Equity Bancshares, Inc. (EQBK)
Valuation Overview•Is Equity Bancshares, Inc. Overvalued or Undervalued?
Market price has outpaced base-case intrinsic cash flows, pricing in significant future growth optimism.
Fragile underlying quality score of 41/100; weak margins or elevated debt leverage warrant caution.
Analysts remain bullish, forecasting further upside expansion with consensus targets suggesting solid gains.
Verdict: Average quality business weighed down by significant growth concerns.
Wall Street is broadly bullish, projecting solid upside alongside robust expected earnings growth. This is paired with healthy capital returns, driven predominantly by aggressive share repurchases.
EQBK demonstrates adequate business quality with stable profitability. This is backed by a fortress balance sheet, holding significant net cash ($159M) and minimal debt risk.
The company maintains stable top-line performance however, earnings have severely contracted over the same period. Operating efficiency remains adequate with margins around 10.4%.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $117.5M | -3.8% | — | — | +17.8% | |
| EBITDA | $26.4M | — | -20.3% | — | — | |
| Net Income | $17.0M | -63.7% | -26.7% | — | +8.2% | |
| EPS (Diluted) | $0.88 | -69.3% | -29.5% | — | -2.2% | |
| Free Cash Flow | $11.5M | -41.7% | -18.6% | +2.3% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 51.3% | 59.1% | 72.5% | 74.6% |
| Operating Margin | 10.4% | 11.8% | 20.4% | 14.8% |
| Net Margin | 7.1% | 10.0% | 16.8% | 10.6% |
| FCF Margin | 8.6% | 19.7% | 28.7% | 23.5% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $1.15 | $1.32 | +14.8% | ||
| Q1'26 | — | $1.15 | — | ||
| Q1'26 | $1.22 | $1.26 | +3.3% | ||
| Q4'25 | $0.99 | $1.21 | +22.2% | ||
| Q3'25 | $0.90 | $0.99 | +10.0% | ||
| Q2'25 | $0.82 | $0.90 | +9.8% | ||
| Q1'25 | $0.94 | $1.10 | +17.0% | ||
| Q4'24 | $0.99 | $1.28 | +29.3% |
Total return is +14.3% (1Y), lagging the benchmark by -0.2%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +9.4% | -0.4% | — |
| 1Y | +14.3% | -0.2% | +1.7% |
| 3YCAGR | +27.3% | +7.2% | +7.9% |
| 5YCAGR | +9.6% | -1.8% | +8.6% |
| 10YCAGR | +8.8% | -5.2% | — |
The S&P 500 is at 31.4x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Equity Bancshares, Inc. (EQBK) valuation, health, and returns.
Equity Bancshares, Inc. is estimated to be overvalued under our discounted cash flow framework. relative multiples indicate the stock is Fair versus peers compared to industry peers. overvalued (implying -31.7% downside from DCF intrinsic value of $33.60)
Equity Bancshares, Inc. has multiple valuation anchors: DCF Intrinsic Value: $33.60 | Peer Relative Fair Value: $47.63 | Wall Street Analyst Target: $54.25 (implying +11.4% upside). A convergence of these signals offers higher conviction.
Equity Bancshares, Inc. displays fair financial health with a composite quality score of 41/100, supported by a Piotroski F-Score of 4/9, Return on Invested Capital (ROIC) of 2.3%.
Equity Bancshares, Inc. pays a 1.2% dividend yield, covered by a 50% payout ratio with 5 years of growth, supplemented by a 1.4% buyback yield.
Equity Bancshares, Inc.'s current growth trajectory is Accelerating. The company achieved -3.8% 1Y revenue growth and -69.3% 1Y EPS growth, compared to its 3Y revenue CAGR of N/A.
Wall Street consensus is Hold based on 5 analysts, beating EPS expectations in 92% of recent quarters with a 7-quarter streak. The consensus price target represents a +11.4% change from current levels.
Investment risks for Equity Bancshares, Inc. include: -17.0% 1-year max drawdown. Volatility risk is characterized by a beta of 0.45x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.