Essa Bancorp (ESSA) AI Stock Analysis

• Market Cap: $193.34M
• Dividend Yield: 3.15%
• Average Volume (3M): 20.31K
• Price to Earnings (P/E): 10.9
• Beta (1Y): 0.57
• Revenue Growth: 11.38%
• EPS Growth: -6.14%
• Country: US
• Employees: 253
• Sector: Financial
• Sector Strength: 77
• Industry: Banking
• EPS (TTM): 1.74
• Shares Outstanding: 10,154,664
• 10 Day Avg. Volume: 22,028
• 30 Day Avg. Volume: 20,311
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.94
• Price to Cash Flow (P/CF): 15.40
• 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 strong financial performance, highlighted by profitability and a stable balance sheet, is complemented by positive technical indicators suggesting upward momentum. The strategic merger with CNB Financial is a key driver for future growth, while the valuation remains reasonable. However, cash flow stability and potential overbought technical signals warrant cautious optimism.

Essa Bancorp Business Overview & Revenue Model

Company Description

ESSA Bancorp (ESSA) operates as a bank holding company that provides a range of banking services to individual and corporate customers. It is primarily engaged in offering traditional banking products and services such as savings accounts, checking accounts, certificates of deposit, and loans, including commercial real estate, residential real estate, and consumer loans. ESSA Bancorp primarily operates through its subsidiary, ESSA Bank & Trust, which is headquartered in Stroudsburg, Pennsylvania.

How the Company Makes Money

ESSA Bancorp makes money by collecting interest income from its lending activities, which include commercial real estate loans, residential mortgage loans, and consumer loans. The company earns interest on the loans it provides to customers, which is a major source of revenue. Additionally, ESSA generates non-interest income from service charges on deposit accounts, fees for various banking services, and gains from the sale of loans and securities. The bank also benefits from partnerships with financial service providers for wealth management and insurance products, which contribute to its earnings through fee-based income.

Essa Bancorp Financial Statement Overview

Summary

Essa Bancorp presents a robust financial profile with strong profitability and a stable balance sheet. However, 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
254.59M	254.55M	419.46M	236.58M	399.53M	368.40M
	Total Assets
2.20B	2.19B	2.29B	1.86B	1.86B	1.89B
	Total Debt
215.00M	290.00M	374.65M	230.81M	6.37M	125.88M
	Net Debt
172.17M	241.42M	289.25M	202.87M	-152.58M	-30.04M
	Total Liabilities
1.96B	1.96B	374.65M	1.65B	1.66B	1.70B
	Stockholders Equity
234.18M	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: 19.04
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 19.04 is below the 20-day moving average (MA) of 20.91, below the 50-day MA of 20.49, and above the 200-day MA of 18.92, indicating a neutral trend. The MACD of -0.38 indicates Positive momentum. The RSI at 25.46 is Positive, neither overbought nor oversold. The STOCH value of 7.29 is Positive, 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
ESSA	74 Outperform	$193.34M	10.92	7.30%	3.15%	11.38%	-6.14%
BRKL	67 Neutral	$959.66M	14.00	5.68%	5.01%	7.79%	-8.83%
CHCO	64 Neutral	$1.68B	14.52	16.49%	2.63%	11.10%	3.74%
Sector *	64 Neutral	$13.79B	10.52	9.20%	4.24%	17.25%	-7.60%
HIFS	62 Neutral	$510.22M	18.30	6.72%	1.08%	14.02%	5.59%
FFNW	54 Neutral	$179.89M	168.02	0.66%	2.67%	2.28%	-83.16%

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.