Latest news with #EFSC
Yahoo
a day ago
- Business
- Yahoo
Enterprise Financial Services' (NASDAQ:EFSC) Upcoming Dividend Will Be Larger Than Last Year's
Enterprise Financial Services Corp's (NASDAQ:EFSC) dividend will be increasing from last year's payment of the same period to $0.30 on 30th of June. This takes the annual payment to 2.3% of the current stock price, which unfortunately is below what the industry is paying. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. Even a low dividend yield can be attractive if it is sustained for years on end. Enterprise Financial Services has established itself as a dividend paying company with over 10 years history of distributing earnings to shareholders. While past records don't necessarily translate into future results, the company's payout ratio of 21% also shows that Enterprise Financial Services is able to comfortably pay dividends. The next year is set to see EPS grow by 3.0%. Assuming the dividend continues along recent trends, we think the future payout ratio could be 24% by next year, which is in a pretty sustainable range. See our latest analysis for Enterprise Financial Services The company has been paying a dividend for a long time, and it has been quite stable which gives us confidence in the future dividend potential. The annual payment during the last 10 years was $0.21 in 2015, and the most recent fiscal year payment was $1.20. This works out to be a compound annual growth rate (CAGR) of approximately 19% a year over that time. Rapidly growing dividends for a long time is a very valuable feature for an income stock. Some investors will be chomping at the bit to buy some of the company's stock based on its dividend history. Enterprise Financial Services has impressed us by growing EPS at 9.1% per year over the past five years. Enterprise Financial Services definitely has the potential to grow its dividend in the future with earnings on an uptrend and a low payout ratio. Overall, a dividend increase is always good, and we think that Enterprise Financial Services is a strong income stock thanks to its track record and growing earnings. Distributions are quite easily covered by earnings, which are also being converted to cash flows. All of these factors considered, we think this has solid potential as a dividend stock. Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. As an example, we've identified 1 warning sign for Enterprise Financial Services that you should be aware of before investing. Is Enterprise Financial Services not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
20-05-2025
- Business
- Yahoo
Enterprise Bank is defensive, Wingstop is overvalued: Analyst
On the latest installment of Good Buy or Goodbye, Commerce Street Holdings CEO Dory Wiley joins Market Domination host Julie Hyman to share his top stock pick and insights into why he is favoring Enterprise Financial Services (EFSC) while stepping back from Wingstop (WING). To watch more expert insights and analysis on the latest market action, check out more Market Domination here. Don't forget to catch up on Good Buy or Goodbye. It's a big noisy universe of stocks out there. Welcome to Goodbye or Good Buy. Our goal to help cut through that noise to navigate the best moves for your portfolio. Today we're taking a look of growth prospects for some Nasdaq names. I'm here with Commerce Street Holdings CEO, Dory Wiley, who is here with us in the studio. Special treat because usually we talk to you remotely Dory. So thanks for being here. Let's get to the stock that you like. It is called Enterprise Financial Services. It is a regional bank based in St. Louis. We're looking at the one-year chart here. And over the past one year, it's actually up 36% or so, although it's dipped a little bit this year. So let's get into it and why you like it. First of all, you say it is undervalued growth here. Talk me through what that means in this case. Absolutely, investors always looking for growth at a reasonable price, right? And that's what this stock gives you especially in the banking sector. It's a very solid company. They've got really good growth, 15 to 16%. Tangible book value per share or earnings per share growth, year in year out, and they're they've just got a great track record of it and they're only at 10 times forward PE which is much below its peers. So, it's got a faster growth rate than its peers. It's it's a great value. Gotcha, even with that rally still at that 10 times. Um, and when you look at the margins, and talking about a a regional bank, some of them are really indexed to loans or really index to the consumer. But you say this one has diversified revenues. So what does that picture look like? Well they're also in wealth management and other sources. And their loans are very diversified. Their loan book is much diversified. So some banks are over concentrated in real estate or commercial or whatnot. They're extremely diversified. And that's key for banks, because they're leveraged institutions and everything's about credit. This bank's got a great credit underwriting group and yet they have above margins, well above margins for their peers and uh this diversified revenue makes them a safe choice in banking which is key because they are cyclical. Gotcha. Alright. And then finally, defensive positioning here within the assets that they hold. So what does defensive mean in this case? Okay, so I just talked about it being defensive on its credit underwriting, balance sheet structure. Yes. They have a way above average amount of tangible equity capital, above 9%. JP Morgan for example, runs maybe 7 and a half percent. So this is a very safe bank, yet it's growing. So think about when things get ugly, let's assume that there's a recession, other banks have to pull back back, this bank can not only expand, but can define credit terms in the market. That makes it a really good all weather stock, up and down markets. And just curious, it's not on our three points here but where is that growth coming from for the bank? Is it in loans, is it in wealth management? Is it all of the above? It's it's all of the above. They got great 8% loan growth year over year so it's consistent and not exorbitant, but the markets they're in, it's not just a St. Louis bank, it's in Texas, it's in other markets in the south. And so it's it's growing actively in those markets and in good markets that have growth. Gotcha. So even for these picks, we like to say what what could maybe go wrong or what's the risk? You say an industry cyclical trading out of favor. So what does that mean? The biggest, the biggest risk to this stock is not the company itself, it's the sector, it's banks. So the stock could go down. I think you just weather it or you buy more. Gotcha. Alright. Now let's get to the stock you don't like as much and that is Wingstop. Good thing we're past the thick of uh football season although I guess wings are an all year round item here. Now, this stock is down about 14% over the past 12 months, but it has bounced a little bit uh year to date to some extent, just with this latest move upward here. Um, but contrary to your other pick, you say this one is is too rich for your blood. It's almost just the opposite of Enterprise Financial. This is a wonderful company and a wonderful management team, doing a great job, so I'm not stepping on the company. It's the valuation. The valuations at 65 PE at an 18% growth. When we just talked about a company at 10 forward PE at 15 to 16% growth. I think that's too much. And you don't see that in restaurants and they and they've talked about, you know, a slowing growth rate, slowing metrics. So this this metric is just way too high for what it is. Nothing against the company, it's just the stock. Gotcha. Okay, and but let's talk about that growth piece of it that you just mentioned here. Um, you know, in a time when the consumer sentiment surveys are not looking so great. So what's the growth profile here? If anything goes wrong, this stock is in trouble. It is a prima donna stock. Everything's assumed to go correct. Well, last year had terrific growth, it's done terrific. It's got efficiencies, they're very AI driven, their kitchens are super efficient, but there's there's not a lot of room for same store same store sales growth, which they even forecast to be way low this year, compared to what they've had in the past, yet the stock hasn't priced that in. Gotcha. And then finally, overbought signals. Now, as I mentioned the stocks down over the past year, but it's had a pop year to date. So is that pushed it into overbought? It's just sort of a technical. Really it came up over 54% in the last 30 days. Sell it, take your profits, go somewhere else and buy something else and wait for this to come down again. Okay, so when we talk about what could go right, I guess it's waiting for it to come down again. If it comes down, how far would it have to come down, what other signals would you be looking for to maybe step back in? You know, I would like to see it ought to be at least a 20 to 30 forward PE. Even because they plan on opening plenty of more stores. That same store sales growth is going to be tough. They could get it in the new stores, right? So if they can keep that pace going, then they're going to keep a higher than average PE, but it shouldn't be 65. So it maybe gets in the 30 to 40 range or something, I'm all over this stock. Gotcha. All right. Dory, thanks so much. So and just quickly, do you have a position in Enterprise? You hold Enterprise? Uh, definitely hold Enterprise. We're bank investors and I don't have one in Wingstop, but I did eat some dry rub wings last night. Alright. That's the best disclosure we have ever gotten, Dory. And Dory is going to stick around and join us a little bit later for broader market chat as well. Thanks so much for watching. Goodbye or Good Buy. We'll bring you new episodes at 3:30 PM Eastern. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
20-05-2025
- Business
- Yahoo
Enterprise Bank is defensive, Wingstop is overvalued: Analyst
On the latest installment of Good Buy or Goodbye, Commerce Street Holdings CEO Dory Wiley joins Market Domination host Julie Hyman to share his top stock pick and insights into why he is favoring Enterprise Financial Services (EFSC) while stepping back from Wingstop (WING). To watch more expert insights and analysis on the latest market action, check out more Market Domination here. Don't forget to catch up on Good Buy or Goodbye.
Yahoo
01-05-2025
- Business
- Yahoo
Enterprise signs purchase and assumption pact with First Interstate
Enterprise Financial (EFSC) and First Interstate BancSystem (FIBK) announced the signing of a purchase and assumption agreement by their respective wholly-owned subsidiaries, Enterprise Bank & Trust and First Interstate Bank, pursuant to which Enterprise Bank & Trust will acquire twelve branches from First Interstate Bank. The acquisition consists of two separate franchises, with ten branches in Arizona and two branches in Kansas. The purchase and assumption agreement provides for the transfer by First Interstate Bank to Enterprise Bank & Trust of the facilities and other associated assets of the branches, approximately $740 million in deposits, and certain, mostly commercially-oriented, loans with outstanding balances of roughly $200 million. Upon closing of the transaction, the following branches will become a part of Enterprise Bank & Trust. Discover companies with rock-solid fundamentals in TipRanks' Smart Value Newsletter. Receive undervalued stocks, resilient to market uncertainty, delivered straight to your inbox. Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See today's best-performing stocks on TipRanks >> Read More on EFSC: Disclaimer & DisclosureReport an Issue Enterprise Financial reports Q1 EPS $1.31, consensus $1.17 Is EFSC a Buy, Before Earnings? Enterprise Financial Services Releases 2025 ESG Report Sign in to access your portfolio
Yahoo
30-04-2025
- Business
- Yahoo
Enterprise Financial Services Corp (EFSC) Q1 2025 Earnings Call Highlights: Strong EPS Growth ...
Earnings Per Share (EPS): $1.31 for Q1 2025, up from $1.28 in the previous quarter and $1.05 in Q1 2024. Adjusted Return on Assets (ROAA): 1.29% for the quarter. Pre-Provision ROAA: 1.71% for the quarter. Net Interest Income (NII): Increased by $1.1 million compared to the previous quarter. Net Interest Margin: Started the year at 4.15%. Loan Growth: 3% or $78 million for the quarter. Cost of Deposits: Reduced to 1.83%, a 17 basis point drop in the quarter. Tangible Common Equity to Tangible Assets Ratio: 9.30% at quarter end. Return on Tangible Common Equity: 14% for the first quarter. Tangible Book Value Per Common Share: $38.54, an annualized quarterly increase of 14%. Dividend Increase: $0.01 per share increase to $0.30 per share for Q2 2025. Share Repurchases: $11 million returned to shareholders through repurchases. Branch Acquisition: Announced acquisition of 12 branches from First Interstate Bank, with $740 million in deposits and $200 million in loans. Non-Performing Assets (NPAs): Increased due to loans in Southern California, expected to be resolved favorably. Net Recovery: $1.1 million compared to net charge-offs of $7.1 million in the previous quarter. Allowance for Credit Losses: 1.27% of total loans, or 1.38% when adjusting for government guaranteed loans. Noninterest Income: $18 million, including a $1.9 million gain on the sale of SBA loans. Noninterest Expense: $99.8 million, with a core efficiency ratio of 58.8%. Warning! GuruFocus has detected 3 Warning Sign with EFSC. Release Date: April 29, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Enterprise Financial Services Corp (NASDAQ:EFSC) reported strong financial results for Q1 2025, with earnings per diluted share of $1.31, up from $1.28 in the previous quarter and $1.05 in Q1 2024. The company announced the strategic acquisition of 12 branches from First Interstate Bank, which is expected to enhance their presence in the Arizona market and contribute to future growth. Net interest income and net interest margin both saw expansion, with NII increasing by $1.1 million compared to the previous quarter. Loan growth was reported at 3% for the quarter, with active production across all markets and businesses. The company increased its dividend by $0.01 per share for Q2 2025 and returned $11 million to shareholders through share repurchases. Non-performing assets increased due to several loans linked through common ownership in Southern California, although the company expects full repayment. There was a seasonal decline in deposits due to outflows from commercial-oriented accounts, although this was partially offset by growth in national deposit verticals. The provision for credit losses decreased, but non-performing loans increased due to relationships in bankruptcy. The company anticipates modest erosion of net interest margin during 2025 due to variability in interest rates. The acquisition of branches will leverage tangible common equity by approximately 100 basis points, impacting capital ratios. Q: Can you provide details on the terms of the branch acquisition deal? A: Keene Turner, Senior Executive Vice President and Chief Financial Officer, explained that the deal involves an assumption, bringing on roughly net $450 million of cash. This will be invested in securities at a 5% rate, with the expectation that the deal will come on at a similar to slightly improved margin. The expenses are expected to be in the low 50% range, modeled conservatively for mid-single-digit EPS accretion, improving as securities are lent out over time. Q: What are the expectations for pro forma capital levels post-acquisition, and how might this affect buyback or M&A appetite? A: Keene Turner stated that pro forma capital is expected to be right at their targets. They did not execute the call on their sub debt due to equity market valuations but have a senior piece lined up if needed. This allows them to be modestly offensive with share repurchases in the next couple of quarters, given the low risk-weighted assets and leverage ratio. Q: Is there any industry exposure from the loans brought over in the Arizona acquisition, specifically dairy exposure? A: James Lally, President and CEO, confirmed that they are not picking up any dairy exposure in this transaction, as they had the opportunity to select attractive assets. Q: How quickly can you earn back the book value dilution from the branch acquisition? A: Keene Turner indicated that the earn-back period depends on how quickly they lend out the acquired assets. The assumptions are conservative, and the earn-back is closer to three years, similar to full bank M&A, rather than five years typical for share repurchases. Q: What is the outlook for net interest margin (NIM) and net interest income (NII) given the expected rate cuts? A: Keene Turner noted that they expect a slight decline in NIM, potentially 5 basis points sequentially, but overall, NIM is expected to remain stable even with 75 basis points of Fed fund cuts. NII dollars are expected to grow quarterly, supported by stable margin and proactive steps taken on the investment portfolio. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
