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.

Risks

  • West Bancorporation is covered by less than 3 analysts.

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

-0.7%

NasdaqGS:WTBA

0.3%

US Banks

-0.9%

US Market


1 Year Return

-18.0%

NasdaqGS:WTBA

-7.8%

US Banks

3.8%

US Market

WTBA underperformed the Banks industry which returned -8% over the past year.

WTBA underperformed the Market in United States of America which returned 3.3% over the past year.


Share holder returns

WTBAIndustryMarket
7 Day-0.7%0.3%-0.9%
30 Day1.0%2.9%1.1%
90 Day-1.0%-0.7%1.1%
1 Year-15.0%-18.0%-5.3%-7.8%6.1%3.8%
3 Year24.2%12.3%56.5%45.9%45.2%35.5%
5 Year71.8%45.2%64.1%46.5%59.9%42.1%

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 based on future cash flows and its price relative to the stock market?

3%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

West Bancorporation's share price is below the future cash flow value, but not at a moderate discount (< 20%).

West Bancorporation's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

West Bancorporation is good value based on earnings compared to the US Banks industry average.

West Bancorporation is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

West Bancorporation is poor value based on expected growth next year.


Price Based on Value of Assets

West Bancorporation is overvalued based on assets compared to the US Banks industry average.


Next Steps

Future Growth

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

9.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

West Bancorporation's revenue is expected to grow by 7.6% yearly, however this is not considered high growth (20% yearly).

West Bancorporation's earnings are expected to grow by 9.2% yearly, however this is not considered high growth (20% yearly).

West Bancorporation's revenue growth is expected to exceed the United States of America market average.

West Bancorporation's earnings growth is positive but not above the United States of America market average.

West Bancorporation's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if West Bancorporation will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has West Bancorporation performed over the past 5 years?

7.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

West Bancorporation's year on year earnings growth rate has been positive over the past 5 years.

West Bancorporation's 1-year earnings growth exceeds its 5-year average (15.1% vs 7.9%)

West Bancorporation's earnings growth has not exceeded the US Banks industry average in the past year (15.1% vs 37.8%).


Return on Equity

West Bancorporation has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

West Bancorporation used its assets more efficiently than the US Banks industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if West Bancorporation improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.


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


Financial Institutions Analysis

West Bancorporation has an acceptable proportion of non-loan assets held.

West Bancorporation has a sufficient allowance for bad loans.

West Bancorporation's liabilities are made up of primarily low risk sources of funding.

West Bancorporation's level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).

Loans at West Bancorporation are broadly funded by customer deposits.

West Bancorporation has an acceptable level of bad loans (less than 2%).


Next Steps

Dividend

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

4.07%

Expected Dividend Yield


Dividend Yield and Payments Analysis

West Bancorporation's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

West Bancorporation's dividend is above the markets top 25% of dividend payers in United States of America (3.78%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.1x 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.


Next Steps

Management

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

9.3yrs

Average management tenure


CEO

Dave Nelson (58yo)

9.3yrs

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

Dave's remuneration is lower than average for companies of similar size in United States of America.

Dave's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

9.3yrs

Average Tenure

61yo

Average Age

The average tenure for the West Bancorporation management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

8.3yrs

Average Tenure

62yo

Average Age

The tenure for the West Bancorporation board of directors is about average.


Insider Trading

More shares have been bought than sold by West Bancorporation individual insiders in the past 3 months.


Recent Insider Transactions

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
Shares8,397
Max PriceUS$20.66
BuyUS$106,45009 May 19
George Milligan
EntityIndividual
Role
Member of the Board of Directors
Shares5,000
Max PriceUS$21.29
BuyUS$32,40013 Nov 18
George Milligan
EntityIndividual
Role
Member of the Board of Directors
Shares1,500
Max PriceUS$21.60
BuyUS$21,88005 Nov 18
Steven Schuler
EntityIndividual
Role
Member of the Board of Directors
Shares1,000
Max PriceUS$21.88

Ownership Breakdown


Management Team

  • Harlee Olafson (61yo)

    Executive VP & Chief Risk Officer

    • Tenure: 8.9yrs
    • Compensation: $857.05k
  • John McKinney

    Vice President

  • Brad Winterbottom (62yo)

    Executive Vice President

    • Tenure: 13.5yrs
    • Compensation: $857.05k
  • Doug Gulling (65yo)

    Executive VP

    • Tenure: 17.7yrs
    • Compensation: $857.05k
  • Mike Zinser

    Market President of Rochester - West Bank

    • Tenure: 6.3yrs
  • Dave Nelson (58yo)

    CEO, President & Director

    • Tenure: 9.3yrs
    • Compensation: $1.08m
  • Han Wu

    Senior Vice President of West Bank

  • Alice Jensen

    Secretary

    • Tenure: 19.5yrs
  • Rodney Weikert

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

  • Jane Funk (50yo)

    Senior VP

    • Tenure: 0.5yrs

Board Members

  • Karen Green

    MD & Director of WB Capital Management Inc

  • Steve Schuler (67yo)

    Director

    • Tenure: 1.5yrs
    • Compensation: $82.31k
  • Jim Noyce (63yo)

    Chairman

    • Tenure: 1.3yrs
    • Compensation: $109.65k
  • Doug Gulling (65yo)

    Executive VP

    • Tenure: 15.8yrs
    • Compensation: $857.05k
  • Dave Nelson (58yo)

    CEO, President & Director

    • Tenure: 9.3yrs
    • Compensation: $1.08m
  • Steven Gaer (58yo)

    Director

    • Tenure: 8.3yrs
    • Compensation: $83.91k
  • Sean McMurray (51yo)

    Director

    • Tenure: 6.3yrs
    • Compensation: $81.58k
  • George Milligan (62yo)

    Director

    • Tenure: 14.3yrs
    • Compensation: $88.08k
  • Jon Augustine

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

  • Kevin Smith

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

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$347.275m
  • Shares outstanding: 16.36m
  • Website: Click here

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 Analysis2019/07/22 23:47
End of Day Share Price2019/07/22 00:00
Earnings2019/03/31
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.