Essa Bancorp (ESSA) AI Stock Analysis

• Market Cap: $184.51M
• Dividend Yield: 3.3%
• Average Volume (3M): 17.61K
• Price to Earnings (P/E): 10.4
• Beta (1Y): 0.73
• Revenue Growth: 11.38%
• EPS Growth: -6.14%
• Country: US
• Employees: 236
• Sector: Financial
• Sector Strength: 79
• Industry: Banks - Regional
• EPS (TTM): 1.74
• Shares Outstanding: 10,154,664
• 10 Day Avg. Volume: 15,976
• 30 Day Avg. Volume: 17,608
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.92
• Price to Cash Flow (P/CF): 15.30
• P/FCF Ratio: 3.70
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Essa Bancorp's overall stock score reflects a solid financial foundation and an attractive valuation. The strategic merger with CNB Financial is a key positive catalyst, expected to improve earnings and market presence. However, technical analysis points to current bearish sentiment, which could hinder short-term stock performance. Investors should weigh the long-term growth prospects against potential near-term volatility.

Essa Bancorp Business Overview & Revenue Model

Company Description

Essa Bancorp, Inc. (ESSA) is a financial holding company that primarily operates through its subsidiary, ESSA Bank & Trust. The company provides a range of banking and financial services, including savings accounts, checking accounts, and loans to individuals and businesses. ESSA is headquartered in Stroudsburg, Pennsylvania, and serves customers through a network of branch locations in the region.

How the Company Makes Money

ESSA Bancorp generates revenue primarily through the interest income accrued on loans and investments, as well as fees associated with various banking services. The company offers residential and commercial mortgages, home equity loans, and consumer loans, which contribute significantly to its interest income. Additionally, ESSA earns non-interest income from service charges on deposit accounts, wealth management, and investment advisory services. The company's earnings are also supported by strategic partnerships within the financial services industry, enhancing its product offerings and expanding its customer base.

Essa Bancorp Financial Statement Overview

Summary

Overall, Essa Bancorp presents a robust financial profile with strong profitability and a stable balance sheet. While there is consistent operational performance, challenges remain in accelerating growth and enhancing cash flow stability. The company's strategic focus should be on optimizing cash flow management and pursuing growth opportunities to improve its financial standing.

Income Statement

Essa Bancorp exhibits solid profitability with a consistent gross profit margin and a net profit margin reflecting efficient revenue conversion. Revenue growth is modest year-over-year, indicating steady but not aggressive expansion. EBIT and EBITDA margins are healthy, supporting strong operational performance. However, the growth rate of revenue has slowed compared to previous years.

Balance Sheet

The company's balance sheet is stable with a manageable debt-to-equity ratio, indicating prudent leverage. The return on equity is satisfactory, showing effective use of equity capital. The equity ratio suggests a sound capital base, but there is room for improvement in reducing liabilities to enhance financial resilience.

Cash Flow

Operating cash flow coverage of net income is adequate, demonstrating operational efficiency. The free cash flow growth rate has been inconsistent, with fluctuations in capital expenditures and financing activities. The free cash flow to net income ratio is slightly below optimal, suggesting potential volatility in cash generation.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
98.67M	67.84M	69.30M	68.22M	64.39M	61.46M
	Gross Profit
98.67M	67.84M	69.30M	68.22M	64.39M	61.46M
	EBIT
41.88M	20.96M	23.07M	28.05M	19.90M	17.60M
	EBITDA
15.55M	0.00	25.18M	27.18M	22.08M	19.81M
	Net Income Common Stockholders
16.61M	16.99M	18.58M	20.07M	16.42M	14.42M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
25.91M	254.55M	419.46M	236.58M	399.53M	368.40M
	Total Assets
1.06B	2.19B	2.29B	1.86B	1.86B	1.89B
	Total Debt
389.98M	290.00M	374.65M	230.81M	6.37M	125.88M
	Net Debt
364.06M	241.42M	289.25M	202.87M	-152.58M	-30.04M
	Total Liabilities
879.63M	1.96B	374.65M	1.65B	1.66B	1.70B
	Stockholders Equity
179.06M	230.42M	219.71M	212.34M	201.82M	191.40M
Cash Flow		Free Cash Flow
9.67M	13.21M	19.91M	22.14M	18.97M	18.69M
	Operating Cash Flow
9.82M	13.43M	20.86M	22.71M	19.38M	19.75M
	Investing Cash Flow
38.33M	77.02M	-377.12M	-128.13M	31.79M	15.43M
	Financing Cash Flow
-42.40M	-127.27M	413.73M	-25.59M	-48.14M	68.49M

Essa Bancorp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 18.17
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ESSA, the sentiment is Negative. The current price of 18.17 is below the 20-day moving average (MA) of 18.58, below the 50-day MA of 19.87, and below the 200-day MA of 19.00, indicating a bearish trend. The MACD of -0.37 indicates Negative momentum. The RSI at 39.78 is Neutral, neither overbought nor oversold. The STOCH value of 22.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ESSA.

Essa Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HWBK	69 Neutral	$192.00M	10.55	14.14%	2.76%	9.65%	1820.32%
VABK	67 Neutral	$203.28M	11.98	10.83%	3.50%	4.93%	-12.19%
ESSA	66 Neutral	$184.51M	10.43	7.30%	3.30%	11.38%	-6.14%
WNEB	64 Neutral	$176.69M	15.29	4.93%	3.52%	9.56%	-20.10%
Sector *	64 Neutral	$13.46B	9.44	9.34%	4.72%	16.14%	-8.80%
FVCB	59 Neutral	$193.92M	12.18	6.66%	―	22.60%	284.38%
FUNC	58 Neutral	$193.81M	9.52	12.06%	3.11%	16.56%	40.31%

Essa Bancorp Corporate Events

Essa Bancorp Announces Strategic Merger with CNB Financial

ESSA Bancorp, Inc. has entered into a merger agreement with CNB Financial Corporation, where ESSA will merge into CNB and ESSA Bank & Trust will merge into CNB Bank. This strategic merger, valued at approximately $214 million, will result in the combined company having $8 billion in assets and expanding CNB’s presence in eastern Pennsylvania. The merger is expected to be financially beneficial with CNB projecting significant accretion to earnings per share by 2026 and a strong pro forma balance sheet, enhancing its market position in Pennsylvania.