📊 WSBF Key Takeaways
Is Waterstone Financial, Inc. (WSBF) a Good Investment?
Waterstone Financial exhibits severe financial distress despite strong revenue growth and healthy operating margins. Critical interest coverage of 0.5x indicates inability to service debt from operations, while negative operating and free cash flow reveal fundamental unprofitability on a cash basis rather than accrual basis. The 1.19x debt-to-equity ratio combined with poor returns (1.7% ROE) suggests unsustainable leverage destroying shareholder value.
Waterstone Financial, Inc. Key Strengths (WSBF)
- Revenue growth of 104.7% YoY demonstrates strong market demand
- Operating margin of 26.0% and net margin of 20.7% show pricing power and cost management
- Equity base of 348.2M provides some cushion against asset deterioration
WSBF Stock Risks: Waterstone Financial, Inc. Investment Risks
- Interest coverage of 0.5x is critically low and indicates inability to cover interest expenses from operations, signaling potential default risk
- Negative operating cash flow of -647K and free cash flow of -1.6M despite positive net income indicates liquidity deterioration and reliance on working capital liquidation
- Debt-to-equity ratio of 1.19x is unsustainably high for an organization burning cash, creating refinancing risk and potential covenant violations
- Extremely low ROE of 1.7% and ROA of 0.3% indicate leverage is destroying rather than enhancing shareholder returns
- Minimal insider confidence with only 2 Form 4 filings in 90 days
Key Metrics to Watch
- Interest coverage ratio (must improve above 1.5x for sustainability)
- Operating cash flow (currently negative, must turn positive)
- Debt-to-equity ratio and debt maturity schedule (refinancing risk)
- Loan loss provisions and asset quality metrics (for a financial institution)
Waterstone Financial, Inc. (WSBF) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
WSBF Profit Margin, ROE & Profitability Analysis
WSBF vs Finance Sector: How Waterstone Financial, Inc. Compares
How Waterstone Financial, Inc. compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Waterstone Financial, Inc. Stock Overvalued? WSBF Valuation Analysis 2026
Based on fundamental analysis, Waterstone Financial, Inc. has mixed fundamental signals relative to the Finance sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Waterstone Financial, Inc. Balance Sheet: WSBF Debt, Cash & Liquidity
WSBF Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Waterstone Financial, Inc.'s revenue has remained relatively flat over the 5-year period, with a 0% decline. The most recent EPS of $0.46 reflects profitable operations.
WSBF Revenue Growth, EPS Growth & YoY Performance
Waterstone Financial, Inc. Dividends, Buybacks & Capital Allocation
WSBF SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Waterstone Financial, Inc. (CIK: 0001569994)
📋 Recent SEC Filings
❓ Frequently Asked Questions about WSBF
What is the AI rating for WSBF?
Waterstone Financial, Inc. (WSBF) has an AI grade of D with 85% confidence, based on fundamental analysis of SEC EDGAR filings.
What are WSBF's key strengths?
Claude: Revenue growth of 104.7% YoY demonstrates strong market demand. Operating margin of 26.0% and net margin of 20.7% show pricing power and cost management.
What are the risks of investing in WSBF?
Claude: Interest coverage of 0.5x is critically low and indicates inability to cover interest expenses from operations, signaling potential default risk. Negative operating cash flow of -647K and free cash flow of -1.6M despite positive net income indicates liquidity deterioration and reliance on working capital liquidation.
What is WSBF's revenue and growth?
Waterstone Financial, Inc. reported revenue of $29.0M.
Does WSBF pay dividends?
Waterstone Financial, Inc. pays dividends, with $2.6M distributed to shareholders in the trailing twelve months.
Where can I find WSBF SEC filings?
Official SEC filings for Waterstone Financial, Inc. (CIK: 0001569994) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is WSBF's EPS?
Waterstone Financial, Inc. has a diluted EPS of $0.34.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is WSBF's fundamental grade?
Based on our AI fundamental analysis in June 2026, Waterstone Financial, Inc. has a D grade with 85% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is WSBF stock overvalued or undervalued?
Valuation metrics for WSBF: ROE of 1.7% (sector avg: 12%), net margin of 20.7% (sector avg: 25%). Compare these metrics with sector averages to assess valuation.
What is WSBF's AI grade for 2026?
Our dual AI analysis gives Waterstone Financial, Inc. a combined D grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is WSBF's free cash flow?
Waterstone Financial, Inc.'s operating cash flow is $-647.0K, with capital expenditures of $991.0K. FCF margin is -5.6%.
How does WSBF compare to other Finance stocks?
Vs Finance sector averages: Net margin 20.7% (avg: 25%), ROE 1.7% (avg: 12%), current ratio N/A (avg: 1.2).