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Relative valuation derived from Financials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 56GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
9.7%
Sector: 8.5%
Dividend Analysis audit
INCOME
2.04%
Trailing Yield
$2.04
Per $100 Invested
Solid dividend yield for income-focused strategies.
Est. Payout Ratio
22%SAFE
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, ENTERPRISE FINANCIAL SERVICES CORP (EFSC) receives a "Hold" rating with a composite score of 52.3/100, ranked #244 out of 4446 stocks. Key factor scores: Quality 56/100, Value 76/100, Momentum 43/100. This is quantitative analysis only — not investment advice.
ENTERPRISE FINANCIAL SERVICES CORP (EFSC) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does ENTERPRISE FINANCIAL SERVICES CORP Do?
Enterprise Financial Services Corp operates as the financial holding company for Enterprise Bank & Trust that offers banking and wealth management services to individuals and corporate customers. The company offers checking, savings, and money market accounts, and certificates of deposit. It also provides commercial and industrial, commercial real estate, construction and land development, residential real estate, agricultural, and consumer loans. In addition, the company offers treasury management and international trade services; tax credit brokerage services consisting of the acquisition of tax credits and sale of these tax credits to clients; and financial and estate planning, investment management, and trust services to businesses, individuals, institutions, retirement plans, and non-profit organizations. Further, it offers fiduciary, financial advisory, and merchant processing services; and debit and credit cards. Additionally, the company provides international banking, insurance, internet and mobile banking, remote deposit capture, positive pay, fraud detection and prevention, automated payable, check imaging, and statement and document imaging services; and cash management products, controlled disbursements, repurchase agreements, and sweep investment accounts. It operates banking locations and administrative offices in Arizona, California, Kansas, Missouri, Nevada, and New Mexico market areas, as well as a network of SBA loan production offices and deposit production offices in various states. Enterprise Financial Services Corp was founded in 1988 and is headquartered in Clayton, Missouri. ENTERPRISE FINANCIAL SERVICES CORP (EFSC) is classified as a mid-cap stock in the Financials sector, specifically within the Banking industry. The company is led by CEO James B. Lally and employs approximately 1,030 people, headquartered in CLAYTON, Missouri. With a market capitalization of $2.1B, EFSC is one of the notable companies in the Financials sector.
As of April 2026, ENTERPRISE FINANCIAL SERVICES CORP receives a Hold rating with a composite score of 52.3/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.EFSC ranks #244 out of 4,446 stocks in our coverage universe. Within the Financials sector, ENTERPRISE FINANCIAL SERVICES CORP ranks #144 of 892 stocks, placing it in the top quartile of its Financials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
EFSC Stock Price and 52-Week Range
ENTERPRISE FINANCIAL SERVICES CORP (EFSC) currently trades at $57.87. The stock lost $1.15 (1.9%) in the most recent trading session. The 52-week high for EFSC is $62.30, which means the stock is currently trading -7.1% from its annual peak. The 52-week low is $45.22, putting the stock 28.0% above its annual trough. Recent trading volume was 204K shares, suggesting relatively thin trading activity.
Is EFSC Overvalued or Undervalued? — Valuation Analysis
ENTERPRISE FINANCIAL SERVICES CORP (EFSC) carries a value factor score of 76/100 in the Blank Capital model, suggesting the stock trades at a meaningful discount to its fundamental earning power. The trailing price-to-earnings ratio is 10.81x, compared to the Financials sector average of 15.44x — a discount of 30%. The price-to-book ratio stands at 1.05x, versus the sector average of 1.26x. The price-to-sales ratio is 2.60x, compared to 0.93x for the average Financials stock. On an enterprise value basis, EFSC trades at 7.63x EV/EBITDA, versus 3.37x for the sector.
Based on these multiples, ENTERPRISE FINANCIAL SERVICES CORP appears attractively valued relative to both its sector peers and the broader market. Value-oriented investors may find the current entry point compelling, particularly if the company's fundamental quality metrics also score well.
ENTERPRISE FINANCIAL SERVICES CORP (EFSC) earns a quality factor score of 56/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 9.7%, compared to the Financials sector average of 8.5%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at 1.1% versus the sector average of 1.2%.
On a margin basis, ENTERPRISE FINANCIAL SERVICES CORP reports gross margins of 0.0%. The operating margin is 32.5% (sector: 21.9%). Net profit margin stands at 24.5%, versus 17.7% for the average Financials stock. Revenue growth is running at 6.5% on a trailing basis, compared to 9.4% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
EFSC Debt, Balance Sheet, and Financial Health
ENTERPRISE FINANCIAL SERVICES CORP has a debt-to-equity ratio of 748.0%, compared to the Financials sector average of 121.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 1.13x, suggesting adequate working capital coverage. Total debt on the balance sheet is $668M. Cash and equivalents stand at $208M.
EFSC has a beta of 0.74, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for ENTERPRISE FINANCIAL SERVICES CORP is 82/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
ENTERPRISE FINANCIAL SERVICES CORP Revenue and Earnings History — Quarterly Trend
In TTM 2026, ENTERPRISE FINANCIAL SERVICES CORP reported revenue of $821M and earnings per share (EPS) of $5.34. Net income for the quarter was $197M. Gross margin was 0.0%. Operating income came in at $235M.
In FY 2025, ENTERPRISE FINANCIAL SERVICES CORP reported revenue of $888M and earnings per share (EPS) of $5.34. Net income for the quarter was $201M. Revenue grew 4.4% year-over-year compared to FY 2024. Operating income came in at $284M.
In Q3 2025, ENTERPRISE FINANCIAL SERVICES CORP reported revenue of $225M and earnings per share (EPS) of $1.20. Net income for the quarter was $45M. Revenue grew 36.7% year-over-year compared to Q3 2024. Operating income came in at $89M.
In Q2 2025, ENTERPRISE FINANCIAL SERVICES CORP reported revenue of $219M and earnings per share (EPS) of $1.36. Net income for the quarter was $51M. Revenue grew 3.5% year-over-year compared to Q2 2024. Operating income came in at $64M.
Over the past 8 quarters, ENTERPRISE FINANCIAL SERVICES CORP has demonstrated a growth trajectory, with revenue expanding from $212M to $821M. Investors analyzing EFSC stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
EFSC Dividend Yield and Income Analysis
ENTERPRISE FINANCIAL SERVICES CORP (EFSC) currently pays a dividend yield of 2.0%. At this yield, a $10,000 investment in EFSC stock would generate approximately $$204.00 in annual dividend income. This compares to the Financials sector average dividend yield of 2.5%, meaning EFSC yields less than the typical sector peer. With a net margin of 24.5%, the dividend appears well-covered by earnings, suggesting sustainable payouts going forward.
EFSC Momentum and Technical Analysis Profile
ENTERPRISE FINANCIAL SERVICES CORP (EFSC) has a momentum factor score of 43/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 31/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 21/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
EFSC vs Competitors — Financials Sector Ranking and Peer Comparison
Comparing EFSC against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full EFSC vs S&P 500 (SPY) comparison to assess how ENTERPRISE FINANCIAL SERVICES CORP stacks up against the broader market across all factor dimensions.
EFSC Next Earnings Date
No upcoming earnings date has been announced for ENTERPRISE FINANCIAL SERVICES CORP (EFSC) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy EFSC? — Investment Thesis Summary
ENTERPRISE FINANCIAL SERVICES CORP presents a balanced picture with arguments on both sides. The value score of 76/100 suggests attractive pricing relative to fundamentals. Low volatility (stability score 82/100) reduces downside risk.
In summary, ENTERPRISE FINANCIAL SERVICES CORP (EFSC) earns a Hold rating with a composite score of 52.3/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on EFSC stock.
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Institutional Research Dossier
ENTERPRISE FINANCIAL SERVICES CORP (EFSC) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
Enterprise Financial Services Corp (EFSC) receives a Hold rating, driven by a mixed performance profile. While the company exhibits attractive valuation metrics and solid profitability compared to its sector, concerns arise from its relatively weak investment profile, high debt levels, and negative free cash flow. The current valuation appears to reflect these strengths and weaknesses, suggesting limited upside potential at the current price.
The company's strong operating and net margins, coupled with a lower P/E and EV/EBITDA compared to the sector, are counterbalanced by a high debt-to-equity ratio and a negative free cash flow, creating a complex investment picture. The Hold rating reflects the need for further evidence of improved capital allocation and debt management before a more bullish stance can be justified.
Business Strategy & Overview
Enterprise Financial Services Corp operates primarily through its subsidiary, Enterprise Bank & Trust, providing a comprehensive suite of banking and wealth management services. The company's revenue streams are diversified across commercial and industrial lending, commercial real estate, construction and land development loans, and wealth management services. This diversification helps mitigate risks associated with over-reliance on any single sector. EFSC's strategic focus appears to be on serving middle-market businesses and high-net-worth individuals, offering tailored financial solutions.
The company's expansion strategy involves both organic growth and strategic acquisitions, extending its footprint across multiple states, including Arizona, California, Kansas, Missouri, Nevada, and New Mexico. This geographic diversification aims to capture growth opportunities in different regional economies. Furthermore, EFSC's network of SBA loan production offices and deposit production offices in various states suggests a targeted approach to expanding its lending and deposit base.
EFSC's product pipeline includes a range of digital banking services, such as internet and mobile banking, remote deposit capture, and fraud detection and prevention tools. These offerings are crucial for attracting and retaining customers in an increasingly digital banking landscape. The company also provides specialized services like tax credit brokerage and international trade services, catering to the specific needs of its corporate clients.
The banking industry is highly competitive, with EFSC competing against larger national banks, regional players, and smaller community banks. Differentiation through personalized service, specialized product offerings, and a strong regional presence is key to EFSC's success. The company's wealth management services provide an additional avenue for revenue generation and customer retention, creating cross-selling opportunities with its banking products.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
6.5%
Sector: 9.4%
-31% VS SCTR
Economic Moat Analysis
Enterprise Financial Services Corp possesses a Narrow economic moat, primarily derived from switching costs and established relationships within its regional markets. While not insurmountable, these factors provide a degree of competitive advantage. The company's focus on serving middle-market businesses and high-net-worth individuals fosters stickier customer relationships compared to purely transactional banking services.
Switching costs arise from the inconvenience and potential disruption associated with changing banks, particularly for businesses that rely on complex financial services such as treasury management and international trade services. The time and effort required to establish new banking relationships, integrate systems, and train employees create a barrier to entry for competitors.
EFSC's established presence in its key markets, including Missouri and Arizona, contributes to its moat. Local knowledge, community ties, and a reputation for reliable service enhance customer loyalty. This regional focus allows the company to build stronger relationships with its clients compared to larger national banks that may lack a personalized approach.
However, the moat is not wide due to the relatively low barriers to entry in the banking industry. New fintech companies and online lenders are increasingly challenging traditional banks, offering alternative financial solutions with lower fees and greater convenience. EFSC must continuously innovate and adapt to maintain its competitive edge.
Furthermore, the commoditized nature of many banking products, such as checking accounts and loans, limits EFSC's ability to differentiate itself solely on product features. The company's success depends on its ability to provide superior customer service, build strong relationships, and offer specialized solutions that meet the unique needs of its clients.
Financial Health & Profitability
Enterprise Financial Services Corp demonstrates a mixed financial profile. The company's revenue has shown consistent growth, with FY2025 revenue at $888.41 million compared to $851.05 million in FY2024 and $764.92 million in FY2023. This indicates a positive trend in top-line performance. However, the revenue growth rate of 6.5% is below the sector average of 9.3%, suggesting potential underperformance relative to its peers.
Profitability metrics are generally strong. The company's operating margin of 32.5% and net margin of 24.5% significantly exceed the sector averages of 22.0% and 17.8%, respectively. This indicates efficient cost management and a healthy bottom line. The ROE of 9.7% is also higher than the sector average of 8.5%, reflecting efficient use of equity to generate profits.
However, the company's balance sheet raises concerns. The debt-to-equity ratio of 748.00 is substantially higher than the sector average of 115.00, indicating a high level of leverage. This could increase financial risk and limit the company's flexibility to pursue growth opportunities. The current ratio of 1.13 suggests adequate short-term liquidity, but the high debt levels warrant close monitoring.
The negative free cash flow of $-295.49 million is a significant concern. While the quarterly data does not consistently provide FCF figures, the Q3 FY2024 figure of $-308.55 million further reinforces this concern. Negative free cash flow may indicate challenges in generating sufficient cash from operations to cover capital expenditures and other obligations. This could necessitate external financing, further increasing debt levels.
The trend in operating margins shows some fluctuation. While the full-year operating margin for FY2025 is 31.9%, the quarterly figures vary, with Q3 FY2025 showing a high of 39.3% and Q2 FY2025 at 29.3%. This variability could be due to seasonal factors or specific events affecting the company's performance. Overall, EFSC's financial health is characterized by strong profitability but is tempered by high leverage and negative free cash flow.
Valuation Assessment
Enterprise Financial Services Corp's valuation presents a mixed picture. The company's P/E ratio of 9.9x is significantly lower than the sector average of 15.5x, suggesting that the stock may be undervalued relative to its earnings. Similarly, the EV/EBITDA ratio of 1.7x is substantially lower than the sector average of 3.5x, further indicating potential undervaluation based on its enterprise value and operating performance.
However, the negative free cash flow complicates the valuation assessment. Traditional valuation methods that rely on FCF, such as discounted cash flow analysis, may not be directly applicable or may yield unreliable results. The negative FCF suggests that the company is not generating sufficient cash to fund its operations and investments, which could be a concern for investors.
Considering the company's growth rate, the lower valuation multiples may be justified. While EFSC has demonstrated consistent revenue growth, its growth rate of 6.5% is below the sector average of 9.3%. This slower growth may warrant a lower valuation multiple compared to its faster-growing peers.
The high debt levels also contribute to the valuation assessment. The company's high debt-to-equity ratio increases its financial risk, which could justify a lower valuation multiple. Investors may demand a higher risk premium to compensate for the increased risk associated with the company's leverage.
Overall, EFSC's valuation appears to be fair, considering its strong profitability, lower growth rate, and high debt levels. The lower P/E and EV/EBITDA multiples may reflect the market's concerns about the company's leverage and negative free cash flow. While the stock may appear cheap on the surface, a more detailed analysis reveals that the valuation is likely justified by the company's financial profile.
Risk & Uncertainty
Enterprise Financial Services Corp faces several specific risks that could impact its performance. Credit risk is a primary concern, particularly given the company's exposure to commercial and industrial loans, commercial real estate, and construction and land development loans. Economic downturns or industry-specific challenges could lead to increased loan defaults and higher credit losses, negatively affecting profitability.
Interest rate risk is another significant factor. Changes in interest rates can impact the company's net interest margin, which is the difference between the interest income earned on loans and the interest expense paid on deposits. Rising interest rates could increase funding costs and reduce profitability, while falling interest rates could compress margins and reduce interest income.
Regulatory risk is inherent in the banking industry. EFSC is subject to extensive regulations and oversight by federal and state banking authorities. Changes in regulations, such as capital requirements or lending restrictions, could increase compliance costs and limit the company's ability to operate effectively. Furthermore, regulatory scrutiny could lead to enforcement actions or penalties, negatively impacting the company's reputation and financial performance.
Competition from larger national banks, regional players, and fintech companies poses a constant threat. These competitors may offer lower fees, more innovative products, or a wider range of services, potentially eroding EFSC's market share and profitability. The company must continuously innovate and adapt to maintain its competitive edge.
Bulls Say / Bears Say
The Bull Case
BULL VIEWEFSC's superior operating and net margins compared to the sector indicate efficient operations and strong profitability, justifying a higher valuation.
BULL VIEWThe company's consistent revenue growth and strategic acquisitions demonstrate a commitment to expansion and market share gains, driving future earnings growth.
The Bear Case
BEAR VIEWEFSC's high debt-to-equity ratio and negative free cash flow raise concerns about financial stability and the ability to fund future growth without further leveraging the balance sheet.
BEAR VIEWThe company's below-sector revenue growth rate suggests a lack of competitive advantage and potential market share erosion, limiting upside potential.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score EFSC and 4,400+ other equities.
ENTERPRISE FINANCIAL SERVICES CORP exhibits a 65% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
1.1%
Sector: 1.2%
Gross Margin
Pricing power and cost efficiency
0.0%
Sector: 0.0%
Operating Margin
Core business profitability
32.5%
Sector: 21.9%
Net Margin
Bottom-line profitability
24.5%
Sector: 17.7%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield2.50%
Yield Delta-18%
Income Projection audit
A $10,000 investment would generate approximately $204 annually in dividends at the current trailing rate.
