FinWise (FINW) AI Stock Analysis

Compare

21 Followers

FINW Dividends

Top Page

FinWise

(NASDAQ:FINW)

68Neutral

FinWise's overall score is driven by solid financial performance, particularly in revenue growth and a strong balance sheet. However, technical indicators show a bearish trend, and challenges in cash flow management and nonperforming loans present risks. The company's moderate valuation and positive earnings call sentiment provide some balance, but the absence of a dividend yield and ongoing operational challenges limit the score potential.

FinWise (FINW) vs. S&P 500 (SPY)

Market Cap

$194.68M

Dividend YieldN/A

Average Volume (3M)21.22K

Price to Earnings (P/E)15.6

Beta (1Y)0.61

Revenue Growth14.11%

EPS Growth-28.06%

CountryUS

Employees196

SectorFinancial

Sector Strength78

IndustryBanks - Regional

Share Statistics

EPS (TTM)0.94

Shares Outstanding13,216,440

10 Day Avg. Volume27,468

30 Day Avg. Volume21,217

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)3.23

Price to Cash Flow (P/CF)-5.90

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$21.00

Price Target Upside42.57% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering3

FinWise Business Overview & Revenue Model

Company DescriptionFinWise Bancorp operates as the bank holding company for FinWise Bank that provides various banking products and services to individual and corporate customers. It offers various deposit products, including interest and noninterest bearing demand, NOW, money market, and checking and savings accounts, as well as time deposits and certificates of deposits. The company also provides small business administration, residential and commercial real estate, consumer, and commercial non-real estate loans. In addition, it offers debit cards, remote deposit capture, online banking, mobile banking, and direct deposit services; and cash management and treasury services. The company operates one full-service banking location in Sandy, Utah; and a loan production office in Rockville Centre, New York. FinWise Bancorp was founded in 1999 and is headquartered in Murray, Utah.

How the Company Makes MoneyFinWise makes money through a diversified revenue model that includes transaction fees, interest income, and subscription fees. The company earns transaction fees from payment processing services and digital transactions facilitated through its platforms. Interest income is generated from lending activities, where FinWise offers loans to individuals and small businesses. Additionally, the company offers premium financial management tools and services on a subscription basis. Key partnerships with financial institutions and technology providers also contribute to the company's earnings by expanding its service offerings and customer base.

FinWise Financial Statement Overview

Summary

FinWise demonstrates strong revenue growth and a stable balance sheet with low debt-to-equity ratio. However, challenges are evident in fluctuating cash flows and a recent decline in net income, highlighting the need for better cash management.

Income Statement

Positive

FinWise has demonstrated strong revenue growth over recent years with an impressive net profit margin indicating efficient cost management. However, the decline in net income from the previous year suggests possible challenges in maintaining profitability.

Balance Sheet

Very Positive

The company maintains a solid balance sheet with a low debt-to-equity ratio, suggesting financial stability. High equity ratio indicates strong asset management, but the increase in liabilities over recent years could pose a future risk.

Cash Flow

Neutral

Fluctuating cash flows with negative free cash flow in some years indicate instability in cash management. The absence of free cash flow in the latest period is a concern, despite previous positive operating cash flow trends.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
69.82M	64.00M	5.45M	79.82M	42.07M
	Gross Profit
69.82M	57.46M	573.00K	74.29M	42.07M
	EBIT
25.64M	23.81M	35.36M	42.27M	15.14M
	EBITDA
0.00	27.62M	36.53M	42.15M	15.44M
	Net Income Common Stockholders
12.74M	17.46M	25.11M	31.58M	11.20M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
109.16M	116.97M	100.57M	85.75M	47.38M
	Total Assets
745.98M	586.22M	402.21M	380.21M	317.51M
	Total Debt
64.00K	6.49M	8.76M	1.05M	101.01M
	Net Debt
-109.10M	-110.49M	-91.80M	-84.70M	53.62M
	Total Liabilities
572.26M	431.17M	261.75M	264.77M	271.64M
	Stockholders Equity
173.72M	155.06M	140.46M	115.44M	45.87M
Cash Flow		Free Cash Flow
0.00	4.81M	53.94M	-11.57M	18.99M
	Operating Cash Flow
0.00	12.27M	61.15M	-9.23M	19.59M
	Investing Cash Flow
-132.38M	-152.87M	-35.83M	24.26M	-130.22M
	Financing Cash Flow
0.00	157.01M	-10.51M	23.35M	123.23M

FinWise Technical Analysis

Technical Analysis Sentiment

Negative

Last Price14.73

Price Trends

50DMA

17.57

Negative

100DMA

17.42

Negative

200DMA

15.79

Negative

Market Momentum

MACD

-0.89

Positive

RSI

36.17

Neutral

STOCH

51.52

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FINW, the sentiment is Negative. The current price of 14.73 is below the 20-day moving average (MA) of 15.68, below the 50-day MA of 17.57, and below the 200-day MA of 15.79, indicating a bearish trend. The MACD of -0.89 indicates Positive momentum. The RSI at 36.17 is Neutral, neither overbought nor oversold. The STOCH value of 51.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FINW.

FinWise Risk Analysis

FinWise disclosed 65 risk factors in its most recent earnings report. FinWise 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

FinWise Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OPOF	72 Outperform	$193.89M	20.23	8.61%	1.47%	6.90%	21.84%
HWBK	71 Outperform	$203.87M	11.20	14.14%	2.60%	9.65%	1820.32%
FINW	68 Neutral	$194.68M	15.58	7.51%	―	14.11%	-28.06%
CFFI	65 Neutral	$193.58M	9.94	8.95%	2.98%	10.65%	-12.80%
Sector *	63 Neutral	$12.00B	9.27	8.14%	79.61%	12.85%	-5.12%
VABK	61 Neutral	$186.67M	11.00	10.83%	3.81%	4.93%	-12.19%
FVCB	60 Neutral	$183.51M	12.19	6.66%	―	22.60%	284.38%

* Financial Sector Average

Performance Comparison

FINW

FinWise

14.56

3.96

37.36%

CFFI

C&F Financial

60.59

23.01

61.23%

HWBK

Hawthorn Bancshares

28.47

10.47

58.17%

OPOF

Old Point Financial

37.76

23.46

164.06%

FVCB

FVCBankcorp

9.98

-1.15

-10.33%

VABK

Virginia National Bankshares

34.58

11.05

46.96%

FinWise Earnings Call Summary

Earnings Call Date: Jan 30, 2025 | % Change Since: -11.37% | Next Earnings Date: Apr 30, 2025

Earnings Call Sentiment Positive

The earnings call reflects a positive sentiment overall, with significant loan origination growth, a strong capital position, and successful diversification through new strategic programs. However, challenges remain with increases in nonperforming loans and credit losses, as well as a notable noncore reduction in income.

Highlights

Record Loan Originations

FinWise Bancorp originated $1.3 billion in loans during the fourth quarter, bringing total originations for fiscal year 2024 to $5 billion, marking a 16% increase compared to $4.3 billion in the prior year.

Strong Capital Position

At the bank level, FinWise remains well capitalized significantly above federal regulatory standards.

New Strategic Programs

In 2024, FinWise added 4 new lending programs, 1 payments program, and 1 credit card program, with momentum continuing to build in the pipeline of new programs.

Growth in SBA 7(a) Loan Originations

SBA 7(a) loan originations increased in Q4 versus Q3, with a sequential quarter increase of 1.5% in SBA guaranteed balances.

Efficiency Improvement

The efficiency ratio improved to 64.2% from 67.5% in the prior quarter due to a decline in noninterest expenses.

Lowlights

Increase in Nonperforming Loans

Nonperforming loan balances totaled $36.4 million this quarter versus $30.6 million in the prior quarter, with a $5.8 million increase.

Higher Provision for Credit Losses

The provision for credit losses was $3.9 million in Q4, compared to $2.2 million in the third quarter, primarily due to $1 million in net charge-offs on the non-guaranteed portion of SBA loans.

Noncore Reduction in Income

An $895,000 loss resulted from calling roughly $160 million of higher-yielding brokered callable CDs and replacing them with lower rate funding.

Company Guidance

During the FinWise Bancorp Fourth Quarter 2024 Earnings Conference Call, management provided several key metrics and guidance for 2025. The company originated $1.3 billion in loans in Q4 2024, bringing total originations for the fiscal year to $5 billion, a 16% increase from the previous year. They highlighted the addition of four new lending programs, including two with a credit enhancement product, contributing to their strategic revenue diversification. The provision for credit losses was $3.9 million in Q4, with nonperforming loan balances totaling $36.4 million, of which $19.2 million is federally guaranteed. FinWise expects gradual growth in its credit enhancement solution and BIN Sponsorship and payments initiatives in 2025. The company aims for a $50 million to $100 million increase in credit-enhanced balances by year-end 2025 and is focused on generating positive operating leverage, with an efficiency ratio of 64.2% reported for Q4.

FinWise Corporate Events

Business Operations and StrategyFinancial Disclosures

FinWise Reports 2024 Financial Results Amid Challenges

Neutral

Jan 30, 2025

On January 30, 2025, FinWise Bancorp reported its financial results for the fourth quarter and full year of 2024, highlighting $5.0 billion in loan originations and a net income of $12.7 million for the year. The company experienced a rebound in loan originations from existing programs and introduced new strategic programs, despite a decrease in net income and earnings per share compared to the previous year, indicating a challenging yet progressive year for the company.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.