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WTBA

West Bancorporation NasdaqGS:WTBA Stock Report

Last Price

US$20.75

Market Cap

US$345.3m

7D

-9.2%

1Y

-29.6%

Updated

24 Sep, 2022

Data

Company Financials +
WTBA fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance5/6
Financial Health6/6
Dividends5/6

WTBA Stock Overview

West Bancorporation, Inc. operates as the financial holding company for West Bank that provides community banking and trust services to individuals and small- to medium-sized businesses in the United States.

West Bancorporation Competitors

Price History & Performance

Summary of all time highs, changes and price drops for West Bancorporation
Historical stock prices
Current Share PriceUS$20.75
52 Week HighUS$34.50
52 Week LowUS$20.39
Beta0.92
1 Month Change-19.57%
3 Month Change-14.89%
1 Year Change-29.61%
3 Year Change-4.51%
5 Year Change-14.96%
Change since IPO232.08%

Recent News & Updates

Jul 28

West Banc GAAP EPS of $0.75 beats by $0.06, revenue of $26.52M beats by $0.32M

West Banc press release (NASDAQ:WTBA): Q2 GAAP EPS of $0.75 beats by $0.06. Revenue of $26.52M (-42.3% Y/Y) beats by $0.32M.

Shareholder Returns

WTBAUS BanksUS Market
7D-9.2%-5.8%-5.2%
1Y-29.6%-21.7%-23.0%

Return vs Industry: WTBA underperformed the US Banks industry which returned -21.7% over the past year.

Return vs Market: WTBA underperformed the US Market which returned -23.1% over the past year.

Price Volatility

Is WTBA's price volatile compared to industry and market?
WTBA volatility
WTBA Average Weekly Movement4.0%
Banks Industry Average Movement3.4%
Market Average Movement6.9%
10% most volatile stocks in US Market15.8%
10% least volatile stocks in US Market2.8%

Stable Share Price: WTBA is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: WTBA's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1893174Dave Nelsonhttps://www.westbankstrong.com

West Bancorporation, Inc. operates as the financial holding company for West Bank that provides community banking and trust services to individuals and small- to medium-sized businesses in the United States. It accepts various deposit products, including checking, savings, and money market accounts, as well as time certificates of deposit. The company also provides loan products comprising commercial real estate loans, construction and land development loans, commercial lines of credit, and commercial term loans; consumer loans, including loans extended to individuals for household, family, and other personal expenditures not secured by real estate; and 1-4 family residential mortgages and home equity loans.

West Bancorporation Fundamentals Summary

How do West Bancorporation's earnings and revenue compare to its market cap?
WTBA fundamental statistics
Market CapUS$345.29m
Earnings (TTM)US$50.47m
Revenue (TTM)US$109.07m

6.8x

P/E Ratio

1.6x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
WTBA income statement (TTM)
RevenueUS$109.07m
Cost of RevenueUS$0
Gross ProfitUS$109.07m
Other ExpensesUS$58.60m
EarningsUS$50.47m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Oct 27, 2022

Earnings per share (EPS)3.03
Gross Margin100.00%
Net Profit Margin46.27%
Debt/Equity Ratio185.0%

How did WTBA perform over the long term?

See historical performance and comparison

Dividends

4.8%

Current Dividend Yield

32%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is WTBA undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for WTBA?

Other financial metrics that can be useful for relative valuation.

WTBA key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ratio-0.4x

Price to Earnings Ratio vs Peers

How does WTBA's PE Ratio compare to its peers?

WTBA PE Ratio vs Peers
The above table shows the PE ratio for WTBA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average13x
AMBZ American Business Bank
8.3xn/aUS$353.0m
FMAO Farmers & Merchants Bancorp
11.6x9.0%US$345.6m
RCBC River City Bank
7.9xn/aUS$350.1m
SFST Southern First Bancshares
8.2x-0.7%US$340.0m
WTBA West Bancorporation
6.8x-17.4%US$345.3m

Price-To-Earnings vs Peers: WTBA is good value based on its Price-To-Earnings Ratio (6.8x) compared to the peer average (13x).


Price to Earnings Ratio vs Industry

How does WTBA's PE Ratio compare vs other companies in the US Banks Industry?

Price-To-Earnings vs Industry: WTBA is good value based on its Price-To-Earnings Ratio (6.8x) compared to the US Banks industry average (9.7x)


Price to Earnings Ratio vs Fair Ratio

What is WTBA's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

WTBA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio6.8x
Fair PE Ratio7.9x

Price-To-Earnings vs Fair Ratio: WTBA is good value based on its Price-To-Earnings Ratio (6.8x) compared to the estimated Fair Price-To-Earnings Ratio (7.9x).


Share Price vs Fair Value

What is the Fair Price of WTBA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: WTBA ($20.75) is trading below our estimate of fair value ($38.91)

Significantly Below Fair Value: WTBA is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-17.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WTBA's earnings are forecast to decline over the next 3 years (-17.4% per year).

Earnings vs Market: WTBA's earnings are forecast to decline over the next 3 years (-17.4% per year).

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

Revenue vs Market: WTBA's revenue is expected to decline over the next 3 years (-4.1% per year).

High Growth Revenue: WTBA's revenue is forecast to decline over the next 3 years (-4.1% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

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


Discover growth companies

Past Performance

How has West Bancorporation performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


16.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: WTBA has high quality earnings.

Growing Profit Margin: WTBA's current net profit margins (46.3%) are higher than last year (44.6%).


Past Earnings Growth Analysis

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

Accelerating Growth: WTBA's earnings growth over the past year (21.2%) exceeds its 5-year average (16.7% per year).

Earnings vs Industry: WTBA earnings growth over the past year (21.2%) exceeded the Banks industry 8.7%.


Return on Equity

High ROE: Whilst WTBA's Return on Equity (23.34%) is high, this metric is skewed due to their high level of debt.


Discover strong past performing companies

Financial Health

How is West Bancorporation's financial position? (This company is analysed differently as a bank or financial institution)

Financial Health Score

6/6

Financial Health Score 6/6

  • Asset Level

  • Allowance for Bad Loans

  • Low Risk Liabilities

  • Loan Level

  • Low Risk Deposits

  • Level of Bad Loans

Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: WTBA's Assets to Equity ratio (16.1x) is moderate.

Allowance for Bad Loans: WTBA has a sufficient allowance for bad loans (7592%).

Low Risk Liabilities: 87% of WTBA's liabilities are made up of primarily low risk sources of funding.

Loan Level: WTBA has an appropriate level of Loans to Assets ratio (73%).

Low Risk Deposits: WTBA's Loans to Deposits ratio (90%) is appropriate.

Level of Bad Loans: WTBA has an appropriate level of bad loans (0%).


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Dividend

What is West Bancorporation current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


4.82%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: WTBA's dividend (4.82%) is higher than the bottom 25% of dividend payers in the US market (1.65%).

High Dividend: WTBA's dividend (4.82%) is in the top 25% of dividend payers in the US market (4.57%)


Stability and Growth of Payments

Stable Dividend: WTBA's dividends per share have been stable in the past 10 years.

Growing Dividend: WTBA's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (32.2%), WTBA'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 or that it will be covered by earnings.


Discover strong dividend paying companies

Management

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

9.5yrs

Average management tenure


CEO

Dave Nelson (61 yo)

12.42yrs

Tenure

US$1,027,900

Compensation

Mr. David D. Nelson, also known as Dave, has been the Chief Executive Officer and President of West Bancorp., Inc. since April 1, 2010 and serves as its Director. Mr. Nelson has been the Chairman of the Bo...


CEO Compensation Analysis

Compensation vs Market: Dave's total compensation ($USD1.03M) is below average for companies of similar size in the US market ($USD2.89M).

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


Leadership Team

Experienced Management: WTBA's management team is seasoned and experienced (9.5 years average tenure).


Board Members

Experienced Board: WTBA's board of directors are considered experienced (9.4 years average tenure).


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

NasdaqGS:WTBA Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
24 Aug 22BuyUS$30,926David NelsonIndividual1,189US$26.01
25 May 22BuyUS$12,438David NelsonIndividual505US$24.63
24 Feb 22BuyUS$113,800Bradley PetersIndividual4,000US$28.45
23 Feb 22BuyUS$12,335David NelsonIndividual417US$29.58
03 Dec 21BuyUS$63,070Patrick DonovanIndividual2,000US$31.94
01 Dec 21BuyUS$95,330Patrick DonovanIndividual3,000US$31.90
24 Nov 21BuyUS$67,410Patrick DonovanIndividual2,000US$33.93
24 Nov 21BuyUS$11,758David NelsonIndividual349US$33.69
22 Nov 21BuyUS$99,070Patrick DonovanIndividual3,000US$33.49
05 Nov 21SellUS$112,694Douglas GullingIndividual3,364US$33.50
03 Nov 21SellUS$214,851Douglas GullingIndividual6,636US$33.13

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 46.12% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
6.26%
Jay Newlin Trust
1,041,952$21.6m0%no data
6.07%
BlackRock, Inc.
1,010,811$21.0m1.07%no data
5.55%
FMR LLC
924,152$19.2m1.71%no data
4.19%
Dimensional Fund Advisors LP
696,967$14.5m1.28%no data
4.13%
The Vanguard Group, Inc.
688,006$14.3m-0.68%no data
2.42%
West Bancorporation Inc., Asset Management Arm
401,966$8.3m-0.4%6.32%
2.09%
State Street Global Advisors, Inc.
348,152$7.2m-1%no data
1.95%
Legacy Bridge, LLC
324,079$6.7m-1.19%5.28%
1.81%
Pacific Ridge Capital Partners, LLC
301,590$6.3m-7.67%1.59%
1.7%
Geode Capital Management, LLC
283,347$5.9m1.75%no data
1.62%
Renaissance Technologies LLC
268,852$5.6m-5.12%0.01%
0.92%
Kennedy Capital Management, Inc.
152,765$3.2m-0.95%0.09%
0.91%
David Nelson
151,507$3.1m-4.13%no data
0.85%
Northern Trust Global Investments
141,470$2.9m-0.48%no data
0.8%
Eaton Vance Management
133,783$2.8m-2.01%no data
0.75%
BNY Mellon Asset Management
124,961$2.6m-3.56%no data
0.62%
Aptus Capital Advisors, LLC
102,591$2.1m10.9%0.08%
0.57%
Brad Winterbottom
95,435$2.0m0%no data
0.51%
American Century Investment Management Inc
84,747$1.8m25.53%no data
0.5%
John W. Rosenthal Capital Management, Inc.
82,965$1.7m0%1.59%
0.47%
Driehaus Capital Management LLC
78,010$1.6m0%0.02%
0.45%
Harlee Olafson
74,867$1.6m0%no data
0.33%
Teachers Insurance and Annuity Association-College Retirement Equities Fund
55,694$1.2m-5.54%no data
0.33%
U.S. Bancorp Asset Management, Inc.
54,155$1.1m0%no data
0.32%
Global Retirement Partners, LLC
52,446$1.1m0%0.09%

Company Information

West Bancorporation, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: West Bancorporation, Inc.
  • Ticker: WTBA
  • Exchange: NasdaqGS
  • Founded: 1893
  • Industry: Regional Banks
  • Sector: Banks
  • Implied Market Cap: US$345.289m
  • Shares outstanding: 16.64m
  • Website: https://www.westbankstrong.com

Number of Employees


Location

  • West Bancorporation, Inc.
  • 1601 22nd Street
  • West Des Moines
  • Iowa
  • 50266
  • United States


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WTBANasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDOct 1995
WB3DB (Deutsche Boerse AG)YesCommon StockDEEUROct 1995

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/24 00:00
End of Day Share Price2022/09/23 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.