Westamerica Bancorporation (WABC) AI Stock Analysis

• Market Cap: $1.22B
• Dividend Yield: 3.7%
• Average Volume (3M): 160.41K
• Price to Earnings (P/E): 10.2
• Beta (1Y): 0.77
• Revenue Growth: -13.17%
• EPS Growth: -16.37%
• Country: US
• Employees: 616
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.12
• Shares Outstanding: 24,350,014
• 10 Day Avg. Volume: 146,817
• 30 Day Avg. Volume: 160,412
• PEG Ratio: -0.79
• Price to Book (P/B): 1.27
• Price to Sales (P/S): 4.37
• P/FCF Ratio: 9.94
• Enterprise Value/Market Cap: 0.69
• Enterprise Value/Revenue: 3.09
• Enterprise Value/Gross Profit: 3.25
• Enterprise Value/Ebitda: 5.12
• 1Y Price Target: $55.00
• Price Target Upside: 9.85% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): 4.03
• Revenue Forecast (FY): $234.50M

• Rating: 71 Outperform
• Price Target: $56.00 ▲(11.84% Upside)
• Action: Reiterated Date: 02/28/26
• Date: Action: Reiterated 02/28/26

The score is primarily driven by strong underlying profitability and a conservative balance sheet, tempered by the post-2023 slowdown in revenue/earnings/free cash flow. Valuation (low P/E with a solid yield) and positive corporate actions (buyback and dividend continuity) support the score, while technical indicators remain neutral-to-mixed.

Positive Factors

Conservative Balance Sheet

Westamerica's low leverage and conservative capital posture provide durable resilience to credit or rate shocks. This financial flexibility supports ongoing dividend payments and buybacks, allows selective loan origination, and reduces regulatory strain, preserving long-term franchise stability.

High Profitability

Sustained high net margins reflect an efficient core banking model and pricing power across loans and deposits. Strong operating profitability generates recurring internal capital, cushioning earnings against cyclical headwinds and supporting medium‑term shareholder returns and investment capacity.

Shareholder-Friendly Capital Actions

A large authorized buyback combined with a consistent quarterly dividend signals disciplined capital allocation and management confidence in the balance sheet. These actions sustainably enhance per‑share economics and indicate a priority on returning excess capital to shareholders.

Negative Factors

Revenue and Earnings Weakness

A multi-year decline in revenue and earnings momentum suggests weakening demand or lower lending/investment volumes. Persistent top‑line contraction reduces scalability, limits reinvestment, and can compress returns unless loan growth or fee income recovers materially.

Shrinking Asset Base

A declining asset base constrains lending capacity and the interest‑earning asset pool, limiting sustainable net interest income growth. Over time a smaller balance sheet reduces economies of scale and makes it harder to expand market share in a competitive regional banking market.

Softening Cash Generation

Weaker free cash flow diminishes internal funding for growth, cushions for credit losses, and flexibility for buybacks/dividends if declines persist. Sustained cash generation softness would force tougher tradeoffs among capital returns, loan growth and balance sheet strengthening.

Westamerica Bancorporation Business Overview & Revenue Model

Company Description

Westamerica Bancorporation operates as a bank holding company for the Westamerica Bank that provides various banking products and services to individual and commercial customers. The company accepts various deposit products, including retail savings and checking accounts, as well as certificates of deposit. Its loan portfolio includes commercial, commercial and residential real estate, real estate construction, and consumer installment loans, as well as indirect automobile loans. It operates through 78 branch offices in 21 counties in Northern and Central California. The company was formerly known as Independent Bankshares Corporation and changed its name to Westamerica Bancorporation in 1983. The company was incorporated in 1972 and is headquartered in San Rafael, California.

How the Company Makes Money

Westamerica Bancorporation generates revenue primarily through the interest earned on loans and investments, known as net interest income. The company makes money by lending to customers at higher interest rates than it pays on deposits. Key revenue streams include interest from commercial and consumer loans, as well as interest from mortgage loans. Additionally, Westamerica earns non-interest income through fees associated with deposit accounts, transaction services, and wealth management services. The bank's strong regional presence and focus on relationship banking contribute to customer retention and growth in its lending portfolio, further enhancing its earnings potential.

Westamerica Bancorporation Financial Statement Overview

Summary

Strong profitability and conservative leverage support the profile, but results have cooled after 2023: revenue, net income, and free cash flow declined in 2024–2025 and ROE moderated, indicating weakening momentum.

Income Statement

Profitability is a clear strength: net margins remained very high (about 40–49% from 2020–2025) and operating profitability stayed strong. However, growth has weakened—revenue rose sharply in 2022–2023, then turned slightly negative in 2024 and fell more meaningfully in 2025 (annual revenue down from ~$328M in 2023 to ~$272M in 2025), with net income also declining from the 2023 peak.

Balance Sheet

Balance sheet looks conservatively positioned with low leverage (debt-to-equity consistently around ~0.10–0.20, ~0.15 in 2025). Shareholder returns were strong in 2022–2024 (return on equity ~0.16–0.21) but cooled in 2025 (~0.12). Total assets have trended down since 2021, which may reflect a smaller balance sheet and can limit growth if it persists.

Cash Flow

Cash generation is solid and consistently supports earnings: free cash flow tracked net income closely (roughly ~0.98–1.00x across the period). The main weakness is volatility/softening recently—free cash flow declined in 2024 and fell further in 2025 (negative growth in both years), indicating less cash momentum versus the stronger 2022–2023 period.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	271.84M	311.17M	327.54M	266.88M	216.79M
Gross Profit	258.70M	293.45M	324.80M	264.95M	214.83M
EBITDA	162.78M	199.46M	233.35M	182.16M	133.64M
Net Income	116.17M	138.64M	161.77M	122.03M	86.51M
Balance Sheet
Total Assets	5.96B	6.08B	6.36B	6.95B	7.46B
Cash, Cash Equivalents and Short-Term Investments	4.04B	1.94B	4.19B	4.63B	5.77B
Total Debt	159.50M	138.31M	76.98M	73.54M	164.23M
Total Liabilities	5.03B	5.19B	5.59B	6.35B	6.63B
Stockholders Equity	933.51M	889.96M	772.89M	602.11M	827.10M
Cash Flow
Free Cash Flow	119.59M	139.83M	157.05M	112.89M	87.41M
Operating Cash Flow	121.90M	141.57M	158.21M	113.70M	88.73M
Investing Cash Flow	149.67M	715.68M	547.27M	-631.29M	-306.08M
Financing Cash Flow	-305.20M	-446.07M	-809.40M	-320.26M	728.16M

Westamerica Bancorporation Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 50.07
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 50.07 is below the 20-day moving average (MA) of 51.39, below the 50-day MA of 50.39, and above the 200-day MA of 48.35, indicating a neutral trend. The MACD of -0.21 indicates Positive momentum. The RSI at 42.88 is Neutral, neither overbought nor oversold. The STOCH value of 47.62 is Neutral, 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
OBK	75 Outperform	$1.26B	9.79	5.08%	1.56%	-6.29%	-21.17%
PFBC	72 Outperform	$1.20B	8.90	16.91%	2.99%	-3.05%	-0.51%
WABC	71 Outperform	$1.22B	10.23	12.53%	3.70%	-13.17%	-16.37%
DCOM	70 Outperform	$1.40B	10.17	4.23%	3.14%	-1.79%	-23.87%
RBCAA	69 Neutral	$1.20B	14.92	12.35%	2.57%	5.21%	24.51%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
BFC	65 Neutral	$1.51B	16.29	11.18%	3.99%	14.13%	-12.75%

Westamerica Bancorporation Corporate Events

Westamerica Bancorporation Appoints Carter Welch to Board

On January 22, 2026, Westamerica Bancorporation announced that its Board of Directors appointed Carter Welch as an independent director, with his term to begin on February 26, 2026 and continue until a successor is nominated, qualified and elected. Welch brings more than 25 years of experience in marketing and business strategy, adding depth to the board’s expertise in areas that are likely important for the company’s strategic direction and stakeholder oversight.

The most recent analyst rating on (WABC) stock is a Buy with a $59.00 price target. To see the full list of analyst forecasts on Westamerica Bancorporation stock, see the WABC Stock Forecast page.

Westamerica Bancorporation Declares Quarterly Cash Dividend, Signals Stability

On January 22, 2026, Westamerica Bancorporation’s board declared a quarterly cash dividend of $0.46 per share on common stock, payable on February 13, 2026, to shareholders of record as of February 2, 2026, underscoring the bank’s consistent dividend policy. The move followed the company’s January 15, 2026 report of $27.8 million in net income, or $1.12 diluted earnings per share, for the fourth quarter of 2025, with management citing reliable earnings, financial strength and a conservative risk profile, signaling ongoing stability for investors and reinforcing its positioning as a financially solid regional banking franchise.

The most recent analyst rating on (WABC) stock is a Hold with a $55.00 price target. To see the full list of analyst forecasts on Westamerica Bancorporation stock, see the WABC Stock Forecast page.

Westamerica Bancorporation Announces Significant Share Repurchase Program

On December 18, 2025, Westamerica Bancorporation announced that its board of directors had approved a stock repurchase plan authorizing the company to buy back up to 2,000,000 shares of its common stock, or about 8% of shares outstanding as of September 30, 2025, via open-market purchases or privately negotiated transactions through December 31, 2026. Management framed the move as a reflection of Westamerica’s financial strength, conservative risk profile and reliable earnings, signaling confidence in the bank’s capital position and potentially enhancing shareholder value through reduced share count in a competitive regional banking landscape.

The most recent analyst rating on (WABC) stock is a Buy with a $55.00 price target. To see the full list of analyst forecasts on Westamerica Bancorporation stock, see the WABC Stock Forecast page.