Eagle Bancorp Inc (EGBN) stock analysis

P/E above its 5-year median

Eagle Bancorp's P/E of 24.2 is above its own 5-year median of 8.2.

P/E above the industry

Eagle Bancorp's P/E of 24.2 is above the Commercial Banks median of 12.0.

P/S below the industry

Eagle Bancorp's price-to-sales of 3.48 is below the Commercial Banks median of 3.61.

P/B below the industry

Eagle Bancorp's price-to-book of 0.90 is below the Commercial Banks median of 1.28.

Trading above fair value

The share price of $34.38 is above our fair value estimate of $25.68.

Margin of safety under 20%

The price is 33.9% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew -5.7% a year over the last three fiscal years, short of the 10% we look for.

EPS growth over 3 years

Needs positive EPS three years ago and today.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing slower than the industry

Revenue grew 2.5% over the last twelve months; the Commercial Banks median is 11.3%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin trend

Banks and insurers do not report gross profit.

Return on equity under 15%

Return on equity was 3.8% over the last twelve months and averaged 3.4% over five years; we look for 15% on both.

Return on assets under 1%

Return on assets was 0.4%; for a bank or insurer, 1% or more is considered good.

Return on equity below the industry

Eagle Bancorp's return on equity of 3.8% is below the Commercial Banks median of 11.5%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin above its 5-year average

Net margin was 14.4% over the last twelve months, against a 5-year average of 11.8%.

Net margin below the industry

Eagle Bancorp's net margin of 14.4% is below the Commercial Banks median of 30.3%.

Well capitalized

Equity is 12.2% of total assets; 8% or more is a comfortable cushion.

Loans funded by deposits

Needs loans and deposits.

Adequate loan-loss reserve

The allowance for credit losses is not reported.

High cost base

Non-interest expense takes 69.7% of revenue; under 60% is efficient for a bank.

Deposits shrinking

Deposits fell 15.1% over the past year.

Modest borrowings

Borrowings other than deposits are 0.0% of equity.

Pays a dividend

Eagle Bancorp paid dividends worth 0.1% of the share price over the last twelve months.

Yield below Treasuries

The 0.1% yield is below the 4.6% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.9% or more; Eagle Bancorp yields 0.1%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 7 fiscal years.

Covered by earnings

Dividends take 2.8% of net income.

Covered by free cash flow

Dividends take 1.3% of free cash flow.