NasdaqGM:BWFG

Stock Analysis Report

Bankwell Financial Group

Executive Summary

Bankwell Financial Group, Inc. operates as the bank holding company for Bankwell Bank that provides a range of banking services to commercial and consumer customers in Connecticut.

Snowflake

Fundamentals

Flawless balance sheet with acceptable track record.


Similar Companies

Share Price & News

How has Bankwell Financial Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.2%

BWFG

-1.0%

US Banks

0.7%

US Market


1 Year Return

-2.7%

BWFG

9.0%

US Banks

13.7%

US Market

Return vs Industry: BWFG underperformed the US Banks industry which returned 9% over the past year.

Return vs Market: BWFG underperformed the US Market which returned 13.7% over the past year.


Shareholder returns

BWFGIndustryMarket
7 Day-0.2%-1.0%0.7%
30 Day5.5%6.4%4.7%
90 Day9.8%15.6%6.1%
1 Year-0.9%-2.7%12.2%9.0%16.2%13.7%
3 Year10.7%6.1%39.2%29.5%48.8%39.2%
5 Year59.3%50.8%72.6%53.5%62.5%44.5%

Price Volatility Vs. Market

How volatile is Bankwell Financial Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Bankwell Financial Group undervalued compared to its fair value and its price relative to the market?

12.61x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BWFG ($28.92) is trading above our estimate of fair value ($18.07)

Significantly Below Fair Value: BWFG is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BWFG is good value based on its PE Ratio (12.6x) compared to the Banks industry average (12.7x).

PE vs Market: BWFG is good value based on its PE Ratio (12.6x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: BWFG's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: BWFG is overvalued based on its PB Ratio (1.3x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Bankwell Financial Group forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

-3.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BWFG's earnings are forecast to decline over the next 3 years (-3.6% per year).

Earnings vs Market: BWFG's earnings are forecast to decline over the next 3 years (-3.6% per year).

High Growth Earnings: BWFG's earnings are forecast to decline over the next 3 years.

Revenue vs Market: BWFG's revenue (4.4% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: BWFG's revenue (4.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if BWFG's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Bankwell Financial Group performed over the past 5 years?

24.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BWFG has high quality earnings.

Growing Profit Margin: BWFG's current net profit margins (31.1%) are higher than last year (26.5%).


Past Earnings Growth Analysis

Earnings Trend: BWFG's earnings have grown significantly by 24.2% per year over the past 5 years.

Accelerating Growth: BWFG's earnings growth over the past year (10.9%) is below its 5-year average (24.2% per year).

Earnings vs Industry: BWFG earnings growth over the past year (10.9%) underperformed the Banks industry 27.5%.


Return on Equity

High ROE: BWFG's Return on Equity (10.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Bankwell Financial Group'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: BWFG has a low level of unsold assets or inventory.

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


Financial Institutions Analysis

Asset Level: BWFG's level of assets compared to its equity is moderate.

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

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

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

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

Level of Bad Loans: BWFG has an appropriate level of bad loans (0.63%)


Next Steps

Dividend

What is Bankwell Financial Group's current dividend yield, its reliability and sustainability?

1.80%

Current Dividend Yield


Dividend Yield vs Market

company1.8%marketbottom25%1.4%markettop25%3.6%industryaverage2.8%forecastin3Years1.8%

Current dividend yield vs market & industry

Notable Dividend: BWFG's dividend (1.8%) is higher than the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: BWFG's dividend (1.8%) is low compared to the top 25% of dividend payers in the US market (3.65%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, BWFG has been paying a dividend for less than 10 years.

Growing Dividend: BWFG's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (22.2%), BWFG's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Bankwell Financial Group's salary, the management and board of directors tenure and is there insider trading?

3.0yrs

Average management tenure


CEO

Chris Gruseke (59yo)

4.8yrs

Tenure

US$1,082,856

Compensation

Mr. Christopher R. Gruseke, also known as Chris has been Chief Executive Officer of Bankwell Financial Group, Inc. and Bankwell Bank since February 27, 2015. Mr. Gruseke has been President of Bankwell Fina ...


CEO Compensation Analysis

Compensation vs Market: Chris's total compensation ($USD1.08M) is about average for companies of similar size in the US market ($USD1.16M).

Compensation vs Earnings: Chris's compensation has increased by more than 20% in the past year.


Management Age and Tenure

3.0yrs

Average Tenure

57.5yo

Average Age

Experienced Management: BWFG's management team is considered experienced (3 years average tenure).


Board Age and Tenure

9.4yrs

Average Tenure

64.5yo

Average Age

Experienced Board: BWFG's board of directors are considered experienced (9.4 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$69,97725 Sep 19
Todd Lampert
EntityIndividual
Role
Member of the Board of Directors
Director & Corporate Secretary
Shares2,500
Max PriceUS$28.03
SellUS$48,06605 Sep 19
Laura Waitz
EntityIndividual
Role
Head of Human Resources
Executive VP & Chief of Staff
Shares1,875
Max PriceUS$25.64
SellUS$8,97806 Jun 19
Laura Waitz
EntityIndividual
Role
Head of Human Resources
Executive VP & Chief of Staff
Shares315
Max PriceUS$28.50
BuyUS$2,367,96425 Jan 19
Veteri Place Corporation
EntityCompany
Shares81,981
Max PriceUS$29.19
BuyUS$2,729,09031 Dec 18
Veteri Place Corporation
EntityCompany
Shares100,000
Max PriceUS$27.82
SellUS$44,50821 Dec 18
Todd Lampert
EntityIndividual
Role
Member of the Board of Directors
Director & Corporate Secretary
Shares1,662
Max PriceUS$27.00
BuyUS$2,208,87720 Dec 18
Veteri Place Corporation
EntityCompany
Shares80,000
Max PriceUS$27.83
BuyUS$4,102,82913 Dec 18
Veteri Place Corporation
EntityCompany
Shares138,594
Max PriceUS$30.58

Ownership Breakdown

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


Management Team

  • Penko Ivanov (50yo)

    Executive VP & CFO

    • Tenure: 3yrs
    • Compensation: US$548.85k
  • Todd Lampert (56yo)

    Director & Corporate Secretary

    • Tenure: 12.8yrs
    • Compensation: US$114.39k
  • Heidi DeWyngaert (63yo)

    Executive VP & Chief Lending Officer

    • Tenure: 0yrs
    • Compensation: US$472.86k
  • Shawn Gelin

    Senior VP & Director of Community Banking Operations

    • Tenure: 0yrs
  • Chris Gruseke (59yo)

    President

    • Tenure: 4.8yrs
    • Compensation: US$1.08m
  • Laura Waitz (56yo)

    Executive VP & Chief of Staff

    • Tenure: 2.8yrs
  • Robert Palermo

    Senior VP & CRE Team Leader

    • Tenure: 0yrs
  • Christine Chivily (60yo)

    Executive VP

    • Tenure: 0yrs
  • Robert Mallozzi

    Senior VP & Buisness Development Officer

    • Tenure: 0yrs
  • Scott Messina

    Senior VP & Chief Information Officer

    • Tenure: 0yrs

Board Members

  • Victor Liss (82yo)

    Independent Director

    • Tenure: 11.8yrs
    • Compensation: US$93.60k
  • Carl Porto (76yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$71.17k
  • Gail E. Brathwaite (60yo)

    Independent Director

    • Tenure: 2.7yrs
    • Compensation: US$87.44k
  • Eric Dale (54yo)

    Independent Director

    • Tenure: 11.8yrs
    • Compensation: US$93.50k
  • George Bauer (88yo)

    Independent Director

    • Tenure: 7.3yrs
    • Compensation: US$69.67k
  • Blake Drexler (62yo)

    Chairman of the Board

    • Tenure: 11.4yrs
    • Compensation: US$150.75k
  • Todd Lampert (56yo)

    Director & Corporate Secretary

    • Tenure: 12.8yrs
    • Compensation: US$114.39k
  • Daniel Jones (80yo)

    Independent Director

    • Tenure: 12.8yrs
    • Compensation: US$91.10k
  • Chris Gruseke (59yo)

    President

    • Tenure: 4.8yrs
    • Compensation: US$1.08m
  • Richard Castiglioni (67yo)

    Independent Director

    • Tenure: 6.4yrs
    • Compensation: US$90.15k

Company Information

Bankwell Financial Group, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Bankwell Financial Group, Inc.
  • Ticker: BWFG
  • Exchange: NasdaqGM
  • Founded: 2002
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$224.206m
  • Shares outstanding: 7.75m
  • Website: https://www.mybankwell.com

Number of Employees


Location

  • Bankwell Financial Group, Inc.
  • 220 Elm Street
  • New Canaan
  • Connecticut
  • 6840
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BWFGNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDJul 2004

Biography

Bankwell Financial Group, Inc. operates as the bank holding company for Bankwell Bank that provides a range of banking services to commercial and consumer customers in Connecticut. It accepts checking, sav ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/18 00:18
End of Day Share Price2019/11/15 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.