NasdaqCM:EGBN

Stock Analysis Report

Executive Summary

Eagle Bancorp, Inc. operates as the bank holding company for EagleBank that provides commercial and consumer banking services primarily in the United States.

Rewards

Trading at 48% below its fair value

Earnings are forecast to grow 1.9% per year

Risk Analysis

Unstable dividend track record



Snowflake Analysis

Flawless balance sheet and good value.


Similar Companies

Share Price & News

How has Eagle Bancorp's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.1%

EGBN

-1.5%

US Banks

0.06%

US Market


1 Year Return

-23.9%

EGBN

9.7%

US Banks

19.4%

US Market

Return vs Industry: EGBN underperformed the US Banks industry which returned 9.7% over the past year.

Return vs Market: EGBN underperformed the US Market which returned 19.4% over the past year.


Shareholder returns

EGBNIndustryMarket
7 Day-0.1%-1.5%0.06%
30 Day-3.7%-2.8%1.1%
90 Day0.02%0.3%8.9%
1 Year-22.8%-23.9%12.9%9.7%21.9%19.4%
3 Year-27.6%-28.6%22.5%13.7%48.9%39.3%
5 Year24.0%22.3%72.4%52.8%71.9%53.1%

Price Volatility Vs. Market

How volatile is Eagle Bancorp's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Eagle Bancorp undervalued compared to its fair value and its price relative to the market?

48.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EGBN ($44.43) is trading below our estimate of fair value ($85.45)

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


Price To Earnings Ratio

PE vs Industry: EGBN is good value based on its PE Ratio (10.6x) compared to the Banks industry average (12.6x).

PE vs Market: EGBN is good value based on its PE Ratio (10.6x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: EGBN is poor value based on its PEG Ratio (5.6x)


Price to Book Ratio

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


Next Steps

Future Growth

How is Eagle Bancorp forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

1.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EGBN's forecast earnings growth (1.9% per year) is above the savings rate (1.7%).

Earnings vs Market: EGBN's earnings (1.9% per year) are forecast to grow slower than the US market (14.2% per year).

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

Revenue vs Market: EGBN's revenue (5.7% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: EGBN's revenue (5.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EGBN's Return on Equity is forecast to be low in 3 years time (11%).


Next Steps

Past Performance

How has Eagle Bancorp performed over the past 5 years?

17.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EGBN has high quality earnings.

Growing Profit Margin: EGBN's current net profit margins (42.5%) are lower than last year (46%).


Past Earnings Growth Analysis

Earnings Trend: EGBN's earnings have grown by 17.8% per year over the past 5 years.

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

Earnings vs Industry: EGBN had negative earnings growth (-6.1%) over the past year, making it difficult to compare to the Banks industry average (12.3%).


Return on Equity

High ROE: EGBN's Return on Equity (12%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Eagle 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: EGBN has a low level of unsold assets or inventory.

Debt Coverage by Assets: EGBN's debt is not covered by short term assets (assets are 0.6x debt).


Financial Institutions Analysis

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

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

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

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

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

Level of Bad Loans: EGBN has an appropriate level of bad loans (0.65%)


Next Steps

Dividend

What is Eagle Bancorp's current dividend yield, its reliability and sustainability?

1.98%

Current Dividend Yield


Dividend Yield vs Market

company2.0%marketbottom25%1.4%markettop25%3.7%industryaverage2.9%forecastin3Years2.1%

Current dividend yield vs market & industry

Notable Dividend: EGBN's dividend (1.98%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: EGBN's dividend (1.98%) is low compared to the top 25% of dividend payers in the US market (3.7%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether EGBN's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if EGBN's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (15.8%), EGBN's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: EGBN's dividends in 3 years are forecast to be well covered by earnings (20.5% payout ratio).


Next Steps

Management

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

8.5yrs

Average management tenure


CEO

Susan Riel (69yo)

0.9yrs

Tenure

US$2,210,065

Compensation

Ms. Susan G. Riel has been President and Chief Executive Officer of Eagle Bancorp, Inc. and EagleBank since May 06, 2019. Ms. Riel was an Interim President and Chief Executive Officer of Eagle Bancorp, Inc ...


CEO Compensation Analysis

Compensation vs Market: Susan's total compensation ($USD2.21M) is below average for companies of similar size in the US market ($USD3.81M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Susan Riel
President0.9yrsUS$2.21m0.65% $9.6m
Charles Levingston
Executive VP & CFO2.8yrsUS$951.08k0.034% $508.9k
Janice Williams
Executive Vice President12.1yrsUS$1.68m0.22% $3.3m
Antonio Marquez
Executive Vice President8.5yrsUS$1.42m0.099% $1.5m
Michael Flynn
Executive VP & COO13.7yrsUS$273.57kno data
Paul Saltzman
Executive VP & Chief Legal Officer0.08yrsno datano data
Lindsey Rheaume
Executive Vice President5.1yrsno data0.055% $810.0k
Jane Cornett
VP & Corporate Secretary0yrsno datano data
Sylvie Sluse
Assistant VP & Group Manager14.3yrsno datano data
Jenny Shtipelman
Assistant Vice President of EagleBank and Business Development Officer of EagleBank14.3yrsno datano data

8.5yrs

Average Tenure

60yo

Average Age

Experienced Management: EGBN's management team is seasoned and experienced (8.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Susan Riel
President0.9yrsUS$2.21m0.65% $9.6m
Leland Weinstein
Lead Director4.1yrsUS$403.20k0.42% $6.2m
David Pinsky
Member of Health Care Advisory Board13.8yrsno datano data
Daniel Esposito
Member of Health Care Advisory Board13.8yrsno datano data
James Soltesz
Director0.8yrsno data0.020% $299.7k
Norman Pozez
Chairman0.9yrsUS$588.86k0.27% $4.0m
Kathy Raffa
Independent Director2yrsUS$315.28k0.055% $806.0k
Leslie Ludwig
Director0.6yrsno data0.030% $441.5k
Theresa LaPlaca
Director0.6yrsno data0.011% $158.5k
Matthew Brockwell
Director0.3yrsno data0.0017% $25.6k

1.5yrs

Average Tenure

60yo

Average Age

Experienced Board: EGBN's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.


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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Eagle Bancorp, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Eagle Bancorp, Inc.
  • Ticker: EGBN
  • Exchange: NasdaqCM
  • Founded: 1997
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$1.479b
  • Shares outstanding: 33.24m
  • Website: https://www.eaglebankcorp.com

Number of Employees


Location

  • Eagle Bancorp, Inc.
  • 7830 Old Georgetown Road
  • Third Floor
  • Bethesda
  • Maryland
  • 20814
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EGBNNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDJul 1998
2ZIDB (Deutsche Boerse AG)YesCommon StockDEEURJul 1998

Biography

Eagle Bancorp, Inc. operates as the bank holding company for EagleBank that provides commercial and consumer banking services primarily in the United States. It accepts business and personal checking, NOW, tiered savings, and money market accounts, as well as individual retirement, certificate of deposit, and investment sweep accounts; and time deposits. The company also offers various commercial and consumer lending products comprising commercial loans for working capital, equipment purchases, real estate lines of credit, and government contract financing; asset based lending and accounts receivable financing; construction and commercial real estate loans; business equipment financing; consumer home equity lines of credit, personal lines of credit, and term loans; consumer installment loans, such as auto and personal loans; personal credit cards; and residential mortgage loans. In addition, it provides online and mobile banking services; and other services, including cash management services, business sweep accounts, lock boxes, remote deposit captures, account reconciliation services, merchant card services, safety deposit boxes, and automated clearing house origination, as well as after-hours depositories and ATM services. Further, it provides insurance products and services through a referral program. The company serves sole proprietors, small and medium-sized businesses, partnerships, corporations, non-profit organizations and associations, and individuals, as well as investors. As of December 31, 2018, it operated 20 banking offices comprising 6 in Suburban Maryland, 5 in the District of Columbia, and 9 in Northern Virginia. Eagle Bancorp, Inc. was founded in 1997 and is headquartered in Bethesda, Maryland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/18 23:55
End of Day Share Price2020/02/18 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.