Bankwell Financial Group, Inc.
Bankwell Financial Group, Inc. Fundamental Analysis
Bankwell Financial Group, Inc. (BWFG) shows moderate financial fundamentals with a PE ratio of 9.91, profit margin of 18.69%, and ROE of 13.31%. The company generates $0.2B in annual revenue with moderate year-over-year growth of 6.13%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 65.3/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze BWFG's fundamental strength across five key dimensions:
Efficiency Score
WeakBWFG struggles to generate sufficient returns from assets.
Valuation Score
ExcellentBWFG trades at attractive valuation levels.
Growth Score
ModerateBWFG shows steady but slowing expansion.
Financial Health Score
ExcellentBWFG maintains a strong and stable balance sheet.
Profitability Score
ModerateBWFG maintains healthy but balanced margins.
Key Financial Metrics
Is BWFG Expensive or Cheap?
P/E Ratio
BWFG trades at 9.91 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, BWFG's PEG of 0.05 indicates potential undervaluation.
Price to Book
The market values Bankwell Financial Group, Inc. at 1.26 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.49 times EBITDA. This is generally considered low.
How Well Does BWFG Make Money?
Net Profit Margin
For every $100 in sales, Bankwell Financial Group, Inc. keeps $18.69 as profit after all expenses.
Operating Margin
Core operations generate 25.44 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.31 in profit for every $100 of shareholder equity.
ROA
Bankwell Financial Group, Inc. generates $1.17 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Bankwell Financial Group, Inc. produces operating cash flow of $33.69M, showing steady but balanced cash generation.
Free Cash Flow
Bankwell Financial Group, Inc. generates strong free cash flow of $32.12M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.03 in free cash annually.
FCF Yield
BWFG converts 7.68% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
9.91
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.05
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.26
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.91
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.42
vs 25 benchmark
Current Ratio
Current assets to current liabilities
51.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How BWFG Stacks Against Its Sector Peers
| Metric | BWFG Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 9.91 | 18.91 | Better (Cheaper) |
| ROE | 13.31% | 822.00% | Weak |
| Net Margin | 18.69% | 1869.00% | Weak |
| Debt/Equity | 0.42 | 0.98 | Strong (Low Leverage) |
| Current Ratio | 51.00 | 622.52 | Strong Liquidity |
| ROA | 1.17% | -23439.00% (disorted) | Weak |
BWFG outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Bankwell Financial Group, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
157.72%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
494.49%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
1898.42%
Industry Style: Value, Dividend, Cyclical
High Growth