NasdaqGS:EQBK

Stock Analysis Report

Executive Summary

Equity Bancshares, Inc. operates as the bank holding company for Equity Bank that provides a range of financial services primarily to businesses, business owners, and individuals.

Rewards

PE ratio (18.3x) is below the US market (18.4x)

Earnings are forecast to grow 29.08% per year

Risk Analysis

Shareholders have been diluted in the past year



Snowflake Analysis

Excellent balance sheet and fair value.

Share Price & News

How has Equity Bancshares's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

1.1%

EQBK

2.7%

US Banks

1.1%

US Market


1 Year Return

-17.9%

EQBK

22.7%

US Banks

17.8%

US Market

Return vs Industry: EQBK underperformed the US Banks industry which returned 22.7% over the past year.

Return vs Market: EQBK underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

EQBKIndustryMarket
7 Day1.1%2.7%1.1%
30 Day2.7%0.9%1.4%
90 Day4.9%10.0%3.9%
1 Year-17.9%-17.9%26.3%22.7%20.3%17.8%
3 Year-16.2%-16.2%31.8%22.6%44.8%35.4%
5 Yearn/a80.2%60.2%71.3%52.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Equity Bancshares undervalued compared to its fair value and its price relative to the market?

18.31x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: EQBK ($29.71) is trading above our estimate of fair value ($26.12)

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


Price To Earnings Ratio

PE vs Industry: EQBK is poor value based on its PE Ratio (18.3x) compared to the Banks industry average (12.7x).

PE vs Market: EQBK is good value based on its PE Ratio (18.3x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: EQBK is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: EQBK is good value based on its PB Ratio (1x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Equity Bancshares forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

29.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EQBK's forecast earnings growth (29.1% per year) is above the savings rate (1.7%).

Earnings vs Market: EQBK's earnings (29.1% per year) are forecast to grow faster than the US market (14.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: EQBK's revenue (5.4% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: EQBK's revenue (5.4% 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 (7.9%).


Next Steps

Past Performance

How has Equity Bancshares performed over the past 5 years?

29.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EQBK has high quality earnings.

Growing Profit Margin: EQBK's current net profit margins (19.2%) are lower than last year (23%).


Past Earnings Growth Analysis

Earnings Trend: EQBK's earnings have grown significantly by 29.6% per year over the past 5 years.

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

Earnings vs Industry: EQBK had negative earnings growth (-15.5%) over the past year, making it difficult to compare to the Banks industry average (27.1%).


Return on Equity

High ROE: EQBK's Return on Equity (5.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Equity Bancshares'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: EQBK has a low level of unsold assets or inventory.

Debt Coverage by Assets: EQBK's debt is not covered by short term assets (assets are 0.4x debt).


Financial Institutions Analysis

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

Allowance for Bad Loans: EQBK has a low allowance for bad loans.

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

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

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

Level of Bad Loans: EQBK has an appropriate level of bad loans (1.96%)


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate EQBK's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate EQBK's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if EQBK's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if EQBK's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of EQBK's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Equity Bancshares's salary, the management and board of directors tenure and is there insider trading?

2.0yrs

Average management tenure


CEO

Brad Elliott (53yo)

17.1yrs

Tenure

US$3,356,765

Compensation

Brad S. Elliott is the Founder, Chairman and Chief Executive Officer of Equity Bancshares, Inc. (“Company”). He also serves as Chairman and Chief Executive Officer of Equity Bank (“Bank”). Before founding  ...


CEO Compensation Analysis

Compensation vs Market: Brad's total compensation ($USD3.36M) is above average for companies of similar size in the US market ($USD1.69M).

Compensation vs Earnings: Brad's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

2.0yrs

Average Tenure

56yo

Average Age

Experienced Management: EQBK's management team is considered experienced (2 years average tenure).


Board Age and Tenure

10.5yrs

Average Tenure

60yo

Average Age

Experienced Board: EQBK's board of directors are seasoned and experienced ( 10.5 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUS$24,82012 Jun 19
Harvey Sorensen
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$24.82
BuyUS$51,32028 May 19
Harvey Sorensen
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceUS$25.66
BuyUS$26,22003 May 19
Harvey Sorensen
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$26.22
BuyUS$26,31003 May 19
Craig Anderson
EntityIndividual
Role
Chief Operating Officer
Executive VP & COO
Shares1,000
Max PriceUS$26.31
BuyUS$25,86001 May 19
Harvey Sorensen
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$25.86
BuyUS$25,56029 Apr 19
James Berglund
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$25.56
BuyUS$1,30219 Feb 19
Shawn Penner
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares40
Max PriceUS$32.56
BuyUS$92007 Feb 19
Wendell Bontrager
EntityIndividual
Shares28
Max PriceUS$32.85
BuyUS$31,75001 Feb 19
Gary Allerheiligen
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$31.75

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.9%.


Management Team

  • John Blakeney (69yo)

    Executive VP & Chief Information Officer

    • Tenure: 2.3yrs
  • Craig Anderson (59yo)

    Executive VP & COO

    • Tenure: 1.8yrs
  • Brad Elliott (53yo)

    Founder

    • Tenure: 17.1yrs
    • Compensation: US$3.36m
  • Brett Reber (60yo)

    Executive VP & General Counsel

    • Tenure: 1.2yrs
  • Greg Kossover (56yo)

    Executive VP

    • Tenure: 8yrs
    • Compensation: US$2.18m
  • John Hanley

    Senior VP & Senior Director of Marketing

    • Tenure: 0yrs
  • Julie Huber (49yo)

    Executive VP of Strategic Initiatives & Secretary

    • Tenure: 0yrs
    • Compensation: US$244.11k
  • Craig Mayo (57yo)

    Executive VP & Chief Credit Officer

    • Tenure: 1.8yrs
  • Patrick Harbert (46yo)

    Community Markets President

    • Tenure: 0yrs
  • Gaylyn Mcgregor (50yo)

    Executive Vice President of Trust & Wealth Management

    • Tenure: 0yrs

Board Members

  • Jeff Bloomer (62yo)

    Independent Director

    • Tenure: 5.9yrs
    • Compensation: US$34.40k
  • Greg Gaeddert (58yo)

    Independent Director

    • Tenure: 12.9yrs
    • Compensation: US$41.30k
  • Jerry Maland (69yo)

    Independent Director

    • Tenure: 3.1yrs
    • Compensation: US$33.60k
  • Harvey Sorensen (72yo)

    Independent Director

    • Tenure: 16.9yrs
    • Compensation: US$39.20k
  • Jim Berglund (84yo)

    Independent Director

    • Tenure: 12.9yrs
    • Compensation: US$64.90k
  • Brad Elliott (53yo)

    Founder

    • Tenure: 17.1yrs
    • Compensation: US$3.36m
  • Greg Kossover (56yo)

    Executive VP

    • Tenure: 8yrs
    • Compensation: US$2.18m
  • Gary Allerheiligen (71yo)

    Independent Director

    • Tenure: 5.9yrs
    • Compensation: US$43.70k
  • Randee Koger (58yo)

    Director

    • Tenure: 0.7yrs
    • Compensation: US$32.00k
  • Shawn Penner (49yo)

    Independent Director

    • Tenure: 16.9yrs
    • Compensation: US$58.40k

Company Information

Equity Bancshares, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Equity Bancshares, Inc.
  • Ticker: EQBK
  • Exchange: NasdaqGS
  • Founded: 2002
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$458.799m
  • Shares outstanding: 15.44m
  • Website: https://www.equitybank.com

Number of Employees


Location

  • Equity Bancshares, Inc.
  • 7701 East Kellogg Drive
  • Suite 300
  • Wichita
  • Kansas
  • 67207
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EQBKNasdaqGS (Nasdaq Global Select)YesClass A Common StockUSUSDNov 2015

Biography

Equity Bancshares, Inc. operates as the bank holding company for Equity Bank that provides a range of financial services primarily to businesses, business owners, and individuals. The company accepts vario ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/12 00:24
End of Day Share Price2019/12/11 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.