Westamerica Bancorporation (WABC) AI Stock Analysis

• Market Cap: $1.33B
• Dividend Yield: 3.54%
• Average Volume (3M): 135.77K
• Price to Earnings (P/E): 9.6
• Beta (1Y): 0.81
• Revenue Growth: -5.00%
• EPS Growth: -14.23%
• Country: US
• Employees: 641
• Sector: Financial
• Sector Strength: 77
• Industry: Banking
• EPS (TTM): 5.20
• Shares Outstanding: 26,708,426
• 10 Day Avg. Volume: 193,692
• 30 Day Avg. Volume: 135,774
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 4.51
• Price to Cash Flow (P/CF): 11.10
• P/FCF Ratio: 9.20
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $57.00
• Price Target Upside: 14.60% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

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 Business Overview & Revenue Model

Company Description

Westamerica 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 Money

Westamerica 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

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

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

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 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
268.01M	284.01M	264.95M	214.83M	206.13M
	Gross Profit
268.01M	284.01M	264.95M	214.83M	206.13M
	EBIT
266.54M	221.58M	167.52M	117.03M	106.80M
	EBITDA
0.00	0.00	182.16M	131.87M	125.91M
	Net Income Common Stockholders
138.64M	161.77M	122.03M	86.51M	80.41M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.00B	190.31M	4.63B	5.77B	4.68B
	Total Assets
6.08B	6.36B	6.95B	7.49B	6.77B
	Total Debt
17.98M	18.81M	73.54M	164.23M	121.38M
	Net Debt
-583.51M	-171.50M	-220.70M	-967.86M	-499.90M
	Total Liabilities
5.19B	5.59B	6.35B	6.66B	5.93B
	Stockholders Equity
889.96M	772.89M	602.11M	827.10M	844.81M
Cash Flow		Free Cash Flow
141.57M	157.05M	112.89M	87.41M	105.54M
	Operating Cash Flow
141.57M	158.21M	113.70M	88.73M	107.74M
	Investing Cash Flow
715.68M	547.27M	-631.29M	-306.08M	-748.92M
	Financing Cash Flow
-446.07M	-809.40M	-320.26M	728.16M	889.03M

Westamerica Bancorporation Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 49.74
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CBSH	72 Outperform	$7.98B	15.39	16.67%	1.73%	-2.75%	11.75%
BOH	68 Neutral	$2.68B	19.46	9.73%	4.16%	4.63%	-16.29%
WABC	67 Neutral	$1.33B	9.56	16.67%	3.54%	-5.00%	-14.23%
Sector *	64 Neutral	$13.79B	10.52	9.20%	4.24%	17.25%	-7.60%
COLB	63 Neutral	$5.01B	9.37	10.55%	6.03%	7.84%	54.79%
UBSI	61 Neutral	$4.87B	12.37	7.62%	4.32%	6.80%	1.48%

Westamerica Bancorporation Corporate Events

Westamerica Bancorporation Announces Executive Leadership Transition

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.