Western New England Bancorp (WNEB) AI Stock Analysis

• Market Cap: $185.17M
• Dividend Yield: 3.12%
• Average Volume (3M): 67.97K
• Price to Earnings (P/E): 16.2
• Beta (1Y): 0.51
• Revenue Growth: 9.56%
• EPS Growth: -20.10%
• Country: US
• Employees: 348
• Sector: Financial
• Sector Strength: 77
• Industry: Banking
• EPS (TTM): 0.56
• Shares Outstanding: 21,018,408
• 10 Day Avg. Volume: 75,492
• 30 Day Avg. Volume: 67,973
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.53
• Price to Cash Flow (P/CF): 7.60
• P/FCF Ratio: 2.80
• 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: $10.25
• Price Target Upside: 14.53% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Western New England Bancorp has solid financial performance with impressive revenue growth and efficient operations. However, technical indicators show bearish momentum, and the stock is trading below its key moving averages. Valuation metrics are reasonable, with an attractive dividend yield. Positive corporate events enhance the overall score, reflecting strong asset quality and strategic capital management.

Western New England Bancorp Business Overview & Revenue Model

Company Description

Western New England Bancorp (WNEB) is a financial holding company headquartered in Westfield, Massachusetts. It operates through its wholly-owned subsidiary, Westfield Bank, which provides a wide range of banking products and services. The company primarily serves individuals and businesses in Western Massachusetts and northern Connecticut. Its offerings include personal and commercial banking services such as checking and savings accounts, loans, mortgages, and financial advisory services.

How the Company Makes Money

Western New England Bancorp generates revenue primarily through interest income earned on a variety of loans including commercial, residential, and consumer loans. The company also earns money through non-interest income, which includes fees and service charges on deposit accounts, income from loan sales, and investment advisory fees. Furthermore, WNEB benefits from its investment securities portfolio, generating additional income. Key partnerships with local businesses and service providers enhance its service offerings and contribute to its revenue streams. The company is influenced by factors such as interest rate changes, economic conditions, and regulatory requirements, which can impact its financial performance.

Western New England Bancorp Financial Statement Overview

Summary

Western New England Bancorp demonstrates solid financial health with strong cash flow, stable balance sheet, and profitability. However, declining revenue and net income require attention, and careful monitoring of debt levels is advisable.

Income Statement

Western New England Bancorp shows a stable income statement with a robust gross profit margin of 93.4% and a commendable net profit margin of 10.5% for the TTM. Revenue growth is a concern, having decreased by 11.3% from the previous year. EBIT and EBITDA margins are consistent, offering a stable profit outlook, though the decline in net income compared to prior periods warrants caution.

Balance Sheet

The balance sheet reflects a sound equity position with an equity ratio of 9.1% and a manageable debt-to-equity ratio of 0.63 for the TTM. Return on equity stands at 4.5%, indicating moderate profitability. The increase in total debt and liabilities suggests a need for careful monitoring of leverage.

Cash Flow

Cash flow analysis highlights a positive trajectory with a 14.4% free cash flow growth rate. The operating cash flow to net income ratio of 1.38 indicates strong cash generation relative to net income. The free cash flow to net income ratio is 1.25, further reinforcing cash flow strength.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
103.90M	78.30M	91.86M	86.11M	65.91M	65.01M
	Gross Profit
97.06M	78.30M	91.86M	86.11M	65.91M	65.01M
	EBIT
15.59M	31.69M	41.33M	31.72M	14.16M	17.20M
	EBITDA
16.18M	22.18M	37.32M	34.42M	16.68M	19.66M
	Net Income Common Stockholders
10.89M	15.07M	25.89M	23.70M	11.21M	13.35M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
288.08M	28.84M	177.34M	297.81M	289.32M	252.45M
	Total Assets
2.12B	2.56B	2.55B	2.54B	2.37B	2.18B
	Total Debt
231.04M	156.46M	62.20M	22.29M	57.85M	240.51M
	Net Debt
186.56M	130.61M	31.86M	-81.17M	-29.59M	215.77M
	Total Liabilities
1.89B	2.33B	2.33B	22.29M	57.85M	1.95B
	Stockholders Equity
227.32M	237.41M	228.14M	223.69M	226.64M	232.02M
Cash Flow		Free Cash Flow
13.58M	11.87M	34.95M	24.09M	21.49M	14.09M
	Operating Cash Flow
14.98M	14.77M	36.09M	27.54M	25.07M	15.38M
	Investing Cash Flow
-41.45M	-13.71M	-111.19M	-161.66M	-123.56M	-48.08M
	Financing Cash Flow
37.01M	-2.57M	1.99M	150.13M	161.19M	30.65M

Western New England Bancorp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WNEB, the sentiment is Negative. The current price of 8.95 is below the 20-day moving average (MA) of 9.46, below the 50-day MA of 9.20, and above the 200-day MA of 8.37, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 32.73 is Neutral, neither overbought nor oversold. The STOCH value of 10.44 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WNEB.

Western New England Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CCB	78 Outperform	$1.23B	25.93	12.33%	―	30.90%	-0.62%
INDB	76 Outperform	$2.60B	13.51	6.52%	3.74%	6.21%	-16.59%
UBOH	68 Neutral	$85.63M	8.92	9.70%	3.22%	13.06%	9.31%
WNEB	64 Neutral	$185.17M	16.16	4.93%	3.12%	9.56%	-20.10%
Sector *	64 Neutral	$13.79B	10.52	9.20%	4.24%	17.25%	-7.60%
HIFS	62 Neutral	$510.22M	18.30	6.72%	1.08%	14.02%	5.59%

Western New England Bancorp Corporate Events

Western New England Bancorp Reports Strong Financial Results

On January 28, 2025, Western New England Bancorp announced its financial results for the quarter and year ending December 31, 2024, reporting a quarterly net income increase to $3.3 million, partly due to a disciplined approach to managing funding costs. The company declared a quarterly cash dividend and highlighted an increase in deposits and a decrease in the loan-to-deposit ratio. Western New England Bancorp also emphasized its strong asset quality and capital management strategies, having repurchased 934,282 shares of common stock over the past year, reflecting its commitment to shareholder value despite a challenging banking environment.