Waterstone Financial AI Stock Analysis
Want to see WSBF full AI Analyst Report?
Waterstone Financial (WSBF) AI Stock Analysis
Waterstone Financial
(NASDAQ:WSBF)
Waterstone Financial scores in the below-average range, driven primarily by weak fundamentals: sharply contracted revenue and margins versus the 2021 mortgage-boom peak, eroding shareholders' equity, and highly erratic cash flow that limits earnings visibility. Technicals are neutral, with the stock trading below its 50- and 100-day moving averages but above its 200-day, and momentum indicators showing no clear direction. The main offset is valuation — an 11.5x P/E, a 3.3% dividend yield, and low beta provide downside cushion and income for patient investors. A sustained re-rating would require evidence that the recent improvement in net income and margins can continue.
Waterstone Financial (WSBF) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $362.06M
- Dividend Yield
- 3.28%
- Average Volume (3M)
- 71.44K
- Price to Earnings (P/E)
- 11.7
- Beta (1Y)
- 0.39
- 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 its banking subsidiary by earning interest income on loans and investments and by generating fee-based income from banking and mortgage-related services. A major revenue driver is net interest income...
Waterstone Financial Financial Statement Overview
Summary
Weak overall. The income statement (38) shows revenue down roughly 40% from the 2021 peak to $162M TTM, with a further ~21.7% TTM decline, and margins far below historical norms despite a partial recovery (TTM net margin 18.6%, EBIT margin 12.3%). The balance sheet (50) is adequate for a regional bank — debt/equity of 1.17x, modest asset growth to $2.25B, and declining total debt — but equity has eroded from $432.8M to $351.1M and ROE of 8.6% trails stronger peers. Cash flow (35) is the biggest weakness, swinging from $206.7M in 2022 to negative $27.6M in 2023 and $44.1M TTM, with very thin operating cash flow coverage of total debt (2.4%), reflecting the unpredictability of a mortgage-heavy model.
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 | 23.02M | 46.96M | -28.28M | 205.96M | 141.23M |
| Operating Cash Flow | 44.74M | 24.18M | 48.06M | -27.58M | 206.66M | 142.01M |
| Investing Cash Flow | -33.67M | -8.74M | -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 20.14 is above the 20-day moving average (MA) of 19.95, above the 50-day MA of 20.13, and above the 200-day MA of 19.05, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 52.18 is Neutral, neither overbought nor oversold. The STOCH value of 42.25 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
3 New RisksWaterstone Financial Peers Comparison
Overall Rating
PCB81Outperform
FNLC80Outperform
CZFS78Outperform
PLBC75Outperform
FSBW58Neutral- WSBF50Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| PCB | 81Outperform | $421.15M | 10.00 | 10.72% | 2.93% | 3.68% | 23.15% |
| FNLC | 80Outperform | $415.92M | 10.38 | 13.69% | 4.08% | 2.06% | 24.55% |
| CZFS | 78Outperform | $412.85M | 9.43 | 12.40% | 2.36% | 4.04% | 26.08% |
| PLBC | 75Outperform | $435.47M | 10.43 | 15.86% | 2.10% | 24.22% | 39.38% |
| Sector * | 68Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
| FSBW | 58Neutral | $339.44M | 11.13 | 9.14% | 2.68% | 6.16% | -7.24% |
| WSBF | 50Neutral | $360.98M | 11.68 | 8.63% | 3.28% | 4.60% | 52.13% |
* Financial Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| WSBF | Waterstone Financial | 20.14 | 5.45 | 37.12% | |
| FNLC | The First Bancorp Inc | 36.78 | 13.07 | 55.12% | |
| PLBC | Plumas | 62.91 | 22.34 | 55.06% | |
| FSBW | Fs Bancorp, Inc. | 43.21 | 5.32 | 14.05% | |
| CZFS | Citizens Financial Services | 85.48 | 33.29 | 63.78% | |
| PCB | PCB Bancorp | 29.90 | 9.30 | 45.15% |
Waterstone Financial Corporate Events
Waterstone Financial announces orderly director board resignation
NeutralOn October 16, 2026, Waterstone Financial, Inc., the holding company for WaterStone Bank, reported that director Derek L. Tyus will resign from the boards of both the company and the bank, effective October 20, 2026. Tyus, who joined the boards in 20...
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: Nov 07, 2026