Bridgewater Bancshares (BWB) AI Stock Analysis

• Market Cap: $547.01M
• Dividend Yield: N/A
• Average Volume (3M): 87.55K
• Price to Earnings (P/E): 13.3
• Beta (1Y): 0.94
• Revenue Growth: 13.96%
• EPS Growth: 25.74%
• Country: US
• Employees: 292
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.44
• Shares Outstanding: 27,584,732
• 10 Day Avg. Volume: 112,842
• 30 Day Avg. Volume: 87,551
• PEG Ratio: -0.61
• Price to Book (P/B): 0.81
• Price to Sales (P/S): 1.48
• P/FCF Ratio: 8.78
• Enterprise Value/Market Cap: 1.70
• Enterprise Value/Revenue: 3.32
• Enterprise Value/Gross Profit: 7.41
• Enterprise Value/Ebitda: 16.19
• 1Y Price Target: $23.00
• Price Target Upside: 15.99% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: $20.50 ▲(3.38% Upside)

The score is driven primarily by solid overall financial health—especially strong cash flow metrics and a stable balance sheet—despite weak revenue growth. Technicals are mildly supportive with price above key moving averages and neutral momentum. Valuation appears reasonable on earnings, and the latest earnings call indicates continued deposit/loan growth and improving NIM, offset by higher expenses and some margin/credit headwinds.

Positive Factors

Strong free cash flow

Sustained high free cash flow growth and a strong free cash flow-to-net-income ratio provide durable internal funding for loan growth, acquisitions, and capital needs. This improves financial flexibility, limits reliance on external financing, and supports long-term strategic initiatives and dividends.

Manageable leverage & stable capital

A debt-to-equity near 1.0 with improving ROE signals a balanced capital structure for a regional bank. This level of leverage supports measured balance sheet expansion while leaving capacity to absorb shocks, finance growth, and maintain regulatory capital ratios over the medium term.

Deposit and loan growth with NIM expansion

Consistent core deposit and loan growth combined with rising NIM indicate sustainable net interest income expansion. Stable funding via deposit gains reduces wholesale funding needs and supports scalable lending margins, improving long-term earnings power if asset quality holds.

Negative Factors

Sharp revenue decline

A material drop in revenue over the trailing period signals weakening fee or non-interest income streams and/or lower loan yields. Persistent revenue contraction undermines operating leverage, constrains reinvestment capacity, and makes profitability dependent on interest-rate and balance-sheet growth.

Rising non-interest expenses

Elevated operating expenses from integrations and higher compensation reduce efficiency and compress long-term operating margins. If these expense increases prove structural rather than one-time, they will erode return on equity and require stronger revenue growth to restore historical profitability.

Loan migration & CRE concentration risk

Migration of a multifamily loan to substandard highlights concentration risks in commercial real estate verticals. Persistent CRE stress could raise credit provisions, tighten underwriting, and demand higher capital cushions, weakening credit metrics and limiting growth in cyclical downturns.

Bridgewater Bancshares Business Overview & Revenue Model

Company Description

Bridgewater Bancshares, Inc. operates as the bank holding company for Bridgewater Bank that provides banking products and services to commercial real estate investors, small business entrepreneurs, and high net worth individuals in the United States. The company offers savings and money market accounts, demand deposits, time and brokered deposits, and interest and noninterest bearing transaction, as well as certificates of deposit. It also provides commercial loans to sole proprietorships, partnerships, corporations, and other business enterprises to finance accounts receivable or inventory, capital assets, or other business-related purposes; paycheck protection program loans; construction and land development loans; 1-4 family mortgage loans; multifamily lending products; owner and non-owner occupied commercial real estate loans; and consumer and other loans. In addition, the company online, mobile, and direct banking services. It operates through seven full-service offices located in Bloomington, Greenwood, Minneapolis, St. Louis Park, Orono, and St. Paul, Minnesota. The company was incorporated in 2005 and is headquartered in Saint Louis Park, Minnesota.

How the Company Makes Money

Bridgewater Bancshares generates revenue primarily through interest income derived from its loan portfolio, which includes commercial and residential loans. The company earns interest on loans issued to customers, with the interest rates determined by market conditions and the creditworthiness of borrowers. Additionally, Bridgewater Bank collects fees from various banking services, such as account maintenance, transaction fees, and treasury management services. The bank's revenue model is bolstered by its focus on relationship banking, which fosters long-term client relationships and encourages cross-selling of products. Furthermore, the company benefits from a diversified lending strategy and prudent risk management practices that contribute to stable earnings over time.

Bridgewater Bancshares Financial Statement Overview

Summary

Overall financials are solid but mixed: strong cash generation (free cash flow growth 50.86% TTM; free cash flow to net income 86.05%) and a stable balance sheet with manageable leverage (debt-to-equity 0.989) support the score. Offsetting this, revenue growth is sharply negative (-23.82% TTM) and profitability/operating margins have weakened in the TTM, which caps the rating.

Income Statement

Bridgewater Bancshares has shown a mixed performance in its income statement. The TTM data indicates a significant decline in revenue growth rate at -23.82%, which is concerning. However, the company maintains a healthy net profit margin of 14.95% in the TTM, which suggests strong profitability despite revenue challenges. Historical data shows fluctuating but generally strong gross profit margins, although recent margins have decreased. The EBIT and EBITDA margins have also decreased in the TTM, indicating potential operational challenges.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.989 in the most recent annual report, which is manageable for a regional bank. The return on equity has slightly improved to 8.62% in the TTM, indicating efficient use of equity. The equity ratio remains stable, suggesting a balanced capital structure. However, the increase in total debt over the years could pose a risk if not managed carefully.

Cash Flow

Cash flow analysis shows a positive trajectory with a significant increase in free cash flow growth rate at 50.86% in the TTM. The operating cash flow to net income ratio is strong, indicating good cash generation relative to net income. The free cash flow to net income ratio is also healthy at 86.05%, suggesting effective cash management. However, historical fluctuations in free cash flow growth indicate potential volatility in cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	280.61M	251.44M	226.95M	169.34M	134.19M	120.67M
Gross Profit	125.69M	104.22M	109.94M	127.64M	109.67M	81.05M
EBITDA	57.48M	45.74M	55.66M	74.96M	64.13M	37.06M
Net Income	40.96M	32.83M	39.96M	53.39M	45.69M	27.19M
Balance Sheet
Total Assets	5.36B	5.07B	4.61B	4.35B	3.48B	2.93B
Cash, Cash Equivalents and Short-Term Investments	509.03M	619.83M	732.67M	636.84M	584.71M	554.16M
Total Debt	513.09M	452.92M	412.54M	476.65M	134.74M	142.24M
Total Liabilities	4.86B	4.61B	4.19B	3.95B	3.10B	2.66B
Stockholders Equity	497.46M	457.94M	425.51M	394.06M	379.27M	265.40M
Cash Flow
Free Cash Flow	48.69M	42.30M	27.05M	83.37M	53.46M	-1.67M
Operating Cash Flow	55.41M	46.38M	30.02M	85.00M	54.24M	23.02M
Investing Cash Flow	-467.59M	-95.24M	-209.18M	-938.24M	-571.42M	-530.33M
Financing Cash Flow	352.14M	150.06M	220.69M	796.81M	499.99M	636.05M

Bridgewater Bancshares Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 19.83
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BWB, the sentiment is Positive. The current price of 19.83 is above the 20-day moving average (MA) of 18.60, above the 50-day MA of 18.22, and above the 200-day MA of 16.61, indicating a bullish trend. The MACD of 0.42 indicates Negative momentum. The RSI at 67.73 is Neutral, neither overbought nor oversold. The STOCH value of 81.26 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BWB.

Bridgewater Bancshares Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NRIM	81 Outperform	$564.42M	8.79	21.77%	2.31%	36.60%	92.63%
AROW	75 Outperform	$590.28M	13.37	8.49%	3.59%	6.86%	6.11%
BWB	71 Outperform	$547.01M	13.32	8.63%	―	13.96%	25.74%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
ACNB	65 Neutral	$552.06M	14.50	9.18%	2.78%	41.95%	-4.72%
FFIC	54 Neutral	$570.52M	30.76	-5.05%	5.16%	-11.91%	-235.73%
FFWM	49 Neutral	$538.75M	-3.45	-16.22%	―	-6.47%	-75.82%

Bridgewater Bancshares Corporate Events

Bridgewater Bancshares Posts Strong Q4 and 2025 Results

On January 27, 2026, Bridgewater Bancshares reported strong fourth-quarter 2025 results, with net income rising to $13.3 million, or $0.43 per diluted share, up from $11.6 million in the prior quarter and $8.2 million a year earlier, supported by higher net interest income, improved net interest margin of 2.75%, and a 52.7% jump in noninterest income. For full-year 2025, net income reached $46.1 million, or $1.49 per diluted share, as pre-provision net revenue climbed 42.1% year over year, tangible book value per share increased 15.3% to $15.55, and both deposits and loans expanded, while credit costs remained low with net loan charge-offs at 0.04% of average loans; management highlighted efficiency gains following a systems conversion, continued benefits from M&A disruption in the Twin Cities, and plans to drive profitable growth and expand key verticals such as affordable housing in 2026.

The most recent analyst rating on (BWB) stock is a Hold with a $19.50 price target. To see the full list of analyst forecasts on Bridgewater Bancshares stock, see the BWB Stock Forecast page.

Bridgewater Bancshares Unveils Strategic Investor Presentation

Bridgewater Bancshares, Inc. has released an investor presentation to be used by its executives in meetings with investors and analysts. The presentation outlines the company’s strategic focus on commercial real estate and multifamily lending, as well as its efficient operations and risk management practices. The company continues to demonstrate strong growth and profitability despite market disruptions, with plans for a branch closure and a new branch opening in the Twin Cities. This strategic move is expected to enhance its market presence and operational efficiency.

The most recent analyst rating on (BWB) stock is a Buy with a $18.00 price target. To see the full list of analyst forecasts on Bridgewater Bancshares stock, see the BWB Stock Forecast page.