NasdaqGS:EBTC

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

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. More Details

Rewards

Trading at 41.3% below our estimate of its fair value

Pays a reliable dividend of 2.95%

Risk Analysis

No risks detected for EBTC from our risk checks.


Snowflake Analysis

Flawless balance sheet, good value 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

5.7%

EBTC

3.9%

US Banks

-0.4%

US Market


1 Year Return

-21.4%

EBTC

-26.3%

US Banks

18.3%

US Market

Return vs Industry: EBTC exceeded the US Banks industry which returned -26.3% over the past year.

Return vs Market: EBTC underperformed the US Market which returned 18.3% over the past year.


Shareholder returns

EBTCIndustryMarket
7 Day5.7%3.9%-0.4%
30 Day17.1%12.0%6.6%
90 Day9.4%5.4%8.6%
1 Year-19.2%-21.4%-23.6%-26.3%21.0%18.3%
3 Year-30.8%-35.1%-16.3%-23.3%42.1%32.7%
5 Year13.3%2.2%21.9%6.8%85.6%64.7%

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?

41.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EBTC ($23.74) is trading below our estimate of fair value ($40.44)

Significantly Below Fair Value: EBTC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: EBTC is good value based on its PE Ratio (9.3x) compared to the US Banks industry average (10.2x).

PE vs Market: EBTC is good value based on its PE Ratio (9.3x) compared to the US market (19.2x).


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's PB Ratio (0.9x) is in line with the US Banks industry average.


Next Steps

Future Growth

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

15.3%

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?

15.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EBTC has high quality earnings.

Growing Profit Margin: EBTC's current net profit margins (22.9%) are lower than last year (25.4%).


Past Earnings Growth Analysis

Earnings Trend: EBTC's earnings have grown by 15.2% per year over the past 5 years.

Accelerating Growth: EBTC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: EBTC had negative earnings growth (-5.2%) over the past year, making it difficult to compare to the Banks industry average (-3.2%).


Return on Equity

High ROE: EBTC's Return on Equity (9.3%) is considered low.


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


Financial Institutions Analysis

Asset Level: EBTC's Assets to Equity ratio (12.5x) is moderate.

Allowance for Bad Loans: EBTC has a sufficient allowance for bad loans (198%).

Low Risk Liabilities: 97% of EBTC's liabilities are made up of primarily low risk sources of funding.

Loan Level: EBTC has an appropriate level of Loans to Assets ratio (77%).

Low Risk Deposits: EBTC's Loans to Deposits ratio (86%) is appropriate.

Level of Bad Loans: EBTC has an appropriate level of bad loans (0.7%).


Next Steps

Dividend

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

2.95%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: EBTC's dividend (2.95%) is higher than the bottom 25% of dividend payers in the US market (1.63%).

High Dividend: EBTC's dividend (2.95%) is low compared to the top 25% of dividend payers in the US market (4.56%).


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 reasonably low payout ratio (26.2%), 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?

2.4yrs

Average management tenure


CEO

Jack Clancy (62 yo)

13.75yrs

Tenure

US$1,072,037

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 ($USD1.07M) is about average for companies of similar size in the US market ($USD1.24M).

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 Board24.75yrsUS$928.86k3.51%
$ 9.8m
John Clancy
CEO & Director13.75yrsUS$1.07m1.42%
$ 4.0m
Richard Main
President & Director31.75yrsUS$657.43k1.95%
$ 5.5m
Joseph Lussier
Executive VP1yrUS$874.64k0.061%
$ 170.6k
Stephen Irish
Executive VPno dataUS$567.95k0.38%
$ 1.1m
James Marcotte
Senior Advisor1yrUS$409.74k0.37%
$ 1.0m
John Koutsos
Secretary & Independent Director7.08yrsUS$52.56k0.31%
$ 867.5k
Luis Pedroso
Assistant Secretary & Independent Director6.42yrsUS$50.36k0.18%
$ 515.3k
Keith Soucie
Executive VP & Chief Information Officerno datano data0.096%
$ 269.5k
Philip Nyman
General Counselno datano datano data
Chester Szablak
Chief Sales & Community Customer Relationship Officerno datano data0.29%
$ 816.3k
Jamie Gabriel
Chief Human Resources Officerno datano data0.086%
$ 240.0k

2.4yrs

Average Tenure

62yo

Average Age

Experienced Management: EBTC's management team is considered experienced (2.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
George Duncan
Founder & Executive Chairman of the Board24.75yrsUS$928.86k3.51%
$ 9.8m
John Clancy
CEO & Director13.75yrsUS$1.07m1.42%
$ 4.0m
Richard Main
President & Director31.75yrsUS$657.43k1.95%
$ 5.5m
John Koutsos
Secretary & Independent Director7.08yrsUS$52.56k0.31%
$ 867.5k
Luis Pedroso
Assistant Secretary & Independent Director6.42yrsUS$50.36k0.18%
$ 515.3k
James Conway
Independent Vice Chairman & Lead Director5.42yrsUS$69.16k0.35%
$ 977.4k
Carol Reid
Independent Director14.75yrsUS$60.06k0.27%
$ 744.5k
Kenneth Ansin
Director3.25yrsUS$51.36k10.52%
$ 29.5m
John Clementi
Independent Director22.75yrsUS$55.16k0.60%
$ 1.7m
Carole Cowan
Independent Director21.75yrsUS$58.46k0.18%
$ 507.9k
Nickolas Stavropoulos
Independent Director0.083yrUS$18.65k0.041%
$ 115.1k
Gino Baroni
Independent Director10.08yrsUS$59.56k0.12%
$ 349.4k

12.4yrs

Average Tenure

65.5yo

Average Age

Experienced Board: EBTC's board of directors are seasoned and experienced ( 12.4 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$280.161m
  • Shares outstanding: 11.80m
  • 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 Analysis2020/10/25 00:24
End of Day Share Price2020/10/23 00:00
Earnings2020/09/30
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.