NasdaqGS:WSBF

Stock Analysis Report

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Executive Summary

Waterstone Financial, Inc. operates as a bank holding company for WaterStone Bank SSB that provides various financial services to customers in southeastern Wisconsin, the United States.


Snowflake Analysis

Flawless balance sheet with solid track record.


Similar Companies

Share Price & News

How has Waterstone Financial's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

3.3%

WSBF

12.9%

US Mortgage

1.2%

US Market


1 Year Return

-4.7%

WSBF

-16.2%

US Mortgage

16.8%

US Market

Return vs Industry: WSBF exceeded the US Mortgage industry which returned -16.2% over the past year.

Return vs Market: WSBF underperformed the US Market which returned 16.8% over the past year.


Shareholder returns

WSBFIndustryMarket
7 Day3.3%12.9%1.2%
30 Day15.0%-1.4%4.9%
90 Day26.8%45.3%20.0%
1 Year1.5%-4.7%-14.0%-16.2%19.3%16.8%
3 Year7.0%-10.5%-1.3%-8.3%43.7%34.4%
5 Year55.0%21.5%10.3%-1.8%75.5%56.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Waterstone Financial undervalued compared to its fair value and its price relative to the market?

8.58x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WSBF ($15.85) is trading above our estimate of fair value ($11.83)

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


Price To Earnings Ratio

PE vs Industry: WSBF is good value based on its PE Ratio (8.6x) compared to the US Mortgage industry average (11.3x).

PE vs Market: WSBF is good value based on its PE Ratio (8.6x) compared to the US market (19.2x).


Price to Earnings Growth Ratio

PEG Ratio: WSBF's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: WSBF is overvalued based on its PB Ratio (1x) compared to the US Mortgage industry average (0.8x).


Next Steps

Future Growth

How is Waterstone Financial forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

-37.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WSBF's earnings are forecast to decline over the next 3 years (-37.4% per year).

Earnings vs Market: WSBF's earnings are forecast to decline over the next 3 years (-37.4% per year).

High Growth Earnings: WSBF's earnings are forecast to decline over the next 3 years.

Revenue vs Market: WSBF's revenue is expected to decline over the next 3 years (-8.7% per year).

High Growth Revenue: WSBF's revenue is forecast to decline over the next 3 years (-8.7% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Waterstone Financial performed over the past 5 years?

16.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WSBF has high quality earnings.

Growing Profit Margin: WSBF's current net profit margins (21.6%) are higher than last year (17.7%).


Past Earnings Growth Analysis

Earnings Trend: WSBF's earnings have grown by 16.7% per year over the past 5 years.

Accelerating Growth: WSBF's earnings growth over the past year (52.8%) exceeds its 5-year average (16.7% per year).

Earnings vs Industry: WSBF earnings growth over the past year (52.8%) exceeded the Mortgage industry 7.6%.


Return on Equity

High ROE: WSBF's Return on Equity (12.1%) is considered low.


Next Steps

Financial Health

How is Waterstone Financial'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


Financial Institutions Analysis

Asset Level: WSBF's Assets to Equity ratio (5.8x) is low.

Allowance for Bad Loans: WSBF has a sufficient allowance for bad loans (320%).

Low Risk Liabilities: 63% of WSBF's liabilities are made up of primarily low risk sources of funding.

Loan Level: WSBF has an appropriate level of Loans to Assets ratio (64%).

Low Risk Deposits: WSBF's Loans to Deposits ratio (122%) is appropriate.

Level of Bad Loans: WSBF has an appropriate level of bad loans (0.4%).


Next Steps

Dividend

What is Waterstone Financial current dividend yield, its reliability and sustainability?

6.18%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WSBF's dividend (6.18%) is higher than the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: WSBF's dividend (6.18%) is in the top 25% of dividend payers in the US market (4.29%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, WSBF has been paying a dividend for less than 10 years.

Growing Dividend: WSBF's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (26%), WSBF'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

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

5.8yrs

Average management tenure


CEO

Doug Gordon (62 yo)

13.58yrs

Tenure

US$1,219,674

Compensation

Mr. Douglas S. Gordon, also known as Doug, has been the Chief Executive Officer and President of Waterstone Financial Inc. (also known as Wauwatosa Holdings Inc.), since January 1, 2007. He has been the Ch ...


CEO Compensation Analysis

Compensation vs Market: Doug's total compensation ($USD1.22M) is below average for companies of similar size in the US market ($USD2.02M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Douglas Gordon
President13.58yrsUS$1.22m2.45%
$ 9.5m
Mark Gerke
Executive VP4.5yrsUS$311.39k0.23%
$ 891.2k
William Bruss
Executive VP7.17yrsUS$472.88k0.35%
$ 1.3m
Kyle Mertz
Controller4.17yrsno datano data

5.8yrs

Average Tenure

50yo

Average Age

Experienced Management: WSBF's management team is seasoned and experienced (5.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Douglas Gordon
President13.58yrsUS$1.22m2.45%
$ 9.5m
Patrick Lawton
Independent Chairman of the Board13.58yrsUS$30.00k1.07%
$ 4.1m
Thomas Dalum
Independent Director15.58yrsUS$18.00k0.51%
$ 2.0m
Kristine Rappé
Independent Director6.58yrsUS$18.00k0.17%
$ 654.9k
Stephen Schmidt
Independent Director15.58yrsUS$18.00k0.29%
$ 1.1m
Michael Hansen
Independent Director15.58yrsUS$24.00k1.09%
$ 4.2m
Ellen Bartel
Independent Director6.58yrsUS$18.00k0.070%
$ 272.8k

14.8yrs

Average Tenure

63yo

Average Age

Experienced Board: WSBF's board of directors are seasoned and experienced ( 14.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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

Waterstone Financial, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Waterstone Financial, Inc.
  • Ticker: WSBF
  • Exchange: NasdaqGS
  • Founded: 1921
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Market Cap: US$387.240m
  • Shares outstanding: 24.43m
  • Website: https://www.wsbonline.com

Number of Employees


Location

  • Waterstone Financial, Inc.
  • 11200 West Plank Court
  • Wauwatosa
  • Wisconsin
  • 53226
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WSBFNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDOct 2005
47ZDB (Deutsche Boerse AG)YesCommon StockDEEUROct 2005

Biography

Waterstone Financial, Inc. operates as a bank holding company for WaterStone Bank SSB that provides various financial services to customers in southeastern Wisconsin, the United States. It operates through ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/12 00:05
End of Day Share Price2020/08/11 00:00
Earnings2020/06/30
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.