DB:1WA

Stock Analysis Report

Bridgewater Bancshares

Executive Summary

Bridgewater Bancshares, Inc. operates as the bank holding company for Bridgewater Bank that provides banking products and services to commercial real estate investors, small business entrepreneurs, and high-net-worth individuals in the United States.

Rewards

Trading at 28% below its fair value

Earnings are forecast to grow 9.53% per year

Earnings grew by 36% over the past year

Risk Analysis

No risks detected for 1WA from our risk checks.


Snowflake Analysis

Flawless balance sheet and fair value.


Similar Companies

Share Price & News

How has Bridgewater Bancshares's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1WA has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.3%

1WA

1.2%

DE Mortgage

0.3%

DE Market


1 Year Return

29.8%

1WA

12.3%

DE Mortgage

13.8%

DE Market

Return vs Industry: 1WA exceeded the German Mortgage industry which returned 15.2% over the past year.

Return vs Market: 1WA exceeded the German Market which returned 17.1% over the past year.


Shareholder returns

1WAIndustryMarket
7 Day4.3%1.2%0.3%
30 Day0%-1.1%1.3%
90 Day10.9%7.9%5.2%
1 Year29.8%29.8%16.6%12.3%17.4%13.8%
3 Yearn/a46.0%31.3%15.9%5.7%
5 Yearn/a64.4%48.4%27.9%10.6%

Price Volatility Vs. Market

How volatile is Bridgewater Bancshares's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Bridgewater Bancshares undervalued compared to its fair value and its price relative to the market?

32.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1WA (€11.9) is trading below our estimate of fair value (€16.53)

Significantly Below Fair Value: 1WA is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1WA is poor value based on its PE Ratio (13.1x) compared to the Mortgage industry average (10.5x).

PE vs Market: 1WA is good value based on its PE Ratio (13.1x) compared to the German market (20.6x).


Price to Earnings Growth Ratio

PEG Ratio: 1WA is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: 1WA is overvalued based on its PB Ratio (1.6x) compared to the XE Mortgage industry average (0.8x).


Next Steps

Future Growth

How is Bridgewater Bancshares forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

7.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1WA's forecast earnings growth (9.5% per year) is above the savings rate (-0.4%).

Earnings vs Market: 1WA's earnings (9.5% per year) are forecast to grow slower than the German market (13.2% per year).

High Growth Earnings: 1WA's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1WA's revenue (13.1% per year) is forecast to grow faster than the German market (4.8% per year).

High Growth Revenue: 1WA's revenue (13.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1WA's Return on Equity is forecast to be low in 3 years time (12.9%).


Next Steps

Past Performance

How has Bridgewater Bancshares performed over the past 5 years?

16.7%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: 1WA has high quality earnings.

Growing Profit Margin: 1WA's current net profit margins (41.7%) are lower than last year (44.6%).


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if 1WA's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Insufficient data to compare 1WA's past year earnings growth to its 5-year average.

Earnings vs Industry: 1WA earnings growth over the past year (36%) exceeded the Mortgage industry -1.6%.


Return on Equity

High ROE: 1WA's Return on Equity (13%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Bridgewater Bancshares's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: 1WA has a low level of unsold assets or inventory.

Debt Coverage by Assets: 1WA's debt is not covered by short term assets (assets are 0.5x debt).


Financial Institutions Analysis

Asset Level: 1WA's level of assets compared to its equity is low.

Allowance for Bad Loans: 1WA has a sufficient allowance for bad loans.

Low Risk Liabilities: 1WA's liabilities are made up of primarily low risk sources of funding.

Loan Level: 1WA has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 1WA's loans are broadly funded by customer deposits.

Level of Bad Loans: 1WA has an appropriate level of bad loans (0.04%)


Next Steps

Dividend

What is Bridgewater Bancshares's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.3%markettop25%3.6%industryaverage5.0%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 1WA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 1WA's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 1WA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1WA's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 1WA's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

What is the CEO of Bridgewater Bancshares's salary, the management and board of directors tenure and is there insider trading?

6.0yrs

Average management tenure


CEO

Jerry Baack (51yo)

15yrs

Tenure

US$1,337,930

Compensation

Mr. Gerald John Baack, also known as Jerry, Co-Founded Bridgewater Bancshares, Inc. and Bridgewater Bank (“Bank”) and has been its Chairman of the Board, Chief Executive Officer and President since 2005. M ...


CEO Compensation Analysis

Compensation vs Market: Jerry's total compensation ($USD1.34M) is above average for companies of similar size in the German market ($USD817.80K).

Compensation vs Earnings: Jerry's compensation has been consistent with company performance over the past year.


Management Age and Tenure

6.0yrs

Average Tenure

57yo

Average Age

Experienced Management: 1WA's management team is seasoned and experienced (6 years average tenure).


Board Age and Tenure

15.0yrs

Average Tenure

52yo

Average Age

Experienced Board: 1WA's board of directors are seasoned and experienced ( 15 years average tenure).


Insider Trading

Insider Buying: 1WA insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Sell€170,47119 Nov 19
Mary Crocker
EntityIndividual
Role
Chief Operating Officer
Executive VP & COO
Shares15,000
Max Price€11.37
Buy€5,39405 Aug 19
Douglas Parish
EntityIndividual
Role
Member of the Board of Directors
Director
Shares500
Max Price€10.79
Buy€4,69801 May 19
Douglas Parish
EntityIndividual
Role
Member of the Board of Directors
Director
Shares500
Max Price€9.40
Buy€4,94305 Feb 19
Douglas Parish
EntityIndividual
Role
Member of the Board of Directors
Director
Shares500
Max Price€9.89

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Dan Poppe (71yo)

    Senior VP & Senior Loan Officer

    • Jeff Shellberg (57yo)

      Co-Founder

      • Tenure: 15yrs
      • Compensation: US$749.69k
    • Jerry Baack (51yo)

      Founder

      • Tenure: 15yrs
      • Compensation: US$1.34m
    • Mary Crocker (57yo)

      Executive VP & COO

      • Tenure: 6yrs
      • Compensation: US$780.89k
    • Joe Chybowski (32yo)

      Chief Financial Officer

      • Tenure: 3yrs
    • Lisa Salazar

      Chief Deposit Officer

      • Tony Ferraro

        Senior Vice President of Commercial Lending

        • Erik Schwegler

          Senior Vice President of Commercial Real Estate

          • Mark Hokanson

            Chief Technology Officer


            Board Members

            • David Volk

              Independent Director

              • Tenure: 2.3yrs
              • Compensation: US$82.00k
            • Jeff Shellberg (57yo)

              Co-Founder

              • Tenure: 15yrs
              • Compensation: US$749.69k
            • Jerry Baack (51yo)

              Founder

              • Tenure: 15yrs
              • Compensation: US$1.34m
            • David Juran (50yo)

              Independent Director

              • Tenure: 10yrs
              • Compensation: US$70.00k
            • Todd Urness (61yo)

              Independent Director

              • Tenure: 15yrs
              • Compensation: US$70.00k
            • Lisa Brezonik

              Independent Director

              • Tenure: 0.08yrs
            • Jim Johnson (55yo)

              Independent Director

              • Tenure: 15yrs
              • Compensation: US$70.00k
            • Tom Trutna (52yo)

              Independent Director

              • Tenure: 15yrs
              • Compensation: US$70.00k
            • Doug Parish (52yo)

              Director

              • Tenure: 1.5yrs
              • Compensation: US$40.00k

            Company Information

            Bridgewater Bancshares, Inc.'s company bio, employee growth, exchange listings and data sources


            Key Information

            • Name: Bridgewater Bancshares, Inc.
            • Ticker: 1WA
            • Exchange: DB
            • Founded: 2005
            • Industry: Thrifts and Mortgage Finance
            • Sector: Banks
            • Market Cap: US$384.479m
            • Listing Market Cap: US$348.684m
            • Shares outstanding: 28.97m
            • Website: https://www.bridgewaterbankmn.com

            Number of Employees


            Location

            • Bridgewater Bancshares, Inc.
            • 3800 American Boulevard West
            • Suite 100
            • Bloomington
            • Minnesota
            • 55431
            • United States

            Listings

            TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
            BWBNasdaqCM (Nasdaq Capital Market)YesVoting Common StockUSUSDMar 2018
            1WADB (Deutsche Boerse AG)YesVoting Common StockDEEURMar 2018

            Biography

            Bridgewater Bancshares, Inc. operates as the bank holding company for Bridgewater Bank that provides banking products and services to commercial real estate investors, small business entrepreneurs, and high-net-worth individuals in the United States. It offers demand, savings and money market, time, interest and noninterest bearing transaction, and brokered deposits, as well as certificates of deposit. The company also provides commercial loans to sole proprietorships, partnerships, corporations, and other business enterprises to finance accounts receivable or inventory, capital assets, or other business related purposes; construction and land development loans; 1-4 family mortgage loans; multifamily lending products; owner and non-owner occupied commercial real estate loans; and consumer and other loans. It has seven full-service offices located in Bloomington, Greenwood, Minneapolis, St. Louis Park, Orono, and St. Paul, Minnesota. The company was founded in 2005 and is headquartered in Bloomington, Minnesota. 


            Company Analysis and Financial Data Status

            All financial data provided by Standard & Poor's Capital IQ.
            DataLast Updated (UTC time)
            Company Analysis2020/01/26 23:06
            End of Day Share Price2020/01/24 00:00
            Earnings2019/12/31
            Annual Earnings2019/12/31


            Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.