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WABC

Westamerica Bancorporation NasdaqGS:WABC Stock Report

Last Price

US$57.30

Market Cap

US$1.5b

7D

1.2%

1Y

-3.2%

Updated

26 Jun, 2022

Data

Company Financials +
WABC fundamental analysis
Snowflake Score
Valuation1/6
Future Growth2/6
Past Performance3/6
Financial Health6/6
Dividends4/6

WABC Stock Overview

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

Westamerica Bancorporation Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Westamerica Bancorporation
Historical stock prices
Current Share PriceUS$57.30
52 Week HighUS$63.43
52 Week LowUS$53.24
Beta0.57
1 Month Change-5.21%
3 Month Change-6.95%
1 Year Change-3.21%
3 Year Change-7.00%
5 Year Change2.25%
Change since IPO643.35%

Recent News & Updates

Shareholder Returns

WABCUS BanksUS Market
7D1.2%3.7%6.6%
1Y-3.2%-17.7%-18.4%

Return vs Industry: WABC exceeded the US Banks industry which returned -17.7% over the past year.

Return vs Market: WABC exceeded the US Market which returned -18.4% over the past year.

Price Volatility

Is WABC's price volatile compared to industry and market?
WABC volatility
WABC Average Weekly Movement2.7%
Banks Industry Average Movement3.8%
Market Average Movement8.1%
10% most volatile stocks in US Market16.6%
10% least volatile stocks in US Market3.2%

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

Volatility Over Time: WABC's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1972619David Paynehttps://www.westamerica.com

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 various deposit products, including retail savings and checking accounts, as well as certificates of deposit. Its loan portfolio includes commercial, commercial and residential real estate, real estate construction, and consumer installment loans, as well as indirect automobile loans.

Westamerica Bancorporation Fundamentals Summary

How do Westamerica Bancorporation's earnings and revenue compare to its market cap?
WABC fundamental statistics
Market CapUS$1.54b
Earnings (TTM)US$88.98m
Revenue (TTM)US$217.66m

17.3x

P/E Ratio

2.2x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
WABC income statement (TTM)
RevenueUS$217.66m
Cost of RevenueUS$0
Gross ProfitUS$217.66m
Other ExpensesUS$128.68m
EarningsUS$88.98m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Jul 21, 2022

Earnings per share (EPS)3.31
Gross Margin100.00%
Net Profit Margin40.88%
Debt/Equity Ratio17.7%

How did WABC perform over the long term?

See historical performance and comparison

Dividends

2.9%

Current Dividend Yield

50%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is WABC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for WABC?

Other financial metrics that can be useful for relative valuation.

WABC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ratio2x

Price to Earnings Ratio vs Peers

How does WABC's PE Ratio compare to its peers?

WABC PE Ratio vs Peers
The above table shows the PE ratio for WABC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average10.3x
EGBN Eagle Bancorp
8.6x-4.7%US$1.5b
TCBK TriCo Bancshares
14.3x14.5%US$1.5b
RNST Renasant
10.8x6.7%US$1.6b
HOPE Hope Bancorp
7.6x-1.5%US$1.7b
WABC Westamerica Bancorporation
17.3x8.8%US$1.5b

Price-To-Earnings vs Peers: WABC is expensive based on its Price-To-Earnings Ratio (17.3x) compared to the peer average (10.3x).


Price to Earnings Ratio vs Industry

How does WABC's PE Ratio compare vs other companies in the US Banks Industry?

Price-To-Earnings vs Industry: WABC is expensive based on its Price-To-Earnings Ratio (17.3x) compared to the US Banks industry average (9.6x)


Price to Earnings Ratio vs Fair Ratio

What is WABC's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

WABC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio17.3x
Fair PE Ratio13.2x

Price-To-Earnings vs Fair Ratio: WABC is expensive based on its Price-To-Earnings Ratio (17.3x) compared to the estimated Fair Price-To-Earnings Ratio (13.2x).


Share Price vs Fair Value

What is the Fair Price of WABC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: WABC ($57.3) is trading below our estimate of fair value ($68.03)

Significantly Below Fair Value: WABC is trading below fair value, but not by a significant amount.


Price to Earnings Growth Ratio

PEG Ratio: WABC is poor value based on its PEG Ratio (2x)


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Future Growth

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

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


8.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WABC's forecast earnings growth (8.8% per year) is above the savings rate (1.9%).

Earnings vs Market: WABC's earnings (8.8% per year) are forecast to grow slower than the US market (13.9% per year).

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

Revenue vs Market: WABC's revenue (8.6% per year) is forecast to grow faster than the US market (8.4% per year).

High Growth Revenue: WABC's revenue (8.6% 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 WABC's Return on Equity is forecast to be high in 3 years time


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Past Performance

How has Westamerica Bancorporation performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


10.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: WABC has high quality earnings.

Growing Profit Margin: WABC's current net profit margins (40.9%) are higher than last year (39.7%).


Past Earnings Growth Analysis

Earnings Trend: WABC's earnings have grown by 10.3% per year over the past 5 years.

Accelerating Growth: WABC's earnings growth over the past year (6.4%) is below its 5-year average (10.3% per year).

Earnings vs Industry: WABC earnings growth over the past year (6.4%) underperformed the Banks industry 20.7%.


Return on Equity

High ROE: WABC's Return on Equity (12.7%) is considered low.


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Financial Health

How is Westamerica Bancorporation's financial position? (This company is analysed differently as a bank or financial institution)

Financial Health Score

6/6

Financial Health Score 6/6

  • Asset Level

  • Allowance for Bad Loans

  • Low Risk Liabilities

  • Loan Level

  • Low Risk Deposits

  • Level of Bad Loans

Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: WABC's Assets to Equity ratio (10.4x) is moderate.

Allowance for Bad Loans: WABC has a sufficient allowance for bad loans (2505%).

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 (13%).

Low Risk Deposits: WABC's Loans to Deposits ratio (15%) is appropriate.

Level of Bad Loans: WABC has an appropriate level of bad loans (0.1%).


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Dividend

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

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


2.93%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: WABC's dividend (2.93%) is higher than the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: WABC's dividend (2.93%) is low compared to the top 25% of dividend payers in the US market (4.24%).


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

Earnings Coverage: With its reasonable payout ratio (50.1%), 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 or that it will be covered by earnings.


Discover strong dividend paying companies

Management

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

3.4yrs

Average management tenure


CEO

David Payne (66 yo)

33.42yrs

Tenure

US$700,563

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 ($USD700.56K) is below average for companies of similar size in the US market ($USD5.47M).

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 (3.4 years average tenure).


Board Members

Experienced Board: WABC's board of directors are seasoned and experienced ( 26.6 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 employee growth, exchange listings and data sources


Key Information

  • Name: Westamerica Bancorporation
  • Ticker: WABC
  • Exchange: NasdaqGS
  • Founded: 1972
  • Industry: Regional Banks
  • Sector: Banks
  • Implied Market Cap: US$1.541b
  • Shares outstanding: 26.89m
  • Website: https://www.westamerica.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/26 00:00
End of Day Share Price2022/06/24 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.