Washington Bancorp (WASH) AI Stock Analysis

• Market Cap: $555.50M
• Dividend Yield: 7.94%
• Average Volume (3M): 152.55K
• Price to Earnings (P/E): 12.2
• Beta (1Y): 1.29
• Revenue Growth: -24.82%
• EPS Growth: -156.55%
• Country: US
• Employees: 618
• Sector: Financial
• Sector Strength: 65
• Industry: Banks - Regional
• EPS (TTM): 0.68
• Shares Outstanding: 19,155,214
• 10 Day Avg. Volume: 144,306
• 30 Day Avg. Volume: 152,553
• PEG Ratio: 0.12
• Price to Book (P/B): 1.08
• Price to Sales (P/S): 1.73
• P/FCF Ratio: 10.02
• Enterprise Value/Market Cap: 2.82
• Enterprise Value/Revenue: 5.84
• Enterprise Value/Gross Profit: 14.50
• Enterprise Value/Ebitda: -48.53
• 1Y Price Target: $31.25
• Price Target Upside: 10.78% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 56 Neutral
• Price Target: $30.00 ▲(6.35% Upside)

Washington Bancorp's overall stock score is driven by its challenging financial performance and valuation concerns, offset by a positive earnings call sentiment and moderate technical strength. The company's ability to navigate profitability challenges and leverage risks will be crucial for future performance.

Positive Factors

Capital and Earnings Improvement

The balance sheet restructuring entailed selling lower-yielding loans and securities, reinvesting into higher securities and paying down wholesale funding, which had the net effect of boosting capital, solidifying dividend coverage, widening NIM, expanding EPS and improving the L/D ratio.

Dividend Stability

The recent balance sheet repositioning reduced NIM headwinds and provided WASH with a much-needed cushion to maintain the dividend.

Interest Rate Sensitivity

WASH will be an outsized beneficiary when rates fall, with all securities listed as AFS.

Negative Factors

Deposit Challenges

Market demographics and competition make retaining and growing the bank's deposit base a difficult and expensive task.

Earnings Pressure

Lower rates are likely to remain a near-term earnings headwind while demographic challenges limit deposit beta leverage.

Washington Bancorp Business Overview & Revenue Model

Company Description

Washington Bancorp (WASH) is a financial institution based in the United States, primarily engaged in providing a wide range of banking services to individuals, businesses, and communities. The company operates through various segments, including retail banking, commercial banking, and wealth management. Core products and services offered by Washington Bancorp include personal and business loans, deposit accounts, mortgage services, and investment advisory services, aiming to meet the diverse financial needs of its customers.

How the Company Makes Money

Washington Bancorp generates revenue through several key streams. Primarily, the company earns interest income from loans provided to consumers and businesses, including mortgages, personal loans, and commercial loans. Additionally, it generates fee income from account services, transaction fees, and wealth management services. The bank also benefits from net interest margin, which is the difference between the interest earned on loans and the interest paid on deposits. Significant partnerships with local businesses and community organizations enhance its customer base and contribute to its earnings through cross-selling financial products. Furthermore, Washington Bancorp may engage in investment activities and asset management, further diversifying its revenue sources.

Washington Bancorp Financial Statement Overview

Summary

Washington Bancorp is experiencing financial challenges with declining profitability and high leverage. Positive operating cash flows provide some resilience, but inconsistent revenue growth and negative EBIT and EBITDA margins highlight operational inefficiencies.

Income Statement

Washington Bancorp's income statement reveals a challenging period with declining profitability. The gross profit margin improved slightly in the TTM, but net losses continue to weigh heavily on performance. Revenue growth has been inconsistent, with recent declines highlighting instability in earnings. Negative EBIT and EBITDA margins in recent periods indicate operational inefficiencies and pressure on core banking activities.

Balance Sheet

The balance sheet of Washington Bancorp reflects moderate financial health. The debt-to-equity ratio remains high, indicating significant leverage and potential risk in a rising interest rate environment. However, the equity ratio shows a reasonable level of equity buffer against total assets. Return on equity is negative, reflecting net losses and challenging profitability dynamics.

Cash Flow

The cash flow statement shows positive operating cash flows, a critical strength amidst profit challenges. Free cash flow has grown, providing some financial flexibility. However, fluctuations in cash flow from investing and financing activities suggest potential volatility and the need for careful cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	268.33M	310.78M	364.80M	257.07M	245.39M	269.38M
Gross Profit	107.99M	96.15M	190.04M	219.89M	233.65M	214.54M
EBITDA	-32.27M	-34.06M	61.33M	95.50M	102.49M	93.25M
Net Income	-26.82M	-28.06M	48.18M	71.68M	76.87M	69.83M
Balance Sheet
Total Assets	6.59B	6.93B	7.20B	6.66B	5.85B	5.71B
Cash, Cash Equivalents and Short-Term Investments	190.37M	177.61M	1.09B	1.11B	1.22B	1.10B
Total Debt	911.40M	1.18B	1.24B	1.03B	196.69M	648.26M
Total Liabilities	6.06B	6.43B	6.73B	6.21B	5.29B	5.18B
Stockholders Equity	521.68M	499.73M	472.69M	453.67M	564.81M	534.20M
Cash Flow
Free Cash Flow	60.71M	53.67M	26.55M	106.87M	97.32M	33.07M
Operating Cash Flow	64.17M	57.67M	31.60M	113.01M	100.81M	36.48M
Investing Cash Flow	616.97M	231.30M	-550.84M	-999.04M	-240.90M	-264.24M
Financing Cash Flow	-666.49M	-265.27M	491.00M	825.96M	116.31M	291.57M

Washington Bancorp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 28.21
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WASH, the sentiment is Positive. The current price of 28.21 is above the 20-day moving average (MA) of 27.74, above the 50-day MA of 27.90, and below the 200-day MA of 29.86, indicating a neutral trend. The MACD of 0.10 indicates Negative momentum. The RSI at 52.19 is Neutral, neither overbought nor oversold. The STOCH value of 82.27 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WASH.

Washington Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CBNK	75 Outperform	$547.26M	12.33	13.36%	1.29%	22.14%	12.06%
SHBI	72 Outperform	$536.68M	9.97	9.88%	3.05%	2.66%	128.06%
HIFS	69 Neutral	$564.77M	16.88	7.82%	0.99%	6.63%	62.84%
ALRS	68 Neutral	$558.97M	13.09	9.19%	3.75%	40.69%	373.32%
Sector *	67 Neutral	¥836.32B	13.01	9.24%	3.02%	7.93%	10.80%
FISI	57 Neutral	$531.22M	8.52	-6.53%	4.73%	-29.94%	-178.36%
WASH	56 Neutral	$555.50M	12.16	-4.88%	7.94%	-24.82%	-156.55%

Washington Bancorp Corporate Events

Washington Bancorp Repositions Balance Sheet for Growth

Washington Trust Bancorp, Inc. announced a strategic repositioning of its balance sheet to support organic growth and capital generation. This involves selling low-yield assets and reinvesting in higher-yield securities, resulting in a short-term net loss but strengthening the bank’s financial position and improving profitability prospects for 2025.