Westamerica Bancorporation (WABC) AI Stock Analysis

• Market Cap: $1.19B
• Dividend Yield: 3.7%
• Average Volume (3M): 160.41K
• Price to Earnings (P/E): 10.4
• Beta (1Y): 0.71
• 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: 24,933,050
• 10 Day Avg. Volume: 146,817
• 30 Day Avg. Volume: 160,412
• PEG Ratio: -0.71
• Price to Book (P/B): 1.57
• Price to Sales (P/S): 4.50
• P/FCF Ratio: 10.01
• Enterprise Value/Market Cap: 0.62
• Enterprise Value/Revenue: 2.67
• Enterprise Value/Gross Profit: 2.80
• Enterprise Value/Ebitda: 4.39
• 1Y Price Target: $53.00
• Price Target Upside: 10.81% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 83 Outperform
• Price Target: $59.00 ▲(23.35% Upside)

Westamerica Bancorporation scores highly due to strong technical indicators and a favorable valuation, supported by positive corporate events such as a share repurchase program and consistent dividends. While financial performance is solid, recent declines in revenue and cash flow growth present potential challenges.

Positive Factors

Share Repurchase Program

The share repurchase program reflects financial strength and confidence in future prospects, potentially enhancing shareholder value by reducing share count.

Strong Profitability

High profit margins indicate efficient cost management and a strong competitive position, supporting long-term financial health and shareholder returns.

Low Debt Levels

Low leverage enhances financial stability and flexibility, allowing the company to navigate economic fluctuations and invest in growth opportunities.

Negative Factors

Declining Revenue Growth

Negative revenue growth may indicate challenges in expanding market share or increasing sales, potentially impacting future profitability and market position.

Declining Free Cash Flow Growth

Reduced cash flow growth could hinder the company's ability to fund operations, invest in growth, and return capital to shareholders over the long term.

Decreased Return on Equity

A decrease in return on equity suggests potential inefficiencies in asset utilization or profitability, which could affect long-term shareholder value.

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

Westamerica Bancorporation demonstrates strong profitability and a solid balance sheet, with efficient cash flow management. Despite these strengths, recent declines in revenue and free cash flow growth highlight potential challenges in maintaining growth momentum.

Income Statement

Westamerica Bancorporation shows strong profitability with high gross and net profit margins, indicating efficient cost management. However, recent revenue growth has been negative, which could signal challenges in expanding market share or increasing sales.

Balance Sheet

The company maintains a low debt-to-equity ratio, reflecting conservative financial leverage and a strong equity position. Return on equity is solid, though it has slightly decreased over the TTM period, suggesting a need for improved profitability or asset utilization.

Cash Flow

Cash flow metrics indicate healthy free cash flow relative to net income, suggesting good cash generation capabilities. However, the decline in free cash flow growth in the TTM period raises concerns about future cash flow sustainability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	278.09M	311.17M	327.54M	266.88M	216.79M	207.96M
Gross Profit	264.96M	293.45M	324.80M	264.95M	214.83M	201.83M
EBITDA	168.95M	199.46M	233.35M	182.16M	133.64M	129.45M
Net Income	120.07M	138.64M	161.77M	122.03M	86.51M	80.41M
Balance Sheet
Total Assets	5.91B	6.08B	6.36B	6.95B	7.46B	6.75B
Cash, Cash Equivalents and Short-Term Investments	1.98B	1.94B	4.19B	4.63B	5.77B	4.68B
Total Debt	156.08M	138.31M	76.98M	73.54M	164.23M	121.38M
Total Liabilities	4.98B	5.19B	5.59B	6.35B	6.63B	5.90B
Stockholders Equity	931.65M	889.96M	772.89M	602.11M	827.10M	844.81M
Cash Flow
Free Cash Flow	122.81M	139.83M	157.05M	112.89M	87.41M	105.54M
Operating Cash Flow	125.10M	141.57M	158.21M	113.70M	88.73M	107.74M
Investing Cash Flow	428.16M	715.68M	547.27M	-631.29M	-306.08M	-748.92M
Financing Cash Flow	-396.94M	-446.07M	-809.40M	-320.26M	728.16M	889.03M

Westamerica Bancorporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 47.83
• 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 Negative. The current price of 47.83 is below the 20-day moving average (MA) of 48.84, below the 50-day MA of 48.14, and below the 200-day MA of 47.93, indicating a bearish trend. The MACD of 0.09 indicates Positive momentum. The RSI at 43.57 is Neutral, neither overbought nor oversold. The STOCH value of 11.44 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WABC.

Westamerica Bancorporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WABC	83 Outperform	$1.19B	10.42	13.05%	3.70%	-13.17%	-16.37%
PFBC	80 Outperform	$1.28B	9.70	16.91%	2.99%	-3.05%	-0.51%
RBCAA	75 Outperform	$1.18B	10.48	12.35%	2.57%	5.21%	24.51%
OBK	74 Outperform	$1.17B	19.69	5.08%	1.56%	-6.29%	-21.17%
BFC	70 Outperform	$1.19B	17.01	11.18%	3.99%	14.13%	-12.75%
DCOM	70 Neutral	$1.31B	26.22	4.23%	3.14%	-1.79%	-23.87%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Westamerica Bancorporation Corporate Events

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.

Westamerica Bancorporation Declares Quarterly Cash Dividend

On October 23, 2025, Westamerica Bancorporation declared a quarterly cash dividend of $0.46 per share, payable on November 14, 2025, highlighting the company’s reliable earnings and financial strength. Previously, on October 16, 2025, the company reported a net income of $28.3 million for the quarter ending September 30, 2025, indicating solid financial performance.

The most recent analyst rating on (WABC) stock is a Hold with a $53.00 price target. To see the full list of analyst forecasts on Westamerica Bancorporation stock, see the WABC Stock Forecast page.