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

Fundamentals

Excellent balance sheet unattractive 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


Market Performance


7 Day Return

1.3%

WNEB

2.6%

US Mortgage

1.0%

US Market


1 Year Return

-6.1%

WNEB

18.4%

US Mortgage

8.0%

US Market

Return vs Industry: WNEB underperformed the US Mortgage industry which returned 18.4% over the past year.

Return vs Market: WNEB underperformed the US Market which returned 8% over the past year.


Shareholder returns

WNEBIndustryMarket
7 Day1.3%2.6%1.0%
30 Day-2.7%2.0%-0.07%
90 Day5.2%4.5%-1.0%
1 Year-4.2%-6.1%20.9%18.4%10.4%8.0%
3 Year23.9%18.2%42.3%32.6%46.2%36.7%
5 Year46.4%35.3%74.3%55.5%64.3%46.2%

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?

18.21x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WNEB ($9.55) is trading above our estimate of fair value ($2.68)

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 (18.2x) compared to the Mortgage industry average (14.3x).

PE vs Market: WNEB is poor value based on its PE Ratio (18.2x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

PEG Ratio: WNEB is poor value based on its PEG Ratio (5.8x)


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?

3.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WNEB's forecast earnings growth (3.2% per year) is above the savings rate (2.7%).

Earnings vs Market: WNEB's earnings (3.2% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: WNEB's revenue (0.6% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: WNEB's revenue (0.6% 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 WNEB's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

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

24.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: WNEB's earnings have grown significantly by 24.2% per year over the past 5 years.

Accelerating Growth: WNEB's earnings growth over the past year (19.1%) is below its 5-year average (24.2% per year).

Earnings vs Industry: WNEB earnings growth over the past year (19.1%) underperformed the Mortgage industry 30.7%.


Return on Equity

High ROE: WNEB's Return on Equity (6.3%) is considered low.


Return on Assets

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


Return on Capital Employed

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


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 low 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 (0.87%)


Next Steps

Dividend

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

2.09%

Current Dividend Yield


Dividend Yield vs Market

company2.1%marketbottom25%1.4%markettop25%3.7%industryaverage2.7%forecastin3Years2.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: WNEB's dividend (2.09%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: WNEB's dividend (2.09%) is low compared to the top 25% of dividend payers in the US market (3.68%).

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 (34.3%), WNEB's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

6.9yrs

Average management tenure


CEO

Jim Hagan (58yo)

10.8yrs

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 ($USD752.74K) is about average for companies of similar size in the US market ($USD1.18M).

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


Management Age and Tenure

6.9yrs

Average Tenure

57yo

Average Age

Experienced Management: WNEB's management team is seasoned and experienced (6.9 years average tenure).


Board Age and Tenure

5.4yrs

Average Tenure

60yo

Average Age

Experienced Board: WNEB's board of directors are considered experienced (5.4 years average tenure).


Insider Trading

Insider Buying: WNEB insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$99416 Sep 19
Laura Benoit
EntityIndividual
Role
Member of the Board of Directors
Director
Shares100
Max PriceUS$9.94
BuyUS$4,32528 Aug 19
Christos Tapases
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares500
Max PriceUS$8.65
SellUS$550,56519 Mar 19
William Wagner
EntityIndividual
Role
Vice Chairman
Senior VP
Shares55,600
Max PriceUS$9.95
SellUS$17,61419 Mar 19
William Wagner
EntityIndividual
Role
Vice Chairman
Senior VP
Shares1,772
Max PriceUS$9.94
SellUS$20,52413 Mar 19
Allen Miles
EntityIndividual
Role
Senior Key Executive
Executive VP & Senior Lender
Shares1,904
Max PriceUS$10.95
BuyUS$9,85026 Feb 19
Lisa McMahon
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$9.85
SellUS$1,14009 Nov 18
Allen Miles
EntityIndividual
Role
Senior Key Executive
Executive VP & Senior Lender
Shares114
Max PriceUS$10.00
BuyUS$4,92508 Nov 18
Christos Tapases
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares500
Max PriceUS$9.85
BuyUS$41,16630 Oct 18
Philip Smith
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,000
Max PriceUS$10.29

Ownership Breakdown


Management Team

  • Jim Hagan (58yo)

    President

    • Tenure: 10.8yrs
    • Compensation: US$752.74k
  • Debbie McCarthy (60yo)

    SVP & Manager of the Deposit Operations Department and Electronic Banking Departments

    • Tenure: 18.8yrs
    • Compensation: US$197.52k
  • Leo Sagan (56yo)

    Senior VP & Chief Risk Officer

    • Tenure: 2.5yrs
    • Compensation: US$422.86k
  • Gerald Ciejka (58yo)

    SVP, General Counsel & Director of HR

    • Tenure: 0yrs
    • Compensation: US$423.63k
  • Bill Wagner (73yo)

    Senior VP

    • Tenure: 3yrs
    • Compensation: US$382.52k
  • Allen Miles (56yo)

    Executive VP & Senior Lender

    • Tenure: 14.2yrs
    • Compensation: US$388.09k
  • Teri Szlosek

    Corporate Secretary & Administrative Officer

    • Tenure: 0yrs
  • Guida Sajdak (46yo)

    CFO, Executive VP & Treasurer

    • Tenure: 2.5yrs
    • Compensation: US$314.05k
  • Darlene Libiszewski (53yo)

    Senior VP & Chief Information Officer

    • Tenure: 3yrs
  • Meghan Hibner

    Vice President

    • Tenure: 0yrs

Board Members

  • Jim Hagan (58yo)

    President

    • Tenure: 10.8yrs
    • Compensation: US$752.74k
  • Gary Fitzgerald (53yo)

    Director

    • Tenure: 3yrs
    • Compensation: US$38.40k
  • Philip Smith (63yo)

    Independent Director

    • Tenure: 10.4yrs
    • Compensation: US$50.64k
  • Steven Richter (63yo)

    Independent Director

    • Tenure: 8.4yrs
    • Compensation: US$36.40k
  • Bill Wagner (73yo)

    Senior VP

    • Tenure: 3yrs
    • Compensation: US$382.52k
  • Gregg Orlen (70yo)

    Director

    • Tenure: 3yrs
    • Compensation: US$33.90k
  • Donna Damon (60yo)

    Independent Director

    • Tenure: 8.4yrs
    • Compensation: US$37.90k
  • Chris Tapases (59yo)

    Chairman of the Board

    • Tenure: 1.4yrs
    • Compensation: US$66.34k
  • Laura Benoit (52yo)

    Director

    • Tenure: 5.4yrs
    • Compensation: US$36.80k
  • Lisa McMahon (60yo)

    Independent Director

    • Tenure: 5.4yrs
    • Compensation: US$37.80k

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$247.150m
  • Shares outstanding: 25.88m
  • 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

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 var ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 23:59
End of Day Share Price2019/10/21 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.