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Western New England Bancorp Inc (WNEB)
NASDAQ:WNEB
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Western New England Bancorp (WNEB) AI Stock Analysis

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WNEB

Western New England Bancorp

(NASDAQ:WNEB)

Rating:74Outperform
Price Target:
$13.00
▲(4.84% Upside)
Western New England Bancorp scores well due to its strong financial performance and positive corporate events, including stock repurchases and dividend declarations. Despite being technically overbought, the stock's upward trend and fair valuation support a positive outlook. The financial strength and strategic actions position the company favorably in the regional banking sector.

Western New England Bancorp (WNEB) vs. SPDR S&P 500 ETF (SPY)

Western New England Bancorp Business Overview & Revenue Model

Company DescriptionWestern New England Bancorp (WNEB) is a bank holding company based in Westfield, Massachusetts, primarily engaged in providing a range of financial services through its wholly-owned subsidiary, Westfield Bank. The company operates in the banking sector, offering personal, commercial, and mortgage banking services, as well as wealth management and financial advisory services. WNEB serves customers in western Massachusetts and northern Connecticut, focusing on delivering tailored financial solutions to meet the needs of individuals, businesses, and communities.
How the Company Makes MoneyWestern New England Bancorp generates revenue primarily through interest income and non-interest income. Interest income is earned from loans, which include commercial loans, residential mortgages, and consumer loans. The interest earned from these loans constitutes the largest portion of the company's revenue. Additionally, WNEB earns non-interest income from various sources, including service charges on deposit accounts, fees for wealth management services, and transaction fees. The bank's strategic focus on local markets and its commitment to customer service help foster strong relationships, leading to a stable deposit base and a diverse loan portfolio. Partnerships with local businesses and community organizations also contribute to its revenue by enhancing its outreach and service offerings.

Western New England Bancorp Financial Statement Overview

Summary
Western New England Bancorp exhibits strong financial health with consistent revenue growth and solid profitability metrics. The company's balance sheet is moderately leveraged, typical for regional banks, but could benefit from improved equity ratios. Cash flow management shows efficiency in operations, though improvement in free cash flow generation is needed. Overall, WNEB is well-positioned in its industry with stable growth prospects.
Income Statement
82
Very Positive
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
78
Positive
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
75
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue122.74M112.02M99.26M92.41M92.13M
Gross Profit73.39M77.94M91.86M86.67M65.91M
EBITDA17.56M22.18M37.32M34.42M16.68M
Net Income11.67M15.07M25.89M23.70M11.21M
Balance Sheet
Total Assets2.65B2.56B2.55B2.54B2.37B
Cash, Cash Equivalents and Short-Term Investments217.89M162.96M175.69M292.91M286.34M
Total Debt123.14M156.46M62.20M22.29M57.85M
Total Liabilities2.42B2.33B2.33B2.31B2.14B
Stockholders Equity235.91M237.41M228.14M223.69M226.64M
Cash Flow
Free Cash Flow10.97M11.87M35.63M25.34M21.49M
Operating Cash Flow12.17M14.77M36.77M28.79M25.07M
Investing Cash Flow-46.59M-13.71M-111.87M-162.91M-123.56M
Financing Cash Flow72.03M-2.57M1.99M150.13M161.19M

Western New England Bancorp Technical Analysis

Technical Analysis Sentiment
Positive
Last Price12.40
Price Trends
50DMA
10.43
Positive
100DMA
9.71
Positive
200DMA
9.39
Positive
Market Momentum
MACD
0.51
Negative
RSI
73.35
Negative
STOCH
86.02
Negative
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 12.4 is above the 20-day moving average (MA) of 11.45, above the 50-day MA of 10.43, and above the 200-day MA of 9.39, indicating a bullish trend. The MACD of 0.51 indicates Negative momentum. The RSI at 73.35 is Negative, neither overbought nor oversold. The STOCH value of 86.02 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WNEB.

Western New England Bancorp Risk Analysis

Western New England Bancorp disclosed 39 risk factors in its most recent earnings report. Western New England Bancorp reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Western New England Bancorp Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$225.89M10.7614.00%2.35%2.03%390.32%
76
Outperform
$209.29M9.6510.74%3.38%11.05%8.18%
76
Outperform
5.57%-16.40%
74
Outperform
$254.10M20.925.08%2.28%6.82%-6.56%
74
Outperform
$263.49M19.937.47%13.75%-15.50%
69
Neutral
$213.78M24.447.59%1.34%1.57%21.30%
68
Neutral
$17.69B11.8210.30%3.73%9.66%0.42%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
WNEB
Western New England Bancorp
12.40
3.87
45.37%
ESSA
Essa Bancorp
20.61
3.39
19.69%
HWBK
Hawthorn Bancshares
32.71
10.84
49.57%
OPOF
Old Point Financial
41.90
23.56
128.46%
OPBK
OP Bancorp
14.19
2.09
17.27%
FINW
FinWise
19.49
6.65
51.79%

Western New England Bancorp Corporate Events

Stock BuybackDividendsBusiness Operations and StrategyFinancial Disclosures
Western New England Bancorp Reports Strong Q2 2025 Results
Positive
Jul 22, 2025

On July 22, 2025, Western New England Bancorp reported its financial results for the three and six months ended June 30, 2025, showing significant growth in net income and loan portfolios. The company declared a quarterly cash dividend and highlighted strong loan and core deposit growth, which contributed to an improved net interest margin and reduced reliance on time deposits. The company also completed a stock repurchase plan and initiated a new one, reflecting its strong capital position and commitment to delivering long-term shareholder value.

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.

Executive/Board ChangesShareholder Meetings
Western New England Bancorp Shareholders Approve Key Proposals
Neutral
May 14, 2025

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.

Shareholder MeetingsBusiness Operations and StrategyFinancial Disclosures
Western New England Bancorp Holds Annual Meeting 2025
Neutral
May 14, 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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 24, 2025