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WSBF

Waterstone FinancialNasdaqGS:WSBF Stock Report

Market Cap

US$491.6m

7D

-2.7%

1Y

16.4%

Updated

02 Dec, 2021

Data

Company Financials +
WSBF fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance5/6
Financial Health6/6
Dividends4/6

WSBF Stock Overview

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.

Waterstone Financial Competitors

TFS Financial

NasdaqGS:TFSL

US$5.0b

Meridian Bancorp

NasdaqGS:EBSB

US$1.2b

Premier Financial

NasdaqGS:PFC

US$1.1b

Kearny Financial

NasdaqGS:KRNY

US$919.4m

Price History & Performance

Summary of all time highs, changes and price drops for Waterstone Financial
Historical stock prices
Current Share PriceUS$20.90
52 Week HighUS$22.18
52 Week LowUS$17.69
Beta0.32
1 Month Change0.97%
3 Month Change3.06%
1 Year Change16.37%
3 Year Change27.13%
5 Year Change10.58%
Change since IPO103.85%

Recent News & Updates

Aug 15

Waterstone Financial: Mortgage Banking Income Seems More Resilient Than Previously Expected

Mortgage banking income will likely continue to decline towards a more normal level. However, the decline will be slower than previously expected. Strength in Wisconsin's economy will likely support the growth of loans held for investment. The December 2022 target price suggests a small upside from the current market price. Further, WSBF is offering a decent dividend yield.

Shareholder Returns

WSBFUS MortgageUS Market
7D-2.7%-5.1%-4.9%
1Y16.4%-2.9%17.8%

Return vs Industry: WSBF exceeded the US Mortgage industry which returned -2.9% over the past year.

Return vs Market: WSBF underperformed the US Market which returned 17.8% over the past year.

Price Volatility

Is WSBF's price volatile compared to industry and market?
WSBF volatility
WSBF Average Weekly Movement1.8%
Mortgage Industry Average Movement3.7%
Market Average Movement6.0%
10% most volatile stocks in US Market15.1%
10% least volatile stocks in US Market2.4%

Stable Share Price: WSBF is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: WSBF's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1921812Doug Gordonhttps://www.wsbonline.com

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.

Waterstone Financial Fundamentals Summary

How do Waterstone Financial's earnings and revenue compare to its market cap?
WSBF fundamental statistics
Market CapUS$491.63m
Earnings (TTM)US$86.07m
Revenue (TTM)US$290.21m

5.8x

P/E Ratio

1.1x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
WSBF income statement (TTM)
RevenueUS$290.21m
Cost of RevenueUS$0
Gross ProfitUS$290.21m
ExpensesUS$204.14m
EarningsUS$86.07m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)3.63
Gross Margin100.00%
Net Profit Margin29.66%
Debt/Equity Ratio107.7%

How did WSBF perform over the long term?

See historical performance and comparison

Dividends

6.2%

Current Dividend Yield

22%

Payout Ratio

Valuation

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

5.75x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WSBF ($20.9) is trading above our estimate of fair value ($20.6)

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 (5.8x) compared to the US Mortgage industry average (12.2x).

PE vs Market: WSBF is good value based on its PE Ratio (5.8x) compared to the US market (16.6x).


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 (1.1x) compared to the US Mortgage industry average (1x).


Future Growth

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

-37.0%

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% per year).

Earnings vs Market: WSBF's earnings are forecast to decline over the next 3 years (-37% 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 (-11.3% per year).

High Growth Revenue: WSBF's revenue is forecast to decline over the next 3 years (-11.3% 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 (8.5%).


Past Performance

How has Waterstone Financial performed over the past 5 years?

30.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WSBF has high quality earnings.

Growing Profit Margin: WSBF's current net profit margins (29.7%) are higher than last year (24.4%).


Past Earnings Growth Analysis

Earnings Trend: WSBF's earnings have grown significantly by 30.6% per year over the past 5 years.

Accelerating Growth: WSBF's earnings growth over the past year (38.6%) exceeds its 5-year average (30.6% per year).

Earnings vs Industry: WSBF earnings growth over the past year (38.6%) exceeded the Mortgage industry 32.1%.


Return on Equity

High ROE: WSBF's Return on Equity (19.4%) is considered low.


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 (5x) is low.

Allowance for Bad Loans: WSBF has a sufficient allowance for bad loans (423%).

Low Risk Liabilities: 70% 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 (54%).

Low Risk Deposits: WSBF's Loans to Deposits ratio (97%) is appropriate.

Level of Bad Loans: WSBF has an appropriate level of bad loans (0.3%).


Dividend

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

6.22%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WSBF's dividend (6.22%) is higher than the bottom 25% of dividend payers in the US market (1.37%).

High Dividend: WSBF's dividend (6.22%) is in the top 25% of dividend payers in the US market (3.69%)


Stability and Growth of Payments

Stable Dividend: WSBF has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: WSBF's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (22.1%), WSBF's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WSBF's dividends in 3 years are forecast to be covered by earnings (81.9% payout ratio).


Next Steps

Management

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

7.1yrs

Average management tenure


CEO

Doug Gordon (63 yo)

14.83yrs

Tenure

US$1,475,958

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 ($USD1.48M) is about average for companies of similar size in the US market ($USD1.75M).

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


Leadership Team

Experienced Management: WSBF's management team is seasoned and experienced (7.1 years average tenure).


Board Members

Experienced Board: WSBF's board of directors are seasoned and experienced ( 16.1 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 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$491.633m
  • Shares outstanding: 23.69m
  • Website: https://www.wsbonline.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/02 00:02
End of Day Share Price2021/12/01 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.