NasdaqGS:EFSC

Stock Analysis Report

Enterprise Financial Services

Executive Summary

Enterprise Financial Services Corp operates as the financial holding company for Enterprise Bank & Trust that offers banking and wealth management services to individuals and corporate customers.


Snowflake Analysis

Flawless balance sheet established dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0.2%

EFSC

0.3%

US Banks

0.9%

US Market


1 Year Return

-1.2%

EFSC

12.0%

US Banks

20.0%

US Market

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

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


Shareholder returns

EFSCIndustryMarket
7 Day0.2%0.3%0.9%
30 Day-6.7%-1.3%1.4%
90 Day0.2%1.2%8.8%
1 Year0.2%-1.2%15.3%12.0%22.5%20.0%
3 Year2.7%-0.8%25.1%16.2%49.9%40.3%
5 Year138.8%125.2%76.7%56.6%73.2%54.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

38.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EFSC ($45.19) is trading below our estimate of fair value ($73.87)

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


Price To Earnings Ratio

PE vs Industry: EFSC is poor value based on its PE Ratio (12.7x) compared to the Banks industry average (12.6x).

PE vs Market: EFSC is good value based on its PE Ratio (12.7x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: EFSC is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: EFSC is overvalued based on its PB Ratio (1.4x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Enterprise Financial Services forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

9.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EFSC's forecast earnings growth (9.6% per year) is above the savings rate (1.7%).

Earnings vs Market: EFSC's earnings (9.6% per year) are forecast to grow slower than the US market (14.6% per year).

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

Revenue vs Market: EFSC's revenue (5.9% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: EFSC's revenue (5.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EFSC's Return on Equity is forecast to be low in 3 years time (11.7%).


Next Steps

Past Performance

How has Enterprise Financial Services performed over the past 5 years?

23.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EFSC has high quality earnings.

Growing Profit Margin: EFSC's current net profit margins (32.9%) are lower than last year (39.9%).


Past Earnings Growth Analysis

Earnings Trend: EFSC's earnings have grown significantly by 23.3% per year over the past 5 years.

Accelerating Growth: EFSC's earnings growth over the past year (3.9%) is below its 5-year average (23.3% per year).

Earnings vs Industry: EFSC earnings growth over the past year (3.9%) underperformed the Banks industry 12.2%.


Return on Equity

High ROE: EFSC's Return on Equity (10.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Enterprise Financial Services'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: EFSC has a low level of unsold assets or inventory.

Debt Coverage by Assets: EFSC's debt is not covered by short term assets (assets are 0.3x debt).


Financial Institutions Analysis

Asset Level: EFSC's level of assets compared to its equity is low.

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

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

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

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

Level of Bad Loans: EFSC has an appropriate level of bad loans (0.5%)


Next Steps

Dividend

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

1.59%

Current Dividend Yield


Upcoming Dividend Payment

TodayFeb 18 2020Ex Dividend DateMar 13 2020Dividend Pay DateMar 31 202018 days from Ex DividendBuy in the next 23 days to receive upcoming dividend

Dividend Yield vs Market

company1.6%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years1.6%

Current dividend yield vs market & industry

Notable Dividend: EFSC's dividend (1.59%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: EFSC's dividend (1.59%) is low compared to the top 25% of dividend payers in the US market (3.69%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (17.4%), EFSC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: EFSC's dividends in 3 years are forecast to be well covered by earnings (16.9% payout ratio).


Next Steps

Management

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

6.0yrs

Average management tenure


CEO

Jim Lally (51yo)

2.8yrs

Tenure

US$1,141,822

Compensation

Mr. James Brian Lally, also known as Jim, is the President, Chief Executive Officer and Director of Enterprise Financial Services Corp (NASDAQ: EFSC) since August 9, 2016 & May 2, 2017 respectively. Throug ...


CEO Compensation Analysis

Compensation vs Market: Jim's total compensation ($USD1.14M) is below average for companies of similar size in the US market ($USD2.48M).

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


Leadership Team

NamePositionTenureCompensationOwnership
James Lally
President2.8yrsUS$1.14m0.26% $3.1m
Keene Turner
Executive VP & CFO6.3yrsUS$842.56k0.11% $1.4m
Nicole Iannacone
Senior VP6.1yrsUS$419.94k0.0092% $110.1k
Scott Goodman
Executive Vice President0yrsUS$692.47k0.20% $2.3m
Douglas Bauche
Chief Credit Officer of Enterprise Bank & Trust3.8yrsUS$488.84k0.032% $384.6k
Troy Dumlao
Senior VP & Chief Accounting Officer0.8yrsno data0.00072% $8.6k
Mark Ponder
Executive VP & Chief Administrative Officer0yrsUS$380.28k0.042% $502.9k
Linda Hanson
Vice Chairman of Enterprise Bank & Trust - Kansas City0yrsUS$321.40kno data
Richard Jensen
Vice Chairman of Enterprise Trust8.1yrsno datano data
Loren White
Senior VP & Head of HR of Enterprise Bank & Trust6yrsno data0.025% $300.7k

6.0yrs

Average Tenure

50yo

Average Age

Experienced Management: EFSC's management team is seasoned and experienced (6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
James Lally
President2.8yrsUS$1.14m0.26% $3.1m
Scott Goodman
Executive Vice President0yrsUS$692.47k0.20% $2.3m
C. Burdette
Executive VP and Chairman of the Kansas City Region - Enterprise Bank & Trust0yrsUS$344.81kno data
John Barry
Chairman & CEO of Enterprise Arizona Region0yrsUS$378.11kno data
Sandra Van Trease
Independent Director15.1yrsUS$61.50k0.17% $2.1m
Stephen Marsh
Chairman of Enterprise Bank & Trust16.8yrsUS$514.90kno data
Robert Guest
Independent Director17.8yrsUS$65.70k0.33% $3.9m
John Eulich
Chairman of the Board3.8yrsUS$108.50k0.22% $2.6m
Judith Heeter
Independent Director8yrsUS$59.75k0.039% $466.0k
Michael Holmes
Independent Director4.3yrsUS$63.75kno data

8.0yrs

Average Tenure

61.5yo

Average Age

Experienced Board: EFSC's board of directors are considered experienced (8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 12.8%.


Top Shareholders

Company Information

Enterprise Financial Services Corp's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Enterprise Financial Services Corp
  • Ticker: EFSC
  • Exchange: NasdaqGS
  • Founded: 1988
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$1.199b
  • Shares outstanding: 26.54m
  • Website: https://www.enterprisebank.com

Number of Employees


Location

  • Enterprise Financial Services Corp
  • 150 North Meramec Avenue
  • Clayton
  • Missouri
  • 63105
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EFSCNasdaqGS (Nasdaq Global Select)YesCommon SharesUSUSDApr 2001

Biography

Enterprise Financial Services Corp operates as the financial holding company for Enterprise Bank & Trust that offers banking and wealth management services to individuals and corporate customers. The company offers demand deposits, interest-bearing transaction accounts, money market accounts, and savings deposits, as well as certificates of deposit. It also provides commercial and industrial, commercial real estate, real estate construction and development, residential real estate, and consumer loans. In addition, the company provides treasury management and international trade services; tax credit brokerage services consisting of the acquisition of tax credits and sale of these tax credits to clients; and financial and estate planning, investment management, and trust services to businesses, individuals, institutions, retirement plans, and non-profit organizations. Further, it offers fiduciary, financial advisory, and merchant services; and debit and credit cards. Additionally, the company provides international banking, Internet and mobile banking, remote deposit capture, positive pay, fraud detection and prevention, automated payable, check imaging, and statement and document imaging services; and cash management products, controlled disbursements, repurchase agreements, and sweep investment accounts. As of December 31, 2018, it had 19 banking locations and 3 limited service facilities in the St. Louis metropolitan area; 7 banking locations in the Kansas City metropolitan area; and 2 banking locations in the Phoenix metropolitan area. Enterprise Financial Services Corp was founded in 1988 and is headquartered in Clayton, Missouri. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 23:36
End of Day Share Price2020/02/14 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.