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Waterstone Financial

Nasdaq:WSBF
Snowflake Description

Excellent balance sheet second-rate dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
WSBF
Nasdaq
$471M
Market Cap
  1. Home
  2. US
  3. Banks
Company description

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. The last earnings update was 74 days ago. More info.


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WSBF Share Price and Events
7 Day Returns
-0.9%
NasdaqGS:WSBF
0.4%
US Mortgage
0.8%
US Market
1 Year Returns
-1.8%
NasdaqGS:WSBF
5.3%
US Mortgage
4.8%
US Market
WSBF Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Waterstone Financial (WSBF) -0.9% 0.4% 3.2% -1.8% 7.1% 48.8%
US Mortgage 0.4% 3.3% 2.7% 5.3% 34.6% 46.8%
US Market 0.8% 4.3% 2.8% 4.8% 37.9% 43.5%
1 Year Return vs Industry and Market
  • WSBF underperformed the Mortgage industry which returned 5.3% over the past year.
  • WSBF underperformed the Market in United States of America which returned 4.8% over the past year.
Price Volatility
WSBF
Industry
5yr Volatility vs Market

WSBF Value

 Is Waterstone Financial 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 Waterstone Financial 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 Waterstone Financial.

NasdaqGS:WSBF 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
= $14.84 * 6.6%
$0.99
Book Value of Equity per Share Median Book Value from the past 5 years. $14.84
Discount Rate (Cost of Equity) See below 10.8%
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 NasdaqGS:WSBF
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Mortgage Unlevered Beta Simply Wall St/ S&P Global 0.87
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.869 (1 + (1- 21%) (97.46%))
1.361
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.36
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.361 * 5.96%)
10.84%

Discounted Cash Flow Calculation for NasdaqGS:WSBF using Excess Returns Model Model

The calculations below outline how an intrinsic value for Waterstone Financial 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.

NasdaqGS:WSBF Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (6.6% – 10.84%) * $14.84)
$-0.62
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $-0.62 / (10.84% - 2.73%)
$-7.68
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $14.84 + $-7.68
$7.16
NasdaqGS:WSBF Discount to Share Price
Calculation Result
Value per share (USD) From above. $7.16
Current discount Discount to share price of $16.84
= -1 x ($16.84 - $7.16) / $7.16
-135.2%

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

  • The current share price of Waterstone Financial 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 Waterstone Financial's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Waterstone Financial's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:WSBF PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $1.12
NasdaqGS:WSBF Share Price ** NasdaqGS (2019-07-15) in USD $16.84
United States of America Mortgage Industry PE Ratio Median Figure of 129 Publicly-Listed Mortgage Companies 14.36x
United States of America Market PE Ratio Median Figure of 3,084 Publicly-Listed Companies 18.01x

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

** Primary Listing of Waterstone Financial.

NasdaqGS:WSBF PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:WSBF Share Price ÷ EPS (both in USD)

= 16.84 ÷ 1.12

15.05x

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

  • Waterstone Financial is overvalued based on earnings compared to the US Mortgage industry average.
  • Waterstone Financial is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Waterstone Financial's expected growth come at a high price?
Raw Data
NasdaqGS:WSBF PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 15.05x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts
-1.2%per year
United States of America Mortgage Industry PEG Ratio Median Figure of 50 Publicly-Listed Mortgage Companies 1.45x
United States of America Market PEG Ratio Median Figure of 2,124 Publicly-Listed Companies 1.59x

*Line of best fit is calculated by linear regression .

NasdaqGS:WSBF PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 15.05x ÷ -1.2%

-12.61x

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

  • Waterstone Financial earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Waterstone Financial's assets?
Raw Data
NasdaqGS:WSBF PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $14.55
NasdaqGS:WSBF Share Price * NasdaqGS (2019-07-15) in USD $16.84
United States of America Mortgage Industry PB Ratio Median Figure of 145 Publicly-Listed Mortgage Companies 1.13x
United States of America Market PB Ratio Median Figure of 5,240 Publicly-Listed Companies 1.81x
NasdaqGS:WSBF PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:WSBF Share Price ÷ Book Value per Share (both in USD)

= 16.84 ÷ 14.55

1.16x

* Primary Listing of Waterstone Financial.

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

  • Waterstone Financial is overvalued based on assets compared to the US Mortgage industry average.
X
Value checks
We assess Waterstone Financial'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 Mortgage 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 Mortgage industry average (and greater than 0)? (1 check)
  5. Waterstone Financial 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.

WSBF Future Performance

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

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
-1.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Waterstone Financial expected to grow at an attractive rate?
  • Waterstone Financial's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Waterstone Financial's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.
  • Waterstone Financial's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:WSBF Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:WSBF Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts -1.2%
NasdaqGS:WSBF Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 1 Analysts 1.9%
United States of America Mortgage Industry Earnings Growth Rate Market Cap Weighted Average 10.6%
United States of America Mortgage Industry Revenue Growth Rate Market Cap Weighted Average 4.5%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.1%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.5%

*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
NasdaqGS:WSBF Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:WSBF Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 178 30 1
2019-12-31 177 29 1
NasdaqGS:WSBF Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 172 41 30
2018-12-31 173 43 31
2018-09-30 176 10 28
2018-06-30 174 80 27
2018-03-31 176 22 26
2017-12-31 176 107 26
2017-09-30 178 86 29
2017-06-30 180 50 29
2017-03-31 177 25 28
2016-12-31 169 -24 26
2016-09-30 158 -57 22
2016-06-30 148 20 20

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Waterstone Financial's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Waterstone Financial's revenue is expected to grow by 1.9% yearly, however this is not considered high growth (20% yearly).
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
NasdaqGS:WSBF Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below

All data from Waterstone Financial Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:WSBF Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31 1.15 1.15 1.15 1.00
2019-12-31 1.11 1.11 1.11 1.00
NasdaqGS:WSBF Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 1.12
2018-12-31 1.12
2018-09-30 1.03
2018-06-30 0.98
2018-03-31 0.96
2017-12-31 0.95
2017-09-30 1.07
2017-06-30 1.08
2017-03-31 1.04
2016-12-31 0.94
2016-09-30 0.82
2016-06-30 0.74

*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 Waterstone Financial will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Waterstone Financial'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.
Waterstone Financial has a total score of 0/6, 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.

WSBF Past Performance

  How has Waterstone Financial 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 Waterstone Financial's growth in the last year to its industry (Mortgage).
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.
  • Waterstone Financial has delivered over 20% year on year earnings growth in the past 5 years.
  • Waterstone Financial's 1-year earnings growth is less than its 5-year average (15.2% vs 20.3%)
  • Waterstone Financial's earnings growth has not exceeded the US Mortgage industry average in the past year (15.2% vs 39.9%).
Earnings and Revenue History
Waterstone Financial'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 Waterstone Financial Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:WSBF Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 172.11 30.34 119.47
2018-12-31 173.44 30.75 119.49
2018-09-30 175.84 28.19 119.51
2018-06-30 174.03 26.88 117.43
2018-03-31 176.47 26.35 118.61
2017-12-31 176.31 25.96 117.25
2017-09-30 177.90 29.25 117.49
2017-06-30 180.43 29.36 118.35
2017-03-31 177.25 28.23 115.91
2016-12-31 169.43 25.52 113.26
2016-09-30 158.38 22.19 108.27
2016-06-30 147.66 20.00 102.10
2016-03-31 141.44 17.44 99.68
2015-12-31 141.35 16.55 100.11
2015-09-30 139.51 15.79 99.17
2015-06-30 136.13 15.24 96.20
2015-03-31 129.36 13.80 91.47
2014-12-31 124.73 12.71 88.82
2014-09-30 120.56 12.34 86.29
2014-06-30 115.66 10.79 84.46
2014-03-31 117.56 11.94 85.49
2013-12-31 122.47 14.67 86.03
2013-09-30 130.69 30.76 89.58
2013-06-30 137.49 35.97 90.08
2013-03-31 134.51 37.21 84.52
2012-12-31 124.85 34.80 78.03
2012-09-30 108.75 11.64 68.57

*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.
  • Waterstone Financial has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Waterstone Financial used its assets more efficiently than the US Mortgage industry average last year based on Return on Assets.
  • Unable to establish if Waterstone Financial 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 Waterstone Financial'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 Mortgage 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.
Waterstone Financial has a total score of 2/6, 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.

WSBF Health

 How is Waterstone Financial'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 Waterstone Financial'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 Waterstone Financial Company Filings, last reported 3 months ago.

NasdaqGS:WSBF Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 384.47 449.46 107.97
2018-12-31 399.68 436.16 88.12
2018-09-30 404.64 451.13 62.57
2018-06-30 403.74 432.92 81.33
2018-03-31 397.42 434.68 87.44
2017-12-31 412.10 386.29 51.59
2017-09-30 411.93 435.50 96.39
2017-06-30 408.01 498.10 134.69
2017-03-31 415.06 335.86 80.44
2016-12-31 410.69 387.22 51.85
2016-09-30 409.56 378.84 60.21
2016-06-30 400.58 417.66 89.68
2016-03-31 393.43 397.42 128.98
2015-12-31 391.93 441.20 105.48
2015-09-30 390.59 435.47 140.44
2015-06-30 401.44 444.00 60.40
2015-03-31 449.32 435.30 151.15
2014-12-31 450.24 434.65 180.36
2014-09-30 448.51 434.25 149.73
2014-06-30 458.01 456.49 123.00
2014-03-31 466.52 444.06 239.11
2013-12-31 214.47 455.20 437.73
2013-09-30 212.83 472.77 85.75
2013-06-30 209.35 490.05 67.98
2013-03-31 207.11 479.45 72.90
2012-12-31 202.63 480.14 79.06
2012-09-30 184.81 491.62 89.95
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.
  • Waterstone Financial has an acceptable proportion of non-loan assets held.
  • Waterstone Financial's liabilities are made up of primarily low risk sources of funding.
  • Waterstone Financial has advanced significantly more loans than the customer deposits it holds (i.e. bank has borrowed additional funds to lend).
  • Waterstone Financial's level of assets compared to its equity is low (i.e. an appropriate level of borrowing to fund lending).
  • Waterstone Financial has a sufficient allowance for bad loans.
  • Waterstone Financial has an acceptable level of bad loans (less than 2%).
X
Financial health checks
We assess Waterstone Financial'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. Waterstone Financial has a total score of 5/6, 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.

WSBF Dividends

 What is Waterstone Financial'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
5.82%
Current annual income from Waterstone Financial dividends. Estimated to be 6.06% next year.
If you bought $2,000 of Waterstone Financial shares you are expected to receive $116 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?
  • Waterstone Financial's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.41%).
  • Waterstone Financial's dividend is above the markets top 25% of dividend payers in United States of America (3.71%).
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
NasdaqGS:WSBF 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 1 Analyst Estimates (S&P Global) See Below
United States of America Mortgage Industry Average Dividend Yield Market Cap Weighted Average of 95 Stocks 3.1%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2018 Stocks 2.4%
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.

NasdaqGS:WSBF Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2020-12-31 1.06 1.00
2019-12-31 0.98 1.00
NasdaqGS:WSBF Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-06-18 0.980 5.790
2019-03-12 0.980 5.922
2018-12-21 0.980 5.907
2018-09-18 0.980 5.883
2018-06-19 0.980 5.715
2018-02-20 0.980 5.621
2017-12-21 0.480 2.774
2017-09-20 0.480 2.542
2017-04-19 0.480 2.577
2017-03-21 0.480 2.665
2016-12-23 0.480 2.620
2016-09-20 0.320 1.833
2016-06-21 0.320 1.991
2016-03-15 0.200 1.419
2015-12-18 0.200 1.449
2015-09-24 0.200 1.472
2015-06-24 0.200 1.532
2015-03-18 0.200 1.544
2014-12-22 0.200 1.551
2014-09-24 0.200 1.650
2014-06-19 0.200 1.750
2014-03-18 0.200 1.891

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

  • Whilst dividend payments have been stable, Waterstone Financial has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Waterstone Financial only paid a dividend in the past 5 years.
Current Payout to shareholders
What portion of Waterstone Financial's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.3x coverage).
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 Waterstone Financial'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 Waterstone Financial afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Waterstone Financial has a total score of 3/6, see the detailed checks below.


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

WSBF Management

 What is the CEO of Waterstone Financial'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
Doug Gordon
COMPENSATION $987,899
AGE 61
TENURE AS CEO 12.5 years
CEO Bio

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 Chief Executive Officer and President of Waterstone Bank, SSB (also known as Wauwatosa Savings Bank), a subsidiary of Wauwatosa Holdings, Inc. since January 1, 2007 and since November 7, 2005 respectively. He served as the Chief Executive Officer and President of Lamplighter Financial, MHC, the holding company of Wauwatosa Holdings, Inc. since January 1, 2007. He served as the Chief Operating officer of Waterstone Financial, Inc. from April 2006 to December 31, 2006. He served as the Chief Operating Officer of Wauwatosa Holdings, Inc. from April 2006 to December 31, 2006. He served as the Chief Operating Officer of Waterstone Bank, SSB from November 7, 2005 to December 31, 2006. He served as an Executive Vice President and Chief Lending Officer of Security Bank S.S.B. ( "Bank") a subsidiary of Security Capital Corporation, which is acquired by Marshall & Ilsley Corporation in 1997. He served as Senior Vice President of M&I Marshall & Ilsley Bank until his retirement from M&I in 1999. He has subsequently been managing real estate investments. Mr. Gordon has over 20 years in the financial institutions industry, including 15 years with Security Bank. He serves as a Director of Lamplighter Financial, MHC. He has been Director of Waterstone Financial, Inc. (also known as Wauwatosa Holdings, Inc) since October 25, 2005 and WaterStone Bank SSB since 2005. Mr. Gordon brings extensive prior banking experience as an executive officer at M&I Bank and at Security Savings Bank. He holds B.A. from the University of Wisconsin - Parkside and an M.B.A. from Marquette University.

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

Average tenure and age of the Waterstone Financial management team in years:

3.3
Average Tenure
54
Average Age
  • The tenure for the Waterstone Financial management team is about average.
Management Team

Doug Gordon

TITLE
President
COMPENSATION
$988K
AGE
61
TENURE
12.5 yrs

Mark Gerke

TITLE
Senior VP
COMPENSATION
$254K
AGE
44
TENURE
3.4 yrs

Bill Bruss

TITLE
Executive VP
COMPENSATION
$383K
AGE
49
TENURE
6.1 yrs

Julie Glynn

TITLE
Senior VP & Director of Retail Banking of WaterStone Bank
COMPENSATION
$289K
AGE
54
TENURE
1.3 yrs

Kyle Mertz

TITLE
Controller
TENURE
3.1 yrs

A.W. Pickel

TITLE
Chief Executive Officer of Waterstone Mortgage Corporation
AGE
62
TENURE
0.8 yrs
Board of Directors Tenure

Average tenure and age of the Waterstone Financial board of directors in years:

13.8
Average Tenure
62
Average Age
  • The average tenure for the Waterstone Financial board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Patrick Lawton

TITLE
Chairman of the Board
COMPENSATION
$30K
AGE
62
TENURE
12.5 yrs

Doug Gordon

TITLE
President
COMPENSATION
$988K
AGE
61
TENURE
13.8 yrs

Ellen Bartel

TITLE
Director
COMPENSATION
$18K
AGE
64
TENURE
5.5 yrs

Kris Rappé

TITLE
Director
COMPENSATION
$18K
AGE
62
TENURE
5.5 yrs

Tom Dalum

TITLE
Director
COMPENSATION
$18K
AGE
78
TENURE
14.5 yrs

Michael Hansen

TITLE
Director
COMPENSATION
$24K
AGE
68
TENURE
14.5 yrs

Stephen Schmidt

TITLE
Director
COMPENSATION
$18K
AGE
57
TENURE
14.5 yrs
Who owns this company?
Recent Insider Trading
  • Waterstone Financial individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
05. Jun 19 Sell William Bruss Individual 03. Jun 19 03. Jun 19 -2,250 $16.60 $-37,350
28. May 19 Sell Ellen Bartel Individual 23. May 19 24. May 19 -7,000 $16.62 $-115,891
18. Dec 18 Sell Eric Egenhoefer Individual 14. Dec 18 14. Dec 18 -15,420 $16.30 $-249,243
17. Dec 18 Sell Eric Egenhoefer Individual 11. Dec 18 11. Dec 18 -6 $16.50 $-99
04. Dec 18 Sell William Bruss Individual 30. Nov 18 30. Nov 18 -1,200 $16.85 $-20,220
12. Sep 18 Sell Ellen Bartel Individual 11. Sep 18 11. Sep 18 -7,734 $17.02 $-131,565
20. Aug 18 Sell William Bruss Individual 16. Aug 18 17. Aug 18 -3,000 $17.00 $-51,000
X
Management checks
We assess Waterstone Financial'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. Waterstone Financial 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.

WSBF News

Simply Wall St News

Despite Its High P/E Ratio, Is Waterstone Financial, Inc. (NASDAQ:WSBF) Still Undervalued?

See our latest analysis for Waterstone Financial How Do I Calculate A Price To Earnings Ratio? … The formula for P/E is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Waterstone Financial: P/E of 15.2 = $17.01 ÷ $1.12 (Based on the trailing twelve months to March 2019.) Is A High Price-to-Earnings Ratio Good? … The Verdict On Waterstone Financial's P/E Ratio Waterstone Financial has a P/E of 15.2.

Simply Wall St -

Do Institutions Own Waterstone Financial, Inc. (NASDAQ:WSBF) Shares?

As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.' Waterstone Financial is a smaller company with a market capitalization of US$437m, so it may still be flying under the radar of many institutional investors. … Our analysis of the ownership of the company, below, shows that institutions own shares in the company. … Check out our latest analysis for Waterstone Financial NasdaqGS:WSBF Ownership Summary, May 22nd 2019 What Does The Institutional Ownership Tell Us About Waterstone Financial?

Simply Wall St -

What To Know Before Buying Waterstone Financial, Inc. (NASDAQ:WSBF) For Its Dividend

(NASDAQ:WSBF) a good dividend stock? … Yet sometimes, investors buy a stock for its dividend and lose money because the share price falls by more than they earned in dividend payments. … In this case, Waterstone Financial likely looks attractive to dividend investors, given its 5.9% dividend yield and five-year payment history.

Simply Wall St -

Should You Worry About Waterstone Financial, Inc.'s (NASDAQ:WSBF) CEO Pay Cheque?

This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … How Does Doug Gordon's Compensation Compare With Similar Sized Companies. … is worth US$427m, and total annual CEO compensation is US$988k.

Simply Wall St -

Why Waterstone Financial, Inc.'s (NASDAQ:WSBF) High P/E Ratio Isn't Necessarily A Bad Thing

We'll look at Waterstone Financial, Inc.'s (NASDAQ:WSBF) P/E ratio and reflect on what it tells us about the company's share price. … Waterstone Financial has a P/E ratio of 14.72, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Waterstone Financial, Inc. (NASDAQ:WSBF): 4 Days To Buy Before The Ex-Dividend Date

Have you been keeping an eye on Waterstone Financial, Inc.'s (NASDAQ:WSBF) upcoming dividend of US$0.50 per share payable on the 02 April 2019? … Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I examine Waterstone Financial's latest financial data to analyse its dividend characteristics. … 5 checks you should use to assess a dividend stock?

Simply Wall St -

The Waterstone Financial Share Price Has Gained 60% And Shareholders Are Hoping For More

To wit, the Waterstone Financial share price has climbed 60% in five years, easily topping the market return of 40% (ignoring dividends). … During five years of share price growth, Waterstone Financial achieved compound earnings per share (EPS) growth of 21% per year. … This EPS growth is higher than the 9.9% average annual increase in the share price.

Simply Wall St -

Should You Be Worried About Insider Transactions At Waterstone Financial, Inc. (NASDAQ:WSBF)?

So shareholders might well want to know whether insiders have been buying or selling shares in Waterstone Financial, Inc. … The Last 12 Months Of Insider Transactions At Waterstone Financial. … Over the last year, we can see that the biggest insider sale was by President of Waterstone Mortgage Corporation Eric Egenhoefer for US$249k worth of shares, at about US$16.30 per share.

Simply Wall St -

Do You Know What Waterstone Financial, Inc.'s (NASDAQ:WSBF) P/E Ratio Means?

We'll show how you can use Waterstone Financial, Inc.'s (NASDAQ:WSBF) P/E ratio to inform your assessment of the investment opportunity. … Waterstone Financial has a P/E ratio of 15.58, based on the last twelve months. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

Why Waterstone Financial Inc's (NASDAQ:WSBF) CEO Pay Matters To You

First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Doug Gordon's Compensation Compare With Similar Sized Companies. … Our data indicates that Waterstone Financial Inc is worth US$458m, and total annual CEO compensation is US$937k.

Simply Wall St -

WSBF Company Info

Description

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 two segments, Community Banking and Mortgage Banking. The Community Banking segment offers consumer and business banking products and services, such as deposit and transactional solutions, including checking accounts, online banking and bill pay services, and money transfer services, as well as credit, debit, and pre-paid cards; investable funds solutions comprising savings, money market deposit, and individual retirement accounts, as well as certificates of deposit; lending solutions consisting of residential mortgages, home equity loans and lines of credit, personal and installment loans, real estate financing, business loans, and business lines of credit; and fixed and variable annuities, and insurance products, as well as trust and investment management accounts. The Mortgage Banking segment provides residential mortgage loans for the purpose of sale in the secondary market. The company also provides transaction deposit, demand deposit, and non-interest bearing demand accounts, as well as time deposits; construction and land loans; and term loans for working capital, inventory, and general corporate use. In addition, it invests in a portfolio of securities, which include mortgage-backed securities, government-sponsored enterprise bonds, municipal obligations, and other debt securities. Waterstone Financial, Inc. operates 11 full-service banking offices, 1 drive-through office, and 11 automated teller machines located in Milwaukee, Washington, and Waukesha Counties, Wisconsin, as well as a loan production office in Minneapolis, Minnesota. The company was formerly known as Wauwatosa Holdings, Inc. and changed its name to Waterstone Financial, Inc. in August 2008. Waterstone Financial, Inc. was founded in 1921 and is based in Wauwatosa, Wisconsin.

Details
Name: Waterstone Financial, Inc.
WSBF
Exchange: NasdaqGS
Founded: 1921
$471,217,469
27,982,035
Website: http://www.wsbonline.com
Address: Waterstone Financial, Inc.
11200 West Plank Court,
Wauwatosa,
Wisconsin, 53226,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS WSBF Common Stock Nasdaq Global Select US USD 05. Oct 2005
Number of employees
Current staff
Staff numbers
888
Waterstone Financial employees.
Industry
Thrifts and Mortgage Finance
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/16 00:15
End of day share price update: 2019/07/15 00:00
Last estimates confirmation: 2019/06/25
Last earnings filing: 2019/05/03
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.