NasdaqGS:WTBA

Stock Analysis Report

Executive Summary

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.

Snowflake

Fundamentals

Flawless balance sheet average dividend payer.


Similar Companies

Share Price & News

How has West Bancorporation's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

3.7%

WTBA

5.8%

US Banks

3.4%

US Market


1 Year Return

-3.1%

WTBA

1.0%

US Banks

5.4%

US Market

Return vs Industry: WTBA underperformed the US Banks industry which returned 0.3% over the past year.

Return vs Market: WTBA underperformed the US Market which returned 5.9% over the past year.


Shareholder returns

WTBAIndustryMarket
7 Day3.7%5.8%3.4%
30 Day0.7%-0.6%-1.0%
90 Day5.0%3.1%-0.4%
1 Year0.7%-3.1%3.9%1.0%7.7%5.4%
3 Year27.0%14.7%53.5%42.9%46.2%36.8%
5 Year68.5%42.1%69.8%51.3%65.6%47.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is West Bancorporation undervalued compared to its fair value and its price relative to the market?

1.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: WTBA ($22.14) is trading below our estimate of fair value ($22.44)

Significantly Undervalued: WTBA is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: WTBA is poor value based on its PE Ratio (12.9x) compared to the Banks industry average (12.5x).

PE vs Market: WTBA is good value based on its PE Ratio (12.9x) compared to the US market (17.5x).


Price to Earnings Growth Ratio

Low PEG Ratio: WTBA is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: WTBA is overvalued based on its PB Ratio (1.8x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

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

9.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WTBA's forecast earnings growth (9.9% per year) is above the savings rate (2.7%).

Earnings vs Market: WTBA's earnings (9.9% per year) are forecast to grow slower than the US market (14.4% per year).

High Growth Earnings: WTBA's earnings are forecast to grow, but not significantly.

Revenue vs Market: WTBA's revenue (8.3% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: WTBA's revenue (8.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has West Bancorporation performed over the past 5 years?

7.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: WTBA's earnings have grown by 7.6% per year over the past 5 years.

Accelerating Growth: WTBA's earnings growth over the past year (12.8%) exceeds its 5-year average (7.6% per year).

Earnings vs Industry: WTBA earnings growth over the past year (12.8%) underperformed the Banks industry 31.8%.


Return on Equity

High ROE: WTBA's Return on Equity (13.8%) is considered low.


Return on Assets

ROA vs Industry: WTBA has a higher Return on Assets than the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate WTBA's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is West Bancorporation'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: WTBA has a low level of unsold assets or inventory.

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


Financial Institutions Analysis

Asset Level: WTBA's level of assets compared to its equity is moderate.

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

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

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

Low Risk Deposits: WTBA's loans are broadly funded by customer deposits.

Level of Bad Loans: WTBA has an appropriate level of bad loans (0.09%)


Next Steps

Dividend

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

3.79%

Current Dividend Yield


Dividend Yield vs Market

company3.8%marketbottom25%1.5%markettop25%3.8%industryaverage3.0%forecastin3Years3.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: WTBA's dividend (3.79%) is higher than the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: WTBA's dividend (3.79%) is in the top 25% of dividend payers in the US market (3.77%)

Stable Dividend: WTBA's dividend payments have been volatile in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (47.3%), 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 and that it will be covered by earnings.


Next Steps

Management

What is the CEO of West Bancorporation's salary, the management and board of directors tenure and is there insider trading?

9.5yrs

Average management tenure


CEO

Dave Nelson (58yo)

9.5yrs

Tenure

US$1,075,464

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 ($USD1.08M) is about average for companies of similar size in the US market ($USD1.83M).

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


Management Age and Tenure

9.5yrs

Average Tenure

61yo

Average Age

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


Board Age and Tenure

8.5yrs

Average Tenure

62yo

Average Age

Experienced Board: WTBA's board of directors are considered experienced (8.5 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUS$101,10007 Aug 19
George Milligan
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$20.22
BuyUS$21,63601 Aug 19
Steven Schuler
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$21.64
BuyUS$25,68023 May 19
Therese Vaughan
EntityIndividual
Shares1,200
Max PriceUS$21.40
BuyUS$173,48220 May 19
Sean McMurray
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares8,397
Max PriceUS$20.66
BuyUS$106,45009 May 19
George Milligan
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$21.29
BuyUS$32,40013 Nov 18
George Milligan
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,500
Max PriceUS$21.60
BuyUS$21,88005 Nov 18
Steven Schuler
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$21.88

Ownership Breakdown


Management Team

  • Doug Gulling (65yo)

    Executive VP

    • Tenure: 14.4yrs
    • Compensation: US$857.05k
  • Brad Winterbottom (62yo)

    Executive Vice President

    • Tenure: 13.8yrs
    • Compensation: US$857.05k
  • Alice Jensen

    Secretary

    • Tenure: 19.8yrs
  • Han Wu

    Senior Vice President of West Bank

    • Tenure: 0yrs
  • Rodney Weikert

    Senior Vice President of Real Estate - West Des Moines State Bank

    • Tenure: 0yrs
  • John McKinney

    Vice President

    • Tenure: 0yrs
  • Jane Funk (50yo)

    Senior VP

    • Tenure: 0.8yrs
  • Dave Nelson (58yo)

    CEO, President & Director

    • Tenure: 9.5yrs
    • Compensation: US$1.08m
  • Harlee Olafson (61yo)

    Executive VP & Chief Risk Officer

    • Tenure: 9.2yrs
    • Compensation: US$857.05k
  • Mike Zinser

    Market President of Rochester - West Bank

    • Tenure: 6.6yrs

Board Members

  • Steve Schuler (67yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$82.31k
  • Jim Noyce (63yo)

    Independent Chairman

    • Tenure: 1.5yrs
    • Compensation: US$109.65k
  • George Milligan (62yo)

    Independent Director

    • Tenure: 14.5yrs
    • Compensation: US$88.08k
  • Doug Gulling (65yo)

    Executive VP

    • Tenure: 14.4yrs
    • Compensation: US$857.05k
  • Jon Augustine

    Managing Director of WB Capital Management Inc and Director of WB Capital Management Inc

    • Tenure: 0yrs
  • Karen Green

    MD & Director of WB Capital Management Inc

    • Tenure: 0yrs
  • Kevin Smith

    Senior VP of West Bank & Director of WB Capital Management Inc

    • Tenure: 0yrs
  • Sean McMurray (51yo)

    Independent Director

    • Tenure: 6.5yrs
    • Compensation: US$81.58k
  • Dave Nelson (58yo)

    CEO, President & Director

    • Tenure: 9.5yrs
    • Compensation: US$1.08m
  • Steven Gaer (58yo)

    Independent Director

    • Tenure: 8.5yrs
    • Compensation: US$83.91k

Company Information

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


Key Information

  • Name: West Bancorporation, Inc.
  • Ticker: WTBA
  • Exchange: NasdaqGS
  • Founded: 1893
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$362.648m
  • Shares outstanding: 16.38m
  • 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

Biography

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 State ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 23:40
End of Day Share Price2019/10/15 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.