Bankwell Financial Group (BWFG) AI Stock Analysis

• Market Cap: $316.98M
• Dividend Yield: 1.99%
• Average Volume (3M): 29.50K
• Price to Earnings (P/E): 15.6
• Beta (1Y): 0.88
• Revenue Growth: 0.75%
• EPS Growth: -12.45%
• Country: US
• Employees: 145
• Sector: Financial
• Sector Strength: 65
• Industry: Banks - Regional
• EPS (TTM): 1.15
• Shares Outstanding: 7,873,387
• 10 Day Avg. Volume: 29,604
• 30 Day Avg. Volume: 29,504
• 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: 0.35
• Enterprise Value/Revenue: 0.57
• Enterprise Value/Gross Profit: 1.63
• Enterprise Value/Ebitda: 5.34
• 1Y Price Target: $41.83
• Price Target Upside: 3.90% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 78 Outperform
• Price Target: $45.00 ▲(11.77% Upside)

The overall stock score reflects strong earnings performance and bullish technical indicators. The financial performance is stable with good profitability, though attention should be paid to high leverage. The valuation is balanced, and while there are some challenges, the positive earnings call sentiment supports a favorable outlook.

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 the interest income earned on loans and investments, as well as fees associated with various banking services. Key revenue streams include net interest income, which comprises the difference between interest earned on loans and interest paid on deposits, and non-interest income from fees for services such as account maintenance, ATM usage, and mortgage origination. Additionally, BWFG may benefit from partnerships with other financial institutions, investment firms, or service providers to enhance its service offerings and customer base, contributing further to its earnings.

Bankwell Financial Group Financial Statement Overview

Summary

Bankwell Financial Group is in a stable financial position with steady revenue growth and strong profitability margins. While the company maintains a balanced debt-to-equity ratio, its high leverage could be a risk in fluctuating market conditions. The cash flow position is solid, though there's a slight decline in free cash flow growth. Overall, the company is well-positioned in its regional banking sector, but should monitor leverage and cost management closely.

Income Statement

Bankwell Financial Group has demonstrated steady revenue growth with a TTM revenue increase of 0.4%. The gross profit margin is robust at 35.2%, and the net profit margin is strong at 6.6%. However, there has been a decline in EBIT and EBITDA margins compared to previous years, indicating potential cost pressures.

Balance Sheet

The company's debt-to-equity ratio is moderate at 0.40, reflecting a balanced use of debt. The return on equity is healthy at 4.7%, showcasing effective use of equity. However, the equity ratio stands at 8.6%, suggesting a relatively high leverage position which could pose risks.

Cash Flow

Bankwell Financial Group has shown a consistent operating cash flow with a TTM free cash flow growth rate of -17.5%, signaling potential challenges. The operating cash flow to net income ratio is favorable at 1.93, indicating strong cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	196.50M	195.71M	193.30M	120.98M	87.03M	80.37M
Gross Profit	69.11M	64.38M	98.44M	92.35M	73.60M	50.11M
EBITDA	21.02M	17.10M	51.67M	51.35M	37.44M	10.58M
Net Income	12.89M	9.77M	36.66M	37.43M	26.59M	5.90M
Balance Sheet
Total Assets	3.18B	3.27B	3.22B	3.25B	2.46B	2.25B
Cash, Cash Equivalents and Short-Term Investments	313.80M	325.27M	277.31M	448.59M	381.80M	493.94M
Total Debt	109.51M	159.45M	159.21M	158.96M	84.44M	200.26M
Total Liabilities	2.91B	3.00B	2.95B	3.01B	2.25B	2.08B
Stockholders Equity	275.21M	270.52M	265.75M	238.47M	201.99M	176.60M
Cash Flow
Free Cash Flow	24.20M	29.32M	29.88M	77.71M	38.81M	1.82M
Operating Cash Flow	24.83M	29.94M	31.93M	82.67M	34.56M	-1.51M
Investing Cash Flow	13.95M	-33.96M	-48.30M	-811.16M	-270.02M	-21.94M
Financing Cash Flow	18.52M	42.39M	-70.15M	739.49M	170.55M	355.00M

Bankwell Financial Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 40.26
• 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 40.26 is above the 20-day moving average (MA) of 39.14, above the 50-day MA of 37.36, and above the 200-day MA of 32.58, indicating a bullish trend. The MACD of 0.95 indicates Negative momentum. The RSI at 59.75 is Neutral, neither overbought nor oversold. The STOCH value of 73.28 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	79 Outperform	$300.91M	11.14	9.73%	5.86%	8.59%	14.56%
BWFG	78 Outperform	$316.98M	15.60	7.29%	1.99%	0.75%	-12.45%
FNLC	77 Outperform	$289.57M	9.96	11.76%	5.61%	12.08%	9.69%
BCML	68 Neutral	$306.52M	12.87	7.50%	2.14%	1.75%	2.76%
Sector *	68 Neutral	$17.53B	11.78	10.42%	3.83%	9.94%	1.31%
FRST	62 Neutral	$278.47M	94.17	0.79%	3.61%	4.72%	―

Bankwell Financial Group Corporate Events

Bankwell Financial Group Reports Strong Q2 Earnings Growth

On July 28, 2025, Bankwell Financial Group reported its second-quarter financial results, showing a significant increase in net income to $9.1 million, or $1.15 per share, compared to the previous quarter. The company announced a quarterly dividend of $0.20 per share, payable on August 22, 2025. The results reflect an improved net interest margin of 3.10% and a net loan growth of $24 million, driven by accelerated loan originations, particularly in SBA loans. The company has also enhanced its deposit gathering capabilities by adding new private banking teams, which is expected to boost deposit growth. Bankwell updated its 2025 guidance, projecting growth in net interest income and noninterest income, while managing higher noninterest expenses due to investments in personnel.

The most recent analyst rating on (BWFG) stock is a Buy with a $34.00 price target. To see the full list of analyst forecasts on Bankwell Financial Group stock, see the BWFG Stock Forecast page.