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

Fundamentals

Flawless balance sheet with acceptable 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


Market Performance


7 Day Return

-0.9%

WEBK

1.4%

US Banks

1.0%

US Market


1 Year Return

-8.3%

WEBK

0.2%

US Banks

6.7%

US Market

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

Return vs Market: WEBK underperformed the US Market which returned 6.7% over the past year.


Share holder returns

WEBKIndustryMarket
7 Day-0.9%1.4%1.0%
30 Day-0.7%-2.6%-1.8%
90 Day-6.1%0.8%-1.8%
1 Year-7.6%-8.3%3.1%0.2%9.1%6.7%
3 Year32.3%29.6%52.0%41.5%46.1%36.6%
5 Year70.3%64.7%69.7%51.2%66.9%48.6%

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 based on future cash flows and its price relative to the stock market?

12.66x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: WEBK ($30.97) is trading above our estimate of fair value ($10.88)

Significantly Undervalued: WEBK is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: WEBK is poor value based on its PE Ratio (12.7x) compared to the Banks industry average (12.5x).

PE vs Market: WEBK is good value based on its PE Ratio (12.7x) compared to the US market (17.5x).


Price Based on Expected Growth

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


Price Based on Value of Assets

PB vs Industry: WEBK is good value based on its PB Ratio (1.1x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

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

9.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: WEBK's forecast earnings growth (9.7% per year) is above the savings rate (2.7%).

Earnings vs Market: WEBK's earnings (9.7% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: Insufficient data to determine if WEBK's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if WEBK's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

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


Next Steps

Past Performance

How has Wellesley Bancorp performed over the past 5 years?

24.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: WEBK's earnings have grown significantly by 24.5% per year over the past 5 years.

Accelerating Growth: WEBK's earnings growth over the past year (40.6%) exceeds its 5-year average (24.5% per year).

Earnings vs Industry: WEBK earnings growth over the past year (40.6%) exceeded the Banks industry 31.8%.


Return on Equity

High ROE: WEBK's Return on Equity (8.5%) is considered low.


Return on Assets

ROA vs Industry: WEBK's Return on Assets is below or equal to the Banks industry average last year.


Return on Capital Employed

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


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 0.3x 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 (0.14%)


Next Steps

Dividend

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

0.77%

Current Dividend Yield


Dividend Yield vs Market

company0.8%marketbottom25%1.5%markettop25%3.8%industryaverage2.5%forecastin3Yearsn/a

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: WEBK's dividend (0.78%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: WEBK's dividend (0.78%) is low compared to the top 25% of dividend payers in the US market (3.77%).

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 .


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?

5.1yrs

Average management tenure


CEO

Tom Fontaine (55yo)

8.1yrs

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 ($USD728.39K) is about average for companies of similar size in the US market ($USD495.80K).

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


Management Age and Tenure

5.1yrs

Average Tenure

56.5yo

Average Age

Experienced Management: WEBK's management team is seasoned and experienced (5.1 years average tenure).


Board Age and Tenure

5.9yrs

Average Tenure

60yo

Average Age

Experienced Board: WEBK's board of directors are considered experienced (5.9 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

BuyUS$6,80814 Dec 18
Simon Gerlin
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares200
Max PriceUS$34.04
SellUS$60,66323 Nov 18
Thomas Fontaine
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares1,975
Max PriceUS$31.35
SellUS$80006 Nov 18
Thomas Fontaine
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares25
Max PriceUS$32.00
BuyUS$15,12506 Nov 18
Kathryn Hinderhofer
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares475
Max PriceUS$31.84

Ownership Breakdown


Management Team

  • Louis Crosier (52yo)

    President of Wellesley Investment Partners

    • Tenure: 5.1yrs
    • Compensation: US$405.32k
  • Mike Dvorak (58yo)

    CFO, COO

    • Tenure: 3.3yrs
    • Compensation: US$290.58k
  • Ralph Letner (59yo)

    Executive VP

    • Tenure: 5.4yrs
    • Compensation: US$379.85k
  • Tom Fontaine (55yo)

    Chairman

    • Tenure: 8.1yrs
    • Compensation: US$728.39k
  • Henry Connors

    Senior VP & Director of Deposit Operations - Wellesley Bank

    • Tenure: 0yrs
  • Jon Barnes

    VP & Commercial Lender of Wellesley Bank

    • Tenure: 0yrs
  • Wendy Bradley

    First Vice President of Retail Banking of Wellesley Bank

    • Tenure: 0yrs
  • Brian Lynch

    Senior VP & Residential Lender

    • Tenure: 0yrs
  • Greg Pauplis

    Senior VP & Team Leader of Commercial Lending - Wellesley Bank

    • Tenure: 0yrs
  • Maureen Sullivan

    Executive VP & Chief Client Experience Officer at Wellesley Bank

    • Tenure: 1.4yrs

Board Members

  • Jim Malerba (64yo)

    Director

    • Tenure: 0.4yrs
  • Simon Gerlin (61yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$37.05k
  • Tom Fontaine (55yo)

    Chairman

    • Tenure: 8.1yrs
    • Compensation: US$728.39k
  • Tina Wang (59yo)

    Independent Director

    • Tenure: 8.1yrs
    • Compensation: US$33.29k
  • Nancy Goodall (59yo)

    Independent Director

    • Tenure: 8.1yrs
    • Compensation: US$33.29k
  • Leslie Shea (74yo)

    Independent Director

    • Tenure: 8.1yrs
    • Compensation: US$34.09k
  • Kathy Hinderhofer (68yo)

    Independent Director

    • Tenure: 3.1yrs
    • Compensation: US$34.77k
  • Garry Holmes (55yo)

    Independent Director

    • Tenure: 1.4yrs
    • 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$76.291m
  • Shares outstanding: 2.46m
  • 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 ea ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 02:46
End of Day Share Price2019/10/11 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.

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