Western New England Bancorp (WNEB) AI Stock Analysis

• Market Cap: $275.21M
• Dividend Yield: 2.18%
• Average Volume (3M): 49.24K
• Price to Earnings (P/E): 17.6
• Beta (1Y): 0.80
• 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: 20,491,966
• 10 Day Avg. Volume: 70,981
• 30 Day Avg. Volume: 49,239
• PEG Ratio: -0.82
• Price to Book (P/B): 0.82
• Price to Sales (P/S): 1.57
• P/FCF Ratio: 17.52
• Enterprise Value/Market Cap: 1.17
• Enterprise Value/Revenue: 2.47
• Enterprise Value/Gross Profit: 4.03
• Enterprise Value/Ebitda: 15.98
• 1Y Price Target: $14.00
• Price Target Upside: 4.24% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: $14.50 ▲(7.97% Upside)

WNEB scores well on financial performance and technical positioning, with particularly strong cash flow metrics and an overall uptrend supported by positive momentum signals. A favorable recent corporate update adds support, while a somewhat elevated P/E for the group and modest ROE temper the overall score.

Positive Factors

Strong cash generation

Sustained, high free cash flow growth and near-par FCF-to-net-income conversion indicate the franchise converts earnings to cash efficiently. That durable cash generation supports dividends, buybacks, reserves and organic investment, improving resilience through credit cycles.

Pristine asset quality and reserves

Very low nonperforming assets and an outsized reserve coverage ratio signal conservative underwriting and proactive provisioning. This structural credit strength reduces earnings volatility, limits capital drawdowns in downturns, and preserves regulatory and investor confidence over time.

Consistent loan, deposit growth and NIM expansion

Sustained loan and core-deposit growth alongside multi-quarter net interest margin expansion reflects improving asset-liability management and funding stability. These structural trends support recurring net interest income and scalable earnings if maintained across business cycles.

Negative Factors

Modest return on equity

A persistently low ROE indicates the bank earns modest returns on shareholder capital versus peers. Over the medium term this constrains internal capital formation and shareholder returns, potentially forcing reliance on buybacks/dividends to boost per‑share metrics rather than higher organic profitability.

Pressure on gross margins

A declining gross margin suggests margin compression from funding costs or lower-yield mix that can erode core profitability. If structural, this requires ongoing cost discipline or higher-yield asset growth to prevent longer-term compression of net margins and return metrics.

Geographic concentration and limited scale

A concentrated regional footprint and modest loan book limit diversification and scale economies. This structural constraint can raise efficiency ratios, increase exposure to local economic cycles, and cap growth opportunities versus larger, more diversified regional peers over the medium term.

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 the interest income earned on loans and investments. The bank offers a variety of loan products, including commercial real estate loans, residential mortgages, and lines of credit, which typically carry interest rates that contribute significantly to its earnings. Additionally, WNEB earns non-interest income through fees for services such as account maintenance, transaction fees, and wealth management services. The company benefits from its strong local presence and community relationships, which help attract and retain customers. Strategic partnerships with local businesses and organizations also enhance its customer base and revenue potential.

Western New England Bancorp Financial Statement Overview

Summary

Overall fundamentals are solid: steady revenue growth, improving net/EBITDA margins, and strong cash generation (notably improved free cash flow growth and high cash conversion). The main offset is a modest return on equity (5.58% TTM) and some pressure in gross margin, which caps the score.

Income Statement

Western New England Bancorp shows a steady revenue growth with a TTM revenue growth rate of 1.76%. The gross profit margin has decreased over time, currently at 48.64% TTM, indicating potential cost management issues. The net profit margin has improved to 10.77% TTM, reflecting better profitability. EBIT and EBITDA margins have also improved, suggesting efficient operational management.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.41 TTM, indicating a more conservative leverage approach. However, the return on equity has slightly decreased to 5.58% TTM, which may suggest lower profitability from equity investments. The equity ratio remains stable, indicating a solid capital structure.

Cash Flow

The free cash flow growth rate has significantly improved to 17.74% TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio is robust at 5.78 TTM, showing efficient cash conversion. The free cash flow to net income ratio is high at 95.26% TTM, reflecting strong cash profitability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	129.80M	122.74M	112.02M	99.26M	92.41M	92.13M
Gross Profit	79.62M	73.39M	77.94M	91.86M	86.67M	65.91M
EBITDA	20.09M	17.56M	22.18M	37.32M	34.42M	16.68M
Net Income	13.35M	11.67M	15.07M	25.89M	23.70M	11.21M
Balance Sheet
Total Assets	2.74B	2.65B	2.56B	2.55B	2.54B	2.37B
Cash, Cash Equivalents and Short-Term Investments	262.18M	217.89M	162.96M	175.69M	292.91M	286.34M
Total Debt	100.98M	123.14M	156.46M	62.20M	22.29M	57.85M
Total Liabilities	2.49B	2.42B	2.33B	2.33B	2.31B	2.14B
Stockholders Equity	243.64M	235.91M	237.41M	228.14M	223.69M	226.64M
Cash Flow
Free Cash Flow	15.98M	10.97M	11.87M	35.63M	25.34M	21.49M
Operating Cash Flow	17.21M	12.17M	14.77M	36.77M	28.79M	25.07M
Investing Cash Flow	-88.42M	-46.59M	-13.71M	-111.87M	-162.91M	-123.56M
Financing Cash Flow	81.35M	72.03M	-2.57M	1.99M	150.13M	161.19M

Western New England Bancorp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.43
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WNEB, the sentiment is Positive. The current price of 13.43 is above the 20-day moving average (MA) of 12.86, above the 50-day MA of 12.73, and above the 200-day MA of 11.09, indicating a bullish trend. The MACD of 0.14 indicates Negative momentum. The RSI at 61.82 is Neutral, neither overbought nor oversold. The STOCH value of 53.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	72 Outperform	$275.21M	17.57	5.51%	2.18%	7.37%	27.35%
OPBK	70 Outperform	$208.10M	8.06	10.99%	3.32%	9.10%	12.36%
HWBK	69 Neutral	$244.25M	9.91	14.27%	2.39%	0.16%	258.06%
FINW	68 Neutral	$237.91M	15.48	8.00%	―	26.54%	2.73%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

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.

Western New England Bancorp Q3 2025 Financial Results

On October 28, 2025, Western New England Bancorp announced its financial results for the three and nine months ended September 30, 2025. The company reported a net income of $3.2 million for the third quarter, a decrease from the previous quarter but an increase from the same period in 2024. The company also declared a quarterly cash dividend and highlighted significant growth in core deposits and loans, particularly in commercial and residential real estate. Despite a decrease in net income from the previous quarter, the company maintained a strong asset quality and continued its stock repurchase program, reflecting a disciplined capital management strategy aimed at delivering long-term shareholder value.

The most recent analyst rating on (WNEB) stock is a Hold with a $12.00 price target. To see the full list of analyst forecasts on Western New England Bancorp stock, see the WNEB Stock Forecast page.