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Westamerica Bancorp (WABC)
:WABC

Westamerica Bancorporation (WABC) AI Stock Analysis

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Westamerica Bancorporation

(NASDAQ:WABC)

67Neutral
Westamerica Bancorporation scores well due to its strong financial performance and attractive valuation. However, technical indicators suggest some caution due to recent negative momentum. The company's solid profitability and debt-free status are significant strengths, but the focus should remain on improving revenue growth and cash flow generation.
Positive Factors
Bank Reputation
WABC is regarded as an exceptional bank with pristine credit quality and excellent expense management.
Credit Quality
WABC's credit quality remains very strong, with non-accrual loans equal to only 0.02% of total loans and a high level of reserve coverage.
Negative Factors
Net Interest Margin
The net interest margin has decreased, narrowing by 7 basis points to 4.01%.

Westamerica Bancorporation (WABC) vs. S&P 500 (SPY)

Westamerica Bancorporation Business Overview & Revenue Model

Company DescriptionWestamerica Bancorporation (WABC) is a bank holding company headquartered in San Rafael, California. It operates through its subsidiary, Westamerica Bank, which provides a wide range of financial services primarily to individual and commercial clients. The company's core offerings include personal and business banking services, such as checking and savings accounts, loans, and treasury management services. Westamerica Bancorporation is known for its focus on community banking and commitment to delivering personalized financial solutions to its customers across Northern and Central California.
How the Company Makes MoneyWestamerica Bancorporation generates revenue primarily through interest income from loans and securities, as well as non-interest income from fees and service charges. The company's key revenue streams include interest earned on a diverse portfolio of loans provided to individuals, small businesses, and commercial clients, as well as income from investment securities. Additionally, the bank earns significant non-interest revenue through various service fees, such as account maintenance fees, transaction fees, and charges for other banking services. Westamerica's strategic focus on maintaining a robust loan portfolio and optimizing its investment securities contributes to its financial performance. The company also benefits from its strong community presence and customer loyalty, which help drive consistent deposit growth and lending opportunities.

Westamerica Bancorporation Financial Statement Overview

Summary
Westamerica Bancorporation demonstrates solid financial health with strong profitability and a debt-free balance sheet. While there are fluctuations in revenue growth and cash flow generation, the company's operational efficiency and stable equity position provide a solid foundation. Continued focus on enhancing revenue and cash flow growth will be crucial for future performance.
Income Statement
70
Positive
Westamerica Bancorporation shows a consistent profitability trend with a strong Gross Profit Margin at 100% due to no cost of goods sold, which is typical for banking. However, the revenue growth rate has fluctuated, showing a decline of 5.63% in the most recent year. Net Profit Margin is solid but decreased to 51.73% from 56.96% the previous year, indicating some efficiency issues. The EBIT margin remains robust at 99.45%, reflecting strong operational management.
Balance Sheet
75
Positive
The company maintains a prudent balance sheet with no debt in the most recent year, eliminating financial leverage risks. The Equity Ratio improved to 14.64% from 12.14%, indicating a stable financial position. Return on Equity slightly decreased to 15.58% from 20.93%, which suggests a need to enhance shareholder returns but remains healthy.
Cash Flow
65
Positive
Operating cash flow is stable but slightly decreased to $141.57 million. Free Cash Flow to Net Income Ratio is healthy, indicating efficient cash conversion. However, Free Cash Flow Growth Rate turned negative, reflecting a decrease in free cash flow compared to the previous year, suggesting potential challenges in cash generation.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
268.01M284.01M264.95M214.83M206.13M
Gross Profit
268.01M284.01M264.95M214.83M206.13M
EBIT
266.54M221.58M167.52M117.03M106.80M
EBITDA
0.000.00182.16M131.87M125.91M
Net Income Common Stockholders
138.64M161.77M122.03M86.51M80.41M
Balance SheetCash, Cash Equivalents and Short-Term Investments
4.00B190.31M4.63B5.77B4.68B
Total Assets
6.08B6.36B6.95B7.49B6.77B
Total Debt
17.98M18.81M73.54M164.23M121.38M
Net Debt
-583.51M-171.50M-220.70M-967.86M-499.90M
Total Liabilities
5.19B5.59B6.35B6.66B5.93B
Stockholders Equity
889.96M772.89M602.11M827.10M844.81M
Cash FlowFree Cash Flow
141.57M157.05M112.89M87.41M105.54M
Operating Cash Flow
141.57M158.21M113.70M88.73M107.74M
Investing Cash Flow
715.68M547.27M-631.29M-306.08M-748.92M
Financing Cash Flow
-446.07M-809.40M-320.26M728.16M889.03M

Westamerica Bancorporation Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price49.74
Price Trends
50DMA
50.72
Negative
100DMA
52.45
Negative
200DMA
50.56
Negative
Market Momentum
MACD
-0.25
Positive
RSI
46.37
Neutral
STOCH
16.48
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WABC, the sentiment is Neutral. The current price of 49.74 is below the 20-day moving average (MA) of 50.25, below the 50-day MA of 50.72, and below the 200-day MA of 50.56, indicating a bearish trend. The MACD of -0.25 indicates Positive momentum. The RSI at 46.37 is Neutral, neither overbought nor oversold. The STOCH value of 16.48 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for WABC.

Westamerica Bancorporation Risk Analysis

Westamerica Bancorporation disclosed 25 risk factors in its most recent earnings report. Westamerica Bancorporation 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

Westamerica Bancorporation Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
$7.98B15.3916.67%1.73%-2.75%11.75%
BOBOH
68
Neutral
$2.68B19.469.73%4.16%4.63%-16.29%
67
Neutral
$1.33B9.5616.67%3.54%-5.00%-14.23%
64
Neutral
$13.79B10.529.20%4.24%17.25%-7.60%
63
Neutral
$5.01B9.3710.55%6.03%7.84%54.79%
61
Neutral
$4.87B12.377.62%4.32%6.80%1.48%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
WABC
Westamerica Bancorporation
50.01
5.27
11.78%
BOH
Bank Of Hawaii
65.97
8.97
15.74%
COLB
Columbia Banking System
23.94
6.54
37.59%
CBSH
Commerce Bancshares
58.85
11.16
23.40%
UBSI
United Bankshares
34.03
1.86
5.78%

Westamerica Bancorporation Corporate Events

Executive/Board Changes
Westamerica Bancorporation Announces Executive Leadership Transition
Neutral
Jan 23, 2025

Westamerica Bancorporation has announced the retirement of John “Robert” A. Thorson from his role as Senior Vice President and Treasurer, effective January 24, 2025, after more than 35 years of service. John Sousa has been appointed as the new Senior Vice President and Treasurer, effective January 27, 2025, following his initial joining of the company in July 2024, bringing with him extensive experience in investment portfolio management and derivatives execution from Bank of the West.

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.