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Bridgewater Bancshares Inc (BWB)
NASDAQ:BWB
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Bridgewater Bancshares
(NASDAQ:BWB)
72Outperform
Bridgewater Bancshares (BWB) vs. S&P 500 (SPY)
Market Cap
$424.71M
Dividend YieldN/A
Average Volume (3M)109.16K
Price to Earnings (P/E)14.1
Beta (1Y)1.16
Revenue Growth10.63%
EPS Growth-3.35%
CountryUS
Employees292
SectorFinancial
Sector Strength87
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.09
Shares Outstanding27,596,315
10 Day Avg. Volume224,066
30 Day Avg. Volume109,161
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.73
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit747.71K
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$17.50Price Target Upside13.71% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Bridgewater Bancshares Business Overview & Revenue Model
Company DescriptionBridgewater Bancshares, Inc. is a financial holding company that operates through its primary subsidiary, Bridgewater Bank. Based in Minnesota, the company is engaged in providing a full array of banking products and services to commercial real estate investors, small business entrepreneurs, and high-net-worth individuals. The bank offers loan products, deposit services, and other financial solutions to serve its clients' diverse banking needs.
How the Company Makes MoneyBridgewater Bancshares generates revenue primarily through interest income from its loan portfolio, which includes commercial real estate loans, multifamily loans, and construction loans. The company also earns money from service charges and fees associated with its deposit accounts and other financial services. Additionally, non-interest income sources, such as gains from the sale of loans and investment securities, contribute to its earnings. Bridgewater's strategic focus on relationship-based banking and providing tailored financial solutions helps in building customer loyalty and driving profitability. The company's partnerships with local businesses and real estate developers are significant factors in its revenue generation.
Bridgewater Bancshares Financial Statement Overview
Summary
Bridgewater Bancshares shows a stable financial position with strong liquidity and equity health. While the income statement reflects challenges in revenue growth and operational efficiency, the balance sheet and cash flow indicate a well-managed company with effective debt management and strong cash generation capabilities.Income Statement
Bridgewater Bancshares has shown a mixed performance in its income statement. The gross profit margin is stable, but there was a noticeable decline in total revenue from 2022 to 2023, indicating a potential challenge in revenue generation. Net profit margin remained healthy, driven by cost controls. However, the absence of EBIT and EBITDA in the latest year signals operational challenges or changes in accounting. Revenue growth has been inconsistent, which could be a concern for future profitability.65
Positive
Balance Sheet
The balance sheet of Bridgewater Bancshares is quite robust. The company has a solid equity base, with an improving equity ratio, indicating strong shareholder backing. The debt-to-equity ratio has improved significantly in the latest period, suggesting effective debt management. Return on equity remains healthy, showcasing the company's ability to generate profits from its equity base. The high level of cash and cash equivalents indicates good liquidity, which is vital for banking operations.78
Positive
Cash Flow
Cash flow analysis reveals a strong operating cash flow, which exceeds net income, reflecting efficient cash generation from operations. Free cash flow has also been positive and growing, indicating solid cash management. However, the volatility in investing and financing cash flows suggests that the company might be undergoing significant capital expenditures or strategic investments, which could impact future cash reserves.72
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 980.00 | 111.84M | 136.03M | 114.82M | 93.80M | Gross Profit |
| 980.00 | 111.84M | 136.03M | 114.82M | 93.80M | EBIT |
| -189.45M | 62.18M | 108.77M | 61.57M | 35.67M | EBITDA |
| 0.00 | 55.66M | 74.96M | 64.13M | 37.06M | Net Income Common Stockholders |
| 32.83M | 39.96M | 53.39M | 45.69M | 27.19M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 998.01M | 128.56M | 94.60M | 584.71M | 554.16M | Total Assets |
| 5.07B | 4.61B | 4.35B | 3.48B | 2.93B | Total Debt |
| 13.75M | 412.54M | 189.66M | 134.74M | 142.24M | Net Debt |
| -216.01M | 283.98M | 101.43M | -10.61M | -21.30M | Total Liabilities |
| 4.61B | 4.19B | 3.95B | 3.10B | 2.66B | Stockholders Equity |
| 457.94M | 425.51M | 394.06M | 379.27M | 265.40M |
| Cash Flow | Free Cash Flow | |||
| 46.38M | 27.05M | 83.37M | 53.46M | -1.67M | Operating Cash Flow |
| 46.38M | 30.02M | 85.00M | 54.24M | 23.02M | Investing Cash Flow |
| -95.24M | -209.18M | -938.24M | -571.42M | -530.33M | Financing Cash Flow |
| 150.06M | 220.69M | 796.81M | 499.99M | 636.05M |
Bridgewater Bancshares Technical Analysis
Positive
15.39
Price Trends
13.74
Positive
13.92
Positive
14.03
Positive
Market Momentum
0.24
Negative
68.71
Neutral
93.32
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 15.39 is above the 20-day moving average (MA) of 13.30, above the 50-day MA of 13.74, and above the 200-day MA of 14.03, indicating a bullish trend. The MACD of 0.24 indicates Negative momentum. The RSI at 68.71 is Neutral, neither overbought nor oversold. The STOCH value of 93.32 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BWB.
Bridgewater Bancshares Risk Analysis
Bridgewater Bancshares disclosed 58 risk factors in its most recent earnings report. Bridgewater Bancshares reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Bridgewater Bancshares Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $340.02M | 12.22 | 13.20% | 1.44% | 26.42% | 78.75% | |
76 Outperform | $396.71M | 10.35 | 9.85% | 2.04% | 9.82% | 0.91% | |
75 Outperform | $343.92M | 7.72 | 22.26% | 2.53% | 1.20% | 46.86% | |
72 Outperform | $424.71M | 14.07 | 7.67% | ― | 10.63% | -3.35% | |
65 Neutral | $357.18M | 10.65 | 10.98% | 0.76% | 12.88% | 2.03% | |
63 Neutral | $12.46B | 9.55 | 8.14% | 17103.96% | 12.70% | -4.66% | |
62 Neutral | $365.24M | 9.34 | 11.58% | 3.54% | 1.99% | 17.65% |
* Financial Sector Average
Performance Comparison
BWB
Bridgewater Bancshares
15.39
4.23
37.90%
HBCP
Home Bancorp
50.34
14.91
42.08%
BSRR
Sierra Bancorp
26.46
6.36
31.64%
BSVN
Bank7
36.40
9.28
34.22%
RRBI
Red River Bancshares
52.70
6.66
14.47%
USCB
USCB Financial Holdings, Inc. Class A
16.96
5.32
45.70%
Bridgewater Bancshares Earnings Call Summary
Earnings Call Date:Apr 23, 2025
(Q1-2025)
| % Change Since: 13.92%|
Next Earnings Date:Jul 24, 2025
Earnings Call Sentiment Positive
The earnings call presented a generally positive outlook with substantial growth in loans and deposits, net interest margin expansion, and strong revenue growth. However, challenges such as a non-accrual loan and market volatility were noted. Despite these, the positive aspects, particularly the growth metrics and asset quality, outweigh the negative, leading to a strong overall performance.Q1-2025 Updates
Positive Updates
Strong Loan and Deposit Growth
First-quarter loan balances increased 16% on an annualized basis, and core deposit growth was up 8.3% annualized. This reflects a robust expansion of the balance sheet and a return to an offensive-minded loan strategy.
Net Interest Margin Expansion
Net interest margin expanded by 19 basis points to 2.51%, with a core margin increase of 13 basis points to 2.37%. This was driven by a decline in deposit costs and higher loan yields.
Improved Asset Quality
The credit profile remains strong with no net charge-offs during the quarter. Non-performing assets remain low at 0.2% of assets, and overall asset quality is well below peer levels.
Revenue Growth
Total revenue increased by 23% on a year-over-year basis, driven by stronger net interest income and non-interest income from new products.
Tangible Book Value Growth
Tangible book value increased 12% annualized in the first quarter, recovering from a decline due to an acquisition in the previous quarter.
Negative Updates
Non-Accrual Loan Impact
A Central Business District office loan was moved to non-accrual, increasing non-performing assets. This loan is seen as a longer-term workout due to the challenging asset class.
Market Volatility Concerns
Ongoing concerns about market volatility and tariffs create a challenging operating environment and introduce uncertainty that may impact client business operations and interest rates.
Company Guidance
During the 2025 First Quarter Earnings Call, Bridgewater Bancshares, Inc. reported several key financial metrics and strategic guidance. The company achieved adjusted earnings per share of $0.32, with a significant 16% annualized increase in loan balances and 8% growth in core deposits. Net interest margin expanded by 19 basis points, reaching 2.51% for the quarter, largely due to lower deposit pricing and improved loan yields. The provision for loan losses was $1.5 million, and non-performing assets stood at 0.2% of total assets. The tangible book value rose by 12% on an annualized basis. Bridgewater Bancshares also executed a stock repurchase of approximately $600,000. Looking ahead, the company anticipates continued loan growth in the mid to high single digits for the full year, with potential benefits from anticipated rate cuts. They are strategically focusing on affordable housing and market disruptions in The Twin Cities for growth opportunities.Bridgewater Bancshares Corporate Events
DividendsBusiness Operations and StrategyFinancial Disclosures
Bridgewater Bancshares Reports Strong Q1 2025 Results
Positive
Apr 23, 2025
On April 23, 2025, Bridgewater Bancshares announced its first quarter 2025 financial results, highlighting a net income of $9.6 million, an increase from previous quarters. The company declared a quarterly cash dividend on its Series A Preferred Stock, with a payment scheduled for June 2, 2025. The results reflect strong growth in net interest income, loan expansion, and improved efficiency ratios, despite economic uncertainties. This performance underscores Bridgewater’s strategic focus on maintaining asset quality and expanding its tangible book value.
Spark’s Take on BWB Stock
According to Spark, TipRanks’ AI Analyst, BWB is a Neutral.
Bridgewater Bancshares demonstrates solid financial fundamentals, with strong balance sheet and cash flow. However, the stock’s technical indicators suggest bearish momentum, and valuation metrics are neutral. Positive outcomes from the earnings call point towards growth potential, but the market remains cautious given mixed revenue performance and operational challenges.
To see Spark’s full report on BWB stock, click here.
Business Operations and Strategy
Bridgewater Bancshares Unveils Investor Presentation Insights
Positive
Feb 18, 2025
Bridgewater Bancshares, Inc. recently furnished an Investor Presentation that will be utilized in meetings with investors and analysts. The presentation aims to provide insights into the company’s operations, focusing on its strategic growth, risk management, and profitability in the competitive financial services industry. The announcement highlights the company’s commitment to maintaining its strong market position and efficiently managing its operations, which is crucial for its stakeholders.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.