WesBanco (WSBC) AI Stock Analysis

• Market Cap: $3.00B
• Dividend Yield: 4.79%
• Average Volume (3M): 566.47K
• Price to Earnings (P/E): 18.8
• Beta (1Y): 0.98
• Revenue Growth: 30.52%
• EPS Growth: -21.64%
• Country: US
• Employees: 3,205
• Sector: Financial
• Sector Strength: 72
• Industry: Banks - Regional
• EPS (TTM): 0.91
• Shares Outstanding: 95,989,820
• 10 Day Avg. Volume: 479,508
• 30 Day Avg. Volume: 566,474
• PEG Ratio: -1.35
• Price to Book (P/B): 0.73
• Price to Sales (P/S): 2.15
• P/FCF Ratio: 10.15
• Enterprise Value/Market Cap: 1.66
• Enterprise Value/Revenue: 4.93
• Enterprise Value/Gross Profit: 8.82
• Enterprise Value/Ebitda: 35.01
• 1Y Price Target: $36.00
• Price Target Upside: 17.38% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 73 Outperform
• Price Target: $34.00 ▲(10.86% Upside)

WesBanco's overall stock score is driven by strong earnings growth and strategic expansion, as highlighted in the earnings call. The company's financial performance shows solid revenue growth and operational efficiency, though profitability and capital structure need improvement. Technical indicators suggest a neutral trend, while valuation metrics are favorable with a good dividend yield.

Positive Factors

Financial Performance

WSBC's PPNR beat expectations by +13% on better NII and Fees with OpEx in line.

Growth and Profitability

WSBC remains Manuel's Top Pick this year on NIMs and growth, with turbocharge profitability as it integrates its PFC deal.

Market Expansion

WSBC is actively pursuing growth opportunities through mergers and acquisitions, particularly in Virginia and Tennessee, which could enhance its market presence.

Negative Factors

Forecast Adjustments

There are adjustments, including lowering net interest income forecasts and reducing future EPS estimates due to tighter NIM and delayed acquisition closing dates.

Valuation Concerns

WSBC trades at an unwarranted valuation discount compared to peers despite above-peer expectations for future returns.

WesBanco Business Overview & Revenue Model

Company Description

WesBanco, Inc. operates as the bank holding company for WesBanco Bank, Inc. that provides retail banking, corporate banking, personal and corporate trust, brokerage, and mortgage banking and insurance services. It operates in two segments, Community Banking, and Trust and Investment Services. The company offers commercial demand, individual demand, and time deposit accounts; money market accounts; interest bearing and non-interest bearing demand deposits, as well as savings deposits; and certificates of deposit. It also provides commercial real estate loans; commercial and industrial loans; residential real estate loans, including loans to purchase, construct, or refinance borrower's home; home equity lines of credit; installment loans to finance the purchase of automobiles, trucks, motorcycles, boats, and other recreational vehicles, as well as home equity installment loans, unsecured home improvement loans, and revolving lines of credit; and commercial, mortgage, and individual installment loans. In addition, the company offers trust and investment services, as well as various investment products comprising mutual funds and annuities; and securities brokerage services. Further, WesBanco, Inc., through its non-banking subsidiaries, acts as an agency that specializes in property, casualty, life, and title insurance, as well as benefit plan sales and administration to personal and commercial clients; provides broker dealer and discount brokerage services; holds investment securities and loans; and holds and leases commercial real estate properties, as well as acts as an investment adviser to a family of mutual funds. As of December 31, 2021, it operated 206 branches and 203 ATMs in West Virginia, Ohio, western Pennsylvania, Kentucky, southern Indiana, and Maryland, as well as seven loan production offices in West Virginia, Ohio, western Pennsylvania, Maryland, and northern Virginia. WesBanco, Inc. was founded in 1870 and is headquartered in Wheeling, West Virginia.

How the Company Makes Money

WesBanco generates revenue through several key streams, primarily from net interest income, which is earned from the difference between the interest it pays on deposits and the interest earned on loans. The bank offers a variety of loan products including commercial loans, consumer loans, and mortgages, contributing significantly to its interest income. Additionally, WesBanco earns non-interest income from fees associated with deposit accounts, ATM transactions, wealth management services, and investment advisory services. The company also benefits from strategic partnerships, such as those with mortgage lenders and investment firms, which enhance its service offerings and revenue potential. Overall, the combination of interest income from loans and diverse fee-based services forms the backbone of WesBanco's revenue model.

WesBanco Financial Statement Overview

Summary

WesBanco exhibits strong revenue growth and operational efficiency with high gross and EBIT margins. However, lower net profit margin and modest return on equity indicate room for improvement in profitability. Stable balance sheet and strong cash conversion are offset by declining free cash flow.

Income Statement

WesBanco shows a strong gross profit margin of 96.79% and a healthy EBIT margin of 66.75% for the TTM period, indicating strong operational efficiency. However, the net profit margin for the TTM period is relatively low at 12.53%, reflecting potential cost pressures or inefficiencies below the operating line. The revenue growth rate from the previous annual period to the TTM is robust at 42.10%, suggesting strong top-line growth.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 0.52, indicating a balanced approach to leverage. The return on equity is modest at 2.83% for the TTM period, suggesting room for improvement in generating returns for shareholders. The equity ratio stands at 13.80%, which is relatively low, indicating a higher reliance on liabilities to finance assets.

Cash Flow

WesBanco's operating cash flow to net income ratio is strong at 1.12, indicating good cash conversion from earnings. However, the free cash flow growth rate is negative at -46.15% from the previous annual period to the TTM, highlighting potential challenges in maintaining free cash flow levels. The free cash flow to net income ratio stands at 1.01, reflecting adequate free cash flow generation relative to net earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.01B	947.61M	824.87M	625.14M	609.51M	661.10M
Gross Profit	564.98M	580.97M	576.96M	587.46M	646.75M	491.56M
EBITDA	142.37M	200.40M	208.48M	249.44M	315.24M	159.21M
Net Income	106.83M	151.51M	159.03M	192.11M	242.26M	122.04M
Balance Sheet
Total Assets	27.41B	18.68B	17.71B	16.93B	16.93B	16.43B
Cash, Cash Equivalents and Short-Term Investments	1.35B	780.73M	2.79B	2.94B	4.26B	2.88B
Total Debt	1.98B	1.47B	1.73B	1.12B	458.67M	983.24M
Total Liabilities	23.63B	15.89B	15.18B	14.51B	14.23B	13.67B
Stockholders Equity	3.78B	2.79B	2.53B	2.43B	2.69B	2.76B
Cash Flow
Free Cash Flow	108.05M	200.67M	146.82M	196.15M	327.76M	52.05M
Operating Cash Flow	119.94M	211.00M	169.32M	204.14M	336.30M	59.61M
Investing Cash Flow	-499.54M	-1.03B	-535.22M	-1.07B	-328.50M	57.79M
Financing Cash Flow	961.65M	791.90M	552.87M	21.07M	338.11M	553.25M

WesBanco Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 30.67
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WSBC, the sentiment is Negative. The current price of 30.67 is below the 20-day moving average (MA) of 30.89, below the 50-day MA of 31.46, and below the 200-day MA of 31.85, indicating a bearish trend. The MACD of -0.36 indicates Negative momentum. The RSI at 46.84 is Neutral, neither overbought nor oversold. The STOCH value of 86.88 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WSBC.

WesBanco Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WSFS	77 Outperform	$3.13B	12.26	10.32%	1.14%	0.30%	1.46%
FHB	77 Outperform	$3.12B	12.95	9.40%	4.15%	-2.56%	12.05%
WSBC	73 Outperform	$3.00B	18.82	4.25%	4.79%	30.52%	-21.64%
FIBK	73 Outperform	$3.21B	13.78	6.91%	6.14%	-2.11%	-8.95%
CBU	72 Outperform	$3.08B	15.91	10.91%	3.16%	11.95%	14.53%
CATY	71 Outperform	$3.34B	11.65	10.38%	2.88%	-0.17%	-0.29%
Sector *	68 Neutral	$17.53B	11.77	10.43%	3.83%	9.84%	1.31%

WesBanco Corporate Events

WesBanco Highlights Q2 2025 Strategic Focus

WesBanco has announced its Q2 2025 investor presentation, highlighting its strategic focus on disciplined growth and market presence. The company emphasizes its strong credit quality metrics, diversified business model, and long-term growth strategies. The merger with Premier Financial is expected to enhance its market positioning, although potential integration challenges and economic conditions could impact expected synergies and cost savings. WesBanco continues to leverage digital capabilities and maintain a focus on shareholder returns through effective capital management.

The most recent analyst rating on (WSBC) stock is a Buy with a $44.00 price target. To see the full list of analyst forecasts on WesBanco stock, see the WSBC Stock Forecast page.