West Bancorporation (WTBA) AI Stock Analysis

• Market Cap: $351.33M
• Dividend Yield: 4.82%
• Average Volume (3M): 31.06K
• Price to Earnings (P/E): 13.5
• Beta (1Y): 0.92
• Revenue Growth: 12.93%
• EPS Growth: 17.25%
• Country: US
• Employees: 180
• Sector: Financial
• Sector Strength: 80
• Industry: Banks - Regional
• EPS (TTM): 0.46
• Shares Outstanding: 16,923,280
• 10 Day Avg. Volume: 36,782
• 30 Day Avg. Volume: 31,062
• PEG Ratio: -1.31
• Price to Book (P/B): 2.01
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.14
• Enterprise Value/Market Cap: 1.95
• Enterprise Value/Revenue: 1.11
• Enterprise Value/Gross Profit: 4.20
• Enterprise Value/Ebitda: 7.97
• 1Y Price Target: $20.50
• Price Target Upside: -1.06% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: $21.50 ▲(3.76%Upside)

West Bancorporation has a strong financial foundation, supported by robust earnings growth and credit quality. The company's valuation is attractive, and recent strategic initiatives indicate potential growth. However, technical indicators suggest caution with some downward pressure, and economic uncertainties pose challenges.

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 makes money primarily through interest income from its loan portfolio, which includes commercial, real estate, and consumer loans. The company also generates revenue from non-interest income sources such as service charges on deposit accounts, treasury management services, and fees related to other financial services. Additionally, the bank may earn income from investments in securities and other financial instruments. West Bancorporation's earnings are influenced by factors such as interest rate fluctuations, economic conditions, and the competitive landscape in the banking industry.

West Bancorporation Financial Statement Overview

Summary

West Bancorporation exhibits strong financial health across its income statement, balance sheet, and cash flow. The company benefits from effective cost management and financial leverage, supporting profitability. While revenue growth and asset volatility present potential risks, the overall trajectory suggests a solid financial position within the regional banking sector.

Income Statement

West Bancorporation shows strong income statement performance with a consistent increase in net income and EBIT margin in the TTM. The gross profit margin is robust, indicating effective cost management. However, revenue growth has been inconsistent, which slightly tempers the overall positive outlook.

Balance Sheet

The balance sheet reflects solid equity ratios and an improving debt-to-equity ratio, suggesting strong financial stability and manageable leverage. Return on equity is moderate, indicating efficient use of shareholder funds. However, the fluctuating total assets and liabilities might suggest some volatility in financial management.

Cash Flow

Cash flow analysis reveals a positive trajectory with stable operating cash flow and improved free cash flow in the TTM. The free cash flow to net income ratio is healthy, demonstrating good cash generation relative to profits. However, fluctuations in investing cash flow warrant cautious monitoring.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	136.88M	190.07M	78.40M	101.41M	104.79M	92.44M
Gross Profit	163.00M	79.13M	170.37M	101.41M	104.79M	92.44M
EBITDA	15.85M	0.00	31.64M	60.90M	64.41M	42.88M
Net Income	26.08M	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	585.87M	573.32M	657.16M	689.01M	776.38M	498.26M
Total Debt	391.44M	392.63M	442.37M	285.86M	196.99M	217.01M
Total Liabilities	3.75B	3.79B	3.60B	3.40B	196.99M	217.01M
Stockholders Equity	237.87M	227.88M	225.04M	211.11M	260.33M	223.69M
Cash Flow
Free Cash Flow	26.14M	13.67M	-11.14M	38.13M	49.13M	39.97M
Operating Cash Flow	43.44M	39.81M	25.25M	59.44M	57.88M	42.28M
Investing Cash Flow	26.13M	-27.34M	-168.68M	-357.83M	-537.21M	-367.16M
Financing Cash Flow	-6.98M	165.65M	182.25M	132.11M	275.72M	668.02M

West Bancorporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 20.72
• 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 WTBA, the sentiment is Positive. The current price of 20.72 is above the 20-day moving average (MA) of 19.76, above the 50-day MA of 19.64, and above the 200-day MA of 20.49, indicating a bullish trend. The MACD of 0.39 indicates Negative momentum. The RSI at 60.98 is Neutral, neither overbought nor oversold. The STOCH value of 61.42 is Neutral, 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
WTBA	73 Outperform	$351.33M	13.49	11.30%	4.82%	12.93%	17.25%
CARE	72 Outperform	$415.70M	15.11	7.20%	―	13.73%	111.06%
FMAO	72 Outperform	$362.29M	13.28	8.18%	3.35%	11.91%	25.60%
SSBK	72 Outperform	$361.07M	9.58	14.46%	0.99%	17.09%	4.95%
Sector *	67 Neutral	$16.81B	11.85	9.77%	3.76%	12.07%	-8.35%
BMRC	66 Neutral	$416.10M	―	-1.47%	3.90%	-15.92%	-147.11%
CWBC	54 Neutral	$400.48M	32.65	4.21%	2.28%	69.35%	-65.75%

West Bancorporation Corporate Events

West Bancorporation Presents Strategic Insights to Investors

On June 12, 2025, West Bancorporation‘s executive officers will present to select investors, sharing insights into the company’s financial performance and strategic direction. The presentation highlights the company’s strong market position in community banking, its focus on organic growth, and its strategic expansion efforts in the Minnesota markets, which enhance business development opportunities and visibility in these communities.

The most recent analyst rating on (WTBA) stock is a Hold with a $23.00 price target. To see the full list of analyst forecasts on West Bancorporation stock, see the WTBA Stock Forecast page.

West Bancorporation Reports Q1 2025 Net Income Increase

West Bancorporation, Inc. reported a net income of $7.8 million for the first quarter of 2025, marking an increase from both the fourth quarter of 2024 and the first quarter of 2024. The company declared a quarterly dividend of $0.25 per share, payable in May 2025. Improvements in net interest margin and efficiency ratio were noted, along with a modest loan growth amidst economic uncertainty. The company maintained strong credit quality with no significant past due loans. Deposits saw a decrease, primarily due to cash flow fluctuations, while brokered deposits increased. The efficiency ratio improved due to higher net interest income and lower noninterest expenses.