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BWFG Stock Analysis - Bankwell Financial Group, Inc. AI Rating

BWFG Nasdaq State Commercial Banks CT CIK: 0001505732
Recently Updated • Analysis: Mar 21, 2026 • SEC Data: 2025-12-31
AI Rating
HOLD
35% Confidence

📊 BWFG Key Takeaways

Revenue: $2.8M
Net Margin: 1,245.5%
Free Cash Flow: $27.1M
Current Ratio: N/A
Debt/Equity: 0.00x
EPS: $4.45
AI Rating: HOLD with 35% confidence

Investment Thesis

Bankwell demonstrates strong profitability metrics with net income of $35.2M and exceptional margins, but the data exhibits severe quality issues with revenue collapsing 98.6% YoY while net income grew slightly, indicating potential accounting anomalies or data reporting errors that undermine fundamental analysis reliability. The unusually high operating and net margins (1716% and 1245% respectively) combined with weak interest coverage (1.8x) and minimal ROA (1.0%) suggest either material data integrity problems or undisclosed operational issues requiring clarification before investment consideration.

BWFG Strengths

  • + Substantial absolute net income of $35.2M with modest YoY growth despite revenue collapse
  • + Strong liquidity position with $224.9M cash representing 7.4% of total assets
  • + Positive free cash flow of $27.1M demonstrating ability to generate cash despite operational anomalies
  • + Significant insider activity with 29 Form 4 filings suggesting management engagement

BWFG Risks

  • ! Critical data integrity concern: 98.6% revenue decline contradicts net income growth, indicating potential reporting errors or accounting adjustments masking true operational performance
  • ! Implausibly high operating margin (1716%) and net margin (1245%) inconsistent with banking sector norms, suggesting data quality issues
  • ! Weak interest coverage ratio of 1.8x indicates limited debt servicing capacity relative to earnings volatility
  • ! Minimal ROA of 1.0% indicates poor asset utilization despite large $3.4B asset base
  • ! Heavy reliance on non-operating items or gains to achieve reported net income given revenue structure

Key Metrics to Watch

BWFG Financial Metrics

Revenue
$2.8M
Net Income
$35.2M
EPS (Diluted)
$4.45
Free Cash Flow
$27.1M
Total Assets
$3.4B
Cash Position
$224.9M

💡 AI Analyst Insight

The 960.0% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.

BWFG Profitability Ratios

Gross Margin N/A
Operating Margin 1,716.0%
Net Margin 1,245.5%
ROE 11.7%
ROA 1.0%
FCF Margin 960.0%

BWFG vs Finance Sector

How Bankwell Financial Group, Inc. compares to Finance sector averages

Net Margin
BWFG 1,245.5%
vs
Sector Avg 25.0%
BWFG Sector
ROE
BWFG 11.7%
vs
Sector Avg 12.0%
BWFG Sector
Current Ratio
BWFG 0.0x
vs
Sector Avg 1.2x
BWFG Sector
Debt/Equity
BWFG 0.0x
vs
Sector Avg 2.0x
BWFG Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

BWFG Balance Sheet & Liquidity

Current Ratio
N/A
Quick Ratio
N/A
Debt/Equity
0.00x
Debt/Assets
91.0%
Interest Coverage
1.79x
Long-term Debt
N/A

BWFG 5-Year Financial Trend

BWFG 5-year financial data: Year 2021: Revenue $872.0K, Net Income $5.9M, EPS $0.75. Year 2022: Revenue $1.1M, Net Income $26.6M, EPS $3.36. Year 2023: Revenue $1.6M, Net Income $37.4M, EPS $4.79. Year 2024: Revenue $2.0M, Net Income $36.7M, EPS $4.67. Year 2025: Revenue $2.8M, Net Income $9.8M, EPS $1.23.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: Bankwell Financial Group, Inc.'s revenue has grown significantly by 224% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.23 reflects profitable operations.

BWFG Growth Metrics (YoY)

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
960.0%
Free cash flow / Revenue

BWFG Quarterly Performance

Quarterly financial performance data for Bankwell Financial Group, Inc. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q3 2025 $575.0K $1.9M $0.24
Q2 2025 $495.0K $1.1M $0.14
Q1 2025 $304.0K $3.8M $0.48
Q3 2024 $294.0K $1.9M $0.24
Q2 2024 $361.0K $1.1M $0.14
Q1 2024 $286.0K $3.8M $0.48
Q3 2023 $240.0K $9.2M $1.18
Q2 2023 $249.0K $8.0M $1.02

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

BWFG Capital Allocation

Operating Cash Flow
$28.3M
Cash generated from operations
Stock Buybacks
$1.3M
Shares repurchased (TTM)
Capital Expenditures
$1.1M
Investment in assets
Dividends Paid
$6.3M
Returned to shareholders

BWFG SEC Filings

Access official SEC EDGAR filings for Bankwell Financial Group, Inc. (CIK: 0001505732)

📋 Recent SEC Filings

Date Form Document Action
Mar 16, 2026 4 xslF345X05/wk-form4_1773668223.xml View →
Mar 13, 2026 4 xslF345X05/wk-form4_1773406866.xml View →
Mar 12, 2026 4 xslF345X05/wk-form4_1773320140.xml View →
Mar 11, 2026 4 xslF345X05/wk-form4_1773235371.xml View →
Mar 9, 2026 4 xslF345X05/wk-form4_1773063552.xml View →

Frequently Asked Questions about BWFG

What is the AI rating for BWFG?

Bankwell Financial Group, Inc. (BWFG) has an AI rating of HOLD with 35% confidence, based on fundamental analysis of SEC EDGAR filings.

What are BWFG's key strengths?

Substantial absolute net income of $35.2M with modest YoY growth despite revenue collapse. Strong liquidity position with $224.9M cash representing 7.4% of total assets.

What are the risks of investing in BWFG?

Critical data integrity concern: 98.6% revenue decline contradicts net income growth, indicating potential reporting errors or accounting adjustments masking true operational performance. Implausibly high operating margin (1716%) and net margin (1245%) inconsistent with banking sector norms, suggesting data quality issues.

What is BWFG's revenue and growth?

Bankwell Financial Group, Inc. reported revenue of $2.8M.

Does BWFG pay dividends?

Bankwell Financial Group, Inc. pays dividends, with $6.3M distributed to shareholders in the trailing twelve months.

Where can I find BWFG SEC filings?

Official SEC filings for Bankwell Financial Group, Inc. (CIK: 0001505732) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is BWFG's EPS?

Bankwell Financial Group, Inc. has a diluted EPS of $4.45.

How is the AI analysis conducted?

Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.

Disclaimer: This analysis is generated by Claude AI based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Mar 21, 2026 | Data as of: 2025-12-31 | Powered by Claude AI