Westamerica Bancorporation
Market Cap
US$1.6b
Last Updated
2021/01/21 23:08 UTC
Data Sources
Company Financials +
Executive Summary
Westamerica Bancorporation operates as a bank holding company for Westamerica Bank that provides various banking products and services to individual and commercial customers. More Details
Rewards
Risk Analysis
Earnings are forecast to decline by an average of 2.6% per year for the next 3 years
Snowflake Analysis
Flawless balance sheet established dividend payer.
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 +/- 5% a week.
Volatility Over Time: WABC's weekly volatility (5%) has been stable over the past year.
Market Performance
7 Day Return
0.7%
WABC
-5.3%
US Banks
1.4%
US Market
1 Year Return
-10.8%
WABC
-8.4%
US Banks
22.6%
US Market
Return vs Industry: WABC underperformed the US Banks industry which returned -7.2% over the past year.
Return vs Market: WABC underperformed the US Market which returned 22.8% over the past year.
Shareholder returns
| WABC | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.7% | -5.3% | 1.4% |
| 30 Day | 13.8% | 9.9% | 4.9% |
| 90 Day | 10.3% | 29.9% | 14.6% |
| 1 Year | -8.3%-10.8% | -5.0%-8.4% | 25.4%22.6% |
| 3 Year | 4.9%-3.2% | -2.1%-10.5% | 46.8%37.0% |
| 5 Year | 61.8%40.3% | 82.1%59.0% | 132.0%106.1% |
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
3 weeks ago | Simply Wall St
What Type Of Shareholders Own The Most Number of Westamerica Bancorporation (NASDAQ:WABC) Shares?1 month ago | Simply Wall St
How Much Are Westamerica Bancorporation (NASDAQ:WABC) Insiders Taking Off The Table?2 months ago | Simply Wall St
Can You Imagine How Westamerica Bancorporation's (NASDAQ:WABC) Shareholders Feel About The 18% Share Price Increase?Valuation
Is Westamerica Bancorporation undervalued compared to its fair value and its price relative to the market?
14.0%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: WABC ($60.08) is trading below our estimate of fair value ($69.88)
Significantly Below Fair Value: WABC is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: WABC is poor value based on its PE Ratio (21x) compared to the US Banks industry average (12.3x).
PE vs Market: WABC is good value based on its PE Ratio (21x) compared to the US market (21.1x).
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 (2x) compared to the US Banks industry average (1x).
Next Steps
Future Growth
How is Westamerica Bancorporation forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
-2.6%
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 (-2.6% per year).
Earnings vs Market: WABC's earnings are forecast to decline over the next 3 years (-2.6% per year).
High Growth Earnings: WABC's earnings are forecast to decline over the next 3 years.
Revenue vs Market: WABC's revenue (0.8% per year) is forecast to grow slower than the US market (10.5% per year).
High Growth Revenue: WABC's revenue (0.8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: WABC's Return on Equity is forecast to be low in 3 years time (8.7%).
Next Steps
Past Performance
How has Westamerica Bancorporation performed over the past 5 years?
8.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: WABC has high quality earnings.
Growing Profit Margin: WABC's current net profit margins (38.6%) are lower than last year (38.7%).
Past Earnings Growth Analysis
Earnings Trend: WABC's earnings have grown by 8.2% per year over the past 5 years.
Accelerating Growth: WABC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: WABC had negative earnings growth (-1.8%) over the past year, making it difficult to compare to the Banks industry average (-4.3%).
Return on Equity
High ROE: WABC's Return on Equity (9.4%) is considered low.
Next Steps
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 (7.9x) is low.
Allowance for Bad Loans: WABC has a sufficient allowance for bad loans (509%).
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 (20%).
Low Risk Deposits: WABC's Loans to Deposits ratio (23%) is appropriate.
Level of Bad Loans: WABC has an appropriate level of bad loans (0.4%).
Next Steps
Dividend
What is Westamerica Bancorporation current dividend yield, its reliability and sustainability?
2.73%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: WABC's dividend (2.73%) is higher than the bottom 25% of dividend payers in the US market (1.37%).
High Dividend: WABC's dividend (2.73%) is low compared to the top 25% of dividend payers in the US market (3.86%).
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 (57.3%), WABC's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: WABC's dividends in 3 years are forecast to be covered by earnings (62.5% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.0yrs
Average management tenure
CEO
David Payne (65 yo)
32yrs
Tenure
US$695,274
Compensation
Mr. David L. Payne serves as the Chairman and Chief Executive Officer at Westamerica Bancorporation since 1988 and 1989 respectively and serves as its President. Mr. Payne has been the Chairman of Westamer...
CEO Compensation Analysis
Compensation vs Market: David's total compensation ($USD695.27K) is below average for companies of similar size in the US market ($USD3.86M).
Compensation vs Earnings: David's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 32yrs | US$695.27k | 3.3% $ 53.0m | |
| Senior VP & Human Resources Division Manager | 2yrs | US$391.47k | 0.013% $ 215.4k | |
| SVP and Manager of Operations & Systems Administration of Community Banker Services Corporation | 2yrs | US$227.03k | 0.021% $ 344.5k | |
| Senior VP & Treasurer | 1yr | US$709.31k | 0.049% $ 788.3k | |
| Senior VP & CFO | 1yr | no data | 0% $ 0 | |
| Corporate Executive Secretary | no data | no data | no data | |
| VP & Corporate Secretary | no data | no data | no data |
2.0yrs
Average Tenure
60yo
Average Age
Experienced Management: WABC's management team is considered experienced (2 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 32yrs | US$695.27k | 3.3% $ 53.0m | |
| Independent Director | 17.42yrs | US$40.60k | 0.096% $ 1.5m | |
| Independent Director | 36yrs | US$42.40k | 0.032% $ 513.9k | |
| Independent Director | 33yrs | US$48.45k | 0.16% $ 2.6m | |
| Lead Independent Director | no data | US$53.68k | 0.23% $ 3.7m | |
| Independent Director | 33yrs | US$81.59k | 0.041% $ 652.6k | |
| Independent Director | 30yrs | US$39.16k | 0.0063% $ 101.6k | |
| Independent Director | 1.33yrs | US$12.13k | 0.00069% $ 11.1k | |
| Independent Director | 1yr | no data | no data |
31.5yrs
Average Tenure
77yo
Average Age
Experienced Board: WABC's board of directors are seasoned and experienced ( 31.5 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: WABC 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$1.605b
- Shares outstanding: 26.87m
- Website: https://www.westamerica.com
Number of Employees
Location
- Westamerica Bancorporation
- 1108 Fifth Avenue
- San Rafael
- California
- 94901
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| WABC | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Oct 1974 |
| WB1 | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Oct 1974 |
Biography
Westamerica Bancorporation operates as a bank holding company for Westamerica Bank that provides various banking products and services to individual and commercial customers. The company accepts various de...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/21 23:08 |
| End of Day Share Price | 2021/01/21 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
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.