Lussier (49yo)

    Executive VP

    • Tenure: 0.3yrs
  • Steve Irish (64yo)

    Executive VP

    • Compensation: US$555.08k
  • Chet Szablak (61yo)

    Chief Sales & Communications Customer Relationship Officer

    • John Koutsos (58yo)

      Secretary & Director

      • Tenure: 6.3yrs
      • Compensation: US$52.85k
    • Philip Nyman

      General Counsel

      • Keith Soucie (61yo)

        Executive VP & Chief Information Officer


        Board Members

        • James Conway (67yo)

          Vice Chairman & Lead Director

          • Tenure: 4.7yrs
          • Compensation: US$70.42k
        • Carol Reid (71yo)

          Independent Director

          • Tenure: 14yrs
          • Compensation: US$63.12k
        • George Duncan (79yo)

          Founder & Executive Chairman of the Board

          • Tenure: 24yrs
          • Compensation: US$923.56k
        • Richard Main (72yo)

          President & Director

          • Tenure: 31yrs
          • Compensation: US$649.83k
        • Ken Ansin (54yo)

          Director

          • Tenure: 2.5yrs
          • Compensation: US$49.92k
        • John Clementi (69yo)

          Independent Director

          • Tenure: 22yrs
          • Compensation: US$55.67k
        • Jack Clancy (61yo)

          CEO & Director

          • Tenure: 13yrs
          • Compensation: US$1.01m
        • Luis Pedroso (59yo)

          Assistant Secretary & Director

          • Tenure: 5.7yrs
          • Compensation: US$50.72k
        • Gino Baroni (62yo)

          Independent Director

          • Tenure: 9.3yrs
          • Compensation: US$59.32k
        • John Koutsos (58yo)

          Secretary & Director

          • Tenure: 6.3yrs
          • Compensation: US$52.85k

        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$382.739m
        • 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 Analysis2020/01/29 00:05
        End of Day Share Price2020/01/28 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.