Westamerica Bancorporation
Westamerica Bancorporation Fundamental Analysis
Westamerica Bancorporation (WABC) shows moderate financial fundamentals with a PE ratio of 11.14, profit margin of 42.74%, and ROE of 12.53%. The company generates $0.3B in annual revenue with weak year-over-year growth of -5.00%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 58.0/100 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 WABC's fundamental strength across five key dimensions:
Efficiency Score
WeakWABC struggles to generate sufficient returns from assets.
Valuation Score
ExcellentWABC trades at attractive valuation levels.
Growth Score
WeakWABC faces weak or negative growth trends.
Financial Health Score
ExcellentWABC maintains a strong and stable balance sheet.
Profitability Score
ModerateWABC maintains healthy but balanced margins.
Key Financial Metrics
Is WABC Expensive or Cheap?
P/E Ratio
WABC trades at 11.14 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, WABC's PEG of -7.32 indicates potential undervaluation.
Price to Book
The market values Westamerica Bancorporation at 1.39 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 10.23 times EBITDA. This signals the market has high growth expectations.
How Well Does WABC Make Money?
Net Profit Margin
For every $100 in sales, Westamerica Bancorporation keeps $42.74 as profit after all expenses.
Operating Margin
Core operations generate 57.64 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.53 in profit for every $100 of shareholder equity.
ROA
Westamerica Bancorporation generates $1.95 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Westamerica Bancorporation generates strong operating cash flow of $119.45M, reflecting robust business health.
Free Cash Flow
Westamerica Bancorporation generates strong free cash flow of $116.75M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.79 in free cash annually.
FCF Yield
WABC converts 9.35% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.14
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-7.32
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.39
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.67
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.17
vs 25 benchmark
Current Ratio
Current assets to current liabilities
33.06
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How WABC Stacks Against Its Sector Peers
| Metric | WABC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.14 | 18.80 | Better (Cheaper) |
| ROE | 12.53% | 817.00% | Weak |
| Net Margin | 42.74% | -55.00% (disorted) | Strong |
| Debt/Equity | 0.17 | 1.03 | Strong (Low Leverage) |
| Current Ratio | 33.06 | 661.52 | Strong Liquidity |
| ROA | 1.95% | -23757.00% (disorted) | Weak |
WABC outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Westamerica Bancorporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
52.52%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
74.21%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
77.21%
Industry Style: Value, Dividend, Cyclical
High Growth