NasdaqCM:BWB

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 17% below its fair value

Earnings are forecast to grow 7.12% per year

Earnings grew by 16.7% over the past year

Risk Analysis

No risks detected for BWB 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: BWB has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.3%

BWB

-1.0%

US Mortgage

-1.0%

US Market


1 Year Return

19.9%

BWB

4.9%

US Mortgage

18.0%

US Market

Return vs Industry: BWB exceeded the US Mortgage industry which returned 4.9% over the past year.

Return vs Market: BWB exceeded the US Market which returned 18% over the past year.


Shareholder returns

BWBIndustryMarket
7 Day-1.3%-1.0%-1.0%
30 Day0.1%-1.9%0.6%
90 Day6.0%-2.1%7.9%
1 Year19.9%19.9%7.4%4.9%20.4%18.0%
3 Yearn/a18.7%10.3%48.0%38.5%
5 Yearn/a58.4%40.9%72.2%53.3%

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

Valuation

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

17.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BWB ($13.62) is trading below our estimate of fair value ($16.41)

Significantly Below Fair Value: BWB is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: BWB is good value based on its PE Ratio (12.7x) compared to the Mortgage industry average (13.6x).

PE vs Market: BWB is good value based on its PE Ratio (12.7x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: BWB is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: BWB is overvalued based on its PB Ratio (1.6x) compared to the US Mortgage industry average (1.1x).


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: BWB's forecast earnings growth (7.1% per year) is above the savings rate (1.7%).

Earnings vs Market: BWB's earnings (7.1% per year) are forecast to grow slower than the US market (14.2% per year).

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

Revenue vs Market: BWB's revenue (14.5% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: BWB's revenue (14.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BWB's Return on Equity is forecast to be low in 3 years time (12.2%).


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: BWB has high quality earnings.

Growing Profit Margin: BWB's current net profit margins (43.6%) are lower than last year (44.6%).


Past Earnings Growth Analysis

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

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

Earnings vs Industry: BWB earnings growth over the past year (16.7%) exceeded the Mortgage industry 11.3%.


Return on Equity

High ROE: BWB's Return on Equity (12.8%) 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: BWB has a low level of unsold assets or inventory.

Debt Coverage by Assets: BWB's debt is not covered by short term assets (assets are 0.2x debt).


Financial Institutions Analysis

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

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

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

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

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

Level of Bad Loans: BWB has an appropriate level of bad loans (0.02%)


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate BWB'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 BWB's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if BWB'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 BWB's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.1yrs

Average management tenure


CEO

Jerry Baack (51yo)

15.1yrs

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 ($USD1.34M) is about average for companies of similar size in the US market ($USD1.67M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Gerald Baack
Founder15.1yrsUS$1.34m3.82% $15.1m
Jeffrey Shellberg
Co-Founder15.1yrsUS$749.69k2.53% $10.0m
Mary Crocker
Executive VP & COO6.1yrsUS$780.89k0.41% $1.6m
Joseph Chybowski
Chief Financial Officer3.1yrsno data0.11% $424.5k
Mark Hokanson
Chief Technology Officer0yrsno datano data
Daniel Poppe
Senior VP & Senior Loan Officer0yrsno datano data
Lisa Salazar
Chief Deposit Officer0yrsno data0.014% $54.5k
Tony Ferraro
Senior Vice President of Commercial Lending0yrsno datano data
Erik Schwegler
Senior Vice President of Commercial Real Estate0yrsno datano data

6.1yrs

Average Tenure

57yo

Average Age

Experienced Management: BWB's management team is seasoned and experienced (6.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Gerald Baack
Founder15.1yrsUS$1.34m3.82% $15.1m
Jeffrey Shellberg
Co-Founder15.1yrsUS$749.69k2.53% $10.0m
David Volk
Independent Director2.4yrsUS$82.00kno data
David Juran
Independent Director10.1yrsUS$70.00k4.31% $17.0m
Todd Urness
Independent Director15.1yrsUS$70.00k3.72% $14.7m
Lisa Brezonik
Independent Director0.2yrsno data0.0026% $10.2k
James Johnson
Independent Director15.1yrsUS$70.00k0.74% $2.9m
Thomas Trutna
Independent Director15.1yrsUS$70.00k0.63% $2.5m
Douglas Parish
Director1.6yrsUS$40.00k0.035% $136.2k

15.1yrs

Average Tenure

52yo

Average Age

Experienced Board: BWB's board of directors are seasoned and experienced ( 15.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: BWB insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Bridgewater Bancshares, Inc.
  • Ticker: BWB
  • Exchange: NasdaqCM
  • Founded: 2005
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Market Cap: US$394.620m
  • 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 Analysis2020/02/22 02:50
End of Day Share Price2020/02/21 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.