Waterstone Financial (WSBF) AI Stock Analysis

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Waterstone Financial

(NASDAQ:WSBF)

64Neutral

Waterstone Financial holds a stable financial position with no debt and a strong balance sheet. However, financial performance is mixed with revenue improvements but declining long-term margins and cash flow variability. The technical analysis indicates caution with bearish trends, while valuation metrics suggest the stock is fairly valued with a solid dividend yield. Improving cash conversion efficiency and operational performance could enhance future prospects.

Waterstone Financial (WSBF) vs. S&P 500 (SPY)

Market Cap

$245.55M

Dividend Yield4.72%

Average Volume (3M)42.14K

Price to Earnings (P/E)12.6

Beta (1Y)0.97

Revenue Growth12.23%

EPS Growth119.35%

CountryUS

Employees600

SectorFinancial

Sector Strength80

IndustryBanks - Regional

Share Statistics

EPS (TTM)1.01

Shares Outstanding19,319,807

10 Day Avg. Volume41,941

30 Day Avg. Volume42,144

Financial Highlights & Ratios

PEG Ratio0.11

Price to Book (P/B)N/A

Price to Sales (P/S)1.92

Price to Cash Flow (P/CF)2.80

P/FCF Ratio1.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Waterstone Financial Business Overview & Revenue Model

Company DescriptionWaterstone Financial, Inc. (WSBF) is a bank holding company headquartered in Wauwatosa, Wisconsin. It operates primarily through its subsidiary, WaterStone Bank, which provides a wide range of financial services including personal and business banking solutions, mortgage lending, and investment services. The bank serves individual and commercial clients with a focus on community banking, offering products such as checking and savings accounts, home loans, and commercial real estate financing.

How the Company Makes MoneyWaterstone Financial makes money primarily through interest income earned on loans and investments, as well as non-interest income from service fees and charges. The company's key revenue streams include interest from mortgage loans, commercial real estate loans, and consumer loans. Additionally, Waterstone generates income from fees associated with deposit account services, transaction fees, and investment advisory services. The company's earnings are also influenced by its ability to manage interest rate risk and maintain a robust asset-liability management strategy.

Waterstone Financial Financial Statement Overview

Summary

Waterstone Financial exhibits mixed financial health. The income statement shows improving revenue but declining margins in the longer term, while the balance sheet demonstrates a strong position with no debt. However, cash flow variability raises caution about liquidity and operational efficiency. Overall, the company holds a stable position but may face challenges in sustaining growth and profitability without improving cash conversion efficiency.

Income Statement

Positive

Waterstone Financial's recent revenue growth rate of 14.05% from 2023 to 2024 shows positive momentum, but it's a significant decline from prior years. The company's gross profit margin and net profit margin for 2024 are strong at 100% and 16.51%, respectively, indicating efficient cost management. However, the EBIT margin has shown volatility over the years, and the absence of EBITDA data limits a comprehensive analysis of operating efficiency.

Balance Sheet

Positive

The company's balance sheet is stable with a debt-to-equity ratio of 0 in 2024, showing no financial leverage risk. The equity ratio of 15.35% highlights a conservative capital structure, though lower than desired for high growth potential. Return on Equity (ROE) for 2024 is relatively modest at 5.51%, reflecting limited returns on shareholder investments despite low debt levels.

Cash Flow

Neutral

The cash flow performance of Waterstone Financial shows variability, with free cash flow turning positive in 2024 after a negative previous year, indicating improved cash generation. The operating cash flow to net income ratio is low, highlighting potential challenges in converting income into cash. The free cash flow to net income ratio for 2024 is also low, suggesting constraints in cash available for growth and investment.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
113.17M	99.21M	157.76M	254.10M	292.87M
	Gross Profit
113.17M	99.21M	157.76M	254.10M	292.87M
	EBIT
106.43M	11.03M	24.48M	92.11M	108.12M
	EBITDA
0.00	0.00	28.51M	98.16M	113.72M
	Net Income Common Stockholders
18.69M	9.38M	19.49M	70.79M	81.14M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
243.73M	36.42M	232.55M	541.76M	235.54M
	Total Assets
2.21B	2.21B	2.03B	2.22B	2.18B
	Total Debt
443.55M	464.00M	385.70M	475.00M	499.00M
	Net Debt
408.09M	433.07M	349.74M	112.26M	423.08M
	Total Liabilities
1.87B	1.87B	1.66B	1.78B	1.77B
	Stockholders Equity
339.13M	344.06M	370.49M	432.77M	413.12M
Cash Flow		Free Cash Flow
46.96M	-28.28M	205.96M	153.68M	-94.81M
	Operating Cash Flow
48.06M	-27.58M	206.66M	154.45M	-93.58M
	Investing Cash Flow
-23.96M	-159.22M	-335.74M	147.62M	37.19M
	Financing Cash Flow
-20.76M	176.58M	-201.00M	-20.12M	76.86M

Waterstone Financial Technical Analysis

Technical Analysis Sentiment

Negative

Last Price12.71

Price Trends

50DMA

13.79

Negative

100DMA

13.94

Negative

200DMA

14.00

Negative

Market Momentum

MACD

-0.11

Positive

RSI

42.87

Neutral

STOCH

31.35

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WSBF, the sentiment is Negative. The current price of 12.71 is below the 20-day moving average (MA) of 13.48, below the 50-day MA of 13.79, and below the 200-day MA of 14.00, indicating a bearish trend. The MACD of -0.11 indicates Positive momentum. The RSI at 42.87 is Neutral, neither overbought nor oversold. The STOCH value of 31.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WSBF.

Waterstone Financial Risk Analysis

Waterstone Financial disclosed 44 risk factors in its most recent earnings report. Waterstone Financial 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

Waterstone Financial Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OSBC	73 Outperform	$666.25M	7.92	13.66%	1.49%	4.19%	-7.40%
HFWA	71 Outperform	$730.46M	17.34	5.04%	4.33%	4.64%	-28.68%
ONB	69 Neutral	$5.73B	10.68	9.06%	3.12%	16.39%	-13.25%
BHLB	68 Neutral	$1.09B	16.50	5.60%	3.06%	4.29%	-9.78%
WSBF	64 Neutral	$245.55M	12.64	5.47%	4.72%	12.23%	119.35%
Sector *	63 Neutral	$12.86B	9.19	9.16%	4.78%	16.31%	-8.97%
FULT	62 Neutral	$2.76B	9.63	9.69%	4.56%	21.10%	-4.20%

* Financial Sector Average

Performance Comparison

WSBF

Waterstone Financial

12.71

1.80

16.50%

BHLB

Berkshire Hills

23.54

1.92

8.88%

FULT

Fulton Financial

15.13

0.24

1.61%

HFWA

Heritage Financial

21.49

4.02

23.01%

ONB

Old National Bancorp Capital

17.97

1.63

9.98%

OSBC

Old Second Bancorp

14.79

1.27

9.39%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.