Enterprise Bancorp Return On Asset vs. Cash And Equivalents

EBTC Stock  USD 42.75  0.05  0.12%   
Considering Enterprise Bancorp's profitability and operating efficiency indicators, Enterprise Bancorp's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Enterprise Bancorp's ability to earn profits and add value for shareholders. The current year's Operating Cash Flow Sales Ratio is expected to grow to 0.61, whereas Price To Sales Ratio is forecasted to decline to 2.32. At present, Enterprise Bancorp's Total Other Income Expense Net is projected to increase significantly based on the last few years of reporting. The current year's Net Income is expected to grow to about 40 M, whereas Accumulated Other Comprehensive Income is projected to grow to (75.8 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.760.86
Fairly Down
Slightly volatile
Net Profit Margin0.440.2357
Way Up
Pretty Stable
Operating Profit Margin0.30.3174
Notably Down
Slightly volatile
Pretax Profit Margin0.30.3174
Notably Down
Slightly volatile
Return On Assets0.0090.0085
Notably Up
Slightly volatile
Return On Equity0.120.1156
Sufficiently Up
Slightly volatile
For Enterprise Bancorp profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Enterprise Bancorp to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Enterprise Bancorp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Enterprise Bancorp's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Enterprise Bancorp over time as well as its relative position and ranking within its peers.
  
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For information on how to trade Enterprise Stock refer to our How to Trade Enterprise Stock guide.
Is Regional Banks space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Enterprise Bancorp. If investors know Enterprise will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Enterprise Bancorp listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.013
Dividend Share
0.95
Earnings Share
2.85
Revenue Per Share
13.295
Quarterly Revenue Growth
0.039
The market value of Enterprise Bancorp is measured differently than its book value, which is the value of Enterprise that is recorded on the company's balance sheet. Investors also form their own opinion of Enterprise Bancorp's value that differs from its market value or its book value, called intrinsic value, which is Enterprise Bancorp's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Enterprise Bancorp's market value can be influenced by many factors that don't directly affect Enterprise Bancorp's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Enterprise Bancorp's value and its price as these two are different measures arrived at by different means. Investors typically determine if Enterprise Bancorp is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Enterprise Bancorp's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Enterprise Bancorp Cash And Equivalents vs. Return On Asset Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Enterprise Bancorp's current stock value. Our valuation model uses many indicators to compare Enterprise Bancorp value to that of its competitors to determine the firm's financial worth.
Enterprise Bancorp is rated below average in return on asset category among its peers. It is rated # 2 in cash and equivalents category among its peers creating about  53,037,179,487  of Cash And Equivalents per Return On Asset. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Enterprise Bancorp's earnings, one of the primary drivers of an investment's value.

Enterprise Cash And Equivalents vs. Return On Asset

Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

Enterprise Bancorp

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0078
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Cash or Cash Equivalents are the most liquid of all assets found on the company's balance sheet. It is used in calculating many of the firm's liquidity ratios and is a good indicator of the overall financial health of a company. Companies with a lot of cash are usually attractive takeover targets. Cash Equivalents are balance sheet items that are typically reported using currency printed on notes.

Enterprise Bancorp

Cash

 = 

Bank Deposits

+

Liquidities

 = 
413.69 M
Cash equivalents represent current assets that are easily convertible to cash such as short term bonds, savings account, money market funds, or certificate of deposits (CDs). One of the important consideration companies make when classifying assets as cash equivalent is that investments they report on their balance sheets under current assets should have almost no risk of change in value over the next few months (usually three months).

Enterprise Cash And Equivalents Comparison

Enterprise Bancorp is currently under evaluation in cash and equivalents category among its peers.

Enterprise Bancorp Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Enterprise Bancorp, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Enterprise Bancorp will eventually generate negative long term returns. The profitability progress is the general direction of Enterprise Bancorp's change in net profit over the period of time. It can combine multiple indicators of Enterprise Bancorp, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-79.8 M-75.8 M
Operating Income51.2 M33.5 M
Income Before Tax51.2 M53.8 M
Total Other Income Expense Net51.2 M53.8 M
Net Income38.1 M40 M
Income Tax Expense13.2 M6.9 M
Net Income Applicable To Common Shares49.1 M51.6 M
Net Income From Continuing Ops38.1 M27.4 M
Net Interest Income153.1 M130 M
Interest Income201.1 M146.3 M
Change To Netincome1.3 M1.2 M
Net Income Per Share 3.11  3.27 
Income Quality 1.50  1.19 
Net Income Per E B T 0.74  0.55 

Enterprise Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Enterprise Bancorp. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Enterprise Bancorp position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Enterprise Bancorp's important profitability drivers and their relationship over time.

Use Enterprise Bancorp in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Enterprise Bancorp position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Enterprise Bancorp will appreciate offsetting losses from the drop in the long position's value.

Enterprise Bancorp Pair Trading

Enterprise Bancorp Pair Trading Analysis

The ability to find closely correlated positions to Enterprise Bancorp could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Enterprise Bancorp when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Enterprise Bancorp - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Enterprise Bancorp to buy it.
The correlation of Enterprise Bancorp is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Enterprise Bancorp moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Enterprise Bancorp moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Enterprise Bancorp can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Enterprise Bancorp position

In addition to having Enterprise Bancorp in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Education
Education Theme
Companies involved in apprenticeship, education, tutoring, schooling, online universities, and other learning services. The Education theme has 42 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Education Theme or any other thematic opportunities.
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When determining whether Enterprise Bancorp offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Enterprise Bancorp's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Enterprise Bancorp Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Enterprise Bancorp Stock:
Check out Investing Opportunities.
For information on how to trade Enterprise Stock refer to our How to Trade Enterprise Stock guide.
You can also try the Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
To fully project Enterprise Bancorp's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Enterprise Bancorp at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Enterprise Bancorp's income statement, its balance sheet, and the statement of cash flows.
Potential Enterprise Bancorp investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Enterprise Bancorp investors may work on each financial statement separately, they are all related. The changes in Enterprise Bancorp's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Enterprise Bancorp's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.