Bankwell Financial Group (BWFG) AI Stock Analysis

• Market Cap: $384.10M
• Dividend Yield: 1.64%
• Average Volume (3M): 44.64K
• Price to Earnings (P/E): 13.5
• Beta (1Y): 0.75
• Revenue Growth: 2.52%
• EPS Growth: 85.94%
• Country: US
• Employees: 145
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.27
• Shares Outstanding: 7,877,443
• 10 Day Avg. Volume: 82,238
• 30 Day Avg. Volume: 44,644
• PEG Ratio: -0.33
• Price to Book (P/B): 0.89
• Price to Sales (P/S): 1.23
• P/FCF Ratio: 8.19
• Enterprise Value/Market Cap: 0.53
• Enterprise Value/Revenue: 1.00
• Enterprise Value/Gross Profit: 2.17
• Enterprise Value/Ebitda: 4.77
• 1Y Price Target: $53.00
• Price Target Upside: 8.70% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 4.39
• Revenue Forecast (FY): $105.88M

• Rating: 74 Outperform
• Price Target: $53.00 ▲(8.70% Upside)

Bankwell Financial Group's strong financial performance and positive technical indicators are the primary drivers of the score. The earnings call provided additional confidence with improved net income and efficiency metrics. Valuation is reasonable but not a standout factor.

Positive Factors

Net Interest Margin Expansion

The expansion of the net interest margin indicates improved profitability from lending activities, enhancing long-term revenue potential.

Reduction in Nonperforming Assets

A reduction in nonperforming assets reflects better asset quality and risk management, strengthening the company's financial health.

Efficiency Ratio Improvement

Improved efficiency ratio signifies better cost management and operational efficiency, supporting sustainable profit margins.

Negative Factors

Flat Loan Growth Guidance

Flat loan growth guidance suggests limited expansion in lending activities, potentially impacting future revenue growth.

Challenges in Cash Flow Conversion

Difficulty in converting income to cash flow can affect liquidity and limit the company's ability to invest in growth opportunities.

Potential Impact from Government Shutdown

A government shutdown could disrupt SBA-related activities, affecting revenue from this segment and impacting financial performance.

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, money market, and certificates of deposit. The company also provides first mortgage loans secured by one-to-four family owner occupied residential properties for personal use; home equity loans and home equity lines of credit secured by owner occupied one-to-four family residential properties; loans secured by commercial real estate, multi-family dwellings, and investor-owned one-to-four family dwellings; commercial construction loans for commercial development projects, including apartment buildings and condominiums, as well as office buildings, retail, and other income producing properties; land loans; commercial business loans secured by assignments of corporate assets and personal guarantees of the business owners; loans secured by savings or certificate accounts and automobiles; and unsecured personal loans and overdraft lines of credit. It operates branches in New Canaan, Stamford, Fairfield, Wilton, Westport, Darien, Norwalk, and Hamden, Connecticut. The company was formerly known as BNC Financial Group, Inc. and changed its name to Bankwell Financial Group, Inc. in September 2013. Bankwell Financial Group, Inc. was founded in 2002 and is headquartered in New Canaan, Connecticut.

How the Company Makes Money

Bankwell Financial Group generates revenue primarily through interest income from loans, which includes residential mortgages, commercial real estate loans, and business loans. Additionally, the bank earns non-interest income from various fees associated with account services, transaction fees, and wealth management services. The company's revenue model is supported by its focus on community banking, allowing it to build strong relationships with local customers and businesses. Key partnerships with local organizations and participation in community events also contribute to its earnings by enhancing brand visibility and fostering customer loyalty.

Bankwell Financial Group Financial Statement Overview

Summary

Bankwell Financial Group shows strong financial performance with consistent revenue growth and profitability. The balance sheet is stable with improving leverage ratios, though operational cash flow efficiency needs improvement.

Income Statement

Bankwell Financial Group has demonstrated strong revenue growth over the years, with a notable increase in gross profit margins and net profit margins. The TTM data shows a gross profit margin of 46.05% and a net profit margin of 14.33%, indicating efficient cost management and profitability. However, there is a slight decline in EBIT and EBITDA margins compared to previous years, suggesting potential pressure on operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved over time, currently at 0.49 in the TTM period, reflecting a stable financial structure. Return on equity is healthy at 10.35%, indicating effective use of equity to generate profits. However, the equity ratio is relatively low, which could pose a risk if asset values fluctuate.

Cash Flow

Bankwell Financial Group has shown significant improvement in free cash flow growth, with a 48.80% increase in the TTM period. The free cash flow to net income ratio is nearly 1, indicating strong cash generation relative to net income. However, the operating cash flow to net income ratio is low, suggesting potential challenges in converting income into cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	202.54M	195.71M	193.30M	120.98M	87.03M	80.37M
Gross Profit	93.27M	64.38M	98.44M	92.35M	73.60M	50.11M
EBITDA	42.38M	17.10M	51.67M	51.35M	37.44M	10.58M
Net Income	29.02M	9.77M	36.66M	37.43M	26.59M	5.90M
Balance Sheet
Total Assets	3.24B	3.27B	3.22B	3.25B	2.46B	2.25B
Cash, Cash Equivalents and Short-Term Investments	309.52M	325.27M	277.31M	448.59M	381.80M	493.94M
Total Debt	144.64M	159.45M	159.21M	158.96M	84.44M	200.26M
Total Liabilities	2.95B	3.00B	2.95B	3.01B	2.25B	2.08B
Stockholders Equity	292.79M	270.52M	265.75M	238.47M	201.99M	176.60M
Cash Flow
Free Cash Flow	34.12M	29.32M	29.88M	77.71M	38.81M	1.82M
Operating Cash Flow	35.04M	29.94M	31.93M	82.67M	34.56M	-1.51M
Investing Cash Flow	-77.66M	-33.96M	-48.30M	-811.16M	-270.02M	-21.94M
Financing Cash Flow	46.64M	42.39M	-70.15M	739.49M	170.55M	355.00M

Bankwell Financial Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 48.76
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 48.76 is above the 20-day moving average (MA) of 47.62, above the 50-day MA of 45.05, and above the 200-day MA of 38.50, indicating a bullish trend. The MACD of 1.44 indicates Negative momentum. The RSI at 58.79 is Neutral, neither overbought nor oversold. The STOCH value of 71.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BWFG.

Bankwell Financial Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CZNC	77 Outperform	$374.02M	12.01	9.42%	5.33%	5.76%	21.85%
BCML	76 Outperform	$348.07M	15.22	7.07%	2.82%	1.25%	-0.07%
BWFG	74 Outperform	$384.10M	13.52	10.04%	1.64%	2.52%	85.94%
FNLC	72 Outperform	$312.68M	9.91	11.86%	5.24%	10.46%	18.70%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
FRST	67 Neutral	$331.22M	38.68	2.25%	2.98%	9.90%	―

Bankwell Financial Group Corporate Events

Bankwell Financial Group Reports Strong Q3 Results

On October 23, 2025, Bankwell Financial Group announced its third-quarter results, highlighting a GAAP net income of $10.1 million, an increase from the previous quarter. The company declared a quarterly dividend of $0.20 per share, payable on November 21, 2025. Bankwell reported improvements in key financial metrics, including a rise in net interest margin to 3.34% and a reduction in non-performing assets to 0.56% of total assets. The company also noted growth in its SBA division and an improved efficiency ratio, indicating strong operational performance and a positive outlook for the remainder of the year.