Western New England Bancorp (WNEB) AI Stock Analysis

• Market Cap: $195.30M
• Dividend Yield: 2.96%
• Average Volume (3M): 68.73K
• Price to Earnings (P/E): 17.9
• Beta (1Y): 0.61
• Revenue Growth: 8.70%
• EPS Growth: -10.56%
• Country: US
• Employees: 286
• Sector: Financial
• Sector Strength: 84
• Industry: Banks - Regional
• EPS (TTM): 0.11
• Shares Outstanding: 20,711,027
• 10 Day Avg. Volume: 62,282
• 30 Day Avg. Volume: 68,735
• PEG Ratio: -3.32
• Price to Book (P/B): 0.82
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.61
• Enterprise Value/Market Cap: 0.98
• Enterprise Value/Revenue: 0.47
• Enterprise Value/Gross Profit: 2.12
• Enterprise Value/Ebitda: 2.87
• 1Y Price Target: $9.50
• Price Target Upside: 0.74% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

Western New England Bancorp demonstrates strong financial performance with significant revenue growth and operational efficiency. While technical indicators are neutral, the company's valuation is reasonable, and recent corporate events positively impact the outlook. The stock offers a balanced risk-reward profile, with room for improvement in profitability and cash flow growth.

Western New England Bancorp Business Overview & Revenue Model

Company Description

Western New England Bancorp, Inc. operates as the holding company for Westfield Bank that provides a range of commercial and retail banking products and services to individuals and businesses. The company accepts various deposit accounts, including checking, business and municipal savings, money market and sweep, individual retirement, and other savings accounts; time deposits; certificates of deposit; and interest on lawyers trust accounts. It also offers residential and commercial real estate, commercial construction, working capital, equipment financing and term, home equity, and consumer loans; commercial and industrial loans, such as revolving lines of credit. In addition, the company provides automated teller machine (ATM), telephone and online banking, remote deposit capture, cash management, overdraft and safe deposit facility, and night deposit services. As of December 31, 2021, it operated through a network of 25 banking offices, 23 free-standing ATMs, and 35 seasonal or temporary ATMS located in Agawam, Chicopee, Feeding Hills, East Longmeadow, Holyoke, Huntington, Ludlow, South Hadley, Southwick, Springfield, Ware, West Springfield and Westfield, Massachusetts and Bloomfield, Enfield, Granby, and West Hartford, Connecticut. The company was formerly known as Westfield Financial, Inc. and changed its name to Western New England Bancorp, Inc. in October 2016. Western New England Bancorp, Inc. was founded in 1853 and is headquartered in Westfield, Massachusetts.

How the Company Makes Money

Western New England Bancorp generates revenue primarily through interest income earned on a variety of loans including commercial, residential, and consumer loans. The company also earns money through non-interest income, which includes fees and service charges on deposit accounts, income from loan sales, and investment advisory fees. Furthermore, WNEB benefits from its investment securities portfolio, generating additional income. Key partnerships with local businesses and service providers enhance its service offerings and contribute to its revenue streams. The company is influenced by factors such as interest rate changes, economic conditions, and regulatory requirements, which can impact its financial performance.

Western New England Bancorp Financial Statement Overview

Summary

Western New England Bancorp shows strong revenue growth and efficient operations with high EBIT margins. Leverage is effectively managed, though profitability relative to equity is moderate. Cash flow stability is a positive, but future growth in free cash flow should be monitored.

Income Statement

Western New England Bancorp's income statement shows a strong EBIT margin of 96.88% for 2024, indicating excellent operational efficiency. However, the net profit margin is relatively low at 10.62%, suggesting high non-operational costs or taxes. The revenue growth of 40.27% from 2023 to 2024 is impressive, reflecting robust top-line expansion.

Balance Sheet

The balance sheet reflects a solid equity base with an equity ratio of 8.89% in 2024, which is low but typical for the banking industry. The debt-to-equity ratio has improved to 0.44, showcasing effective leverage management. However, the return on equity at 4.95% indicates moderate profitability relative to shareholder equity.

Cash Flow

The cash flow statement reveals a stable operating cash flow with a slightly declining trend. The free cash flow to net income ratio is 1.04, indicating good cash conversion from profits. However, the free cash flow growth is negative, which could be a concern if it persists.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
72.73M	78.30M	91.86M	86.11M	65.91M
	Gross Profit
35.62M	78.30M	91.86M	86.11M	65.91M
	EBIT
14.96M	31.69M	41.33M	31.72M	14.16M
	EBITDA
0.00	22.18M	37.32M	34.42M	16.68M
	Net Income Common Stockholders
11.67M	15.07M	25.89M	23.70M	11.21M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
179.53M	28.84M	177.34M	297.81M	289.32M
	Total Assets
2.65B	2.56B	2.55B	2.54B	2.37B
	Total Debt
123.14M	156.46M	62.20M	22.29M	57.85M
	Net Debt
84.57M	130.61M	31.86M	-81.17M	-29.59M
	Total Liabilities
2.42B	2.33B	2.33B	22.29M	57.85M
	Stockholders Equity
235.91M	237.41M	228.14M	223.69M	226.64M
Cash Flow		Free Cash Flow
10.97M	11.87M	34.95M	24.09M	21.49M
	Operating Cash Flow
12.17M	14.77M	36.09M	27.54M	25.07M
	Investing Cash Flow
-46.59M	-13.71M	-111.19M	-161.66M	-123.56M
	Financing Cash Flow
72.03M	-2.57M	1.99M	150.13M	161.19M

Western New England Bancorp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.43
• 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 WNEB, the sentiment is Positive. The current price of 9.43 is above the 20-day moving average (MA) of 9.28, above the 50-day MA of 8.97, and above the 200-day MA of 8.81, indicating a bullish trend. The MACD of 0.19 indicates Negative momentum. The RSI at 58.35 is Neutral, neither overbought nor oversold. The STOCH value of 27.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WNEB.

Western New England Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HWBK	71 Outperform	$210.48M	11.25	6.62%	2.46%	4.83%	800.30%
ESSA	68 Neutral	$194.66M	12.42	6.43%	3.12%	5.57%	-16.40%
WNEB	66 Neutral	$195.30M	17.92	4.65%	2.96%	8.70%	-10.56%
VABK	64 Neutral	$205.33M	11.91	11.15%	3.47%	2.26%	3.83%
Sector *	64 Neutral	$12.83B	9.83	7.64%	16985.66%	12.34%	-5.73%
FUNC	62 Neutral	$202.26M	9.19	12.99%	2.75%	13.41%	62.51%
FVCB	62 Neutral	$214.37M	11.63	8.16%	―	17.18%	305.35%

Western New England Bancorp Corporate Events

Western New England Bancorp Announces Q1 2025 Financial Results

On April 22, 2025, Western New England Bancorp announced its unaudited financial results for the first quarter of 2025, reporting a net income of $2.3 million. The company also declared a quarterly cash dividend and authorized a new stock repurchase plan to buy back up to 1.0 million shares, enhancing shareholder value. The company’s net interest margin improved, and it maintained strong asset quality and liquidity. The 2025 stock repurchase plan will commence after the completion of the 2024 plan, reflecting the company’s focus on disciplined capital management and shareholder returns.

Spark’s Take on WNEB Stock

According to Spark, TipRanks’ AI Analyst, WNEB is a Neutral.

Western New England Bancorp’s financial performance is marked by strong revenue growth and operational efficiency. However, challenges in profit margins and cash flow growth limit the upside. Technical indicators suggest neutral momentum, while valuation is moderate. Positive corporate events, such as improved net income and capital management, bolster its attractiveness. Overall, the stock presents a balanced risk-reward profile with room for improvement in profitability.

To see Spark’s full report on WNEB stock, click here.