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Westamerica Bancorporation

Market Cap

US$1.7b

Last Updated

2021/04/20 00:05 UTC

Data Sources

Company Financials +

Executive Summary

Westamerica Bancorporation operates as a bank holding company for the Westamerica Bank that provides various banking products and services to individual and commercial customers. More Details


Snowflake Analysis

Flawless balance sheet with proven track record and pays a dividend.


Similar Companies

Share Price & News

How has Westamerica Bancorporation's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: WABC is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: WABC's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

0.06%

WABC

0.04%

US Banks

1.3%

US Market


1 Year Return

5.0%

WABC

70.1%

US Banks

53.8%

US Market

Return vs Industry: WABC underperformed the US Banks industry which returned 70.2% over the past year.

Return vs Market: WABC underperformed the US Market which returned 53.9% over the past year.


Shareholder returns

WABCIndustryMarket
7 Day0.06%0.04%1.3%
30 Day0.2%0.7%5.1%
90 Day7.5%16.6%8.9%
1 Year8.0%5.0%75.7%70.1%56.6%53.8%
3 Year21.5%12.1%25.8%14.9%64.4%53.6%
5 Year47.0%27.8%96.5%71.5%120.4%95.7%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Westamerica Bancorporation undervalued compared to its fair value and its price relative to the market?

20.64x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WABC ($64.77) is trading above our estimate of fair value ($63.72)

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


Price To Earnings Ratio

PE vs Industry: WABC is poor value based on its PE Ratio (20.8x) compared to the US Banks industry average (13.3x).

PE vs Market: WABC is good value based on its PE Ratio (20.8x) compared to the US market (22.5x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: WABC is overvalued based on its PB Ratio (2.1x) compared to the US Banks industry average (1.1x).


Future Growth

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

-1.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WABC's earnings are forecast to decline over the next 3 years (-1.7% per year).

Earnings vs Market: WABC's earnings are forecast to decline over the next 3 years (-1.7% per year).

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

Revenue vs Market: WABC's revenue is expected to decline over the next 3 years (-1% per year).

High Growth Revenue: WABC's revenue is forecast to decline over the next 3 years (-1% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

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


Past Performance

How has Westamerica Bancorporation performed over the past 5 years?

8.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WABC has high quality earnings.

Growing Profit Margin: WABC's current net profit margins (39.7%) are higher than last year (38.8%).


Past Earnings Growth Analysis

Earnings Trend: WABC's earnings have grown by 8.9% per year over the past 5 years.

Accelerating Growth: WABC's earnings growth over the past year (7.6%) is below its 5-year average (8.9% per year).

Earnings vs Industry: WABC earnings growth over the past year (7.6%) exceeded the Banks industry 3.5%.


Return on Equity

High ROE: WABC's Return on Equity (10.3%) is considered low.


Financial Health

How is Westamerica Bancorporation'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


Financial Institutions Analysis

Asset Level: WABC's Assets to Equity ratio (8.5x) is low.

Allowance for Bad Loans: WABC has a sufficient allowance for bad loans (572%).

Low Risk Liabilities: 97% of WABC's liabilities are made up of primarily low risk sources of funding.

Loan Level: WABC has an appropriate level of Loans to Assets ratio (18%).

Low Risk Deposits: WABC's Loans to Deposits ratio (21%) is appropriate.

Level of Bad Loans: WABC has an appropriate level of bad loans (0.3%).


Dividend

What is Westamerica Bancorporation current dividend yield, its reliability and sustainability?

2.55%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WABC's dividend (2.53%) is higher than the bottom 25% of dividend payers in the US market (1.24%).

High Dividend: WABC's dividend (2.53%) is low compared to the top 25% of dividend payers in the US market (3.46%).


Stability and Growth of Payments

Stable Dividend: WABC's dividends per share have been stable in the past 10 years.

Growing Dividend: WABC's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (52.7%), WABC's dividend payments are 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

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

2.3yrs

Average management tenure


CEO

David Payne (65 yo)

32.25yrs

Tenure

US$698,807

Compensation

Mr. David L. Payne serves as the Chairman and Chief Executive Officer at Westamerica Bancorporation since 1988 and 1989 respectively and serves as its President. Mr. Payne is also Chairman, President & Chi...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD698.81K) is below average for companies of similar size in the US market ($USD3.79M).

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


Leadership Team

Experienced Management: WABC's management team is considered experienced (2.3 years average tenure).


Board Members

Experienced Board: WABC's board of directors are seasoned and experienced ( 31.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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

Westamerica Bancorporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Westamerica Bancorporation
  • Ticker: WABC
  • Exchange: NasdaqGS
  • Founded: 1972
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$1.725b
  • Shares outstanding: 26.86m
  • Website: https://www.westamerica.com

Number of Employees


Location

  • Westamerica Bancorporation
  • 1108 Fifth Avenue
  • San Rafael
  • California
  • 94901
  • United States

Listings


Biography

Westamerica Bancorporation operates as a bank holding company for the Westamerica Bank that provides various banking products and services to individual and commercial customers. The company accepts variou...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/20 00:05
End of Day Share Price2021/04/19 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.