NasdaqGS:WNEB

Stock Analysis Report

Western New England Bancorp

Executive Summary

Western New England Bancorp, Inc. operates as the holding company for Westfield Bank that provides commercial and retail banking products and services to individuals and businesses.


Snowflake Analysis

Flawless balance sheet second-rate dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

1.2%

WNEB

-1.9%

US Mortgage

0.06%

US Market


1 Year Return

-5.5%

WNEB

5.7%

US Mortgage

19.4%

US Market

Return vs Industry: WNEB underperformed the US Mortgage industry which returned 5.7% over the past year.

Return vs Market: WNEB underperformed the US Market which returned 19.4% over the past year.


Shareholder returns

WNEBIndustryMarket
7 Day1.2%-1.9%0.06%
30 Day0.6%-1.8%1.1%
90 Day-3.7%-1.8%8.9%
1 Year-3.5%-5.5%8.2%5.7%21.9%19.4%
3 Year2.2%-2.9%19.0%10.6%48.9%39.3%
5 Year41.5%30.5%60.2%42.4%71.9%53.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Western New England Bancorp undervalued compared to its fair value and its price relative to the market?

18.48x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WNEB ($9.42) is trading above our estimate of fair value ($6.61)

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


Price To Earnings Ratio

PE vs Industry: WNEB is poor value based on its PE Ratio (18.5x) compared to the Mortgage industry average (13.7x).

PE vs Market: WNEB is poor value based on its PE Ratio (18.5x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: WNEB is poor value based on its PEG Ratio (2.8x)


Price to Book Ratio

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


Next Steps

Future Growth

How is Western New England Bancorp forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

6.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WNEB's forecast earnings growth (6.5% per year) is above the savings rate (1.7%).

Earnings vs Market: WNEB's earnings (6.5% per year) are forecast to grow slower than the US market (14.2% per year).

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

Revenue vs Market: WNEB's revenue (1.1% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: WNEB's revenue (1.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WNEB's Return on Equity is forecast to be low in 3 years time (7%).


Next Steps

Past Performance

How has Western New England Bancorp performed over the past 5 years?

23.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WNEB has high quality earnings.

Growing Profit Margin: WNEB's current net profit margins (20.5%) are lower than last year (24.6%).


Past Earnings Growth Analysis

Earnings Trend: WNEB's earnings have grown significantly by 23.6% per year over the past 5 years.

Accelerating Growth: WNEB's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: WNEB had negative earnings growth (-18.6%) over the past year, making it difficult to compare to the Mortgage industry average (11.1%).


Return on Equity

High ROE: WNEB's Return on Equity (5.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Western New England 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: WNEB has a low level of unsold assets or inventory.

Debt Coverage by Assets: WNEB's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

Asset Level: WNEB's level of assets compared to its equity is low.

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

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

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

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

Level of Bad Loans: WNEB has an appropriate level of bad loans (0.56%)


Next Steps

Dividend

What is Western New England Bancorp's current dividend yield, its reliability and sustainability?

2.12%

Current Dividend Yield


Dividend Yield vs Market

company2.1%marketbottom25%1.4%markettop25%3.7%industryaverage2.9%forecastin3Years2.2%

Current dividend yield vs market & industry

Notable Dividend: WNEB's dividend (2.12%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: WNEB's dividend (2.12%) is low compared to the top 25% of dividend payers in the US market (3.7%).


Stability and Growth of Payments

Stable Dividend: WNEB's dividend payments have been volatile in the past 10 years.

Growing Dividend: WNEB's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (39.2%), WNEB's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WNEB's dividends in 3 years are forecast to be well covered by earnings (35.7% payout ratio).


Next Steps

Management

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

7.3yrs

Average management tenure


CEO

Jim Hagan (58yo)

11.2yrs

Tenure

US$752,738

Compensation

Mr. James C. Hagan, also known as Jim, has been the Chief Executive Officer of Western New England Bancorp, Inc. (formerly Westfield Financial Inc.) and Westfield Bank since December 31, 2008. Mr. Hagan ha ...


CEO Compensation Analysis

Compensation vs Market: Jim's total compensation ($USD752.74K) is below average for companies of similar size in the US market ($USD1.11M).

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


Leadership Team

NamePositionTenureCompensationOwnership
James Hagan
President11.2yrsUS$752.74k0.72% $1.8m
William Wagner
Senior VP & Vice Chairman3.3yrsUS$382.52k1.08% $2.7m
Allen Miles
Executive VP & Senior Lender14.5yrsUS$388.09k0.15% $366.8k
Guida Sajdak
CFO, Executive VP & Treasurer2.8yrsUS$314.05k0.058% $142.5k
Darlene Libiszewski
Senior VP & Chief Information Officer3.3yrsno data0.11% $268.0k
Theresa Szlosek
Corporate Secretary & Administrative Officer0yrsno datano data
Meghan Hibner
Vice President0yrsno datano data
Gerald Ciejka
SVP, General Counsel & Director of HR0yrsUS$423.63k0.18% $442.8k
Deborah McCarthy
SVP & Manager of the Deposit Operations Department and Electronic Banking Departments19.1yrsUS$197.52k0.24% $600.4k
Leo Sagan
Senior VP & Chief Risk Officer2.8yrsUS$422.86k0.28% $689.3k

7.3yrs

Average Tenure

57yo

Average Age

Experienced Management: WNEB's management team is seasoned and experienced (7.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
James Hagan
President11.2yrsUS$752.74k0.72% $1.8m
William Wagner
Senior VP & Vice Chairman3.3yrsUS$382.52k1.08% $2.7m
Gary Fitzgerald
Independent Director3.3yrsUS$38.40k0.042% $102.0k
Philip Smith
Independent Director10.8yrsUS$50.64k0.14% $353.8k
Steven Richter
Independent Director8.8yrsUS$36.40k0.11% $281.9k
Gregg Orlen
Independent Director3.3yrsUS$33.90k0.20% $485.5k
Donna Damon
Independent Director8.8yrsUS$37.90k0.12% $287.0k
Christos Tapases
Chairman of the Board1.8yrsUS$66.34k0.084% $207.1k
Laura Benoit
Independent Director5.8yrsUS$36.80k0.083% $203.7k
Lisa McMahon
Independent Director5.8yrsUS$37.80k0.082% $202.5k

5.8yrs

Average Tenure

60yo

Average Age

Experienced Board: WNEB's board of directors are considered experienced (5.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: WNEB insiders have sold more shares than they have bought 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

Western New England Bancorp, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Western New England Bancorp, Inc.
  • Ticker: WNEB
  • Exchange: NasdaqGS
  • Founded: 1853
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Market Cap: US$245.549m
  • Shares outstanding: 26.12m
  • Website: https://www.westfieldbank.com

Number of Employees


Location

  • Western New England Bancorp, Inc.
  • 141 Elm Street
  • Westfield
  • Massachusetts
  • 1085
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WNEBNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDDec 2001
489DB (Deutsche Boerse AG)YesCommon StockDEEURDec 2001

Biography

Western New England Bancorp, Inc. operates as the holding company for Westfield Bank that provides commercial and retail banking products and services to individuals and businesses. The company accepts various deposit accounts, including checking, savings, business and municipal savings, money market and business sweep, and individual retirement accounts; time deposits; term certificates of deposit; and interest on lawyers trust accounts. It also offers commercial real estate loans secured by one-to-four and multi-family apartment buildings, office, industrial, or mixed-use facilities, or other commercial properties; commercial construction loans; commercial and industrial loans, such as revolving lines of credit, working capital loans, equipment financing and term loans; residential real estate loans secured by one-to-four family residential properties; home equity loans; and consumer loans. In addition, the company provides automated teller machines (ATM), telephone and online banking, remote deposit capture, cash management services, overdraft facilities, night deposit services, and safe deposit facilities. It operates a network of 22 banking offices, 24 free-standing ATMs, and 24 seasonal or temporary ATMS located in Agawam, Chicopee, Feeding Hills, East Longmeadow, Holyoke, Ludlow, South Hadley, Southwick, Springfield, Ware, West Springfield and Westfield, Massachusetts and Granby and Enfield, Connecticut. The company was formerly known as Westfield Financial, Inc. and changed its name to Western New England Bancorp, Inc. in October 2016. Western New England Bancorp, Inc. was founded in 1853 and is headquartered in Westfield, Massachusetts. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 00:34
End of Day Share Price2020/02/18 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.