Equity Bancshares (NasdaqGS:EQBK) - Share price, News & Analysis

Q: What is the Fair Price of EQBK when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

EQBK ($30.05) is trading below our estimate of [[fair value]] ($80.45)

EQBK fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	1/6
Past Performance	2/6
Financial Health	6/6
Dividends	2/6

EQBK Stock Overview

Equity Bancshares, Inc. operates as the bank holding company for Equity Bank that provides a range of banking, mortgage banking, and financial services to individual and corporate customers.

Rewards

Trading at 62.6% below our estimate of its fair value

Earnings are forecast to grow 2.1% per year

Became profitable this year

Risk Analysis

Significant insider selling over the past 3 months

Shareholders have been diluted in the past year

Equity Bancshares Competitors

Farmers National Banc

NasdaqCM:FMNB

US$511.8m

Capital City Bank Group

NasdaqGS:CCBG

US$473.7m

MidWestOne Financial Group

NasdaqGS:MOFG

US$467.9m

First Community Bankshares

NasdaqGS:FCBC

US$485.8m

Price History & Performance

Summary of all time highs, changes and price drops for Equity Bancshares
Historical stock prices
Current Share Price	US$30.05
52 Week High	US$36.00
52 Week Low	US$28.01
Beta	0.70
1 Month Change	-7.08%
3 Month Change	-9.08%
1 Year Change	-3.99%
3 Year Change	10.32%
5 Year Change	-5.83%
Change since IPO	25.79%

Shareholder Returns

	EQBK	US Banks	US Market
7D	-2.6%	3.2%	6.3%
1Y	-4.0%	-17.3%	-18.8%

Return vs Industry: EQBK exceeded the US Banks industry which returned -17.7% over the past year.

Return vs Market: EQBK exceeded the US Market which returned -18.4% over the past year.

Price Volatility

Is EQBK's price volatile compared to industry and market?
EQBK volatility
EQBK Average Weekly Movement	4.6%
Banks Industry Average Movement	3.8%
Market Average Movement	8.1%
10% most volatile stocks in US Market	16.7%
10% least volatile stocks in US Market	3.2%

Stable Share Price: EQBK is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: EQBK's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2002	702	Brad Elliott	https://www.equitybank.com

Equity Bancshares, Inc. operates as the bank holding company for Equity Bank that provides a range of banking, mortgage banking, and financial services to individual and corporate customers. The company accepts various demand, savings, money market, and time deposits. Its loan products include commercial and industrial, commercial real estate-backed, commercial lines of credit, working capital, term, equipment financing, acquisition, expansion and development, borrowing base, real estate construction, homebuilder, agricultural, government guaranteed, and other loan products to national and regional companies, restaurant franchisees, hoteliers, real estate developers, manufacturing and industrial companies, agribusiness companies, and other businesses.

Equity Bancshares Fundamentals Summary

How do Equity Bancshares's earnings and revenue compare to its market cap?
EQBK fundamental statistics
Market Cap	US$489.11m
Earnings (TTM)	US$53.06m
Revenue (TTM)	US$187.79m

9.2x

P/E Ratio

1.1x

P/B Ratio

Is EQBK overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
EQBK income statement (TTM)
Revenue	US$187.79m
Cost of Revenue	US$0
Gross Profit	US$187.79m
Other Expenses	US$134.73m
Earnings	US$53.06m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	3.26
Gross Margin	100.00%
Net Profit Margin	28.25%
Debt/Equity Ratio	43.3%

How did EQBK perform over the long term?

See historical performance and comparison

Dividends

1.1%

Current Dividend Yield

7%

Payout Ratio

Does EQBK pay a reliable dividends?

See EQBK dividend history and benchmarks

When do you need to buy EQBK by to receive an upcoming dividend?
Equity Bancshares dividend dates
Ex Dividend Date	Jun 29 2022
Dividend Pay Date	Jul 14 2022
Days until Ex dividend	0 days
Days until Dividend pay date	15 days

Does EQBK pay a reliable dividends?

See EQBK dividend history and benchmarks

We’ve recently updated our valuation analysis.

Valuation

Is EQBK undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for EQBK?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for EQBK. This is calculated by dividing EQBK's market cap by their current preferred multiple.
What is EQBK's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$489.11m

EQBK key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	4.4x

Price to Earnings Ratio vs Peers

How does EQBK's PE Ratio compare to its peers?

EQBK PE Ratio vs Peers

The above table shows the PE ratio for EQBK vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	10.6x
FMNB Farmers National Banc	9.6x	28.7%	US$511.8m
CCBG Capital City Bank Group	14.6x	16.1%	US$473.7m
MOFG MidWestOne Financial Group	7.6x	1.2%	US$467.9m
FCBC First Community Bankshares	10.5x	-3.3%	US$485.8m
EQBK Equity Bancshares	9.2x	2.1%	US$489.1m

Forward PE

Price-To-Earnings vs Peers: EQBK is good value based on its Price-To-Earnings Ratio (9.2x) compared to the peer average (10.6x).

Price to Earnings Ratio vs Industry

How does EQBK's PE Ratio compare vs other companies in the US Banks Industry?

Price-To-Earnings vs Industry: EQBK is good value based on its Price-To-Earnings Ratio (9.2x) compared to the US Banks industry average (9.6x)

Price to Earnings Ratio vs Fair Ratio

What is EQBK's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

EQBK PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	9.2x
Fair PE Ratio	11.2x

Price-To-Earnings vs Fair Ratio: EQBK is good value based on its Price-To-Earnings Ratio (9.2x) compared to the estimated Fair Price-To-Earnings Ratio (11.2x).

Share Price vs Fair Value

What is the Fair Price of EQBK when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: EQBK ($30.05) is trading below our estimate of fair value ($80.45)

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

Price to Earnings Growth Ratio

PEG Ratio: EQBK is poor value based on its PEG Ratio (4.4x)

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Future Growth

How is Equity Bancshares forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

2.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: EQBK's forecast earnings growth (2.1% per year) is above the savings rate (1.9%).

Earnings vs Market: EQBK's earnings (2.1% per year) are forecast to grow slower than the US market (13.9% per year).

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

Revenue vs Market: EQBK's revenue (5.1% per year) is forecast to grow slower than the US market (8.4% per year).

High Growth Revenue: EQBK's revenue (5.1% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: EQBK's Return on Equity is forecast to be low in 3 years time (10.9%).

Discover growth companies

Past Performance

How has Equity Bancshares performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-12.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: EQBK has high quality earnings.

Growing Profit Margin: EQBK became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: EQBK's earnings have declined by 12.7% per year over the past 5 years.

Accelerating Growth: EQBK has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: EQBK has become profitable in the last year, making it difficult to compare its past year earnings growth to the Banks industry (20.7%).

Return on Equity

High ROE: EQBK's Return on Equity (11.7%) is considered low.

Discover strong past performing companies

Financial Health

How is Equity Bancshares's financial position? (This company is analysed differently as a bank or financial institution)

Financial Health Score

6/6

Financial Health Score 6/6

Asset Level
Allowance for Bad Loans
Low Risk Liabilities
Loan Level
Low Risk Deposits
Level of Bad Loans

Financial Position Analysis

Debt to Equity History and Analysis

Balance Sheet

Financial Institutions Analysis

Asset Level: EQBK's Assets to Equity ratio (11.2x) is moderate.

Allowance for Bad Loans: EQBK has a sufficient allowance for bad loans (230%).

Low Risk Liabilities: 95% of EQBK's liabilities are made up of primarily low risk sources of funding.

Loan Level: EQBK has an appropriate level of Loans to Assets ratio (63%).

Low Risk Deposits: EQBK's Loans to Deposits ratio (73%) is appropriate.

Level of Bad Loans: EQBK has an appropriate level of bad loans (0.6%).

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Dividend

What is Equity Bancshares's current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.06%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: EQBK's dividend (1.06%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: EQBK's dividend (1.06%) is low compared to the top 25% of dividend payers in the US market (4.23%).

Stability and Growth of Payments

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

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

Current Payout to Shareholders

Earnings Coverage: With its low payout ratio (7%), EQBK's dividend payments are thoroughly covered by earnings.

Future Payout to Shareholders

Future Dividend Coverage: EQBK's dividends in 3 years are forecast to be thoroughly covered by earnings (11.4% payout ratio).

Discover strong dividend paying companies

Management

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

2.6yrs

Average management tenure

CEO

Brad Elliott (55 yo)

19.58yrs

Tenure

US$2,299,501

Compensation

Mr. Brad S. Elliott is the Founder, Chairman and Chief Executive Officer of Equity Bancshares, Inc. and served as its President. He also serves as Chairman and Chief Executive Officer of Equity Bank. Befor...

CEO Compensation Analysis

Compensation vs Market: Brad's total compensation ($USD2.30M) is about average for companies of similar size in the US market ($USD2.83M).

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

Leadership Team

Experienced Management: EQBK's management team is considered experienced (2.6 years average tenure).

Board Members

Experienced Board: EQBK's board of directors are considered experienced (4.4 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: EQBK insiders have only sold shares 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 13.5%.

Data	Last Updated (UTC time)
Company Analysis	2022/06/27 00:00
End of Day Share Price	2022/06/27 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31