ESQ

Esquire Financial Hldgs

Fundamental data last updated:April 13, 2026

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company profile

SECTOR

Financial Services

industry

Banks - Regional

Exchange

Nasdaq

County of HQ

United States

Next Earnings Date

04/23/26

Business Summary

Esquire Financial Holdings operates as a niche regional bank, generating cash primarily through lending and deposit-based banking services within specialized verticals. Its economic engine is spread income — capturing the margin between funding costs and loan yields — amplified by disciplined underwriting and targeted client acquisition. The company’s high 53.10% ROE suggests a focused lending strategy with strong pricing power or superior risk-adjusted returns within its chosen segments. Its moat lies in specialization and relationship banking rather than scale, enabling above-average profitability but also concentrating risk within its balance sheet.

 


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VALUATION

P/E

19.3

Market Cap ($M USD)

$977

Forward P/E

13.3

PEG

1

PRICE TO SALES

6.7

PRICE TO BOOK

3.4

EV / EBITDA

-

5-Year Average P/E

Free Cash Flow Yield

DCF Value

Graham Number

Price to FCF

EV to FCF

Earnings Yield

FCF Yield

DIVIDEND

Yield

0.60%

Annual Payout

$0.73

Payout Ratio

11.10%

Consecutive Years of Dividend Growth

3

5-Year Dividend Growth Rate

-

Financial Health & Profitability

Earnings Per Share

$6.30

Next Year EPS Growth Estimate

$8.50

Next Year Revenue Growth Estimate

53.10%

Return on Equity (ROE)

17.60%

FREE CASH FLOW

Operating Margin

51.40%

Debt-to-Equity

0

Piotroski F-Score

4

Altman Z-Score

0.6

Return on Invested Capital (ROIC)

23.70%

Current Ratio

-

Quick Ratio

Net Debt to EBITDA

Interest Coverage

Gross Profit margin

FCF PER SHARE

REVENUE PER SHARE

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Gainseekers Quantitative Analysis

Summary

At 19.3x trailing earnings and 13.3x forward earnings, ESQ is being priced as a moderate-growth regional bank, yet the 1.0 forward PEG suggests the market is valuing growth almost perfectly in line with expectations rather than discounting it. The disconnect is between profitability and balance sheet risk: a 53.10% ROE and 23.70% ROIC are elite for a regional bank, but the Altman Z-Score of 0.6 signals extreme financial stress risk. That combination tells me this is not a clean GARP story — it is a high-return franchise sitting on a balance sheet the market does not fully trust. The compression from 19.3x to 13.3x forward P/E implies earnings acceleration (EPS next year estimated at $6.30), but the Z-score keeps this from being a “sleep well at night” compounder. This is a stock priced for growth, but carrying distress-level statistical risk.

AI Exposure / Tech Reliance

As a regional bank in Financial Services, ESQ’s AI exposure is indirect but meaningful through underwriting automation, fraud detection, and cost efficiencies in operations. Banks that integrate AI into credit analytics and compliance can structurally improve operating margins, and ESQ already posts a 17.60% operating margin, leaving room for incremental leverage. The real question is not adoption but capital strength — technology enhances efficiency, but it cannot offset balance sheet fragility reflected in a 0.6 Altman Z-Score.

The Bull Case

A GARP investor would be drawn to the sheer capital efficiency of this franchise: 53.10% return on equity and 23.70% ROIC are exceptional and signal a highly profitable lending model. The forward P/E of 13.3 against a PEG of 1 indicates growth is being acquired at a reasonable price, not a speculative premium. Operating margin at 17.60% is solid for a regional bank, reinforcing that this is not growth bought at the expense of profitability. Institutional ownership at $123.33 suggests meaningful professional participation, which can provide liquidity and price support. Even with a modest dividend (0.60% yield, 3% five-year average), the capital allocation appears balanced between shareholder return and reinvestment. For investors willing to underwrite balance sheet risk, this is a high-ROE compounder trading at a non-demanding forward multiple.

The Bear Case

The red flags are not subtle. A 0.6 Altman Z-Score is deep in distress territory and cannot be ignored, especially paired with 51.40% Debt/Equity in a leveraged industry. The Piotroski F-Score of 4 is mediocre, signaling only average fundamental strength and offering no statistical cushion. The payout ratio listed at $0.73 alongside a 0.60% yield raises questions about capital allocation clarity, and several missing metrics (EPS, Short % of Float, Current Ratio) reduce transparency. With a PEG of 1, the stock is not cheap enough to compensate for balance sheet fragility — it is fairly valued if everything goes right. In a tightening credit cycle, this structure could re-rate quickly to the downside.

Market Sentiment & Smart Money

Short Interest %

8.40%

Analyst Consensus

2

Average Analyst Price Target

$123.33

Institutional Ownership %

72.10%

1-Year Beta

0.78

Insider Buying % (6 Mo)

17.70%%

Distance to 52-Week High

83.90%

Distance to 52-Week Low

152.10%

EARNINGS SURPRISE %

50-DAY SMA

200-DAY SMA

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.