Latest news with #EnterpriseFinancialServices
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
09-03-2025
- Business
- Yahoo
Enterprise Financial Services Corp (NASDAQ:EFSC) Passed Our Checks, And It's About To Pay A US$0.29 Dividend
It looks like Enterprise Financial Services Corp (NASDAQ:EFSC) is about to go ex-dividend in the next 4 days. Typically, the ex-dividend date is one business day before the record date, which is the date on which a company determines the shareholders eligible to receive a dividend. The ex-dividend date is important as the process of settlement involves a full business day. So if you miss that date, you would not show up on the company's books on the record date. Accordingly, Enterprise Financial Services investors that purchase the stock on or after the 14th of March will not receive the dividend, which will be paid on the 31st of March. The company's next dividend payment will be US$0.29 per share. Last year, in total, the company distributed US$1.16 to shareholders. Based on the last year's worth of payments, Enterprise Financial Services stock has a trailing yield of around 2.1% on the current share price of US$56.58. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. That's why we should always check whether the dividend payments appear sustainable, and if the company is growing. Check out our latest analysis for Enterprise Financial Services If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Enterprise Financial Services paid out just 22% of its profit last year, which we think is conservatively low and leaves plenty of margin for unexpected circumstances. Companies that pay out less in dividends than they earn in profits generally have more sustainable dividends. The lower the payout ratio, the more wiggle room the business has before it could be forced to cut the dividend. Click here to see the company's payout ratio, plus analyst estimates of its future dividends. Stocks in companies that generate sustainable earnings growth often make the best dividend prospects, as it is easier to lift the dividend when earnings are rising. Investors love dividends, so if earnings fall and the dividend is reduced, expect a stock to be sold off heavily at the same time. This is why it's a relief to see Enterprise Financial Services earnings per share are up 6.6% per annum over the last five years. Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. In the past 10 years, Enterprise Financial Services has increased its dividend at approximately 19% a year on average. We're glad to see dividends rising alongside earnings over a number of years, which may be a sign the company intends to share the growth with shareholders. Has Enterprise Financial Services got what it takes to maintain its dividend payments? It has been growing its earnings per share somewhat in recent years, although it reinvests more than half its earnings in the business, which could suggest there are some growth projects that have not yet reached fruition. In summary, Enterprise Financial Services appears to have some promise as a dividend stock, and we'd suggest taking a closer look at it. In light of that, while Enterprise Financial Services has an appealing dividend, it's worth knowing the risks involved with this stock. To help with this, we've discovered 1 warning sign for Enterprise Financial Services that you should be aware of before investing in their shares. A common investing mistake is buying the first interesting stock you see. Here you can find a full list of high-yield 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. Sign in to access your portfolio
Yahoo
22-02-2025
- Business
- Yahoo
Enterprise Financial Services' (NASDAQ:EFSC) Dividend Will Be Increased To $0.29
Enterprise Financial Services Corp (NASDAQ:EFSC) will increase its dividend from last year's comparable payment on the 31st of March to $0.29. This takes the annual payment to 2.0% of the current stock price, which unfortunately is below what the industry is paying. See our latest analysis for Enterprise Financial Services While yield is important, another factor to consider about a company's dividend is whether the current payout levels are feasible. Enterprise Financial Services has a long history of paying out dividends, with its current track record at a minimum of 10 years. While past records don't necessarily translate into future results, the company's payout ratio of 22% also shows that Enterprise Financial Services is able to comfortably pay dividends. Looking forward, EPS is forecast to rise by 10.9% over the next 3 years. The future payout ratio could be 22% over that time period, according to analyst estimates, which is a good look for the future of the dividend. Even over a long history of paying dividends, the company's distributions have been remarkably stable. The annual payment during the last 10 years was $0.21 in 2015, and the most recent fiscal year payment was $1.16. This works out to be a compound annual growth rate (CAGR) of approximately 19% a year over that time. We can see that payments have shown some very nice upward momentum without faltering, which provides some reassurance that future payments will also be reliable. The company's investors will be pleased to have been receiving dividend income for some time. Enterprise Financial Services has seen EPS rising for the last five years, at 6.6% per annum. With a decent amount of growth and a low payout ratio, we think this bodes well for Enterprise Financial Services' prospects of growing its dividend payments in the future. 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 in all, this checks a lot of the boxes we look for when choosing an income stock. Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. Earnings growth generally bodes well for the future value of company dividend payments. See if the 5 Enterprise Financial Services analysts we track are forecasting continued growth with our free report on analyst estimates for the company. If you are a dividend investor, you might also want to look at our curated list of high yield 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. Sign in to access your portfolio
