Equity Bancshares, Inc.
Equity Bancshares, Inc. Fundamental Analysis
Equity Bancshares, Inc. (EQBK) shows weak financial fundamentals with a PE ratio of 34.71, profit margin of 7.10%, and ROE of 3.40%. The company generates $0.4B in annual revenue with weak year-over-year growth of -3.75%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 23.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze EQBK's fundamental strength across five key dimensions:
Efficiency Score
WeakEQBK struggles to generate sufficient returns from assets.
Valuation Score
WeakEQBK trades at a premium to fair value.
Growth Score
WeakEQBK faces weak or negative growth trends.
Financial Health Score
ModerateEQBK shows balanced financial health with some risks.
Profitability Score
WeakEQBK struggles to sustain strong margins.
Key Financial Metrics
Is EQBK Expensive or Cheap?
P/E Ratio
EQBK trades at 34.71 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, EQBK's PEG of 15.51 indicates potential overvaluation.
Price to Book
The market values Equity Bancshares, Inc. at 1.05 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 11.92 times EBITDA. This signals the market has high growth expectations.
How Well Does EQBK Make Money?
Net Profit Margin
For every $100 in sales, Equity Bancshares, Inc. keeps $7.10 as profit after all expenses.
Operating Margin
Core operations generate 10.41 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $3.40 in profit for every $100 of shareholder equity.
ROA
Equity Bancshares, Inc. generates $0.32 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Equity Bancshares, Inc. produces operating cash flow of $57.11M, showing steady but balanced cash generation.
Free Cash Flow
Equity Bancshares, Inc. generates strong free cash flow of $42.49M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.02 in free cash annually.
FCF Yield
EQBK converts 4.10% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
34.71
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
15.51
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.05
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.72
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.59
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.26
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.003
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How EQBK Stacks Against Its Sector Peers
| Metric | EQBK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 34.71 | 18.97 | Worse (Expensive) |
| ROE | 3.40% | 814.00% | Weak |
| Net Margin | 7.10% | 1583.00% | Weak |
| Debt/Equity | 0.59 | 1.01 | Strong (Low Leverage) |
| Current Ratio | 0.26 | 657.65 | Weak Liquidity |
| ROA | 0.32% | -19347.00% (disorted) | Weak |
EQBK outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Equity Bancshares, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
40.65%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
124.02%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
-6.70%
Industry Style: Value, Dividend, Cyclical
Declining