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Waterstone Financial (WSBF) AI Stock Analysis
Waterstone Financial
(NASDAQ:WSBF)
Waterstone Financial's overall score is weighed down most significantly by weak financial performance, including sharp revenue declines from 2021 peaks, compressed margins, and highly volatile cash flows characteristic of its mortgage-heavy model. These fundamental concerns are the dominant factor. On the positive side, the stock's valuation is reasonable with a P/E of ~12x and a 3.1% dividend yield, and technical indicators show the stock in a sustained uptrend above all major moving averages. However, overbought stochastic readings temper the technical outlook. Routine but positive corporate governance outcomes provide marginal support. The stock offers value and income appeal but carries meaningful cyclical and earnings quality risks.
Waterstone Financial (WSBF) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $368.53M
- Dividend Yield
- 3.22%
- Average Volume (3M)
- 72.46K
- Price to Earnings (P/E)
- 11.9
- Beta (1Y)
- 0.45
- Revenue Growth
- 4.60%
- EPS Growth
- 52.13%
- Country
- US
- Employees
- 593
- Sector
- Financial
- Sector Strength
- 68
- Industry
- Banks - Regional
Waterstone Financial Business Overview & Revenue Model
Company Description
Waterstone Financial, Inc. functions as a bank holding company, with its principal operations conducted through its subsidiary, WaterStone Bank SSB. It offers a broad spectrum of financial services to customers situated in southeastern Wisconsin, USA...
How the Company Makes Money
Waterstone Financial primarily makes money through (1) net interest income and (2) noninterest income. Net interest income is earned by originating and holding loans and other interest-earning assets and funding those assets with deposits and other b...
Waterstone Financial Financial Statement Overview
Summary
Waterstone Financial's financials reflect significant profitability compression from 2021 peaks, with revenue down ~40% and margins well below historical highs despite partial recovery. The income statement score of 38 highlights persistent revenue contraction and compressed margins. The balance sheet score of 50 shows manageable leverage but declining equity and below-average ROE. The cash flow score of 35 underscores extreme volatility driven by the mortgage-heavy business model, with thin debt service coverage. While TTM net income and margins show improvement, the overall financial trajectory remains weak.
Income Statement
38NegativeBalance Sheet
50NeutralCash Flow
35Negative| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 162.01M | 201.61M | 199.38M | 176.97M | 171.06M | 268.47M |
| Gross Profit | 105.99M | 143.63M | 132.55M | 127.32M | 156.80M | 258.09M |
| EBITDA | 22.89M | 35.99M | 26.48M | 14.33M | 28.51M | 98.16M |
| Net Income | 30.10M | 26.40M | 18.69M | 9.38M | 19.49M | 70.79M |
Balance Sheet | ||||||
| Total Assets | 2.25B | 2.26B | 2.21B | 2.21B | 2.03B | 2.22B |
| Cash, Cash Equivalents and Short-Term Investments | 275.55M | 234.22M | 191.24M | 235.84M | 232.55M | 541.76M |
| Total Debt | 412.00M | 412.26M | 446.52M | 466.05M | 386.78M | 477.13M |
| Total Liabilities | 1.90B | 1.91B | 1.87B | 1.87B | 1.66B | 1.78B |
| Stockholders Equity | 351.13M | 349.39M | 339.13M | 344.06M | 370.49M | 432.77M |
Cash Flow | ||||||
| Free Cash Flow | 42.78M | 17.86M | 46.96M | -28.28M | 205.96M | 141.23M |
| Operating Cash Flow | 44.74M | 19.02M | 48.06M | -27.58M | 206.66M | 142.01M |
| Investing Cash Flow | -33.67M | -3.58M | -23.96M | -159.22M | -335.74M | 160.06M |
| Financing Cash Flow | -43.80M | 15.91M | -20.76M | 176.58M | -201.00M | -20.12M |
Waterstone Financial Technical Analysis
Price Trends
Market Momentum
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 20.50 is above the 20-day moving average (MA) of 19.82, above the 50-day MA of 20.22, and above the 200-day MA of 18.96, indicating a bullish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 60.80 is Neutral, neither overbought nor oversold. The STOCH value of 74.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WSBF.
Waterstone Financial Risk Analysis
Waterstone Financial disclosed 47 risk factors in its most recent earnings report. Waterstone Financial reported the most risks in the "Finance & Corporate" category.
Latest Risks Added
2 New RisksWaterstone Financial Peers Comparison
Overall Rating
CZFS79Outperform
PCB78Outperform
PLBC75Outperform
FNLC69Neutral
FSBW64Neutral- WSBF52Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| CZFS | 79Outperform | $406.94M | 9.75 | 12.40% | 2.31% | 4.04% | 26.08% |
| PCB | 78Outperform | $430.42M | 10.28 | 10.72% | 2.78% | 3.68% | 23.37% |
| PLBC | 75Outperform | $440.02M | 10.54 | 15.86% | 2.07% | 24.22% | 39.38% |
| FNLC | 69Neutral | $407.30M | 10.46 | 13.69% | 4.04% | 2.06% | 24.58% |
| Sector * | 68Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
| FSBW | 64Neutral | $346.56M | 11.43 | 9.14% | 2.59% | 5.90% | -7.04% |
| WSBF | 52Neutral | $356.66M | 11.92 | 8.63% | 3.22% | 4.60% | 52.13% |
* Financial Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| WSBF | Waterstone Financial | 20.50 | 5.87 | 40.12% | |
| FNLC | The First Bancorp Inc | 37.15 | 13.31 | 55.86% | |
| PLBC | Plumas | 63.78 | 23.40 | 57.97% | |
| FSBW | Fs Bancorp, Inc. | 44.47 | 7.23 | 19.42% | |
| CZFS | Citizens Financial Services | 87.30 | 33.68 | 62.82% | |
| PCB | PCB Bancorp | 30.95 | 10.18 | 49.04% |
Waterstone Financial Corporate Events
Waterstone Shareholders Affirm Directors, Auditor and Pay Practices
PositiveAt its 2026 Annual Meeting of Shareholders held on May 19, 2026, Waterstone Financial investors elected three directors—Stephen Schmidt, Derek Tyus and Molly Mulroy—to serve terms through 2029, affirming the company’s existing gover...
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.
Date of analysis: Aug 07, 2026