NasdaqGS:WABC

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Westamerica Bancorporation

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


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.8%

WABC

1.4%

US Banks

2.3%

US Market


1 Year Return

-10.4%

WABC

-28.2%

US Banks

17.2%

US Market

Return vs Industry: WABC exceeded the US Banks industry which returned -28.4% over the past year.

Return vs Market: WABC underperformed the US Market which returned 15.8% over the past year.


Shareholder returns

WABCIndustryMarket
7 Day4.8%1.4%2.3%
30 Day-10.7%-8.1%-4.6%
90 Day-3.3%-2.1%7.4%
1 Year-8.0%-10.4%-25.6%-28.2%19.8%17.2%
3 Year-0.2%-7.8%-21.8%-28.2%37.4%28.3%
5 Year37.9%19.5%14.1%0.09%83.8%63.0%

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?

9.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WABC ($54.8) is trading below our estimate of fair value ($59.78)

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 (19.1x) compared to the US Banks industry average (9.4x).

PE vs Market: WABC is poor value based on its PE Ratio (19.1x) compared to the US market (18x).


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 (1.8x) compared to the US Banks industry average (0.8x).


Next Steps

Future Growth

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

-2.5%

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 (-2.5% per year).

Earnings vs Market: WABC's earnings are forecast to decline over the next 3 years (-2.5% 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 (-0.9% per year).

High Growth Revenue: WABC's revenue is forecast to decline over the next 3 years (-0.9% 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 (9.3%).


Next Steps

Past Performance

How has Westamerica Bancorporation performed over the past 5 years?

7.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WABC has high quality earnings.

Growing Profit Margin: WABC's current net profit margins (38.9%) are higher than last year (37.2%).


Past Earnings Growth Analysis

Earnings Trend: WABC's earnings have grown by 7% per year over the past 5 years.

Accelerating Growth: WABC's earnings growth over the past year (3%) is below its 5-year average (7% per year).

Earnings vs Industry: WABC earnings growth over the past year (3%) exceeded the Banks industry -3%.


Return on Equity

High ROE: WABC's Return on Equity (9.6%) 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 (8x) is low.

Allowance for Bad Loans: WABC has a sufficient allowance for bad loans (542%).

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 (24%) is appropriate.

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


Next Steps

Dividend

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

3.02%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WABC's dividend (2.99%) is higher than the bottom 25% of dividend payers in the US market (1.71%).

High Dividend: WABC's dividend (2.99%) is low compared to the top 25% of dividend payers in the US market (4.83%).


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 (57.1%), 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 (60.5% payout ratio).


Next Steps

  • Explore strong dividend paying companies in the Banks industry.

Management

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

1.7yrs

Average management tenure


CEO

David Payne (65 yo)

31.67yrs

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 ($USD695.27K) is below average for companies of similar size in the US market ($USD4.58M).

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


Leadership Team

NamePositionTenureCompensationOwnership
David Payne
Chairman31.67yrsUS$695.27k3.29%
$ 48.2m
George Ensinger
Senior VP & Human Resources Division Manager1.67yrsUS$391.47k0.013%
$ 196.0k
Brian Donohoe
SVP and Manager of Operations & Systems Administration of Community Banker Services Corporation1.67yrsUS$227.03k0.021%
$ 313.4k
John Thorson
Senior VP & Treasurer0.67yrUS$709.31k0.049%
$ 717.0k
Jesse Leavitt
Senior VP & CFO0.67yrno data0%
$ 0
Diane Cunningham
Corporate Executive Secretaryno datano datano data
Kris Irvine
VP & Corporate Secretaryno datano datano data

1.7yrs

Average Tenure

60yo

Average Age

Experienced Management: WABC's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
David Payne
Chairman31.67yrsUS$695.27k3.29%
$ 48.2m
E. Bowler
Independent Director17.08yrsUS$40.60k0.096%
$ 1.4m
Catherine MacMillan
Independent Director35.67yrsUS$42.40k0.032%
$ 467.4k
Ronald Nelson
Independent Director32.67yrsUS$48.45k0.16%
$ 2.4m
Edward Sylvester
Lead Independent Directorno dataUS$53.68k0.23%
$ 3.4m
Etta Allen
Independent Director32.67yrsUS$81.59k0.041%
$ 593.7k
Louis Bartolini
Independent Director29.67yrsUS$39.16k0.0063%
$ 92.4k
Michele Hassid
Independent Director1yrUS$12.13kno data
Melanie Chiesa
Independent Director0.67yrno datano data

31.2yrs

Average Tenure

77yo

Average Age

Experienced Board: WABC's board of directors are seasoned and experienced ( 31.2 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$1.464b
  • Shares outstanding: 26.93m
  • 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 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/30 23:45
End of Day Share Price2020/09/30 00:00
Earnings2020/06/30
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.