Bankwell Financial Group (BWFG)
NASDAQ:BWFG
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Bankwell Financial Group
(NASDAQ:BWFG)
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Rating:76Outperform
Price Target:
$59.00
▲(11.95% Upside)
Action:Upgraded
Date:05/09/26
BWFG scores well on valuation (low P/E with a dividend) and a constructive earnings outlook (guidance affirmed/raised with funding-cost repricing tailwinds). Financial performance is solid but capped by historical volatility and uneven operating cash flow, while technicals support the score with an established uptrend and moderate momentum.
Positive Factors
Profitability recovery
Margins and GAAP earnings have meaningfully recovered, improving core profitability and return on equity. Sustained higher margins provide a durable buffer versus cyclical credit or rate shocks, support internal capital generation and give management scope to invest in growth or shore up capital.
Negative Factors
Capital slightly below target
CET1 modestly below stated target constrains capital actions (buybacks) and limits strategic optionality. Management must retain earnings to rebuild buffers, which can delay capital returns and reduce flexibility for M&A or accelerated balance-sheet optimization over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability recovery
Margins and GAAP earnings have meaningfully recovered, improving core profitability and return on equity. Sustained higher margins provide a durable buffer versus cyclical credit or rate shocks, support internal capital generation and give management scope to invest in growth or shore up capital.
Read all positive factors
Bankwell Financial Group (BWFG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$415.32M
Dividend Yield1.66%
Average Volume (3M)46.81K
Price to Earnings (P/E)8.3
Beta (1Y)0.82
Revenue Growth7.75%
EPS Growth217.94%
CountryUS
Employees145
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)5.06
Shares Outstanding7,973,180
10 Day Avg. Volume88,697
30 Day Avg. Volume46,810
Financial Highlights & Ratios
PEG Ratio0.04
Price to Book (P/B)1.18
Price to Sales (P/S)1.71
P/FCF Ratio13.09
Enterprise Value/Market Cap0.81
Enterprise Value/Revenue1.59
Enterprise Value/Gross Profit2.91
Enterprise Value/Ebitda5.90
Forecast
1Y Price Target
$58.00Price Target Upside10.06% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)5.35
Revenue Forecast (FY)$123.97M
Bankwell Financial Group Business Overview & Revenue Model
Company Description
Bankwell Financial Group, Inc. operates as the bank holding company for Bankwell Bank that provides various banking services for individual and commercial customers. It offers various traditional depository products, including checking, savings, m...
How the Company Makes Money
BWFG primarily makes money through Bankwell Bank’s net interest income and noninterest income. Net interest income is earned from the spread between (1) interest and fees collected on loans and interest-earning assets (such as commercial loans, co...
Bankwell Financial Group Earnings Call Summary
Earnings Call Date:Apr 22, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Positive
The call presented a generally constructive picture: solid GAAP earnings, tangible core deposit growth, meaningful loan production, improved deposit costs, and healthy credit metrics with a provision release. Management raised noninterest income guidance and reaffirmed full-year net interest income guidance while executing balance sheet optimization (notably a 50% reduction in broker deposits since 2022). Offsetting items were modest NIM pressure from loan repricing and day-count effects, a seasonal hit to PPNR/efficiency in Q1, a small uptick in NPAs (CRE-related) and ongoing competitive pressure for deposits. Capital ratios are improving but remain below the stated CET1 target, limiting more aggressive buybacks. Overall, positives outweigh the near-term headwinds, with management confident in continued execution.Positive Updates
Strong GAAP Earnings
Reported GAAP net income of $11.3 million, or $1.41 per share for Q1 2026, supported by stable net interest income and meaningful fee income.
Negative Updates
Net Interest Margin Pressure
Net interest margin declined modestly to 328 basis points due to asset repricing as floating-rate loans reset lower and an unfavorable day count impact; day-count-normalized NIM variance would have been approximately +5 bps, indicating the quarter was partly affected by timing.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong GAAP Earnings
Reported GAAP net income of $11.3 million, or $1.41 per share for Q1 2026, supported by stable net interest income and meaningful fee income.
Read all positive updates
Company Guidance
Management affirmed full‑year net interest income guidance of $111–$112 million and raised full‑year noninterest income guidance to $12–$13 million, while forecasting incremental margin improvement as deposit repricing and moderating rate sensitivity work through the balance sheet; key reads: Q1 NII $26.9M, NIM 328 bps (day‑count normalized ~+5 bps), total deposit cost 310 bps with a March exit of ~298 bps, $300M of time deposits repriced 44 bps lower (annualized benefit ~$1.2M) and ~$1.1B more expected to reprice over 12 months at an avg reduction of 14 bps (annualized ~$1.6M ≈ 5 bps NIM). They maintained loan growth guidance of ~4–5% (Q1 originations $190M, incl. $34M SBA; net loan growth $27M), underlying noninterest expense run‑rate $64–$65M (Q1 noninterest expense $16.9M; efficiency ratio 55.8%), and signaled buybacks subject to capital (Q1 repurchased 3,317 shares at $45.32) with tangible common equity 9.17% and consolidated CET1 ~10.58% (11% target).Bankwell Financial Group Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
71
Positive
Cash Flow
64
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 211.83M | 207.72M | 195.71M | 193.30M | 120.98M | 87.03M |
| Gross Profit | 115.65M | 107.28M | 64.38M | 98.44M | 92.35M | 73.60M |
| EBITDA | 57.01M | 52.58M | 17.10M | 51.67M | 51.35M | 37.44M |
| Net Income | 39.59M | 35.20M | 9.77M | 36.66M | 37.43M | 26.59M |
Balance Sheet | ||||||
| Total Assets | 3.37B | 3.36B | 3.27B | 3.22B | 3.25B | 2.46B |
| Cash, Cash Equivalents and Short-Term Investments | 211.16M | 227.17M | 325.27M | 277.31M | 448.59M | 381.80M |
| Total Debt | 129.76M | 179.70M | 159.45M | 159.21M | 158.96M | 84.44M |
| Total Liabilities | 3.06B | 3.06B | 3.00B | 2.95B | 3.01B | 2.25B |
| Stockholders Equity | 311.87M | 301.49M | 270.52M | 265.75M | 238.47M | 201.99M |
Cash Flow | ||||||
| Free Cash Flow | 30.55M | 27.13M | 29.32M | 29.88M | 77.71M | 38.81M |
| Operating Cash Flow | 32.07M | 28.27M | 29.94M | 31.93M | 82.67M | 34.56M |
| Investing Cash Flow | -267.06M | -165.19M | -33.96M | -48.30M | -811.16M | -270.02M |
| Financing Cash Flow | 147.96M | 54.31M | 42.39M | -70.15M | 739.49M | 170.55M |
Bankwell Financial Group Technical Analysis
Positive
52.70
Price Trends
50.29
Positive
48.90
Positive
46.36
Positive
Market Momentum
0.35
Negative
54.71
Neutral
81.90
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BWFG, the sentiment is Positive. The current price of 52.7 is above the 20-day moving average (MA) of 51.62, above the 50-day MA of 50.29, and above the 200-day MA of 46.36, indicating a bullish trend. The MACD of 0.35 indicates Negative momentum. The RSI at 54.71 is Neutral, neither overbought nor oversold. The STOCH value of 81.90 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BWFG.
Bankwell Financial Group Risk Analysis
Bankwell Financial Group disclosed 36 risk factors in its most recent earnings report. Bankwell Financial Group 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
Bankwell Financial Group Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $338.30M | 9.91 | 7.84% | 2.91% | 3.70% | 15.06% | |
76 Outperform | $415.32M | 8.31 | 13.31% | 1.66% | 7.75% | 217.94% | |
76 Outperform | $312.47M | 12.08 | 10.66% | ― | 4.33% | -5.10% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $354.98M | 11.20 | 11.47% | 3.06% | 9.62% | 1059.18% | |
64 Neutral | $322.26M | 8.65 | 13.08% | 5.24% | 5.29% | 28.67% | |
53 Neutral | $377.50M | 361.39 | 5.54% | 5.43% | 13.25% | -37.82% |
* Financial Sector Average
BWFG
Bankwell Financial Group
52.09
19.20
58.38%
CZNC
Citizens & Northern
21.07
3.09
17.21%
FNLC
First Bancorp
28.58
6.17
27.51%
FRST
Primis Financial
14.33
5.35
59.52%
BCML
BayCom
31.01
5.70
22.53%
COSO
CoastalSouth Bancshares
25.68
5.24
25.65%
Bankwell Financial Group Corporate Events
Business Operations and StrategyDividendsFinancial Disclosures
Bankwell Financial Posts Strong Q1 2026 Results, Raises Dividend
Positive
Apr 22, 2026
On April 22, 2026, Bankwell Financial Group reported first-quarter 2026 GAAP net income of $11.3 million, or $1.41 per share, up from $9.1 million, or $1.15 per share, in the fourth quarter of 2025, with return on average assets rising to 1.35% an...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.