WesBanco (WSBC) AI Stock Analysis

• Market Cap: $3.10B
• Dividend Yield: 4.58%
• Average Volume (3M): 455.43K
• Price to Earnings (P/E): 19.4
• Beta (1Y): 0.96
• Revenue Growth: 30.52%
• EPS Growth: -21.64%
• Country: US
• Employees: 3,205
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.91
• Shares Outstanding: 95,989,820
• 10 Day Avg. Volume: 311,924
• 30 Day Avg. Volume: 455,434
• 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: 1.61
• Enterprise Value/Revenue: 4.93
• Enterprise Value/Gross Profit: 8.82
• Enterprise Value/Ebitda: 35.01
• 1Y Price Target: $37.00
• Price Target Upside: 14.62% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 77 Outperform
• Price Target: $37.00 ▲(14.62% Upside)

WesBanco's overall stock score reflects strong financial performance and positive technical indicators. The company's strategic growth initiatives and successful integration of acquisitions contribute positively. While valuation is fair with a strong dividend yield, challenges in deposit cost management and potential overbought technical conditions are noted. The optimistic earnings call and strategic focus on digital capabilities further enhance the outlook.

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. (WSBC) is a diversified financial services company headquartered in Wheeling, West Virginia. It operates primarily through its subsidiary, WesBanco Bank, providing a range of banking and financial services including commercial and retail banking, mortgage banking, investment management, and trust services. The company serves customers across several states in the Midwest and Mid-Atlantic regions, focusing on community banking and personalized service.

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: Positive
• Last Price: 32.28
• 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 WSBC, the sentiment is Positive. The current price of 32.28 is above the 20-day moving average (MA) of 31.37, above the 50-day MA of 31.52, and above the 200-day MA of 31.48, indicating a bullish trend. The MACD of 0.44 indicates Negative momentum. The RSI at 58.04 is Neutral, neither overbought nor oversold. The STOCH value of 54.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WSBC.

WesBanco Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CBU	78 Outperform	$3.17B	16.35	10.91%	3.07%	11.95%	14.53%
WSBC	77 Outperform	$3.10B	19.41	4.25%	4.58%	30.52%	-21.64%
FIBK	76 Outperform	$3.41B	14.66	6.91%	5.78%	-2.11%	-8.95%
WSFS	75 Outperform	$3.26B	12.77	10.32%	1.10%	0.30%	1.46%
FHB	72 Outperform	$3.21B	13.29	9.40%	4.04%	-2.56%	12.05%
CATY	71 Outperform	$3.43B	11.97	10.38%	2.74%	-0.17%	-0.29%
Sector *	68 Neutral	$17.80B	11.87	10.23%	3.74%	9.69%	1.18%

WesBanco Corporate Events

WesBanco Highlights Q3 2025 Investor Presentation

WesBanco has announced its Q3 2025 investor presentation, highlighting its strong market presence and diversified business model. The company emphasizes its strategic growth through mergers, such as with Premier, and its focus on maintaining competitive advantages in the financial services industry. The presentation outlines potential risks and uncertainties, including economic conditions and regulatory changes, while also showcasing WesBanco’s commitment to leveraging digital capabilities and maintaining a relationship-focused model to drive customer value and shareholder returns.