📊 WSBF Key Takeaways
Is Waterstone Financial, Inc. (WSBF) a Good Investment?
Waterstone Financial demonstrates exceptional fundamentals with 104.7% revenue growth, strong operating margins of 28.8%, and robust free cash flow generation of $23M. However, the low interest coverage ratio of 2.1x and moderate ROE of 7.6% warrant caution given the company's high leverage (1.18x Debt/Equity) and sensitivity to interest rate fluctuations as a federally chartered savings institution.
Why Buy Waterstone Financial, Inc. Stock? WSBF Key Strengths
- Exceptional revenue growth of 104.7% YoY demonstrates strong business momentum and market position
- Strong operating margin of 28.8% and net margin of 22.7% indicate exceptional operational efficiency for a financial institution
- Solid free cash flow generation of $23M (19.8% FCF margin) with minimal capex requirements, enabling capital allocation flexibility
- Diluted EPS growth of 46.5% YoY shows shareholder value creation despite lower net income growth rate
WSBF Stock Risks: Waterstone Financial, Inc. Investment Risks
- Interest coverage ratio of 2.1x is concerningly low, leaving minimal cushion for adverse rate changes or credit deterioration typical in banking cycles
- Moderate ROE of 7.6% suggests suboptimal capital efficiency relative to banking peer benchmarks of 10-12%+
- High leverage (1.18x Debt/Equity) combined with $412.3M long-term debt and inherent interest rate sensitivity of savings institutions creates refinancing and duration risk
- Strong revenue growth (+104.7%) may not be sustainable; sustainability of margins under normalized lending environment uncertain
Key Metrics to Watch
- Interest coverage ratio trend and absolute level - critical leading indicator of financial stress in rate environment
- Net interest margin (NIM) stability - primary earnings driver for savings institutions
- Non-performing loan ratio and charge-offs - indicators of credit quality deterioration
- Deposit growth rate and funding costs - key to profitability sustainability for savings bank model
- Capital adequacy and leverage ratio compliance - regulatory health of 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 rating of BUY with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are WSBF's key strengths?
Claude: Exceptional revenue growth of 104.7% YoY demonstrates strong business momentum and market position. Strong operating margin of 28.8% and net margin of 22.7% indicate exceptional operational efficiency for a financial institution.
What are the risks of investing in WSBF?
Claude: Interest coverage ratio of 2.1x is concerningly low, leaving minimal cushion for adverse rate changes or credit deterioration typical in banking cycles. Moderate ROE of 7.6% suggests suboptimal capital efficiency relative to banking peer benchmarks of 10-12%+.
What is WSBF's revenue and growth?
Waterstone Financial, Inc. reported revenue of $116.1M.
Does WSBF pay dividends?
Waterstone Financial, Inc. pays dividends, with $10.8M 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 $1.48.
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 rating reflects both perspectives for balanced insights.
Is WSBF a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Waterstone Financial, Inc. has a BUY rating with 72% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is WSBF stock overvalued or undervalued?
Valuation metrics for WSBF: ROE of 7.6% (sector avg: 12%), net margin of 22.7% (sector avg: 25%). Compare these metrics with sector averages to assess valuation.
Should I buy WSBF stock in 2026?
Our dual AI analysis gives Waterstone Financial, Inc. a combined BUY rating 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 $24.2M, with capital expenditures of $1.2M. FCF margin is 19.8%.
How does WSBF compare to other Finance stocks?
Vs Finance sector averages: Net margin 22.7% (avg: 25%), ROE 7.6% (avg: 12%), current ratio N/A (avg: 1.2).