Western New England Bancorp (WNEB) AI Stock Analysis

• Market Cap: $236.07M
• Dividend Yield: 2.45%
• Average Volume (3M): 64.99K
• Price to Earnings (P/E): 19.6
• Beta (1Y): 0.77
• Revenue Growth: 6.82%
• EPS Growth: -6.56%
• Country: US
• Employees: 286
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.23
• Shares Outstanding: 20,491,966
• 10 Day Avg. Volume: 45,144
• 30 Day Avg. Volume: 64,991
• 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: 1.18
• Enterprise Value/Revenue: 2.19
• Enterprise Value/Gross Profit: 3.65
• Enterprise Value/Ebitda: 15.14
• 1Y Price Target: $12.00
• Price Target Upside: 4.80% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 74 Outperform
• Price Target: $13.00 ▲(13.54% 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 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 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

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	127.56M	122.74M	112.02M	99.26M	92.41M	92.13M
Gross Profit	76.56M	73.39M	77.94M	91.86M	86.67M	65.91M
EBITDA	18.45M	17.56M	22.18M	37.32M	34.42M	16.68M
Net Income	12.09M	11.67M	15.07M	25.89M	23.70M	11.21M
Balance Sheet
Total Assets	2.71B	2.65B	2.56B	2.55B	2.54B	2.37B
Cash, Cash Equivalents and Short-Term Investments	208.81M	217.89M	162.96M	175.69M	292.91M	286.34M
Total Debt	121.81M	123.14M	156.46M	62.20M	22.29M	57.85M
Total Liabilities	2.47B	2.42B	2.33B	2.33B	2.31B	2.14B
Stockholders Equity	239.43M	235.91M	237.41M	228.14M	223.69M	226.64M
Cash Flow
Free Cash Flow	13.58M	10.97M	11.87M	35.63M	25.34M	21.49M
Operating Cash Flow	14.61M	12.17M	14.77M	36.77M	28.79M	25.07M
Investing Cash Flow	-85.50M	-46.59M	-13.71M	-111.87M	-162.91M	-123.56M
Financing Cash Flow	110.73M	72.03M	-2.57M	1.99M	150.13M	161.19M

Western New England Bancorp Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 11.45
• 50DMA: Negative
• 100DMA: Positive
• 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 Neutral. The current price of 11.45 is below the 20-day moving average (MA) of 12.00, below the 50-day MA of 11.89, and above the 200-day MA of 9.87, indicating a neutral trend. The MACD of -0.13 indicates Positive momentum. The RSI at 35.42 is Neutral, neither overbought nor oversold. The STOCH value of 6.26 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for WNEB.

Western New England Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ESSA	76 Outperform	―	―	―	―	5.57%	-16.40%
WNEB	74 Outperform	$236.07M	19.59	5.08%	2.45%	6.82%	-6.56%
OPOF	69 Neutral	―	―	―	―	1.57%	21.30%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
FINW	66 Neutral	$248.89M	19.42	7.47%	―	13.75%	-15.50%
OPBK	64 Neutral	$201.55M	9.13	10.74%	3.50%	11.05%	8.18%
HWBK	62 Neutral	$204.97M	10.03	14.00%	2.61%	2.03%	390.32%

Western New England Bancorp Corporate Events

Western New England Bancorp Reports Strong Q2 2025 Results

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.