Waterstone Financial (WSBF) AI Stock Analysis

• Market Cap: $285.04M
• Dividend Yield: 3.93%
• Average Volume (3M): 62.96K
• Price to Earnings (P/E): 13.4
• Beta (1Y): 0.72
• Revenue Growth: 1.46%
• EPS Growth: 80.94%
• Country: US
• Employees: 600
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.43
• Shares Outstanding: 18,679,165
• 10 Day Avg. Volume: 57,202
• 30 Day Avg. Volume: 62,962
• PEG Ratio: 0.12
• Price to Book (P/B): 0.74
• Price to Sales (P/S): 1.25
• P/FCF Ratio: 5.31
• Enterprise Value/Market Cap: 2.28
• Enterprise Value/Revenue: 3.34
• Enterprise Value/Gross Profit: 4.96
• Enterprise Value/Ebitda: 23.04
• 1Y Price Target: $17.00
• Price Target Upside: 11.40% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: $17.00 ▲(11.40% Upside)

Waterstone Financial's overall stock score reflects its strong cash flow performance and positive technical indicators, which are offset by concerns over declining revenue growth. The valuation is reasonable, but not particularly compelling, and there are no recent earnings call insights or corporate events to influence the score.

Waterstone Financial Business Overview & Revenue Model

Company Description

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 in 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, money transfer services, as well as credit, debit, and pre-paid cards; investable funds solutions comprising savings, money market deposits, individual retirement accounts, and certificates of deposit; 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, insurance products, and trust and investment management accounts. It also provides transaction deposits, interest bearing transaction accounts, demand deposits, non-interest-bearing demand accounts, and time deposits; secured and unsecured lines; commercial real estate construction loans; term loans for working capital, inventory, and general corporate use; and personal term loans and investment services. The Mortgage Banking segment offers residential mortgage loans for the purpose of sale in the secondary market. The company also invests in a portfolio of securities include mortgage-backed securities, government-sponsored and private-label enterprise bonds, collateralized mortgage and municipal obligations, and other debt securities. It operates 14 full-service banking offices, 1 drive-through office, and 14 automated teller machines located in Milwaukee, Washington, and Waukesha Counties, Wisconsin. The company was formerly known as Wauwatosa Holdings, Inc. and changed its name to Waterstone Financial, Inc. in August 2008. Waterstone Financial, Inc. was founded in 1921 and is based in Wauwatosa, Wisconsin.

How the Company Makes Money

Waterstone Financial generates revenue through multiple key streams, primarily from interest income on loans, which includes residential and commercial mortgages. The company earns this income by lending money at a higher interest rate than it pays on deposits. Additionally, Waterstone Bank's deposit accounts contribute to the revenue through service fees and account maintenance charges. The bank also generates non-interest income through various financial services, including investment advisory fees and other transactional services. Significant partnerships with local businesses and real estate agents enhance the company's loan origination capabilities, further contributing to its overall earnings.

Waterstone Financial Financial Statement Overview

Summary

Waterstone Financial exhibits a solid financial foundation with commendable profitability margins and cash flow management. However, high leverage and a low equity ratio present potential risks. Addressing revenue growth challenges and optimizing the balance sheet structure could enhance financial resilience.

Income Statement

Waterstone Financial's income statement shows a mixed performance. The TTM gross profit margin is strong at 66.55%, indicating efficient cost management. However, the net profit margin is modest at 9.52%, suggesting some pressure on bottom-line profitability. Revenue growth over the past year is slightly negative, indicating challenges in top-line expansion. The EBIT and EBITDA margins are reasonable at 11.78% and 13.16% respectively, reflecting stable operational efficiency.

Balance Sheet

The balance sheet presents a moderate financial position. The debt-to-equity ratio is 1.16, indicating a relatively high level of leverage, which could pose a risk if earnings decline. The return on equity (ROE) is relatively low at 5.47%, implying limited efficiency in generating returns on equity capital. The equity ratio stands at 15.69%, showing a low proportion of equity financing compared to total assets, which could impact financial stability.

Cash Flow

Waterstone Financial's cash flow statement reveals strong free cash flow generation with a positive growth rate of 78.38% over the past year. The operating cash flow to net income ratio is robust at 4.53, indicating strong cash conversion from earnings. The free cash flow to net income ratio is exceptionally high at 4.48, showcasing effective cash management and potential for reinvestment or debt reduction.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	194.75M	199.38M	176.97M	171.06M	268.47M	317.86M
Gross Profit	131.28M	132.55M	127.32M	156.80M	258.09M	286.53M
EBITDA	28.27M	26.48M	14.33M	28.51M	98.16M	113.72M
Net Income	20.70M	18.69M	9.38M	19.49M	70.79M	81.14M
Balance Sheet
Total Assets	2.26B	2.21B	2.21B	2.03B	2.22B	2.18B
Cash, Cash Equivalents and Short-Term Investments	281.94M	191.24M	235.84M	232.55M	541.76M	235.54M
Total Debt	465.73M	446.52M	466.05M	386.78M	477.13M	508.07M
Total Liabilities	1.92B	1.87B	1.87B	1.66B	1.78B	1.77B
Stockholders Equity	341.49M	339.13M	344.06M	370.49M	432.77M	413.12M
Cash Flow
Free Cash Flow	84.94M	46.96M	-28.28M	205.96M	141.23M	-94.81M
Operating Cash Flow	85.81M	48.06M	-27.58M	206.66M	142.01M	-93.58M
Investing Cash Flow	702.00K	-23.96M	-159.22M	-335.74M	160.06M	37.19M
Financing Cash Flow	-56.91M	-20.76M	176.58M	-201.00M	-20.12M	76.86M

Waterstone Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 15.26
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WSBF, the sentiment is Positive. The current price of 15.26 is below the 20-day moving average (MA) of 15.34, above the 50-day MA of 14.60, and above the 200-day MA of 13.46, indicating a neutral trend. The MACD of 0.26 indicates Positive momentum. The RSI at 51.56 is Neutral, neither overbought nor oversold. The STOCH value of 11.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WSBF.

Waterstone Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WSBF	71 Outperform	$285.04M	13.45	6.12%	3.93%	1.46%	80.94%
PCB	70 Outperform	$296.61M	9.68	8.63%	3.77%	11.93%	29.49%
FNLC	68 Neutral	$290.02M	9.98	11.76%	5.64%	12.08%	9.69%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
CZFS	67 Neutral	$274.31M	8.67	10.53%	3.46%	2.41%	15.34%
PLBC	64 Neutral	$294.97M	8.75	16.24%	2.76%	6.48%	1.42%
FSBW	64 Neutral	$304.16M	9.52	11.31%	3.32%	5.10%	-7.22%

Waterstone Financial Corporate Events

Waterstone Financial Elects New Board Members

On July 8, 2025, Waterstone Financial, Inc. announced the election of Molly Mulroy and Laura Piotrowski to its Board of Directors, as well as to the board of its subsidiary, WaterStone Bank SSB. This strategic move is expected to enhance the company’s leadership with their extensive experience and commitment to delivering value to stakeholders. Mulroy, with a background in energy and administrative services, and Piotrowski, with expertise in strategic advisory and finance, are anticipated to contribute significantly to Waterstone’s mission and community-focused initiatives.