Equity Bancshares (EQBK) AI Stock Analysis

• Market Cap: $622.26M
• Dividend Yield: 1.51%
• Average Volume (3M): 85.01K
• Price to Earnings (P/E): 8.9
• Beta (1Y): 1.05
• Revenue Growth: 40.43%
• EPS Growth: 545.45%
• Country: US
• Employees: 810
• Sector: Financial
• Sector Strength: 82
• Industry: Banks - Regional
• EPS (TTM): 0.85
• Shares Outstanding: 17,508,740
• 10 Day Avg. Volume: 102,217
• 30 Day Avg. Volume: 85,011
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.17
• Price to Cash Flow (P/CF): 7.90
• P/FCF Ratio: 4.10
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $44.20
• Price Target Upside: 15.13% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

Equity Bancshares exhibits strong financial performance with robust revenue growth and effective cost management, supported by a positive earnings call sentiment that highlights strategic growth initiatives. The stock's valuation also appears attractive with a low P/E ratio and a decent dividend yield. However, technical indicators suggest a bearish trend that could pose short-term challenges. Overall, the stock remains promising but with caution advised due to technical weaknesses.

Positive Factors

Loan Growth

A new incentive program for loan producers is anticipated to generate mid to high-single-digit organic loan growth.

Organic Growth

An acceleration in the organic growth of the balance sheet and fee income is expected following internal actions to boost client calling efforts.

Strategic Acquisitions

Equity Bancshares has sound fundamentals with potential for strategic acquisitions.

Negative Factors

Market Performance

Projected profitability is 1.20% compared to a peer median of 1.16%.

Stock Performance

On a YTD-basis, EQBK shares are -7% compared to a peer group median of -6%.

Equity Bancshares Business Overview & Revenue Model

Company Description

Equity Bancshares, Inc. (EQBK) is a bank holding company headquartered in Wichita, Kansas. It operates through its subsidiary, Equity Bank, providing a range of banking services primarily to individuals, businesses, and government entities. The bank offers products such as checking and savings accounts, personal and commercial loans, mortgage loans, and treasury management services. Equity Bancshares focuses on delivering customer-centric financial solutions through its network of branches spread across Kansas, Missouri, Arkansas, and Oklahoma.

How the Company Makes Money

Equity Bancshares generates revenue primarily through interest income from loans and leases, as well as interest-earning deposits with other banks. The company's non-interest income sources include service charges on deposit accounts, fees from treasury management and payment processing services, and income from trust and investment management services. Equity Bancshares also benefits from its strategic acquisitions of other financial institutions, which expand its market reach and customer base. The bank's profitability is influenced by factors such as interest rate fluctuations, economic conditions in its operating regions, and the ability to manage loan and deposit growth effectively.

Equity Bancshares Financial Statement Overview

Summary

Equity Bancshares demonstrates strong revenue growth and effective cost management, evident in improved profit margins and a debt-free balance sheet, enhancing financial stability. However, the lack of comprehensive data, particularly in cash flow analysis, poses challenges in assessing liquidity and cash management thoroughly. The overall financial health is positive, but enhanced cash flow transparency would provide a more robust evaluation.

Income Statement

Equity Bancshares showed significant growth in total revenue from $136.98M in 2023 to $296.84M in 2024, indicating a solid revenue growth trajectory. The gross profit margin remained strong at 100% due to the nature of revenue recognition in banking. The net profit margin improved to 21.10% in 2024 compared to 5.71% in 2023. EBIT margin was robust at 97.81% in 2024, demonstrating effective cost management. However, the absence of EBITDA figures limits a complete evaluation of operational efficiency.

Balance Sheet

Equity Bancshares exhibits a strong balance sheet with no total debt in 2024, a substantial improvement from $336.92M in 2023. Stockholders' equity increased to $1.46B, enhancing financial stability. The equity ratio improved to 31.21% in 2024, indicating a healthy proportion of equity to assets. The absence of debt enhances financial flexibility, although the high reliance on equity might not leverage potential growth opportunities fully.

Cash Flow

The cash flow statement lacks detailed data for 2024, impacting the ability to assess cash generation capabilities fully. In 2023, operating cash flow was $76.53M, and free cash flow was $60.39M, showing positive cash generation. However, the absence of data for 2024 limits a comprehensive assessment of cash flow trends and the company's ability to sustain operations and growth through internal funds.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
296.84M	136.98M	194.89M	171.88M	154.13M
	Gross Profit
296.84M	136.98M	27.00K	171.88M	154.13M
	EBIT
290.34M	8.82M	101.02M	64.44M	-74.57M
	EBITDA
0.00	0.00	79.65M	78.19M	-68.48M
	Net Income Common Stockholders
62.62M	7.82M	57.69M	52.48M	-74.97M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.19B	379.10M	1.29B	1.59B	1.15B
	Total Assets
5.33B	5.03B	4.98B	5.14B	4.01B
	Total Debt
275.55M	336.92M	235.26M	95.89M	97.83M
	Net Debt
-107.95M	-26.37M	133.59M	-163.25M	-182.57M
	Total Liabilities
4.74B	4.58B	4.57B	4.64B	3.61B
	Stockholders Equity
1.46B	452.86M	410.06M	500.63M	407.65M
Cash Flow		Free Cash Flow
13.76M	60.39M	70.58M	97.60M	34.01M
	Operating Cash Flow
13.76M	76.53M	74.07M	102.70M	43.62M
	Investing Cash Flow
7.81M	232.17M	-214.18M	-315.34M	96.00M
	Financing Cash Flow
70.77M	-34.03M	-15.41M	191.90M	51.78M

Equity Bancshares Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 38.39
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EQBK, the sentiment is Negative. The current price of 38.39 is above the 20-day moving average (MA) of 37.31, below the 50-day MA of 39.68, and below the 200-day MA of 41.24, indicating a neutral trend. The MACD of -0.76 indicates Negative momentum. The RSI at 53.35 is Neutral, neither overbought nor oversold. The STOCH value of 80.29 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EQBK.

Equity Bancshares Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ESQ	73 Outperform	$697.96M	16.09	20.04%	0.79%	17.55%	5.05%
HAFC	73 Outperform	$680.51M	10.99	8.60%	4.53%	8.33%	-21.76%
MBWM	73 Outperform	$676.53M	8.44	13.55%	3.45%	12.26%	-6.93%
EQBK	72 Outperform	$622.26M	8.89	11.84%	1.51%	40.43%	545.45%
CAC	67 Neutral	$646.63M	10.58	10.33%	4.39%	14.18%	22.19%
Sector *	63 Neutral	$12.06B	9.31	8.10%	79.51%	12.80%	-4.67%
NBBK	55 Neutral	$641.87M	15.53	5.53%	―	28.78%	208.59%

Equity Bancshares Corporate Events

Equity Bancshares Announces Merger with NBC Corp.

Equity Bancshares reported a strong start to 2025 with a net income of $15.0 million for the first quarter, driven by a 15.2% annualized loan growth and a net interest margin of 4.27%. The company announced a merger with NBC Corp. of Oklahoma, expanding its footprint into new markets, and declared a $0.15 dividend on common shares. Despite a decrease in deposit balances due to seasonal outflows, the company saw an increase in total assets and maintained a solid capital position with a tangible common equity ratio of 10.1%.

Spark’s Take on EQBK Stock

According to Spark, TipRanks’ AI Analyst, EQBK is a Outperform.

Equity Bancshares is well-positioned with strong financial metrics, strategic M&A activities, and an attractive valuation. However, challenges such as downward technical trends and limited cash flow transparency slightly temper the overall outlook.

To see Spark’s full report on EQBK stock, click here.

Equity Bancshares Announces Merger with NBC Corp.

On April 2, 2025, Equity Bancshares, Inc. announced a definitive merger agreement with NBC Corp. of Oklahoma, which will expand Equity’s presence in Oklahoma by adding seven locations to its network. The merger, expected to close in the third quarter of 2025, is anticipated to be accretive to Equity’s 2026 earnings per share and will enhance the company’s lending capabilities and market reach. The combined entity will operate 15 locations in Oklahoma and will benefit from the experience of NBC’s leadership, including Ken Fergeson joining the Board of Directors.

Equity Bancshares Appoints Kossover as EVP, Capital Markets

On February 3, 2025, Gregory H. Kossover was appointed as Executive Vice President, Capital Markets of Equity Bank. Previously, he served in various executive roles within Equity Bancshares, including CFO and COO, and had recently been with Vantage Point Properties, Inc. His new compensation package includes a base salary of $400,000, potential bonuses, and equity awards. Kossover will also continue his roles on the Board and various committees, indicating stability and continuity in leadership.