West Bancorporation (WTBA) AI Stock Analysis

• Market Cap: $405.90M
• Dividend Yield: 4.17%
• Average Volume (3M): 36.87K
• Price to Earnings (P/E): 12.6
• Beta (1Y): 0.79
• Revenue Growth: 4.47%
• EPS Growth: 49.09%
• Country: US
• Employees: 180
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.55
• Shares Outstanding: 16,940,784
• 10 Day Avg. Volume: 29,609
• 30 Day Avg. Volume: 36,865
• PEG Ratio: -21.82
• Price to Book (P/B): 1.60
• Price to Sales (P/S): 1.84
• P/FCF Ratio: 26.66
• Enterprise Value/Market Cap: 1.74
• Enterprise Value/Revenue: 3.54
• Enterprise Value/Gross Profit: 7.78
• Enterprise Value/Ebitda: 15.42
• 1Y Price Target: $24.00
• Price Target Upside: 0.17% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: $25.00 ▲(4.34% Upside)

West Bancorporation's overall stock score of 76 reflects strong financial performance and positive earnings call insights, supported by robust technical indicators and reasonable valuation. The company's strategic initiatives and solid credit quality further enhance its growth outlook, despite minor challenges in deposit balances and client slowdowns.

Positive Factors

Revenue Growth

The robust revenue growth rate indicates effective business strategies and expanding market presence, supporting long-term financial health.

Credit Quality

Maintaining excellent credit quality reduces risk and enhances stability, ensuring sustainable profitability and customer trust.

Net Interest Margin Improvement

Improved net interest margins reflect effective interest rate management, contributing to higher profitability and competitive advantage.

Negative Factors

Decrease in Core Deposit Balances

A decline in core deposits can limit liquidity and funding flexibility, potentially impacting the bank's ability to support loan growth.

Slowdown in Manufacturing Clients

Economic uncertainty affecting manufacturing clients may lead to reduced loan demand and increased credit risk, impacting revenue.

Rising Costs

Decreasing gross profit margins suggest rising operational costs, which could pressure profitability if not managed effectively.

West Bancorporation Business Overview & Revenue Model

Company Description

West Bancorporation, Inc. operates as the financial holding company for West Bank that provides community banking and trust services to individuals and small- to medium-sized businesses in the United States. It accepts various deposit products, including checking, savings, and money market accounts, as well as time certificates of deposit. The company also provides loan products comprising commercial real estate loans, construction and land development loans, commercial lines of credit, and commercial term loans; consumer loans, including loans extended to individuals for household, family, and other personal expenditures not secured by real estate; and 1-4 family residential mortgages and home equity loans. In addition, it offers trust services, including the administration of estates, conservatorships, personal trusts, and agency accounts. Further, the company provides internet and mobile banking services; treasury management services comprising cash management, client-generated automated clearing house transaction, remote deposit, and fraud protection services; and merchant credit card processing services and corporate credit cards. It has seven offices in the Des Moines area; one office in Coralville and Iowa; and one office each in Rochester, Owatonna, Mankato, and St. Cloud, Minnesota. West Bancorporation, Inc. was founded in 1893 and is headquartered in West Des Moines, Iowa.

How the Company Makes Money

West Bancorporation generates revenue through multiple channels, primarily through interest income from loans and securities, as well as non-interest income from fees for banking services. The majority of its revenue stems from interest earned on loans provided to consumers and businesses, which includes residential mortgages, commercial loans, and lines of credit. Additionally, the company earns non-interest income from service charges, investment management fees, and other banking services. Significant partnerships with local businesses and community organizations enhance its customer base and contribute to its earnings. Furthermore, effective asset management and a commitment to prudent lending practices help mitigate risks associated with loan defaults, thereby supporting stable revenue growth.

West Bancorporation Financial Statement Overview

Summary

West Bancorporation exhibits strong revenue growth and profitability, with improving leverage and cash flow metrics. While there are some concerns regarding cost pressures and cash conversion efficiency, the overall financial health is solid, supported by strategic debt management and robust cash flow generation.

Income Statement

West Bancorporation shows a strong revenue growth rate of 14.2% TTM, indicating robust top-line expansion. Gross profit margin is healthy at 43.2%, and net profit margin is solid at 14.5%, reflecting efficient cost management. However, the decline in gross profit margin from previous years suggests potential cost pressures. EBIT and EBITDA margins are stable, supporting profitability.

Balance Sheet

The company's debt-to-equity ratio has improved significantly to 0.17 TTM, indicating reduced leverage and a stronger equity position. Return on equity is decent at 12.3%, showing effective use of equity to generate profits. However, the equity ratio is relatively low, suggesting a higher reliance on debt financing historically.

Cash Flow

Free cash flow growth is impressive at 47% TTM, demonstrating strong cash generation capabilities. The operating cash flow to net income ratio is low, indicating potential challenges in converting income into cash. However, the free cash flow to net income ratio is high at 81.8%, reflecting efficient cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	200.19M	197.84M	169.75M	133.56M	116.42M	109.37M
Gross Profit	91.05M	78.13M	77.78M	104.45M	105.69M	79.97M
EBITDA	45.91M	34.37M	34.94M	63.86M	66.52M	44.77M
Net Income	32.23M	24.05M	24.14M	46.40M	49.61M	32.71M
Balance Sheet
Total Assets	3.99B	4.01B	3.83B	3.61B	3.50B	3.19B
Cash, Cash Equivalents and Short-Term Investments	471.21M	788.04M	689.28M	689.01M	951.65M	498.26M
Total Debt	389.08M	392.63M	592.64M	485.86M	199.87M	222.38M
Total Liabilities	3.73B	3.79B	3.60B	3.40B	3.24B	2.96B
Stockholders Equity	255.13M	227.88M	225.04M	211.11M	260.33M	223.69M
Cash Flow
Free Cash Flow	39.97M	13.67M	-11.14M	38.13M	49.13M	39.97M
Operating Cash Flow	45.44M	39.81M	25.25M	59.44M	57.88M	42.28M
Investing Cash Flow	69.75M	-27.34M	-168.68M	-357.83M	-537.21M	-367.16M
Financing Cash Flow	-40.05M	165.65M	182.25M	132.11M	275.72M	668.02M

West Bancorporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 23.96
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WTBA, the sentiment is Positive. The current price of 23.96 is above the 20-day moving average (MA) of 22.43, above the 50-day MA of 21.35, and above the 200-day MA of 19.71, indicating a bullish trend. The MACD of 0.61 indicates Negative momentum. The RSI at 73.11 is Negative, neither overbought nor oversold. The STOCH value of 96.32 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WTBA.

West Bancorporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OBT	80 Outperform	$386.97M	9.57	15.69%	1.97%	8.90%	18.23%
USCB	78 Outperform	$353.33M	12.41	14.96%	2.05%	15.45%	52.68%
WTBA	76 Outperform	$405.90M	12.64	13.14%	4.17%	4.47%	49.09%
BWFG	74 Outperform	$391.59M	13.78	10.04%	1.61%	2.52%	85.94%
PDLB	73 Outperform	$417.86M	19.47	4.16%	―	16.03%	145.10%
FMAO	68 Neutral	$376.47M	11.89	8.98%	3.26%	6.52%	36.77%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

West Bancorporation Corporate Events

West Bancorporation Reports Strong Q3 2025 Financial Results

West Bancorporation, Inc. announced its third-quarter 2025 financial results, reporting a net income of $9.3 million, an increase from both the previous quarter and the same period last year. The company declared a quarterly dividend of $0.25 per share, payable in November. The quarter saw improvements in net interest income and margin, with no loans on nonaccrual status and no loans past due over 30 days. Deposits decreased due to expected cash flow fluctuations, while loans increased slightly. The company is focused on strategic goals, including enhancements to its treasury management services and digital banking capabilities.

West Bancorporation Director James Noyce to Step Down

On October 14, 2025, James W. Noyce, a long-serving director of West Bancorporation, announced he will not seek re-election at the company’s 2026 Annual Meeting. Noyce, who has been a director for 17 years and previously served as chair, will continue his roles until then. His decision is not due to any disagreements with the company, and West Bancorporation expressed gratitude for his service.