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Bankwell Financial Group
(NASDAQ:BWFG)
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Rating:76Outperform
Price Target:
$76.00
â–²(22.17% Upside)
Action:Reiterated
Date:08/06/26
BWFG scores well primarily due to improving financial performance (stronger TTM profitability, solid free cash flow, and better leverage) and a positive earnings update with raised guidance and margin momentum. Technicals support the uptrend, though overbought signals increase near-term volatility risk. Valuation is reasonable with a modest dividend, but not a major driver of the score.
Positive Factors
Margin and Net Interest Income Recovery
Sustained NII growth and a 30bp NIM lift reflect stronger core banking earnings driven by higher loan yields and new loan production. With a larger share of floating-rate loans and active repricing, interest income is structurally more responsive to rate moves, supporting earnings durability over coming quarters.
Negative Factors
Earnings Volatility / Cyclicality
Historical swings in profitability show the business remains sensitive to rate and credit cycles. A strong TTM recovery demonstrates upside, but the prior sharp decline underscores forecasting risk and the potential for materially lower earnings if loan yields compress or credit stress re-emerges.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin and Net Interest Income Recovery
Sustained NII growth and a 30bp NIM lift reflect stronger core banking earnings driven by higher loan yields and new loan production. With a larger share of floating-rate loans and active repricing, interest income is structurally more responsive to rate moves, supporting earnings durability over coming quarters.
Read all positive factors
Bankwell Financial Group (BWFG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$543.37M
Dividend Yield1.17%
Average Volume (3M)46.81K
Price to Earnings (P/E)12.6
Beta (1Y)0.81
Revenue Growth9.03%
EPS Growth108.77%
CountryUS
Employees167
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)5.43
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$72.00Price Target Upside15.74% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)5.44
Revenue Forecast (FY)$124.40M
Bankwell Financial Group Business Overview & Revenue Model
Company Description
Bankwell Financial Group, Inc. operates as the parent company for Bankwell Bank, delivering a full spectrum of financial services to both individual consumers and business clients. Its foundational deposit offerings encompass checking, savings, an...
How the Company Makes Money
BWFG primarily makes money through its banking subsidiary by earning interest income and generating fee-based (noninterest) income. The core revenue driver is net interest income: the bank collects interest on loans (such as commercial real estate...
Bankwell Financial Group Earnings Call Summary
Earnings Call Date:Jul 23, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 28, 2026
Earnings Call Sentiment Positive
The call conveyed broad operational and financial momentum — sequential and year-over-year loan and deposit growth, margin expansion, improved credit metrics, meaningful SBA contribution, stronger capital and tangible book value, and improved efficiency. Headwinds are manageable: management is increasing targeted investments and compensation (raising expense guidance), the one-time time-deposit repricing benefit will fade, brokered funding remains elevated relative to an aggressive sub-10% target, and competition in certain loan markets is increasing. Overall, positives (growth, margin, credit improvement, capital) materially outweigh the caveats around expense and funding cadence.Positive Updates
Strong Quarterly Profitability
GAAP net income of $12.4M ($1.52/share) vs $11.3M ($1.41/share) in Q1; return on average assets 1.46% and return on average tangible common equity 15.61%.
Negative Updates
Raised Noninterest Expense Guidance
Full-year noninterest expense guidance increased to $65M–$67M (driven by targeted investments and higher compensation), raising questions about higher run-rate of expenses going forward despite management noting efficiency ratio should hold.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Quarterly Profitability
GAAP net income of $12.4M ($1.52/share) vs $11.3M ($1.41/share) in Q1; return on average assets 1.46% and return on average tangible common equity 15.61%.
Read all positive updates
Company Guidance
Management raised full‑year guidance, now targeting loan growth of 5–7% and raising net interest income to $115–$117 million, while affirming noninterest income at $12–$13 million and increasing noninterest expense guidance to $65–$67 million; they said this updated revenue/expense outlook should not worsen the efficiency ratio (new implied range roughly 50.0%–52.8%, high end 52.8%) and expect modest NIM expansion into Q3 from the Q2 level of 3.58% (deposit costs improved 16 bps to 2.94%, earning asset yield 6.26%, new loan production averaged 7.16%). Management also highlighted balance‑sheet sensitivity metrics underlying the guidance: about 43% ($1.3 billion) of loans are floating (up from 23% at end‑2024), roughly $1.6 billion of loans reprice immediately with $250 million of Fed‑funds‑indexed deposits, and $1.1 billion of time deposits will mature/reprice over the next 12 months (after $0.6 billion were repriced in H1, yielding a $2.3 million annualized benefit that will diminish).Bankwell Financial Group Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
72
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 216.69M | 207.72M | 195.71M | 193.30M | 120.98M | 87.03M |
| Gross Profit | 120.85M | 107.28M | 64.38M | 98.44M | 92.35M | 73.60M |
| EBITDA | 61.62M | 52.58M | 17.10M | 51.67M | 51.35M | 37.44M |
| Net Income | 42.87M | 35.20M | 9.77M | 36.66M | 37.43M | 26.59M |
Balance Sheet | ||||||
| Total Assets | 3.48B | 3.36B | 3.27B | 3.22B | 3.25B | 2.46B |
| Cash, Cash Equivalents and Short-Term Investments | 193.64M | 227.17M | 325.27M | 277.31M | 448.59M | 381.80M |
| Total Debt | 99.82M | 179.70M | 159.45M | 159.21M | 158.96M | 84.44M |
| Total Liabilities | 3.15B | 3.06B | 3.00B | 2.95B | 3.01B | 2.25B |
| Stockholders Equity | 323.50M | 301.49M | 270.52M | 265.75M | 238.47M | 201.99M |
Cash Flow | ||||||
| Free Cash Flow | 41.75M | 27.13M | 29.32M | 29.88M | 77.71M | 38.81M |
| Operating Cash Flow | 43.55M | 28.27M | 29.94M | 31.93M | 82.67M | 34.56M |
| Investing Cash Flow | -363.48M | -165.19M | -33.96M | -48.30M | -811.16M | -270.02M |
| Financing Cash Flow | 193.84M | 54.31M | 42.39M | -70.15M | 739.49M | 170.55M |
Bankwell Financial Group Technical Analysis
Positive
62.21
Price Trends
58.72
Positive
54.56
Positive
50.51
Positive
Market Momentum
2.75
Negative
69.90
Neutral
73.45
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 62.21 is below the 20-day moving average (MA) of 63.07, above the 50-day MA of 58.72, and above the 200-day MA of 50.51, indicating a bullish trend. The MACD of 2.75 indicates Negative momentum. The RSI at 69.90 is Neutral, neither overbought nor oversold. The STOCH value of 73.45 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $543.37M | 12.55 | 13.95% | 1.29% | 9.03% | 108.77% | |
76 Outperform | $587.11M | 10.49 | 14.75% | 1.88% | 6.56% | 16.72% | |
76 Outperform | $569.67M | 13.88 | 15.60% | 1.21% | 9.67% | 31.74% | |
75 Outperform | $512.85M | 10.77 | 16.44% | 1.78% | 6.51% | 38.77% | |
74 Outperform | $508.76M | 9.35 | 11.72% | 3.51% | 35.31% | 190.27% | |
73 Outperform | $533.11M | 11.85 | 12.38% | 2.44% | -1.11% | 17.59% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
BWFG
Bankwell Financial Group
66.87
28.55
74.49%
FBIZ
First Business Financial
72.01
26.42
57.94%
GCBC
Greene County Bancorp
34.50
12.10
54.03%
BSRR
Sierra Bancorp
40.87
13.31
48.31%
COFS
ChoiceOne Financial Services
34.36
6.96
25.39%
OBT
Orange County Bancorp
38.39
15.45
67.34%
Bankwell Financial Group Corporate Events
Business Operations and StrategyDividendsFinancial Disclosures
Bankwell Financial Posts Strong Q2 Results, Raises Outlook
Positive
Jul 23, 2026
Bankwell Financial Group reported second-quarter 2026 GAAP net income of $12.4 million, or $1.52 per share, up from $11.3 million, or $1.41 per share, in the first quarter. The bank delivered a 1.46% return on average assets and a 15.61% return on...
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.