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Westamerica Bancorporation
(NASDAQ:WABC)
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Rating:75Outperform
Price Target:
$68.00
â–²(16.90% Upside)
Action:Reiterated
Date:10/23/26
The score is driven primarily by strong profitability, conservative leverage, and solid free-cash-flow-to-earnings alignment, tempered by sharply negative recent revenue growth and cooler ROE versus prior peaks. Technicals are mildly supportive with price above key moving averages and neutral momentum, while reasonable P/E and a ~3.1% dividend yield further underpin the overall profile; dividend-related corporate updates add a modest positive.
Positive Factors
Low-cost, efficient banking model
Low funding costs and disciplined operating expenses support a durable spread-based banking model. The combination of a 3.81% net interest margin and 41% operating-cost ratio indicates that Westamerica is converting deposits and lending activity into earnings efficiently.
Negative Factors
Sharp revenue deterioration
The sharp decline in revenue and lower earnings versus earlier periods weaken the bank’s growth profile. If the contraction persists, it could reduce the resources available for reinvestment and capital returns, while making strong current margins less representative of future earnings power.
Read all positive and negative factors
Positive Factors
Negative Factors
Low-cost, efficient banking model
Low funding costs and disciplined operating expenses support a durable spread-based banking model. The combination of a 3.81% net interest margin and 41% operating-cost ratio indicates that Westamerica is converting deposits and lending activity into earnings efficiently.
Read all positive factors
Westamerica Bancorporation (WABC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.41B
Dividend Yield3.09%
Average Volume (3M)242.69K
Price to Earnings (P/E)13.1
Beta (1Y)0.57
Revenue Growth-4.35%
EPS Growth1.06%
CountryUS
Employees608
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)4.65
Shares Outstanding23,084,000
10 Day Avg. Volume190,799
30 Day Avg. Volume242,687
Financial Highlights & Ratios
PEG Ratio-0.82
Price to Book (P/B)1.27
Price to Sales (P/S)4.37
P/FCF Ratio9.94
Enterprise Value/Market Cap0.83
Enterprise Value/Revenue4.38
Enterprise Value/Gross Profit4.61
Enterprise Value/Ebitda7.68
Forecast
1Y Price Target
$65.00Price Target Upside11.74% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)4.64
Revenue Forecast (FY)$251.90M
Westamerica Bancorporation Business Overview & Revenue Model
Company Description
Westamerica Bancorporation (WABC) functions as a bank holding company, overseeing Westamerica Bank. Through its subsidiary, it delivers a comprehensive suite of financial products and services to both individual consumers and commercial enterprise...
How the Company Makes Money
Westamerica Bancorporation makes money primarily through its banking subsidiary by earning interest income on loans and investment securities and by generating fee-based, noninterest income from banking services.
1) Net interest income (core earn...
Westamerica Bancorporation Financial Statement Overview
Summary
Income Statement
71
Positive
Balance Sheet
78
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 265.93M | 271.84M | 311.17M | 327.54M | 266.88M | 216.79M |
| Gross Profit | 252.51M | 258.70M | 293.45M | 324.80M | 264.95M | 214.83M |
| EBITDA | 151.69M | 163.93M | 199.46M | 233.35M | 182.16M | 133.64M |
| Net Income | 110.70M | 116.17M | 138.64M | 161.77M | 122.03M | 86.51M |
Balance Sheet | ||||||
| Total Assets | 5.79B | 5.96B | 6.08B | 6.36B | 6.95B | 7.46B |
| Cash, Cash Equivalents and Short-Term Investments | 322.51M | 2.12B | 1.94B | 4.19B | 4.63B | 5.77B |
| Total Debt | 139.06M | 159.50M | 138.31M | 76.98M | 73.54M | 164.23M |
| Total Liabilities | 5.00B | 5.03B | 5.19B | 5.59B | 6.35B | 6.63B |
| Stockholders Equity | 789.67M | 933.51M | 889.96M | 772.89M | 602.11M | 827.10M |
Cash Flow | ||||||
| Free Cash Flow | 79.39M | 119.59M | 139.83M | 157.05M | 112.89M | 87.41M |
| Operating Cash Flow | 81.84M | 121.90M | 141.57M | 158.21M | 113.70M | 88.73M |
| Investing Cash Flow | -272.40M | 149.67M | 715.68M | 547.27M | -631.29M | -306.08M |
| Financing Cash Flow | -166.78M | -305.20M | -446.07M | -809.40M | -320.26M | 728.16M |
Westamerica Bancorporation Technical Analysis
Positive
58.17
Price Trends
59.41
Positive
59.11
Positive
55.44
Positive
Market Momentum
0.61
Negative
54.38
Neutral
59.22
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WABC, the sentiment is Positive. The current price of 58.17 is below the 20-day moving average (MA) of 60.06, below the 50-day MA of 59.41, and above the 200-day MA of 55.44, indicating a bullish trend. The MACD of 0.61 indicates Negative momentum. The RSI at 54.38 is Neutral, neither overbought nor oversold. The STOCH value of 59.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WABC.
Westamerica Bancorporation Risk Analysis
Westamerica Bancorporation disclosed 24 risk factors in its most recent earnings report. Westamerica Bancorporation reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Westamerica Bancorporation Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
84 Outperform | $1.60B | 13.98 | 11.35% | 2.12% | -1.73% | 1.03% | |
80 Outperform | $1.27B | 9.71 | 16.84% | 2.99% | -0.13% | 9.53% | |
77 Outperform | $1.64B | 18.46 | 11.18% | 1.42% | 32.72% | 12.75% | |
75 Outperform | $1.41B | 13.10 | 12.80% | 3.09% | -4.35% | 1.06% | |
73 Outperform | $1.83B | 13.55 | 9.50% | 2.39% | 13.64% | 169.34% | |
71 Outperform | $1.58B | 12.40 | 10.20% | 1.56% | 3.63% | 43.62% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
WABC
Westamerica Bancorporation
60.92
14.84
32.20%
DCOM
Dime Community Bancshares
41.86
16.40
64.43%
PFBC
Preferred Bank
107.08
19.43
22.17%
RBCAA
Republic Bancorp
91.44
26.83
41.53%
OBK
Origin Bancorp
51.22
17.29
50.95%
BFC
Bank First National
147.88
25.45
20.79%
Westamerica Bancorporation Corporate Events
DividendsFinancial Disclosures
Westamerica Bancorporation Declares Quarterly Cash Dividend
Positive
Oct 22, 2026
Westamerica Bancorporation, through its wholly owned subsidiary Westamerica Bank, operates banking and trust offices throughout Northern and Central California, providing regional banking and trust services with an emphasis on financial stability ...
DividendsFinancial Disclosures
Westamerica Bancorporation Declares Quarterly Cash Dividend
Positive
Jul 23, 2026
On July 23, 2026, Westamerica Bancorporation’s board declared a quarterly cash dividend of $0.48 per share on common stock, payable on August 14, 2026 to shareholders of record as of August 3, 2026. Management emphasized that the dividend re...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.