NasdaqGS:WABC

Stock Analysis Report

Westamerica Bancorporation

Executive Summary

Westamerica Bancorporation provides banking solutions.

Snowflake

Fundamentals

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


Market Performance


7 Day Return

0.7%

WABC

1.4%

US Banks

1.0%

US Market


1 Year Return

8.4%

WABC

0.2%

US Banks

6.7%

US Market

Return vs Industry: WABC exceeded the US Banks industry which returned 0.2% over the past year.

Return vs Market: WABC exceeded the US Market which returned 6.7% over the past year.


Shareholder returns

WABCIndustryMarket
7 Day0.7%1.4%1.0%
30 Day-3.8%-2.6%-1.8%
90 Day2.6%0.8%-1.8%
1 Year11.3%8.4%3.1%0.2%9.1%6.7%
3 Year39.1%28.1%52.0%41.5%46.1%36.6%
5 Year58.1%36.0%69.7%51.2%66.9%48.6%

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?

22.09x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: WABC ($62.08) is trading above our estimate of fair value ($40.81)

Significantly Undervalued: 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 (22.1x) compared to the Banks industry average (12.5x).

PE vs Market: WABC is poor value based on its PE Ratio (22.1x) compared to the US market (17.5x).


Price to Earnings Growth Ratio

Low PEG Ratio: WABC is poor value based on its PEG Ratio (26.2x)


Price to Book Ratio

PB vs Industry: WABC is overvalued based on its PB Ratio (2.4x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

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

0.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WABC's forecast earnings growth (0.8% per year) is below the savings rate (2.7%).

Earnings vs Market: WABC's earnings (0.8% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: WABC's revenue (0.2% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: WABC's revenue (0.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Westamerica Bancorporation performed over the past 5 years?

1.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: WABC's earnings have grown by 1.8% per year over the past 5 years.

Accelerating Growth: WABC's earnings growth over the past year (37.7%) exceeds its 5-year average (1.8% per year).

Earnings vs Industry: WABC earnings growth over the past year (37.7%) exceeded the Banks industry 31.8%.


Return on Equity

High ROE: WABC's Return on Equity (10.9%) is considered low.


Return on Assets

ROA vs Industry: WABC has a higher Return on Assets than the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate WABC's Return on Capital Employed to determine if it has improved over the past 3 years.


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

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

Debt Coverage by Assets: WABC's debt is covered by short term assets (assets are 8.223610x debt).


Financial Institutions Analysis

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

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

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

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

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

Level of Bad Loans: WABC has an appropriate level of bad loans (0.35%)


Next Steps

Dividend

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

2.64%

Current Dividend Yield


Dividend Yield vs Market

company2.6%marketbottom25%1.5%markettop25%3.8%industryaverage3.1%forecastin3Years2.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: WABC's dividend (2.64%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: WABC's dividend (2.64%) is low compared to the top 25% of dividend payers in the US market (3.77%).

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: 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 Westamerica Bancorporation's salary, the management and board of directors tenure and is there insider trading?

7.4yrs

Average management tenure


CEO

David Payne (64yo)

30.8yrs

Tenure

US$640,813

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 ($USD640.81K) is about average for companies of similar size in the US market ($USD4.08M).

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


Management Age and Tenure

7.4yrs

Average Tenure

61.5yo

Average Age

Experienced Management: WABC's management team is seasoned and experienced (7.4 years average tenure).


Board Age and Tenure

31.8yrs

Average Tenure

82yo

Average Age

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


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$318,15023 Jan 19
Edward Sylvester
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares5,000
Max PriceUS$63.63
SellUS$58607 Nov 18
Russell Rizzardi
EntityIndividual
Shares10.5
Max PriceUS$55.84

Ownership Breakdown


Management Team

  • David Payne (64yo)

    Chairman

    • Tenure: 30.8yrs
    • Compensation: US$640.81k
  • Robert Thorson (59yo)

    Senior VP & CFO

    • Tenure: 14.1yrs
    • Compensation: US$695.33k
  • Kris Irvine

    VP & Corporate Secretary

    • Tenure: 0yrs
  • Diane Cunningham

    Corporate Executive Secretary

    • Tenure: 0yrs
  • Brian Donohoe (38yo)

    Senior VP and Operations & Systems Division Manager

    • Tenure: 0.8yrs
  • Steve Ensinger (65yo)

    Senior VP & Human Resources Division Manager

    • Tenure: 0.8yrs
    • Compensation: US$387.24k

Board Members

  • David Payne (64yo)

    Chairman

    • Tenure: 30.8yrs
    • Compensation: US$640.81k
  • E. Bowler (83yo)

    Independent Director

    • Tenure: 16.2yrs
    • Compensation: US$37.00k
  • Catherine MacMillan (72yo)

    Independent Director

    • Tenure: 34.8yrs
    • Compensation: US$42.40k
  • Ronald Nelson (76yo)

    Independent Director

    • Tenure: 31.8yrs
    • Compensation: US$44.85k
  • Edward Sylvester (82yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$53.58k
  • Etta Allen (89yo)

    Independent Director

    • Tenure: 31.8yrs
    • Compensation: US$77.36k
  • Louis Bartolini (87yo)

    Independent Director

    • Tenure: 28.8yrs
    • Compensation: US$37.34k
  • Michele Hassid

    Independent Director

    • Tenure: 0.08yrs

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$1.675b
  • Shares outstanding: 26.98m
  • Website: https://www.westamerica.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WABCNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDOct 1974
WB1DB (Deutsche Boerse AG)YesCommon StockDEEUROct 1974

Biography

Westamerica Bancorporation provides banking solutions. The bank offers demand deposits and interest and non-interest bearing time and savings deposits. The company's deposits include jumbo deposits and ret ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 23:41
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
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.