Eagle Bancorp Inc (NASDAQ: EGBN)

Sector: Financial Services Industry: Banks - Regional CIK: 0001050441
Market Cap 642.74 Mn
P/B 0.57
P/E -5.34
P/S 161.74
ROIC (Qtr) -10.45
Div Yield % 2.42
Rev 1y % (Qtr) -160.49
Total Debt (Qtr) 126.35 Mn
Debt/Equity (Qtr) 0.11

About

Eagle Bancorp, Inc., often recognized by its stock symbol, EagleBank, operates as a community bank in the financial services industry. Its headquarters are located in Bethesda, Maryland, and it primarily serves small to medium-sized businesses, as well as individuals, in the Washington, D.C. metropolitan area. The company's operations span across three main segments: commercial banking, consumer banking, and investment securities. In the commercial banking segment, EagleBank offers a variety of services to small and medium-sized businesses, including...

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Price action

Investment thesis

Bull case

  • Strong tangible asset base of 10.82B provides 85.60x coverage of total debt 126.35M, indicating robust asset backing and low credit risk.
  • Robust free cash flow of 39.47M exceeds capital expenditure of 5.03M by 7.86x, indicating strong organic growth funding capability.
  • Retained earnings of 831.68M represent substantial 0.74x of equity 1.12B, indicating strong internal capital generation.
  • Free cash flow of 39.47M provides solid 0.84x coverage of operating expenses 46.78M, showing operational efficiency.
  • Operating cash flow of 44.50M provides strong 8.86x coverage of capital expenditure 5.03M, enabling organic growth.

Bear case

  • Operating cash flow of 44.50M barely covers its investment activities of 552.09M, with a coverage ratio of 0.08, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 44.50M provides thin coverage of dividend payments of (19.99M) with a -2.23 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Operating earnings of (171.38M) show weak coverage of depreciation charges of 3.35M, with a -51.20 ratio indicating high capital intensity and potential reinvestment needs.
  • Operating cash flow of 44.50M provides minimal -0.87x coverage of tax expenses of (51.05M), suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Free cash flow of 39.47M represents just -0.03x of debt issuance (1.26B), suggesting concerning reliance on leverage rather than internal cash generation for growth.

Peer comparison

Companies in the Banks - Regional
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 USB Us Bancorp \De\ 84.44 Bn 12.40 3.25 77.98 Bn
2 PNC Pnc Financial Services Group, Inc. 84.36 Bn 13.61 3.73 62.34 Bn
3 NU Nu Holdings Ltd. 81.47 Bn 32.21 5.79 4.49 Bn
4 NWG NatWest Group plc 66.53 Bn 9.88 3.05 169.04 Bn
5 TFC Truist Financial Corp 64.60 Bn 13.18 3.53 71.11 Bn
6 MTB M&T Bank Corp 32.73 Bn 12.47 3.60 14.99 Bn
7 FITB Fifth Third Bancorp 31.96 Bn 14.15 3.93 18.94 Bn
8 FCNCA First Citizens Bancshares Inc /De/ 28.98 Bn 12.78 3.26 40.00 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.05 0.14
EV to Cash from Ops. EV/CFO 12.86 7.21
EV to Debt EV to Debt 4.53 5.20
EV to EBIT EV/EBIT -3.34 14.98
EV to EBITDA EV/EBITDA -3.41 8.92
EV to Free Cash Flow [EV/FCF] EV/FCF 14.50 8.87
EV to Market Cap EV to Market Cap 0.89 1.04
EV to Revenue EV/Rev 144.04 -3.76
Price to Book Value [P/B] P/B 0.57 1.17
Price to Earnings [P/E] P/E -5.34 15.63
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) -6.02 271.44
Dividend Payout Ratio % Div Payout % (Qtr) -16.70 35.28
Dividend per Basic Share Div per Share (Qtr) 0.51 0.89
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 38.85 34.52
Interest Coverage Interest Coverage 0.00 -0.05
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -11,266.67 -73.15
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 39.36 15.78
Dividend Growth (1y) % Div 1y % (Qtr) -66.67 5.32
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -185.80 110.93
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -658.60 38.80
EBIT Growth (1y) % EBIT 1y % (Qtr) -581.61 61.46
EBT Growth (1y) % EBT 1y % (Qtr) -581.61 61.37
EPS Growth (1y) % EPS 1y % (Qtr) -184.17 76.34
FCF Growth (1y) % FCF 1y % (Qtr) -76.83 161.72
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -98.36 14.15
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.00 0.04
Cash Payout Ratio Cash Payout (Qtr) 0.40 0.26
Cash Ratio Cash Ratio 0.00 0.00
Current Ratio Current Ratio 0.00 0.01
Debt to Equity Ratio Debt/Equity (Qtr) 0.11 0.53
Interest Cover Ratio Interest Cover Ratio 0.00 -0.05
Times Interest Earned Times Interest Earned 0.00 -0.05
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -4,228.20 147.97
EBIT Margin % EBIT Margin % (Qtr) -4,312.43 155.41
EBT Margin % EBT Margin % (Qtr) -4,312.43 154.66
Gross Margin % Gross Margin % (Qtr) 100.00 97.82
Net Profit Margin % Net Margin % (Qtr) -3,027.80 115.63