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Westamerica Bancorporation
(NASDAQ:WABC)
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Rating:77Outperform
Price Target:
$62.00
â–²(14.67% Upside)
Action:Reiterated
Date:05/09/26
The score is driven primarily by strong profitability, conservative leverage, and solid cash conversion, with valuation further supported by a moderate P/E and a ~3.39% dividend yield. Technicals add support via a clear moving-average uptrend and positive MACD, while recent financial momentum (softer revenue/earnings and FCF growth vs 2022–2023) tempers the overall rating; shareholder-friendly capital return actions (dividend hike and expanded buybacks) provide an added positive.
Positive Factors
High Profitability
Very high trailing margins provide a durable earnings buffer: with net margin ~42% and EBIT ~57%, the franchise generates substantial operating leverage and can better absorb credit or expense shocks, supporting long-term cash flow generation and shareholder returns.
Negative Factors
Softening Revenue and EPS Growth
Recent negative revenue and EPS growth indicate the bank is facing a slower top-line environment versus its stronger 2022–2023 run. Persistent revenue weakness can constrain loan originations and fee income, limiting sustainable earnings expansion and pressure-testing margin preservation.
Read all positive and negative factors
Positive Factors
Negative Factors
High Profitability
Very high trailing margins provide a durable earnings buffer: with net margin ~42% and EBIT ~57%, the franchise generates substantial operating leverage and can better absorb credit or expense shocks, supporting long-term cash flow generation and shareholder returns.
Read all positive factors
Westamerica Bancorporation (WABC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.37B
Dividend Yield3.7%
Average Volume (3M)160.41K
Price to Earnings (P/E)13.0
Beta (1Y)0.71
Revenue Growth-11.52%
EPS Growth-10.26%
CountryUS
Employees616
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)4.49
Shares Outstanding23,487,955
10 Day Avg. Volume146,817
30 Day Avg. Volume160,412
Financial Highlights & Ratios
PEG Ratio-0.82
Price to Book (P/B)1.27
Price to Sales (P/S)4.37
P/FCF Ratio9.94
Enterprise Value/Market Cap0.82
Enterprise Value/Revenue4.21
Enterprise Value/Gross Profit4.43
Enterprise Value/Ebitda7.14
Forecast
1Y Price Target
$58.00Price Target Upside7.27% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)4.45
Revenue Forecast (FY)$247.50M
Westamerica Bancorporation Business Overview & Revenue Model
Company Description
Westamerica Bancorporation (WABC) functions as a bank holding company, overseeing Westamerica Bank. Through its subsidiary, it delivers a comprehensive suite of financial products and services to both individual consumers and commercial enterprise...
How the Company Makes Money
Westamerica Bancorporation primarily makes money through its banking subsidiary by earning (1) net interest income and (2) noninterest income. Net interest income is generated from the spread between interest earned on interest-earning assets—most...
Westamerica Bancorporation Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
78
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 267.41M | 271.84M | 311.17M | 327.54M | 266.88M | 216.79M |
| Gross Profit | 254.11M | 258.70M | 293.45M | 324.80M | 264.95M | 214.83M |
| EBITDA | 157.48M | 162.78M | 199.46M | 233.35M | 182.16M | 133.64M |
| Net Income | 112.49M | 116.17M | 138.64M | 161.77M | 122.03M | 86.51M |
Balance Sheet | ||||||
| Total Assets | 5.86B | 5.96B | 6.08B | 6.36B | 6.95B | 7.46B |
| Cash, Cash Equivalents and Short-Term Investments | 397.28M | 2.12B | 1.94B | 4.19B | 4.63B | 5.77B |
| Total Debt | 165.48M | 159.50M | 138.31M | 76.98M | 73.54M | 164.23M |
| Total Liabilities | 4.98B | 5.03B | 5.19B | 5.59B | 6.35B | 6.63B |
| Stockholders Equity | 882.69M | 933.51M | 889.96M | 772.89M | 602.11M | 827.10M |
Cash Flow | ||||||
| Free Cash Flow | 115.67M | 119.59M | 139.83M | 157.05M | 112.89M | 87.41M |
| Operating Cash Flow | 119.24M | 121.90M | 141.57M | 158.21M | 113.70M | 88.73M |
| Investing Cash Flow | -207.55M | 149.67M | 715.68M | 547.27M | -631.29M | -306.08M |
| Financing Cash Flow | -241.75M | -305.20M | -446.07M | -809.40M | -320.26M | 728.16M |
Westamerica Bancorporation Technical Analysis
Positive
54.07
Price Trends
56.47
Positive
54.04
Positive
50.93
Positive
Market Momentum
0.64
Positive
54.19
Neutral
23.88
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WABC, the sentiment is Positive. The current price of 54.07 is below the 20-day moving average (MA) of 58.49, below the 50-day MA of 56.47, and above the 200-day MA of 50.93, indicating a neutral trend. The MACD of 0.64 indicates Positive momentum. The RSI at 54.19 is Neutral, neither overbought nor oversold. The STOCH value of 23.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WABC.
Westamerica Bancorporation Risk Analysis
Westamerica Bancorporation disclosed 24 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $1.37B | 13.02 | 12.26% | 3.70% | -11.52% | -10.26% | |
77 Outperform | $1.55B | 13.68 | 11.56% | 2.57% | -2.48% | 7.25% | |
77 Outperform | $1.59B | 19.65 | 6.53% | 1.56% | -2.72% | 5.89% | |
75 Outperform | $1.41B | 9.67 | 17.48% | 2.99% | -0.42% | 14.20% | |
73 Outperform | $1.75B | 14.93 | 8.46% | 3.14% | 15.01% | 316.06% | |
73 Outperform | $1.65B | 20.56 | 10.83% | 3.99% | 13.74% | 5.34% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
WABC
Westamerica Bancorporation
58.35
8.36
16.73%
DCOM
Dime Community Bancshares
39.80
11.74
41.82%
PFBC
Preferred Bank
105.74
15.97
17.79%
RBCAA
Republic Bancorp
88.15
14.75
20.10%
OBK
Origin Bancorp
51.24
13.91
37.25%
BFC
Bank First National
147.35
26.01
21.43%
Westamerica Bancorporation Corporate Events
Executive/Board ChangesShareholder Meetings
Westamerica Shareholders Back Board, Executive Pay and Auditor
Positive
Apr 27, 2026
At Westamerica Bancorporation’s annual meeting of shareholders held on April 23, 2026, proxies were solicited under federal securities regulations, with 20,862,774 of 24,189,404 outstanding common shares represented in person or by proxy. Sh...
Business Operations and StrategyStock Buyback
Westamerica Bancorporation Expands Share Repurchase Authorization Significantly
Positive
Apr 24, 2026
On April 24, 2026, Westamerica Bancorporation said its board approved a 2,000,000-share increase to its stock repurchase authorization, lifting the remaining capacity to 2,785,023 shares, or 11.8% of common stock outstanding as of March 31, 2026. ...
Business Operations and StrategyDividendsFinancial Disclosures
Westamerica Bancorporation Raises Quarterly Dividend Amid Solid Earnings
Positive
Apr 23, 2026
On April 23, 2026, Westamerica Bancorporation’s board declared a quarterly cash dividend of $0.48 per share, a $0.02 increase from the prior quarter, payable May 15, 2026 to shareholders of record as of May 4, 2026. Management said the highe...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.