Western New England Bancorp (WNEB) AI Stock Analysis

• Market Cap: $179.98M
• Dividend Yield: 3.22%
• Average Volume (3M): 55.19K
• Price to Earnings (P/E): 16.5
• Beta (1Y): 0.62
• Revenue Growth: 8.70%
• EPS Growth: -10.56%
• Country: US
• Employees: 286
• Sector: Financial
• Sector Strength: 74
• Industry: Banks - Regional
• EPS (TTM): 0.11
• Shares Outstanding: 20,711,027
• 10 Day Avg. Volume: 70,002
• 30 Day Avg. Volume: 55,189
• PEG Ratio: 0.51
• Price to Book (P/B): 0.91
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.92
• Enterprise Value/Market Cap: 1.33
• Enterprise Value/Revenue: 0.62
• Enterprise Value/Gross Profit: 3.31
• Enterprise Value/Ebitda: 3.37
• 1Y Price Target: $9.50
• Price Target Upside: 10.34% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 75 Outperform
• Price Target: $10.00 ▲(16.14%Upside)

Western New England Bancorp is performing well financially, with growth prospects and solid profitability. The stock's valuation is reasonable, supported by a consistent dividend yield. Recent corporate events, including a stock repurchase plan, demonstrate a commitment to enhancing shareholder value. Technical indicators show a neutral momentum, suggesting a balanced risk-reward profile for investors.

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

Western New England Bancorp generates revenue primarily through interest income from its lending activities, including personal loans, commercial loans, and mortgage loans. The bank earns interest on loans issued to customers, which constitutes a significant portion of its revenue. Additionally, the company earns non-interest income from fees and services related to its deposit accounts, financial planning services, and other banking services. Western New England Bancorp also benefits from strategic partnerships with financial service providers, which enhance its service offerings and contribute to revenue through shared customer bases and cross-selling opportunities. The company’s earnings are further supported by prudent financial management and a focus on maintaining a strong loan portfolio with minimized credit risk.

Western New England Bancorp Financial Statement Overview

Summary

Western New England Bancorp shows strong financial health with consistent revenue growth and solid profitability metrics. The balance sheet is moderately leveraged but typical for regional banks. Cash flow management is efficient, although free cash flow generation needs improvement.

Income Statement

Western New England Bancorp has shown a commendable revenue growth trajectory with recent TTM revenue of $103.04M, up from $98.90M the previous year, indicating a stable growth. The gross profit margin stands at 70.13%, with a healthy net profit margin of 10.68% for the TTM. Despite a slight decrease in EBIT margin to 13.72% from 15.12%, the profitability remains solid. EBITDA margin is robust at 16.23%, showcasing efficient operations. Overall, the income statement reflects strong growth and profitability.

Balance Sheet

The balance sheet of WNEB shows a sound financial position with a debt-to-equity ratio of 0.43, indicating a moderate leverage level, which is typical for the banking sector. Return on equity is decent at 4.63% for the TTM, though there is room for improvement. The equity ratio stands at 8.77%, suggesting a stable capital structure. The company maintains a healthy level of assets, although a more diversified equity base could enhance stability.

Cash Flow

Cash flow analysis reveals a slight decrease in operating cash flow to net income ratio, currently at 0.89, indicating efficient cash conversion. Free cash flow growth rate is negative, reflecting some challenges in cash generation. The free cash flow to net income ratio is 0.81, showing a solid capacity to generate cash relative to profits. There is a need for improvement in free cash flow trends to better support long-term growth.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
103.04M	98.90M	78.30M	91.86M	86.11M	65.91M
	Gross Profit
72.26M	73.39M	78.30M	91.86M	86.11M	65.91M
	EBIT
14.14M	14.96M	31.69M	41.33M	31.72M	14.16M
	EBITDA
16.73M	17.56M	22.18M	37.32M	34.42M	16.68M
	Net Income Common Stockholders
11.01M	11.67M	15.07M	25.89M	23.70M	11.21M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
115.58M	179.53M	165.96M	177.34M	297.81M	289.32M
	Total Assets
2.71B	2.65B	2.56B	2.55B	2.54B	2.37B
	Total Debt
102.52M	123.14M	156.46M	62.20M	22.29M	57.85M
	Net Debt
-8.06M	84.57M	130.61M	33.51M	-81.17M	-29.59M
	Total Liabilities
2.47B	2.42B	2.33B	2.33B	2.31B	2.14B
	Stockholders Equity
237.68M	235.91M	237.41M	228.14M	223.69M	226.64M
Cash Flow		Free Cash Flow
8.94M	10.97M	11.87M	34.95M	24.09M	21.49M
	Operating Cash Flow
9.76M	12.17M	14.77M	36.09M	27.54M	25.07M
	Investing Cash Flow
-63.32M	-46.59M	-13.71M	-111.19M	-162.91M	-123.56M
	Financing Cash Flow
141.53M	72.03M	-2.57M	1.99M	150.13M	161.19M

Western New England Bancorp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.61
• 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 WNEB, the sentiment is Negative. The current price of 8.61 is below the 20-day moving average (MA) of 9.23, below the 50-day MA of 9.09, and below the 200-day MA of 8.95, indicating a bearish trend. The MACD of -0.10 indicates Positive momentum. The RSI at 31.29 is Neutral, neither overbought nor oversold. The STOCH value of 0.86 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
WNEB	75 Outperform	$179.98M	16.46	4.65%	3.22%	8.70%	-10.56%
FVCB	75 Outperform	$203.12M	11.27	8.16%	―	17.18%	305.35%
HWBK	71 Outperform	$197.29M	10.35	6.62%	2.80%	4.86%	800.59%
ESSA	68 Neutral	$186.64M	11.86	6.43%	3.26%	5.57%	-16.40%
Sector *	64 Neutral	$12.77B	9.78	7.84%	78.83%	12.06%	-7.99%
VABK	64 Neutral	$197.51M	11.10	11.15%	3.87%	2.26%	3.83%
FUNC	62 Neutral	$185.68M	8.21	12.99%	3.07%	13.41%	62.54%

Western New England Bancorp Corporate Events

Western New England Bancorp Shareholders Approve Key Proposals

On May 14, 2025, Western New England Bancorp held its Annual Meeting where shareholders voted on four proposals. The meeting saw a quorum with 16,653,531 shares represented. Shareholders elected two directors and approved the compensation of executive officers, the appointment of Wolf & Company, P.C. as the independent auditor for 2025, and the amendment of the 2021 Omnibus Incentive Plan.

The most recent analyst rating on (WNEB) stock is a Hold with a $9.50 price target. To see the full list of analyst forecasts on Western New England Bancorp stock, see the WNEB Stock Forecast page.

Western New England Bancorp Holds Annual Meeting 2025

On May 14, 2025, Western New England Bancorp held its Annual Meeting, where key proposals were discussed, including the election of directors, executive compensation, and the ratification of the company’s accounting firm. The meeting also covered financial results for 2024 and the first quarter of 2025, highlighting the company’s operational performance and strategic initiatives.

The most recent analyst rating on (WNEB) stock is a Hold with a $9.50 price target. To see the full list of analyst forecasts on Western New England Bancorp stock, see the WNEB Stock Forecast page.

Western New England Bancorp Announces Q1 2025 Financial Results

On April 22, 2025, Western New England Bancorp announced its unaudited financial results for the first quarter of 2025, reporting a net income of $2.3 million. The company also declared a quarterly cash dividend and authorized a new stock repurchase plan to buy back up to 1.0 million shares, enhancing shareholder value. The company’s net interest margin improved, and it maintained strong asset quality and liquidity. The 2025 stock repurchase plan will commence after the completion of the 2024 plan, reflecting the company’s focus on disciplined capital management and shareholder returns.