WesBanco (WSBC) AI Stock Analysis

• Market Cap: $3.03B
• Dividend Yield: 4.72%
• Average Volume (3M): 453.43K
• Price to Earnings (P/E): 20.7
• Beta (1Y): 0.93
• Revenue Growth: 17.74%
• EPS Growth: -35.93%
• Country: US
• Employees: 3,205
• Sector: Financial
• Sector Strength: 78
• Industry: Banks - Regional
• EPS (TTM): 0.66
• Shares Outstanding: 95,672,200
• 10 Day Avg. Volume: 508,150
• 30 Day Avg. Volume: 453,428
• PEG Ratio: -0.80
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.32
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 1.05
• Enterprise Value/Gross Profit: 3.55
• Enterprise Value/Ebitda: 4.64
• 1Y Price Target: $37.25
• Price Target Upside: 22.37% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 73 Outperform
• Price Target: $34.00 ▲(11.70%Upside)

WesBanco's overall score reflects solid financial performance with strong revenue growth and operational efficiency. The positive sentiment from the earnings call, driven by successful acquisition and improved financial metrics, enhances the score. However, concerns about profitability, increased credit provisions, and macroeconomic uncertainties moderate the outlook. Technical indicators suggest neutral momentum, while valuation metrics indicate fair value with an attractive 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 predominantly through the interest income derived from its lending activities. The company offers various loan products, including commercial loans, residential mortgage loans, and consumer loans, which provide a steady stream of interest income. Additionally, WesBanco earns non-interest income from fees and service charges associated with its deposit accounts, wealth management, and trust services. The bank also benefits from securities brokerage commissions and income from its private banking offerings. Significant factors contributing to its earnings include strategic acquisitions to expand its geographic footprint and customer base, as well as maintaining a strong focus on community banking to enhance customer relationships and loyalty.

WesBanco Financial Statement Overview

Summary

WesBanco demonstrates strong gross and EBIT margins, indicating operational efficiency, and a robust revenue growth rate. However, the low net profit margin and modest return on equity signal areas for improvement. The balance sheet is stable with moderate debt, but the equity ratio suggests a reliance on liabilities. Cash flow conversion is strong, yet declining free cash flow highlights maintenance challenges.

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
852.87M	600.17M	594.69M	591.70M	590.72M	499.92M
	Gross Profit
825.49M	600.17M	526.88M	527.39M	520.66M	536.92M
	EBIT
569.46M	185.11M	287.03M	320.62M	394.23M	246.70M
	EBITDA
159.86M	200.40M	197.88M	440.00M	406.27M	0.00
	Net Income Common Stockholders
106.83M	151.51M	159.03M	192.11M	242.26M	122.04M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.39B	2.81B	2.79B	2.94B	4.26B	2.88B
	Total Assets
27.41B	18.68B	17.71B	16.93B	16.93B	16.43B
	Total Debt
1.98B	1.47B	1.73B	1.12B	458.67M	983.24M
	Net Debt
892.76M	903.24M	1.14B	713.06M	-792.68M	77.80M
	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: 30.44
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 30.44 is below the 20-day moving average (MA) of 30.81, above the 50-day MA of 29.77, and below the 200-day MA of 31.39, indicating a neutral trend. The MACD of 0.21 indicates Negative momentum. The RSI at 47.79 is Neutral, neither overbought nor oversold. The STOCH value of 53.96 is Neutral, 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
WSBC	73 Outperform	$3.03B	20.68	3.38%	4.72%	17.74%	-35.93%
WSFS	72 Outperform	$3.01B	11.62	10.25%	1.28%	5.14%	―
CBU	71 Outperform	$3.03B	15.89	10.91%	3.22%	14.34%	12.98%
FIBK	70 Outperform	$2.91B	13.16	6.63%	6.85%	-0.05%	-15.66%
CATY	69 Neutral	$3.14B	11.31	10.07%	3.05%	2.76%	-12.43%
FHB	66 Neutral	$3.04B	12.74	9.11%	4.31%	-0.47%	5.97%
Sector *	64 Neutral	$12.93B	9.70	7.85%	78.03%	12.07%	-7.83%

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.