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

Trading at 19.5% below its fair value

Earnings are forecast to grow 19.64% per year

Risk Analysis

No risks detected for EQBK from our risk checks.


Snowflake Analysis

Excellent balance sheet and good 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

-1.0%

EQBK

-1.2%

US Banks

-1.1%

US Market


1 Year Return

-17.7%

EQBK

10.3%

US Banks

17.9%

US Market

Return vs Industry: EQBK underperformed the US Banks industry which returned 10.3% over the past year.

Return vs Market: EQBK underperformed the US Market which returned 18% over the past year.


Shareholder returns

EQBKIndustryMarket
7 Day-1.0%-1.2%-1.1%
30 Day-0.04%-0.3%1.4%
90 Day-4.3%-0.9%6.9%
1 Year-17.7%-17.7%13.5%10.3%20.3%17.9%
3 Year-14.8%-14.8%24.0%15.1%47.8%38.3%
5 Yearn/a73.8%54.1%71.9%53.0%

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?

19.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EQBK ($28.05) is trading below our estimate of fair value ($34.82)

Significantly Below Fair Value: EQBK is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: EQBK is poor value based on its PE Ratio (17.1x) compared to the Banks industry average (12.6x).

PE vs Market: EQBK is good value based on its PE Ratio (17.1x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: EQBK is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: EQBK is good value based on its PB Ratio (0.9x) 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?

19.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EQBK's forecast earnings growth (19.6% per year) is above the savings rate (1.7%).

Earnings vs Market: EQBK's earnings (19.6% per year) are forecast to grow faster than the US market (14.2% per year).

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

Revenue vs Market: EQBK's revenue (9.1% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: EQBK's revenue (9.1% 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 (7.5%).


Next Steps

Past Performance

How has Equity Bancshares performed over the past 5 years?

27.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EQBK has high quality earnings.

Growing Profit Margin: EQBK's current net profit margins (19.3%) are lower than last year (25.5%).


Past Earnings Growth Analysis

Earnings Trend: EQBK's earnings have grown significantly by 27.5% 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 (-28.6%) over the past year, making it difficult to compare to the Banks industry average (12.1%).


Return on Equity

High ROE: EQBK's Return on Equity (5.4%) 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 0.3x 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 (0.77%)


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%industryaverage2.9%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

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

2.2yrs

Average management tenure


CEO

Brad Elliott (53yo)

17.3yrs

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 ($USD3.36M) is above average for companies of similar size in the US market ($USD1.67M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Brad Elliott
Founder17.3yrsUS$3.36m1.45% $6.3m
Gregory Kossover
Executive VP8.2yrsUS$2.18m0.45% $1.9m
Craig Anderson
Executive VP & COO1.9yrsno data0.036% $156.3k
John Blakeney
Executive VP & Chief Information Officer2.5yrsno data0.0062% $26.8k
Brett Reber
Executive VP & General Counsel1.3yrsno data0.014% $59.9k
John Hanley
Senior VP & Senior Director of Marketing0yrsno datano data
Julie Huber
Executive VP of Strategic Initiatives & Secretary0yrsUS$244.11k0.28% $1.2m
Patrick Harbert
Community Markets President0yrsno data0.17% $730.6k
Craig Mayo
Executive VP & Chief Credit Officer1.9yrsno data0.0021% $9.3k
Gaylyn Mcgregor
Executive Vice President of Trust & Wealth Management0yrsno data0.013% $57.3k

2.2yrs

Average Tenure

56yo

Average Age

Experienced Management: EQBK's management team is considered experienced (2.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Brad Elliott
Founder17.3yrsUS$3.36m1.45% $6.3m
Gregory Kossover
Executive VP8.2yrsUS$2.18m0.45% $1.9m
Jeffrey Bloomer
Independent Director6.1yrsUS$34.40k0.062% $267.6k
Gregory Gaeddert
Independent Director13.1yrsUS$41.30k0.18% $784.7k
Jerry Maland
Independent Director3.3yrsUS$33.60k0.88% $3.8m
Harvey Sorensen
Independent Director17.1yrsUS$39.20k0.095% $409.4k
James Berglund
Independent Director13.1yrsUS$64.90k0.14% $606.9k
Gary Allerheiligen
Independent Director6.1yrsUS$43.70k0.13% $576.7k
Randee Koger
Director0.8yrsUS$32.00k0.29% $1.3m
Shawn Penner
Independent Director17.1yrsUS$58.40k0.84% $3.6m

10.6yrs

Average Tenure

60yo

Average Age

Experienced Board: EQBK's board of directors are seasoned and experienced ( 10.6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: EQBK 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

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$433.216m
  • 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
44XDB (Deutsche Boerse AG)YesClass A Common StockDEEURNov 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 various deposit products, including 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 loans, homebuilder, agricultural, government guaranteed, and other loans, as well as letters of credit to national and regional companies, restaurant franchisees, hoteliers, real estate developers, manufacturing and industrial companies, agribusiness companies, and other businesses. The company’s loan products also comprise various consumer loans to individuals and professionals, including residential real estate loans, home equity loans, home equity lines of credit, installment loans, unsecured and secured personal lines of credit, overdraft protection, and letters of credit. It also provides debit cards; online banking solutions, such as access to account balances, online transfers, online bill payment, and electronic delivery of customer statements; mobile banking solutions comprising remote check deposits with mobile bill pay; ATMs; and treasury management, wire transfer, and automated clearing house and stop payment services. In addition, the company offers cash management deposit products, such as lockbox, remote deposit capture, positive pay, reverse positive pay, account reconciliation services, zero balance accounts, and sweep accounts, as well as banking services through telephone, mail, and personal appointments. As of February 11, 2019, it operated 52 full-service local bank locations in Kansas, Missouri, Arkansas, and Oklahoma. The company was founded in 2002 and is headquartered in Wichita, Kansas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 03:03
End of Day Share Price2020/02/21 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.