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Wellesley Bancorp

Nasdaq:WEBK
Snowflake Description

Flawless balance sheet with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
WEBK
Nasdaq
$82M
Market Cap
  1. Home
  2. US
  3. Banks
Company description

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. The last earnings update was 37 days ago. More info.


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WEBK Share Price and Events
7 Day Returns
1.1%
NasdaqCM:WEBK
0%
US Banks
1.5%
US Market
1 Year Returns
1.8%
NasdaqCM:WEBK
-8.3%
US Banks
1%
US Market
WEBK Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Wellesley Bancorp (WEBK) 1.1% -4.8% 2.4% 1.8% 67.4% 76.7%
US Banks 0% -0.8% -2.7% -8.3% 46.1% 40.5%
US Market 1.5% 1% 1.4% 1% 37.6% 38.1%
1 Year Return vs Industry and Market
  • WEBK outperformed the Banks industry which returned -8.3% over the past year.
Price Volatility
WEBK
Industry
5yr Volatility vs Market

Value

 Is Wellesley Bancorp undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Wellesley Bancorp to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Wellesley Bancorp.

NasdaqCM:WEBK Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Median Return on Equity from the past 5 years.
= Stable Book Value * Return on Equity
= $24.78 * 5.6%
$1.38
Book Value of Equity per Share Median Book Value from the past 5 years. $24.78
Discount Rate (Cost of Equity) See below 9.1%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqCM:WEBK
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Banks Unlevered Beta Simply Wall St/ S&P Global 0.59
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.591 (1 + (1- 21%) (109.65%))
1.069
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.07
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.069 * 5.96%)
9.1%

Discounted Cash Flow Calculation for NasdaqCM:WEBK using Excess Returns Model Model

The calculations below outline how an intrinsic value for Wellesley Bancorp is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

NasdaqCM:WEBK Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (5.6% – 9.1%) * $24.78)
$-0.87
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $-0.87 / (9.1% - 2.73%)
$-13.70
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $24.78 + $-13.70
$11.08
NasdaqCM:WEBK Discount to Share Price
Calculation Result
Value per share (USD) From above. $11.08
Current discount Discount to share price of $33.40
= -1 x ($33.40 - $11.08) / $11.08
-201.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Wellesley Bancorp is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Wellesley Bancorp's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Wellesley Bancorp's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqCM:WEBK PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $2.43
NasdaqCM:WEBK Share Price ** NasdaqCM (2019-06-14) in USD $33.4
United States of America Banks Industry PE Ratio Median Figure of 600 Publicly-Listed Banks Companies 12.69x
United States of America Market PE Ratio Median Figure of 3,092 Publicly-Listed Companies 17.72x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Wellesley Bancorp.

NasdaqCM:WEBK PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqCM:WEBK Share Price ÷ EPS (both in USD)

= 33.4 ÷ 2.43

13.77x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Wellesley Bancorp is overvalued based on earnings compared to the US Banks industry average.
  • Wellesley Bancorp is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Wellesley Bancorp's expected growth come at a high price?
Raw Data
NasdaqCM:WEBK PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 13.77x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
10%per year
United States of America Banks Industry PEG Ratio Median Figure of 271 Publicly-Listed Banks Companies 1.37x
United States of America Market PEG Ratio Median Figure of 2,124 Publicly-Listed Companies 1.52x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Wellesley Bancorp, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Wellesley Bancorp's assets?
Raw Data
NasdaqCM:WEBK PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $27.55
NasdaqCM:WEBK Share Price * NasdaqCM (2019-06-14) in USD $33.4
United States of America Banks Industry PB Ratio Median Figure of 603 Publicly-Listed Banks Companies 1.2x
United States of America Market PB Ratio Median Figure of 5,242 Publicly-Listed Companies 1.8x
NasdaqCM:WEBK PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqCM:WEBK Share Price ÷ Book Value per Share (both in USD)

= 33.4 ÷ 27.55

1.21x

* Primary Listing of Wellesley Bancorp.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Wellesley Bancorp is overvalued based on assets compared to the US Banks industry average.
X
Value checks
We assess Wellesley Bancorp's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Banks industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Banks industry average (and greater than 0)? (1 check)
  5. Wellesley Bancorp has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

  • No analysts cover Wellesley Bancorp, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
10%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Wellesley Bancorp expected to grow at an attractive rate?
  • Wellesley Bancorp's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Wellesley Bancorp's earnings growth is positive but not above the United States of America market average.
  • Unable to compare Wellesley Bancorp's revenue growth to the United States of America market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
NasdaqCM:WEBK Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqCM:WEBK Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts 10%
United States of America Banks Industry Earnings Growth Rate Market Cap Weighted Average 3.8%
United States of America Banks Industry Revenue Growth Rate Market Cap Weighted Average 3.9%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.8%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqCM:WEBK Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqCM:WEBK Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 27 6 6
2018-12-31 27 7 6
2018-09-30 26 4 5
2018-06-30 25 5 4
2018-03-31 25 6 4
2017-12-31 24 8 3
2017-09-30 23 9 4
2017-06-30 22 6 3
2017-03-31 22 5 3
2016-12-31 21 3 3
2016-09-30 21 2 3
2016-06-30 20 5 3

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Wellesley Bancorp's earnings are expected to grow by 10% yearly, however this is not considered high growth (20% yearly).
  • Unable to determine if Wellesley Bancorp is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqCM:WEBK Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Wellesley Bancorp Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqCM:WEBK Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 2.43
2018-12-31 2.49
2018-09-30 1.93
2018-06-30 1.77
2018-03-31 1.57
2017-12-31 1.34
2017-09-30 1.57
2017-06-30 1.40
2017-03-31 1.32
2016-12-31 1.26
2016-09-30 1.34
2016-06-30 1.32

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Wellesley Bancorp will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Wellesley Bancorp's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Wellesley Bancorp has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Wellesley Bancorp performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Wellesley Bancorp's growth in the last year to its industry (Banks).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Wellesley Bancorp has delivered over 20% year on year earnings growth in the past 5 years.
  • Wellesley Bancorp's 1-year earnings growth exceeds its 5-year average (56.5% vs 23.3%)
  • Wellesley Bancorp's earnings growth has exceeded the US Banks industry average in the past year (56.5% vs 39.5%).
Earnings and Revenue History
Wellesley Bancorp's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Wellesley Bancorp Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqCM:WEBK Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 27.07 5.86 18.51
2018-12-31 26.73 5.99 17.94
2018-09-30 26.04 4.62 17.48
2018-06-30 25.40 4.22 17.07
2018-03-31 24.73 3.74 16.82
2017-12-31 23.93 3.19 16.57
2017-09-30 23.12 3.71 16.48
2017-06-30 22.43 3.30 16.51
2017-03-31 21.82 3.09 16.32
2016-12-31 21.18 2.94 16.00
2016-09-30 20.93 3.12 15.50
2016-06-30 20.36 3.06 15.04
2016-03-31 19.72 2.92 14.62
2015-12-31 19.15 2.65 14.47
2015-09-30 18.33 2.18 14.46
2015-06-30 17.70 2.00 14.29
2015-03-31 17.12 1.84 13.82
2014-12-31 16.44 1.78 13.26
2014-09-30 15.89 1.78 12.71
2014-06-30 15.34 1.87 11.86
2014-03-31 14.85 2.02 11.20
2013-12-31 14.42 2.22 10.43
2013-09-30 13.93 2.47 9.57
2013-06-30 13.28 2.40 9.07
2013-03-31 12.59 2.25 8.77
2012-12-31 11.92 1.10 8.27
2012-09-30 11.24 0.94 7.85
2012-06-30 10.79 0.93 7.56

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Wellesley Bancorp has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Wellesley Bancorp used its assets less efficiently than the US Banks industry average last year based on Return on Assets.
  • Unable to establish if Wellesley Bancorp improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess Wellesley Bancorp's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Banks industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Wellesley Bancorp has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

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

This company is a bank or financial institution.

Fundamentally a bank's business is based upon borrowing and lending money, for this reason they typically have high levels of debt and we analyse them differently.
Net Worth
Balance sheet
This treemap shows a more detailed breakdown of Wellesley Bancorp's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Wellesley Bancorp Company Filings, last reported 2 months ago.

NasdaqCM:WEBK Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 67.18 89.77 37.53
2018-12-31 65.13 83.62 37.91
2018-09-30 63.02 99.68 24.30
2018-06-30 61.44 122.50 33.51
2018-03-31 60.10 115.32 51.46
2017-12-31 59.25 125.04 25.63
2017-09-30 59.04 124.06 31.12
2017-06-30 57.67 134.88 22.37
2017-03-31 56.39 118.96 26.34
2016-12-31 55.21 114.06 27.10
2016-09-30 55.37 112.12 24.76
2016-06-30 54.66 103.19 23.81
2016-03-31 53.50 92.52 18.48
2015-12-31 52.18 102.59 27.00
2015-09-30 51.39 82.95 15.98
2015-06-30 50.47 81.00 16.21
2015-03-31 50.07 61.50 21.17
2014-12-31 49.35 61.51 17.78
2014-09-30 48.69 65.50 11.59
2014-06-30 48.11 57.50 17.68
2014-03-31 47.43 45.50 16.90
2013-12-31 46.79 52.51 17.57
2013-09-30 46.38 45.50 12.92
2013-06-30 45.67 48.50 12.54
2013-03-31 45.38 36.50 19.01
2012-12-31 44.97 31.52 17.42
2012-09-30 44.42 31.50 24.26
2012-06-30 43.71 31.10 18.37
BANK ANALYSIS

This company is a bank or financial institution, which is analysed accordingly below.

Below we check the amount of loans the bank has, how many of those are bad, and its ability to cover any bad loans.
  • Wellesley Bancorp has an acceptable proportion of non-loan assets held.
  • Wellesley Bancorp's liabilities are made up of primarily low risk sources of funding.
  • Loans at Wellesley Bancorp are broadly funded by customer deposits.
  • Wellesley Bancorp's level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).
  • Wellesley Bancorp has a sufficient allowance for bad loans.
  • Wellesley Bancorp has an acceptable level of bad loans (less than 2%).
X
Financial health checks
We assess Wellesley Bancorp's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Wellesley Bancorp has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.72%
Current annual income from Wellesley Bancorp dividends.
If you bought $2,000 of Wellesley Bancorp shares you are expected to receive $14 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Wellesley Bancorp's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).
  • Wellesley Bancorp's dividend is below the markets top 25% of dividend payers in United States of America (3.72%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqCM:WEBK Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
United States of America Banks Industry Average Dividend Yield Market Cap Weighted Average of 478 Stocks 2.9%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2011 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqCM:WEBK Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-24 0.240 0.718
2019-02-27 0.220 0.668
2018-11-28 0.220 0.737
2018-08-22 0.220 0.671
2018-05-25 0.220 0.661
2018-02-28 0.200 0.649
2017-11-24 0.200 0.694
2017-08-23 0.200 0.749
2017-05-26 0.200 0.745
2017-02-27 0.160 0.592
2016-11-16 0.160 0.604
2016-08-18 0.160 0.709
2016-05-25 0.160 0.783
2016-02-17 0.120 0.617
2015-11-18 0.120 0.641
2015-11-10 0.120 0.644
2015-05-22 0.120 0.621
2015-02-19 0.100 0.533
2014-11-19 0.100 0.528
2014-11-10 0.100 0.539
2014-10-29 0.100 0.534
2014-08-20 0.100 0.530
2014-05-21 0.100 0.532

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Wellesley Bancorp is not paying a notable dividend for United States of America, therefore no need to check if the payments are stable.
  • Wellesley Bancorp is not paying a notable dividend for United States of America, therefore no need to check if the payments are increasing.
Current Payout to shareholders
What portion of Wellesley Bancorp's earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of Wellesley Bancorp's dividends as it is not paying a notable one for United States of America.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Wellesley Bancorp's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Wellesley Bancorp afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Wellesley Bancorp has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Tom Fontaine
COMPENSATION $728,389
AGE 54
TENURE AS CEO 7.8 years
CEO Bio

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 Wellesley Bank since November 2009 and has been President since April 2006. Previously, he served President of Wellesley Bank from April 2006 to November 2009 and as Executive Vice President until April 2006. Mr. Fontaine has experience in the local banking industry and involvement in business and civic organizations. Mr. Fontaine serves as Chairman of the Board at Wellesley Investment Partners, LLC. He has been a Director of Wellesley Bank and Wellesley Bancorp, Inc. since 2006.

CEO Compensation
  • Tom's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Tom's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Wellesley Bancorp management team in years:

4.8
Average Tenure
55.5
Average Age
  • The tenure for the Wellesley Bancorp management team is about average.
Management Team

Tom Fontaine

TITLE
Chairman
COMPENSATION
$728K
AGE
54
TENURE
7.8 yrs

Ralph Letner

TITLE
Executive VP
COMPENSATION
$380K
AGE
58
TENURE
5.1 yrs

Louis Crosier

TITLE
President of Wellesley Investment Partners
COMPENSATION
$405K
AGE
51
TENURE
4.8 yrs

Mike Dvorak

TITLE
CFO, COO
COMPENSATION
$291K
AGE
57
TENURE
2.9 yrs

Brian Lynch

TITLE
Senior VP & Residential Lender

Greg Pauplis

TITLE
Senior VP & Team Leader of Commercial Lending - Wellesley Bank

Maureen Sullivan

TITLE
Executive VP & Chief Client Experience Officer at Wellesley Bank
TENURE
1.1 yrs

Jon Barnes

TITLE
VP & Commercial Lender of Wellesley Bank

Wendy Bradley

TITLE
First Vice President of Retail Banking of Wellesley Bank

Henry Connors

TITLE
Senior VP & Director of Deposit Operations - Wellesley Bank
Board of Directors Tenure

Average tenure and age of the Wellesley Bancorp board of directors in years:

5.6
Average Tenure
59
Average Age
  • The tenure for the Wellesley Bancorp board of directors is about average.
Board of Directors

Tom Fontaine

TITLE
Chairman
COMPENSATION
$728K
AGE
54
TENURE
7.8 yrs

Leslie Shea

TITLE
Director
COMPENSATION
$34K
AGE
73
TENURE
7.8 yrs

Simon Gerlin

TITLE
Director
COMPENSATION
$37K
AGE
60
TENURE
3.4 yrs

Kathy Hinderhofer

TITLE
Director
COMPENSATION
$35K
AGE
67
TENURE
2.8 yrs

Tina Wang

TITLE
Director
COMPENSATION
$33K
AGE
58
TENURE
7.8 yrs

Nancy Goodall

TITLE
Director
COMPENSATION
$33K
AGE
58
TENURE
7.8 yrs

Garry Holmes

TITLE
Independent Director
COMPENSATION
$115K
AGE
54
TENURE
1.1 yrs

Jim Malerba

TITLE
Director
AGE
63
TENURE
0.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
14. Dec 18 Buy Simon Gerlin Individual 13. Dec 18 13. Dec 18 200 $34.04 $6,808
23. Nov 18 Sell Thomas Fontaine Individual 16. Nov 18 16. Nov 18 -1,975 $31.35 $-60,663
06. Nov 18 Sell Thomas Fontaine Individual 02. Nov 18 02. Nov 18 -25 $32.00 $-800
06. Nov 18 Buy Kathryn Hinderhofer Individual 05. Nov 18 05. Nov 18 475 $31.84 $15,125
13. Aug 18 Sell Thomas Fontaine Individual 09. Aug 18 13. Aug 18 -1,000 $33.75 $-33,262
X
Management checks
We assess Wellesley Bancorp's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Wellesley Bancorp has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Should You Be Concerned About Wellesley Bancorp, Inc.’s (NASDAQ:WEBK) Risks?

Risk associated with repayment is measured by bad debt which is written off as an expense, impacting Wellesley Bancorp’s bottom line. … Today we will analyse Wellesley Bancorp’s level of bad debt and liabilities in order to understand the risk involved with investing in the bank. … View our latest analysis for Wellesley Bancorp

Simply Wall St -

How Much Of Wellesley Bancorp, Inc. (NASDAQ:WEBK) Do Insiders Own?

A look at the shareholders of Wellesley Bancorp, Inc. … With a market capitalization of US$76m, Wellesley Bancorp is a small cap stock, so it might not be well known by many institutional investors. … Taking a look at our data on the ownership groups (below), it's seems that.

Simply Wall St -

Can You Imagine How Wellesley Bancorp's (NASDAQ:WEBK) Shareholders Feel About The 73% Share Price Increase?

(NASDAQ:WEBK) shareholders have enjoyed a 73% share price rise over the last half decade, well in excess of the market return of around 40% (not including dividends). … During five years of share price growth, Wellesley Bancorp achieved compound earnings per share (EPS) growth of 21% per year. … The EPS growth is more impressive than the yearly share price gain of 12% over the same period.

Simply Wall St -

Does Wellesley Bancorp, Inc. (NASDAQ:WEBK) Have A Good P/E Ratio?

To keep it practical, we'll show how Wellesley Bancorp, Inc.'s (NASDAQ:WEBK) P/E ratio could help you assess the value on offer. … Wellesley Bancorp has a P/E ratio of 12.85, based on the last twelve months. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

Should You Be Concerned About Wellesley Bancorp, Inc.’s (NASDAQ:WEBK) Liquidity?

Wellesley Bancorp, Inc.’s (NASDAQ:WEBK) profitability and risk are largely affected by the underlying economic growth for the region it operates in US given it is a small-cap stock with a market capitalisation of US$70m. … Basel III target banking regulations to improve the sector’s ability to absorb shocks resulting from economic stress which may expose financial institutions like Wellesley Bancorp to vulnerabilities. … Today we will be measuring Wellesley Bancorp’s financial risk position by looking at three leverage and liquidity metrics.

Simply Wall St -

Should You Be Worried About Insider Transactions At Wellesley Bancorp, Inc. (NASDAQ:WEBK)?

(NASDAQ:WEBK), you may well want to know whether insiders have been buying or selling. … It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. … The Last 12 Months Of Insider Transactions At Wellesley Bancorp.

Simply Wall St -

Real Risks To Know Before Investing In Wellesley Bancorp, Inc. (NASDAQ:WEBK)

As a small-cap bank with a market capitalisation of US$72m, Wellesley Bancorp, Inc.’s (NASDAQ:WEBK) profit and value are directly affected by economic growth. … Risk associated with repayment is measured by bad debt which is written off as an expense, impacting Wellesley Bancorp’s bottom line. … View our latest analysis for Wellesley Bancorp

Simply Wall St -

Is Wellesley Bancorp Inc's (NASDAQ:WEBK) CEO Pay Justified?

First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Tom Fontaine's Compensation Compare With Similar Sized Companies. … Our data indicates that Wellesley Bancorp Inc is worth US$74m, and total annual CEO compensation is US$618k

Simply Wall St -

Does Wellesley Bancorp Inc's (NASDAQ:WEBK) PE Ratio Warrant A Sell?

This analysis is intended to introduce important early concepts to people who are starting to invest. … and want to start learning about core concepts of fundamental analysis on practical examples from today's market. … Check out our latest analysis for Wellesley Bancorp

Simply Wall St -

Three Key Risks For Wellesley Bancorp Inc (NASDAQ:WEBK) You Should Know

Economic growth impacts the stability of salaries and interest rate level which in turn affects borrowers’ demand for, and ability to repay, their loans. … As a small-cap bank with a market capitalisation of US$81.51m, Wellesley Bancorp Inc’s (NASDAQ:WEBK) profit and value are directly affected by economic activity. … Risk associate with repayment is measured by the level of bad debt which is an expense written off Wellesley Bancorp’s bottom line.

Simply Wall St -

Company Info

Description

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.

Details
Name: Wellesley Bancorp, Inc.
WEBK
Exchange: NasdaqCM
Founded: 1911
$81,864,802
2,451,042
Website: http://www.wellesleybank.com
Address: Wellesley Bancorp, Inc.
100 Worcester Street,
Suite 300,
Wellesley,
Massachusetts, 02481,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqCM WEBK Common Stock Nasdaq Capital Market US USD 27. Jan 2012
Number of employees
Current staff
Staff numbers
77
Wellesley Bancorp employees.
Industry
Regional Banks
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/15 00:23
End of day share price update: 2019/06/14 00:00
Last earnings filing: 2019/05/09
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.