Westamerica Bancorporation (WABC) AI Stock Analysis

• Market Cap: $1.20B
• Dividend Yield: 3.77%
• Average Volume (3M): 160.41K
• Price to Earnings (P/E): 10.3
• Beta (1Y): 0.81
• Revenue Growth: -13.17%
• EPS Growth: -16.37%
• Country: US
• Employees: 616
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.12
• Shares Outstanding: 25,461,855
• 10 Day Avg. Volume: 146,817
• 30 Day Avg. Volume: 160,412
• PEG Ratio: -0.71
• Price to Book (P/B): 1.57
• Price to Sales (P/S): 4.50
• P/FCF Ratio: 10.01
• Enterprise Value/Market Cap: 0.62
• Enterprise Value/Revenue: 2.67
• Enterprise Value/Gross Profit: 2.80
• Enterprise Value/Ebitda: 4.39
• 1Y Price Target: $53.00
• Price Target Upside: 9.80% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: $55.00 ▲(13.94% Upside)

Westamerica Bancorporation's strong financial performance and attractive valuation are the primary drivers of its overall score. The stock's moderate technical indicators suggest a stable outlook, while the lack of recent earnings call data or corporate events limits additional insights.

Positive Factors

Strong Profitability

High profit margins indicate efficient cost management and the ability to generate profits, supporting long-term financial health.

Solid Balance Sheet

A strong equity position and low leverage enhance financial stability and flexibility, crucial for navigating economic fluctuations.

Efficient Cash Flow Management

Good cash generation capabilities ensure the company can meet obligations and invest in growth opportunities, supporting long-term sustainability.

Negative Factors

Declining Revenue Growth

Negative revenue growth may indicate challenges in market expansion or sales, potentially impacting future profitability and market position.

Decreasing Free Cash Flow Growth

A decline in free cash flow growth raises concerns about the company's ability to sustain cash flow, affecting investment and operational flexibility.

Decreased Return on Equity

A decrease in ROE suggests potential inefficiencies in profitability or asset utilization, which could impact long-term shareholder value.

Westamerica Bancorporation Business Overview & Revenue Model

Company Description

Westamerica Bancorporation operates as a bank holding company for the Westamerica Bank that provides various banking products and services to individual and commercial customers. The company accepts various deposit products, including retail savings and checking accounts, as well as certificates of deposit. Its loan portfolio includes commercial, commercial and residential real estate, real estate construction, and consumer installment loans, as well as indirect automobile loans. It operates through 78 branch offices in 21 counties in Northern and Central California. The company was formerly known as Independent Bankshares Corporation and changed its name to Westamerica Bancorporation in 1983. The company was incorporated in 1972 and is headquartered in San Rafael, California.

How the Company Makes Money

Westamerica Bancorporation generates revenue primarily through interest income from loans and securities. The company offers various types of loans, including commercial loans, real estate loans, and consumer loans, which typically yield interest payments that constitute a significant portion of its revenue. Additionally, Westamerica earns non-interest income from fees associated with deposit accounts, service charges, and other banking services. The bank also benefits from its investment portfolio, which includes government and corporate securities that provide interest income. Strategic partnerships with local businesses and community organizations further enhance its customer base and contribute to its overall earnings. Factors such as the interest rate environment, loan demand, and economic conditions in its service areas also play a crucial role in influencing the company’s financial performance.

Westamerica Bancorporation Financial Statement Overview

Summary

Westamerica Bancorporation exhibits strong profitability and a solid financial position with low leverage and efficient cash flow management. The primary concern is the recent decline in revenue growth, which could impact future profitability if not addressed.

Income Statement

Westamerica Bancorporation demonstrates strong profitability with a high gross profit margin consistently above 94% and a net profit margin around 44% in the TTM. However, the revenue growth rate has declined by 3.9% in the TTM, indicating a potential slowdown in revenue generation. Despite this, the company maintains robust EBIT and EBITDA margins, reflecting efficient operations.

Balance Sheet

The company's balance sheet is stable with a low debt-to-equity ratio of 0.11 in the TTM, indicating conservative leverage. Return on equity is healthy at 13.9%, though it has decreased from previous years. The equity ratio remains strong, suggesting a solid capital structure.

Cash Flow

Cash flow metrics are positive, with a free cash flow growth rate of 3.2% in the TTM. The operating cash flow to net income ratio is low, but the free cash flow to net income ratio is high at 98.5%, indicating efficient cash generation relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	278.09M	311.17M	327.54M	266.88M	216.79M	207.96M
Gross Profit	264.96M	293.45M	324.80M	264.95M	214.83M	201.83M
EBITDA	168.95M	199.46M	233.35M	182.16M	133.64M	129.45M
Net Income	120.07M	138.64M	161.77M	122.03M	86.51M	80.41M
Balance Sheet
Total Assets	5.91B	6.08B	6.36B	6.95B	7.46B	6.75B
Cash, Cash Equivalents and Short-Term Investments	659.27M	1.94B	4.19B	4.63B	5.77B	4.68B
Total Debt	133.65M	138.31M	76.98M	73.54M	164.23M	121.38M
Total Liabilities	4.98B	5.19B	5.59B	6.35B	6.63B	5.90B
Stockholders Equity	931.65M	889.96M	772.89M	602.11M	827.10M	844.81M
Cash Flow
Free Cash Flow	124.44M	139.83M	157.05M	112.89M	87.41M	105.54M
Operating Cash Flow	125.10M	141.57M	158.21M	113.70M	88.73M	107.74M
Investing Cash Flow	428.16M	715.68M	547.27M	-631.29M	-306.08M	-748.92M
Financing Cash Flow	-396.94M	-446.07M	-809.40M	-320.26M	728.16M	889.03M

Westamerica Bancorporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 48.27
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 48.27 is above the 20-day moving average (MA) of 47.14, above the 50-day MA of 47.82, and above the 200-day MA of 48.07, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 57.16 is Neutral, neither overbought nor oversold. The STOCH value of 56.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WABC.

Westamerica Bancorporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WABC	77 Outperform	$1.20B	10.29	13.05%	3.77%	-13.17%	-16.37%
STEL	71 Outperform	$1.51B	14.81	6.38%	1.86%	-4.40%	-8.80%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
TCBK	67 Neutral	$1.45B	12.52	9.20%	2.99%	0.93%	5.65%
CCB	67 Neutral	$1.61B	33.95	11.82%	―	-2.11%	6.48%
HOPE	65 Neutral	$1.33B	26.27	2.19%	5.35%	-7.96%	-52.79%
VBTX	59 Neutral	$1.66B	14.37	7.25%	3.50%	-1.28%	32.40%

Westamerica Bancorporation Corporate Events

Westamerica Bancorporation Declares Quarterly Cash Dividend

On October 23, 2025, Westamerica Bancorporation declared a quarterly cash dividend of $0.46 per share, payable on November 14, 2025, highlighting the company’s reliable earnings and financial strength. Previously, on October 16, 2025, the company reported a net income of $28.3 million for the quarter ending September 30, 2025, indicating solid financial performance.

The most recent analyst rating on (WABC) stock is a Hold with a $53.00 price target. To see the full list of analyst forecasts on Westamerica Bancorporation stock, see the WABC Stock Forecast page.

Westamerica Bancorporation Board Member Announces Retirement

On August 11, 2025, E. Joseph Bowler announced his retirement from Westamerica Bancorporation‘s Board of Directors, effective September 25, 2025. Bowler, who previously served as Senior Vice President and Treasurer until 2002, has been a board member since 2003 and participated in various committees. His departure is not due to any disagreements with the company’s operations, policies, or practices.

The most recent analyst rating on (WABC) stock is a Hold with a $60.00 price target. To see the full list of analyst forecasts on Westamerica Bancorporation stock, see the WABC Stock Forecast page.