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.

Snowflake

Flawless balance sheet average dividend payer.


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

-1.0%

EBTC

1.1%

US Banks

0.3%

US Market


1 Year Return

-0.03%

EBTC

10.6%

US Banks

12.5%

US Market

Return vs Industry: EBTC underperformed the US Banks industry which returned 10.6% over the past year.

Return vs Market: EBTC underperformed the US Market which returned 12.5% over the past year.


Shareholder returns

EBTCIndustryMarket
7 Day-1.0%1.1%0.3%
30 Day7.9%9.8%4.1%
90 Day9.4%15.5%5.6%
1 Year2.1%-0.03%13.9%10.6%15.0%12.5%
3 Year0.9%-4.4%40.6%30.7%49.1%39.4%
5 Year46.7%32.9%73.9%54.7%62.8%44.7%

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?

11.3x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: EBTC ($30.7) is trading above our estimate of fair value ($27.96)

Significantly Below Fair Value: EBTC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: EBTC is good value based on its PE Ratio (11.3x) compared to the Banks industry average (12.7x).

PE vs Market: EBTC is good value based on its PE Ratio (11.3x) compared to the US market (18.3x).


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?

3.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EBTC's forecast earnings growth (3.9% per year) is above the savings rate (2.7%).

Earnings vs Market: EBTC's earnings (3.9% per year) are forecast to grow slower than the US market (14.2% per year).

High Growth Earnings: EBTC's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if EBTC's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if EBTC's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if EBTC's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Enterprise Bancorp performed over the past 5 years?

16.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EBTC has a high level of non-cash 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 (27.3%) underperformed the Banks industry 27.7%.


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 covered by short term assets (assets are 5.4x 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?

2.08%

Current Dividend Yield


Dividend Yield vs Market

company2.1%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: EBTC's dividend (2.08%) is higher than the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: EBTC's dividend (2.08%) is low compared to the top 25% of dividend payers in the US market (3.67%).


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?

1.5yrs

Average management tenure


CEO

Jack Clancy (61yo)

12.8yrs

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 ($USD1.01M) is below average for companies of similar size in the US market ($USD1.73M).

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


Management Age and Tenure

1.5yrs

Average Tenure

61yo

Average Age

Experienced Management: EBTC's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Age and Tenure

15.3yrs

Average Tenure

68yo

Average Age

Experienced Board: EBTC's board of directors are seasoned and experienced ( 15.3 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$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
BuyUS$5,36306 Dec 18
Michael Putziger
EntityIndividual
Shares149
Max PriceUS$35.99
BuyUS$1,80006 Dec 18
Luis Pedroso
EntityIndividual
Role
Member of the Board of Directors
Assistant Secretary & Director
Shares50
Max PriceUS$35.99
BuyUS$30,00020 Nov 18
George Duncan
EntityIndividual
Role
Chairman of the Board
Founder & Executive Chairman of the Board
Shares1,000
Max PriceUS$30.00

Ownership Breakdown

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


Management Team

  • Jim Marcotte (61yo)

    Senior Advisor

    • Tenure: 0.08yrs
    • Compensation: US$452.67k
  • George Duncan (79yo)

    Founder & Executive Chairman of the Board

    • Tenure: 23.8yrs
    • Compensation: US$923.56k
  • Richard Main (72yo)

    President & Director

    • Tenure: 30.8yrs
    • Compensation: US$649.83k
  • Jack Clancy (61yo)

    CEO & Director

    • Tenure: 12.8yrs
    • Compensation: US$1.01m
  • Luis Pedroso (59yo)

    Assistant Secretary & Director

    • Tenure: 5.5yrs
    • Compensation: US$50.72k
  • Joe Lussier (49yo)

    Executive VP

    • Tenure: 0.08yrs
  • Steve Irish (64yo)

    Executive VP

    • Tenure: 0yrs
    • Compensation: US$555.08k
  • John Koutsos (58yo)

    Secretary & Director

    • Tenure: 6.2yrs
    • Compensation: US$52.85k
  • Philip Nyman

    General Counsel

    • Tenure: 0yrs
  • Keith Soucie (61yo)

    Executive VP & Chief Information Officer

    • Tenure: 0yrs

Board Members

  • James Conway (67yo)

    Vice Chairman & Lead Director

    • Tenure: 4.5yrs
    • Compensation: US$70.42k
  • Carol Reid (71yo)

    Independent Director

    • Tenure: 13.8yrs
    • Compensation: US$63.12k
  • George Duncan (79yo)

    Founder & Executive Chairman of the Board

    • Tenure: 23.8yrs
    • Compensation: US$923.56k
  • Richard Main (72yo)

    President & Director

    • Tenure: 30.8yrs
    • Compensation: US$649.83k
  • John Clementi (69yo)

    Independent Director

    • Tenure: 21.8yrs
    • Compensation: US$55.67k
  • Carole Cowan (76yo)

    Independent Director

    • Tenure: 20.8yrs
    • Compensation: US$58.22k
  • Jack Clancy (61yo)

    CEO & Director

    • Tenure: 12.8yrs
    • Compensation: US$1.01m
  • Luis Pedroso (59yo)

    Assistant Secretary & Director

    • Tenure: 5.5yrs
    • Compensation: US$50.72k
  • Normand Deschene (64yo)

    Director

    • Tenure: 8.4yrs
    • Compensation: US$52.72k
  • John Koutsos (58yo)

    Secretary & Director

    • Tenure: 6.2yrs
    • 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$359.609m
  • Shares outstanding: 11.71m
  • 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 Nor ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/11 23:52
End of Day Share Price2019/11/11 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.