NasdaqCM:WEBK

Stock Analysis Report

Executive Summary

Wellesley Bancorp, Inc. operates as the bank holding company for Wellesley Bank that provides various financial services to individuals, non-profit organizations, small businesses, and other entities in eastern Massachusetts.


Snowflake Analysis

Flawless balance sheet with questionable track record.


Similar Companies

Share Price & News

How has Wellesley Bancorp's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: WEBK has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.6%

WEBK

-3.0%

US Banks

-1.3%

US Market


1 Year Return

46.1%

WEBK

11.8%

US Banks

22.0%

US Market

Return vs Industry: WEBK exceeded the US Banks industry which returned 21.7% over the past year.

Return vs Market: WEBK exceeded the US Market which returned 24.7% over the past year.


Shareholder returns

WEBKIndustryMarket
7 Day-1.6%-3.0%-1.3%
30 Day-6.1%-4.7%1.8%
90 Day33.1%2.7%9.3%
1 Year47.2%46.1%15.0%11.8%24.6%22.0%
3 Year62.6%59.2%26.9%17.9%49.2%39.6%
5 Year133.8%125.9%86.3%65.4%77.9%58.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Wellesley Bancorp undervalued compared to its fair value and its price relative to the market?

17.47x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WEBK ($43.05) is trading above our estimate of fair value ($16.46)

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


Price To Earnings Ratio

PE vs Industry: WEBK is poor value based on its PE Ratio (16.4x) compared to the Banks industry average (12.8x).

PE vs Market: WEBK is good value based on its PE Ratio (16.4x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate WEBK's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: WEBK is overvalued based on its PB Ratio (1.5x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Wellesley Bancorp forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

2.4%

Forecasted Banks industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Wellesley Bancorp has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Wellesley Bancorp performed over the past 5 years?

24.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WEBK has high quality earnings.

Growing Profit Margin: WEBK's current net profit margins (20.5%) are lower than last year (22.4%).


Past Earnings Growth Analysis

Earnings Trend: WEBK's earnings have grown significantly by 25.2% per year over the past 5 years.

Accelerating Growth: WEBK's earnings growth over the past year (0.2%) is below its 5-year average (24.6% per year).

Earnings vs Industry: WEBK earnings growth over the past year (0.2%) underperformed the Banks industry 24.5%.


Return on Equity

High ROE: WEBK's Return on Equity (8.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Wellesley Bancorp'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: WEBK has a low level of unsold assets or inventory.

Debt Coverage by Assets: WEBK's debt is not covered by short term assets (assets are 0.7x debt).


Financial Institutions Analysis

Asset Level: WEBK's level of assets compared to its equity is moderate.

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

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

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

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

Level of Bad Loans: WEBK has an appropriate level of bad loans (0.19%)


Next Steps

Dividend

What is Wellesley Bancorp's current dividend yield, its reliability and sustainability?

0.56%

Current Dividend Yield


Dividend Yield vs Market

company0.6%marketbottom25%1.4%markettop25%3.7%industryaverage2.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: WEBK's dividend (0.56%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: WEBK's dividend (0.56%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

Stable Dividend: WEBK is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: WEBK is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: WEBK is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of WEBK's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Wellesley Bancorp's salary, the management and board of directors tenure and is there insider trading?

5.3yrs

Average management tenure


CEO

Tom Fontaine (55yo)

8.3yrs

Tenure

US$728,389

Compensation

Mr. Thomas J. Fontaine, also known as Tom, serves as the Chairman, Chief Executive Officer and President of Wellesley Bancorp, Inc. Mr. Fontaine has also been the Chairman and Chief Executive Officer of We ...


CEO Compensation Analysis

Compensation vs Market: Tom's total compensation ($USD728.39K) is above average for companies of similar size in the US market ($USD519.76K).

Compensation vs Earnings: Tom's compensation has increased by more than 20% in the past year.


Management Age and Tenure

5.3yrs

Average Tenure

56.5yo

Average Age

Experienced Management: WEBK's management team is seasoned and experienced (5.3 years average tenure).


Board Age and Tenure

6.2yrs

Average Tenure

60yo

Average Age

Experienced Board: WEBK's board of directors are considered experienced (6.2 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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.1%.


Management Team

  • Louis Crosier (52yo)

    President of Wellesley Investment Partners

    • Tenure: 5.3yrs
    • Compensation: US$405.32k
  • Mike Dvorak (58yo)

    CFO, COO

    • Tenure: 3.5yrs
    • Compensation: US$290.58k
  • Ralph Letner (59yo)

    Executive VP

    • Tenure: 5.7yrs
    • Compensation: US$379.85k
  • Tom Fontaine (55yo)

    Chairman

    • Tenure: 8.3yrs
    • Compensation: US$728.39k
  • Henry Connors

    Senior VP & Director of Deposit Operations - Wellesley Bank

    • Jon Barnes

      VP & Commercial Lender of Wellesley Bank

      • Wendy Bradley

        First Vice President of Retail Banking of Wellesley Bank

        • Brian Lynch

          Senior VP & Residential Lender

          • Greg Pauplis

            Senior VP & Team Leader of Commercial Lending - Wellesley Bank

            • Maureen Sullivan

              Executive VP & Chief Client Experience Officer at Wellesley Bank

              • Tenure: 1.7yrs

            Board Members

            • Jim Malerba (64yo)

              Director

              • Tenure: 0.7yrs
            • Simon Gerlin (61yo)

              Independent Director

              • Tenure: 4yrs
              • Compensation: US$37.05k
            • Tom Fontaine (55yo)

              Chairman

              • Tenure: 8.3yrs
              • Compensation: US$728.39k
            • Tina Wang (59yo)

              Independent Director

              • Tenure: 8.3yrs
              • Compensation: US$33.29k
            • Nancy Goodall (59yo)

              Independent Director

              • Tenure: 8.3yrs
              • Compensation: US$33.29k
            • Leslie Shea (74yo)

              Independent Director

              • Tenure: 8.3yrs
              • Compensation: US$34.09k
            • Kathy Hinderhofer (68yo)

              Independent Director

              • Tenure: 3.3yrs
              • Compensation: US$34.77k
            • Garry Holmes (55yo)

              Independent Director

              • Tenure: 1.7yrs
              • Compensation: US$115.42k

            Company Information

            Wellesley Bancorp, Inc.'s company bio, employee growth, exchange listings and data sources


            Key Information

            • Name: Wellesley Bancorp, Inc.
            • Ticker: WEBK
            • Exchange: NasdaqCM
            • Founded: 1911
            • Industry: Regional Banks
            • Sector: Banks
            • Market Cap: US$107.225m
            • Shares outstanding: 2.48m
            • Website: https://www.wellesleybank.com

            Number of Employees


            Location

            • Wellesley Bancorp, Inc.
            • 100 Worcester Street
            • Suite 300
            • Wellesley
            • Massachusetts
            • 2481
            • United States

            Listings

            TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
            WEBKNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDJan 2012

            Biography

            Wellesley Bancorp, Inc. operates as the bank holding company for Wellesley Bank that provides various financial services to individuals, non-profit organizations, small businesses, and other entities in eastern Massachusetts. Its deposit products include noninterest-bearing demand deposits, such as checking accounts; interest-bearing demand accounts comprising negotiable order of withdrawal and money market accounts; savings accounts; and certificates of deposit. The company also offers residential mortgage loans, commercial real estate loans, and construction loans, as well as home equity lines of credit; other consumer loans that consist of fixed-rate second mortgage loans, automobile loans, loans secured by passbook or certificate accounts, and overdraft loans; and commercial business loans, such as term loans, revolving lines of credit, and equipment loans. In addition, it provides investment advisory services and remote capture products; and engages in buying, selling, and holding securities. As of December 31, 2018, Wellesley Bancorp, Inc. operated through executive offices and five full service branch offices located in Wellesley, Newton, and Boston; limited- hour branch service office in Needham, Massachusetts; and wealth management offices located in Wellesley. The company was founded in 1911 and is headquartered in Wellesley, Massachusetts. 


            Company Analysis and Financial Data Status

            All financial data provided by Standard & Poor's Capital IQ.
            DataLast Updated (UTC time)
            Company Analysis2020/01/25 00:30
            End of Day Share Price2020/01/24 00:00
            Earnings2019/12/31
            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.