Western New England Bancorp (WNEB) AI Stock Analysis

• Market Cap: $250.83M
• Dividend Yield: 2.18%
• Average Volume (3M): 49.24K
• Price to Earnings (P/E): 12.2
• Beta (1Y): 0.84
• Revenue Growth: 7.37%
• EPS Growth: 27.35%
• Country: US
• Employees: 286
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.26
• Shares Outstanding: 20,260,597
• 10 Day Avg. Volume: 70,981
• 30 Day Avg. Volume: 49,239
• PEG Ratio: 0.46
• Price to Book (P/B): 1.02
• Price to Sales (P/S): 1.95
• P/FCF Ratio: 14.77
• Enterprise Value/Market Cap: 1.19
• Enterprise Value/Revenue: 2.31
• Enterprise Value/Gross Profit: 3.72
• Enterprise Value/Ebitda: 14.14
• 1Y Price Target: $14.00
• Price Target Upside: 10.32% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.94
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: $13.50 ▲(6.38% Upside)
• Action: Downgraded Date: 03/11/26
• Date: Action: Downgraded 03/11/26

The score is driven primarily by improving financial fundamentals (better margins, cash conversion, and reduced leverage) and a positive recent company update highlighting stronger profitability and capital returns. These strengths are tempered by weak technical momentum (bearish MACD and trading below key moving averages) and only moderate valuation support.

Positive Factors

Expanding Net Interest Margin & Profitability

Six consecutive quarters of NIM expansion alongside rising quarterly and full-year net income signal durable improvement in core lending economics. Sustained NIM gains supported by loan and core deposit growth strengthen medium-term earnings power and interest-spread driven cash generation.

Improved Balance Sheet Leverage

A materially lower debt-to-equity ratio and equity build reduce financial risk and increase capital flexibility. This conservative positioning improves the bank's ability to absorb shocks, fund loan growth prudently, and sustain shareholder distributions over the medium term.

Stronger Cash Generation & Earnings-to-Cash Conversion

Free cash flow equaling net income and stronger operating cash flow indicate high-quality earnings and improved cash conversion. Reliable cash generation supports dividends, buybacks, and reinvestment, enhancing long-term financial flexibility and funding of strategic initiatives.

Negative Factors

Material Slowdown in Revenue Growth

Top-line growth decelerated sharply to roughly 2% in 2025 after stronger prior years. Slower revenue expansion limits operating leverage, constrains long-term margin improvement, and makes it harder to grow earnings sustainably without relying on expense cuts or higher risk-taking.

Profitability Below Prior Cycle Peaks

ROE and net margins remain substantially below 2021–2022 levels, indicating the bank still operates with muted profitability. Persistently lower returns suggest structural revenue or cost pressures, which can limit long-term shareholder value creation and competitiveness for capital.

Multi-year Cash Flow Volatility

Although 2025 showed improved cash flow, prior-year declines highlight an unstable cash generation pattern. Persistent volatility complicates capital planning, may force conservative provisioning and capital retention, and increases execution risk for growth or shareholder return strategies.

Western New England Bancorp Business Overview & Revenue Model

Company Description

Western New England Bancorp, Inc. operates as the holding company for Westfield Bank that provides a range of commercial and retail banking products and services to individuals and businesses. The company accepts various deposit accounts, including checking, business and municipal savings, money market and sweep, individual retirement, and other savings accounts; time deposits; certificates of deposit; and interest on lawyers trust accounts. It also offers residential and commercial real estate, commercial construction, working capital, equipment financing and term, home equity, and consumer loans; commercial and industrial loans, such as revolving lines of credit. In addition, the company provides automated teller machine (ATM), telephone and online banking, remote deposit capture, cash management, overdraft and safe deposit facility, and night deposit services. As of December 31, 2021, it operated through a network of 25 banking offices, 23 free-standing ATMs, and 35 seasonal or temporary ATMS located in Agawam, Chicopee, Feeding Hills, East Longmeadow, Holyoke, Huntington, Ludlow, South Hadley, Southwick, Springfield, Ware, West Springfield and Westfield, Massachusetts and Bloomfield, Enfield, Granby, and West Hartford, Connecticut. The company was formerly known as Westfield Financial, Inc. and changed its name to Western New England Bancorp, Inc. in October 2016. Western New England Bancorp, Inc. was founded in 1853 and is headquartered in Westfield, Massachusetts.

How the Company Makes Money

WNEB primarily makes money through traditional banking spread and fee income generated by its banking subsidiary(ies). Key revenue streams typically include: (1) Net interest income: interest earned on loans (such as commercial, consumer, and real estate loans) and interest-earning assets, minus interest paid on deposits and other funding sources. Profitability is influenced by loan growth, deposit mix, credit quality, and changes in market interest rates that affect asset yields and funding costs. (2) Noninterest income: fees and service charges associated with deposit accounts and banking services (for example, account maintenance-related fees, transaction-related fees, and other service fees). (3) Other income and factors: income may also be affected by securities portfolio returns, loan loss provisions/credit costs, and operating expenses. Specific material partnerships, business line mix, and quantified revenue breakdown for WNEB are null.

Western New England Bancorp Financial Statement Overview

Summary

Financials show a clear 2025 rebound: improved margins, better earnings-to-cash conversion (FCF matching net income), and notably lower leverage. Offsets include materially slower revenue growth and profitability that remains well below the stronger 2021–2022 levels, plus a historically choppy cash flow trend.

Income Statement

Revenue growth has stayed positive but slowed materially (2025: ~2% vs. 2024: ~9.6% and 2023: ~12.9%). Profitability remains positive in 2025 (net margin ~11.8%), and margins improved versus 2024 (net and operating margins both higher), showing a rebound year-over-year. However, profitability is meaningfully below the very strong 2021–2022 levels (net margins ~25–26% then), indicating a less favorable earnings environment and more volatility across the cycle.

Balance Sheet

Leverage improved notably, with debt-to-equity declining to ~0.35 in 2025 from ~0.52 in 2024 and ~0.66 in 2023, while equity continues to build. Returns on equity are steady-to-improving (2025 ~6.2% vs. 2024 ~4.9%), but remain well below the peak in 2021–2022 (~10–11%). Overall, the balance sheet looks conservatively positioned versus recent years, though profitability on equity is still middling.

Cash Flow

Cash generation strengthened in 2025, with operating cash flow rising and free cash flow matching net income (free cash flow to net income = 1.0), indicating good earnings-to-cash conversion. Free cash flow growth in 2025 was very strong (up sharply from 2024), but the multi-year pattern is volatile, with declines in 2023 and 2024. Overall cash flow quality improved in the latest year, but stability remains a key watch item.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	129.83M	122.74M	112.02M	99.26M	92.41M
Gross Profit	80.49M	73.39M	77.94M	91.86M	86.67M
EBITDA	21.19M	17.56M	22.18M	37.32M	34.42M
Net Income	15.27M	11.67M	15.07M	25.89M	23.70M
Balance Sheet
Total Assets	2.74B	2.65B	2.56B	2.55B	2.54B
Cash, Cash Equivalents and Short-Term Investments	216.18M	217.89M	162.96M	175.69M	292.91M
Total Debt	86.27M	123.14M	156.46M	62.20M	22.29M
Total Liabilities	2.49B	2.42B	2.33B	2.33B	2.31B
Stockholders Equity	247.64M	235.91M	237.41M	228.14M	223.69M
Cash Flow
Free Cash Flow	17.14M	10.97M	11.87M	35.63M	25.34M
Operating Cash Flow	18.21M	12.17M	14.77M	36.77M	28.79M
Investing Cash Flow	-113.61M	-46.59M	-13.71M	-111.87M	-162.91M
Financing Cash Flow	69.33M	72.03M	-2.57M	1.99M	150.13M

Western New England Bancorp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 12.69
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 12.69 is below the 20-day moving average (MA) of 12.92, below the 50-day MA of 13.15, and above the 200-day MA of 11.72, indicating a neutral trend. The MACD of -0.22 indicates Positive momentum. The RSI at 35.00 is Neutral, neither overbought nor oversold. The STOCH value of 48.82 is Neutral, 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
FINW	72 Outperform	$210.87M	14.84	8.00%	―	26.54%	2.73%
OPBK	69 Neutral	$187.92M	7.44	11.75%	3.32%	9.10%	12.36%
HWBK	68 Neutral	$224.58M	9.85	14.66%	2.39%	0.16%	258.06%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
WNEB	62 Neutral	$250.83M	12.15	5.51%	2.18%	7.37%	27.35%

Western New England Bancorp Corporate Events

Western New England Bancorp Reports Strong Q4 2025 Results

On January 27, 2026, Western New England Bancorp reported unaudited results for the fourth quarter and full year ended December 31, 2025, highlighting a sharp improvement in profitability, balance sheet growth and continued capital returns to shareholders. Quarterly net income rose to $5.2 million, or $0.26 per diluted share, up from $3.3 million a year earlier, while full‑year net income increased to $15.3 million, or $0.75 per diluted share, from $11.7 million in 2024. Management pointed to strong loan and core deposit growth, with total loans up 5.5% to $2.2 billion and core deposits up 7.2% to $1.7 billion, alongside a net interest margin that expanded to 2.91% in the fourth quarter, marking a sixth consecutive quarter of gains. Asset quality metrics remained robust, with nonperforming assets at 0.19% of total assets, low delinquencies and a loan loss reserve covering more than 390% of nonaccrual loans, supporting a stable risk profile. The board declared a quarterly cash dividend of $0.07 per share payable in February 2026, and the company continued to deploy excess capital through share repurchases, buying nearly 600,000 shares over 2025 and lifting both book value and tangible book value per share, underscoring an ongoing strategy to balance growth with shareholder returns.

The most recent analyst rating on (WNEB) stock is a Hold with a $14.00 price target. To see the full list of analyst forecasts on Western New England Bancorp stock, see the WNEB Stock Forecast page.