Bankwell Financial Group (BWFG)
NASDAQ:BWFG
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Bankwell Financial Group
(NASDAQ:BWFG)
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Rating:63Neutral
Price Target:
$56.00
▲(5.86% Upside)
Action:DowngradedDate:03/05/26
The score is driven primarily by mixed financial quality: strong revenue growth and a 2025 profitability rebound are tempered by earnings volatility and a 2025 shift to slightly negative operating/free cash flow. Valuation is a clear positive (low P/E), while technicals are neutral with modest short-term weakness. The latest earnings call was supportive overall, with constructive 2026 guidance and improving funding/credit metrics, partially offset by higher planned expenses and some yield and SBA/prepayment volatility.
Positive Factors
Revenue Growth Momentum
Sustained multi-year revenue growth reflects expanding loan originations and fee generation, creating durable scale that supports investment in technology and branches. This top-line momentum improves the bank's ability to absorb cyclical shocks and fund strategic initiatives over the next several quarters.
Negative Factors
Weakened Cash Generation
A reversal to slightly negative operating and free cash flow raises structural funding and liquidity risk, limiting internal funding for investments, dividends or balance-sheet growth. If sustained, this can force reliance on wholesale funding or slower loan growth, pressuring margins and financial flexibility.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth Momentum
Sustained multi-year revenue growth reflects expanding loan originations and fee generation, creating durable scale that supports investment in technology and branches. This top-line momentum improves the bank's ability to absorb cyclical shocks and fund strategic initiatives over the next several quarters.
Read all positive factors
Bankwell Financial Group (BWFG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$421.97M
Dividend Yield1.66%
Average Volume (3M)46.81K
Price to Earnings (P/E)10.1
Beta (1Y)0.82
Revenue Growth2.52%
EPS Growth85.94%
CountryUS
Employees145
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.15
Shares Outstanding7,976,788
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 Ratio13.59
Enterprise Value/Market Cap0.89
Enterprise Value/Revenue1.80
Enterprise Value/Gross Profit3.49
Enterprise Value/Ebitda7.12
Forecast
1Y Price Target
$55.00Price Target Upside3.97% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)5.22
Revenue Forecast (FY)$122.50M
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:Jan 29, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 22, 2026
Earnings Call Sentiment Positive
The call highlights meaningful progress across revenue, deposits, asset quality and capital while management provided constructive guidance for 2026. Positive operational momentum (NIM expansion, improved NPAs, stronger non-interest income driven by an operational SBA division, and higher tangible book value) outweighs a small number of headwinds (a one-time tax charge, asset yield compression, higher planned expenses, and some business volatility from prepayments and SBA seasonality).Positive Updates
Strong Quarterly and Operating Earnings
GAAP Q4 net income of $9.1 million ($1.15 per share). Excluding a one-time tax adjustment, operating income was $10.7 million ($1.36 per share). Operating ROAA was 1.29% versus reported 1.11%, and operating ROTCE was 14.32% versus reported 12.31%.
Negative Updates
One-Time Tax Adjustment Reduced Reported Earnings
A $1.5 million one-time income tax provision adjustment (including an $855k true-up and $692k FIN 48 reserve addition) impacted GAAP results; full-year effective tax rate reported at 27.4% versus an expected go‑forward rate of ~25%.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Quarterly and Operating Earnings
GAAP Q4 net income of $9.1 million ($1.15 per share). Excluding a one-time tax adjustment, operating income was $10.7 million ($1.36 per share). Operating ROAA was 1.29% versus reported 1.11%, and operating ROTCE was 14.32% versus reported 12.31%.
Read all positive updates
Company Guidance
For 2026 management guided to loan growth of 4–5%, net interest income of $111–112 million, non‑interest income of about $11–12 million, and total non‑interest expense of $64–65 million; they also expect roughly $1.2 billion of time deposits to reprice over the next 12 months with an average rate reduction of ~32 basis points (providing an estimated ~$4 million annualized benefit, or ~12 bps of NIM), a go‑forward effective tax rate of about 25%, and an implied operating return on average assets north of ~1.20% (quarterly operating ROA was 1.29%), with the guidance reflecting continued investment in people, technology and infrastructure while remaining well capitalized.Bankwell Financial Group Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
64
Positive
Cash Flow
38
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 207.72M | 195.71M | 193.30M | 120.98M | 87.03M |
| Gross Profit | 107.28M | 64.38M | 98.44M | 92.35M | 73.60M |
| EBITDA | 52.58M | 17.10M | 51.67M | 51.35M | 37.44M |
| Net Income | 35.20M | 9.77M | 36.66M | 37.43M | 26.59M |
Balance Sheet | |||||
| Total Assets | 3.36B | 3.27B | 3.22B | 3.25B | 2.46B |
| Cash, Cash Equivalents and Short-Term Investments | 227.17M | 325.27M | 277.31M | 448.59M | 381.80M |
| Total Debt | 179.70M | 159.45M | 159.21M | 158.96M | 84.44M |
| Total Liabilities | 3.06B | 3.00B | 2.95B | 3.01B | 2.25B |
| Stockholders Equity | 301.49M | 270.52M | 265.75M | 238.47M | 201.99M |
Cash Flow | |||||
| Free Cash Flow | 26.13M | 29.32M | 29.88M | 77.71M | 38.81M |
| Operating Cash Flow | 27.27M | 29.94M | 31.93M | 82.67M | 34.56M |
| Investing Cash Flow | -164.18M | -33.96M | -48.30M | -811.16M | -270.02M |
| Financing Cash Flow | 54.31M | 42.39M | -70.15M | 739.49M | 170.55M |
Bankwell Financial Group Technical Analysis
Positive
52.90
Price Trends
48.35
Positive
47.62
Positive
44.39
Positive
Market Momentum
1.26
Negative
74.14
Negative
93.60
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 52.9 is above the 20-day moving average (MA) of 48.61, above the 50-day MA of 48.35, and above the 200-day MA of 44.39, indicating a bullish trend. The MACD of 1.26 indicates Negative momentum. The RSI at 74.14 is Negative, neither overbought nor oversold. The STOCH value of 93.60 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | $335.30M | 10.76 | 10.81% | ― | ― | ― | |
70 Outperform | $330.67M | 8.51 | 12.70% | 5.24% | 10.46% | 18.70% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $425.19M | 13.73 | 7.79% | 5.43% | 5.76% | 21.85% | |
67 Neutral | $316.81M | 13.39 | 7.18% | 2.91% | 1.25% | -0.07% | |
63 Neutral | $421.97M | 10.09 | 12.21% | 1.66% | 2.52% | 85.94% | |
62 Neutral | $342.58M | 5.58 | 15.78% | 3.06% | 9.90% | ― |
* Financial Sector Average
BWFG
Bankwell Financial Group
52.90
25.11
90.33%
CZNC
Citizens & Northern
23.74
6.27
35.92%
FNLC
First Bancorp
29.34
7.84
36.50%
FRST
Primis Financial
13.87
6.10
78.46%
BCML
BayCom
29.04
4.69
19.25%
COSO
CoastalSouth Bancshares
25.60
5.89
29.88%
Bankwell Financial Group Corporate Events
Business Operations and StrategyDividendsFinancial Disclosures
Bankwell Financial Group Reports Q4 Results, Issues 2026 Outlook
Positive
Jan 29, 2026
On January 29, 2026, Bankwell Financial Group reported fourth-quarter 2025 GAAP net income of $9.1 million, or $1.15 per share, down from $10.1 million in the prior quarter, with results impacted by a $1.5 million one-time state income tax adjustm...
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.