NasdaqGS:WSBF

Stock Analysis Report

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

Excellent balance sheet with proven 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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

12.9%

WSBF

9.0%

US Mortgage

7.2%

US Market


1 Year Return

-8.8%

WSBF

-25.4%

US Mortgage

-10.4%

US Market

Return vs Industry: WSBF exceeded the US Mortgage industry which returned -25.4% over the past year.

Return vs Market: WSBF exceeded the US Market which returned -10.4% over the past year.


Shareholder returns

WSBFIndustryMarket
7 Day12.9%9.0%7.2%
30 Day-10.1%-25.1%-12.6%
90 Day-21.4%-33.7%-19.4%
1 Year-3.1%-8.8%-23.6%-25.4%-8.5%-10.4%
3 Year-0.3%-18.3%-17.0%-22.9%15.8%8.3%
5 Year47.9%17.1%4.2%-7.5%35.8%21.0%

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?

3.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WSBF ($14.95) is trading below our estimate of fair value ($15.42)

Significantly Below Fair Value: WSBF is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: WSBF is poor value based on its PE Ratio (10.8x) compared to the Mortgage industry average (10.6x).

PE vs Market: WSBF is good value based on its PE Ratio (10.8x) compared to the US market (13.1x).


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?

-14.1%

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 (-14.1% per year).

Earnings vs Market: WSBF's earnings are forecast to decline over the next 3 years (-14.1% per year).

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

Revenue vs Market: WSBF's revenue (0.7% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: WSBF's revenue (0.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WSBF's Return on Equity is forecast to be low in 3 years time (7.3%).


Next Steps

Past Performance

How has Waterstone Financial performed over the past 5 years?

17.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WSBF has high quality earnings.

Growing Profit Margin: WSBF's current net profit margins (19.5%) are higher than last year (17.7%).


Past Earnings Growth Analysis

Earnings Trend: WSBF's earnings have grown by 17.2% per year over the past 5 years.

Accelerating Growth: WSBF's earnings growth over the past year (16.7%) is below its 5-year average (17.2% per year).

Earnings vs Industry: WSBF earnings growth over the past year (16.7%) exceeded the Mortgage industry 11.1%.


Return on Equity

High ROE: WSBF's Return on Equity (9.1%) 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

Inventory Level: WSBF has a low level of unsold assets or inventory.

Debt Coverage by Assets: WSBF's debt is not covered by short term assets (assets are 0.6x debt).


Financial Institutions Analysis

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

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

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

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

Low Risk Deposits: WSBF has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: WSBF has an appropriate level of bad loans (0.51%)


Next Steps

Dividend

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

6.56%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: WSBF's dividend (6.56%) is higher than the bottom 25% of dividend payers in the US market (1.95%).

High Dividend: WSBF's dividend (6.56%) is in the top 25% of dividend payers in the US market (5.4%)


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 (34.8%), WSBF's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WSBF's dividends in 3 years are not forecast to be well covered by earnings (98.1% payout ratio).


Next Steps

Management

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

5.3yrs

Average management tenure


CEO

Doug Gordon (61yo)

13.17s

Tenure

US$987,899

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 ($USD987.90K) is below average for companies of similar size in the US market ($USD2.12M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Douglas Gordon
President13.17yrsUS$987.90k1.9% $7.2m
Mark Gerke
Senior VP4yrsUS$254.26k0.21% $804.2k
William Bruss
Executive VP6.67yrsUS$383.00k0.32% $1.2m
Kyle Mertz
Controller3.67yrsno datano data

5.3yrs

Average Tenure

49yo

Average Age

Experienced Management: WSBF's management team is seasoned and experienced (5.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Douglas Gordon
President13.17yrsUS$987.90k1.9% $7.2m
Patrick Lawton
Chairman of the Board13.17yrsUS$30.00k0.78% $3.0m
Thomas Dalum
Independent Director15.17yrsUS$18.00k0.49% $1.9m
Kristine Rappé
Independent Director6.17yrsUS$18.00k0.16% $617.7k
Stephen Schmidt
Independent Director15.17yrsUS$18.00k0.28% $1.0m
Michael Hansen
Independent Director15.17yrsUS$24.00k1.05% $4.0m
Ellen Bartel
Independent Director6.17yrsUS$18.00k0.069% $261.6k

14.4yrs

Average Tenure

62yo

Average Age

Experienced Board: WSBF's board of directors are seasoned and experienced ( 14.4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: WSBF insiders have only sold shares 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$379.946m
  • Shares outstanding: 25.41m
  • 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 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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 01:55
End of Day Share Price2020/03/30 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.