Western New England Bancorp (WNEB) AI Stock Analysis

• Market Cap: $163.16M
• Dividend Yield: 3.57%
• Average Volume (3M): 67.65K
• Price to Earnings (P/E): 14.1
• Beta (1Y): 0.66
• Revenue Growth: 9.56%
• EPS Growth: -20.10%
• Country: US
• Employees: 286
• Sector: Financial
• Sector Strength: 86
• Industry: Banks - Regional
• EPS (TTM): 0.56
• Shares Outstanding: 20,811,028
• 10 Day Avg. Volume: 74,581
• 30 Day Avg. Volume: 67,649
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.63
• Price to Cash Flow (P/CF): 7.80
• P/FCF Ratio: 3.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $10.25
• Price Target Upside: 30.74% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Western New England Bancorp has solid financial performance with impressive revenue growth and efficient operations. However, technical indicators show bearish momentum, and the stock is trading below its key moving averages. Valuation metrics are reasonable, with an attractive dividend yield. Positive corporate events enhance the overall score, reflecting strong asset quality and strategic capital management.

Western New England Bancorp Business Overview & Revenue Model

Company Description

Western New England Bancorp (WNEB) is a financial holding company headquartered in Westfield, Massachusetts. It operates through its wholly-owned subsidiary, Westfield Bank, which provides a wide range of banking products and services. The company primarily serves individuals and businesses in Western Massachusetts and northern Connecticut. Its offerings include personal and commercial banking services such as checking and savings accounts, loans, mortgages, and financial advisory services.

How the Company Makes Money

Western New England Bancorp generates revenue primarily through interest income earned on a variety of loans including commercial, residential, and consumer loans. The company also earns money through non-interest income, which includes fees and service charges on deposit accounts, income from loan sales, and investment advisory fees. Furthermore, WNEB benefits from its investment securities portfolio, generating additional income. Key partnerships with local businesses and service providers enhance its service offerings and contribute to its revenue streams. The company is influenced by factors such as interest rate changes, economic conditions, and regulatory requirements, which can impact its financial performance.

Western New England Bancorp Financial Statement Overview

Summary

Western New England Bancorp demonstrates strong revenue growth and efficient operations, as evidenced by high EBIT margins. While leverage is effectively managed, profitability relative to equity remains moderate. Cash flow stability is a positive, though future growth in free cash flow should be monitored. The company is on a stable trajectory but should focus on improving profit margins and cash flow growth.

Income Statement

Western New England Bancorp's income statement shows a strong EBIT margin of 96.88% for 2024, indicating excellent operational efficiency. However, the net profit margin is relatively low at 10.62%, suggesting high non-operational costs or taxes. The revenue growth of 40.27% from 2023 to 2024 is impressive, reflecting robust top-line expansion.

Balance Sheet

The balance sheet reflects a solid equity base with an equity ratio of 8.89% in 2024, which is low but typical for the banking industry. The debt-to-equity ratio has improved to 0.44, showcasing effective leverage management. However, the return on equity at 4.95% indicates moderate profitability relative to shareholder equity.

Cash Flow

The cash flow statement reveals a stable operating cash flow with a slightly declining trend. The free cash flow to net income ratio is 1.04, indicating good cash conversion from profits. However, the free cash flow growth is negative, which could be a concern if it persists.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
109.83M	78.30M	91.86M	86.11M	65.91M
	Gross Profit
109.83M	78.30M	91.86M	86.11M	65.91M
	EBIT
106.40M	31.69M	41.33M	31.72M	14.16M
	EBITDA
0.00	22.18M	37.32M	34.42M	16.68M
	Net Income Common Stockholders
11.67M	15.07M	25.89M	23.70M	11.21M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
179.53M	28.84M	177.34M	297.81M	289.32M
	Total Assets
2.65B	2.56B	2.55B	2.54B	2.37B
	Total Debt
103.39M	156.46M	62.20M	22.29M	57.85M
	Net Debt
84.57M	130.61M	31.86M	-81.17M	-29.59M
	Total Liabilities
2.42B	2.33B	2.33B	22.29M	57.85M
	Stockholders Equity
235.91M	237.41M	228.14M	223.69M	226.64M
Cash Flow		Free Cash Flow
12.17M	11.87M	34.95M	24.09M	21.49M
	Operating Cash Flow
12.17M	14.77M	36.09M	27.54M	25.07M
	Investing Cash Flow
-46.59M	-13.71M	-111.19M	-161.66M	-123.56M
	Financing Cash Flow
72.03M	-2.57M	1.99M	150.13M	161.19M

Western New England Bancorp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.84
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WNEB, the sentiment is Negative. The current price of 7.84 is below the 20-day moving average (MA) of 8.87, below the 50-day MA of 9.18, and below the 200-day MA of 8.66, indicating a bearish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 54.08 is Neutral, neither overbought nor oversold. The STOCH value of 55.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WNEB.

Western New England Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HWBK	69 Neutral	$190.18M	10.45	14.14%	2.79%	9.65%	1820.32%
VABK	67 Neutral	$192.82M	11.37	10.83%	3.77%	4.93%	-12.19%
ESSA	66 Neutral	$176.18M	9.95	7.30%	3.49%	11.38%	-6.14%
WNEB	64 Neutral	$163.16M	14.12	4.93%	3.57%	9.56%	-20.10%
Sector *	64 Neutral	$13.37B	9.30	9.39%	4.85%	16.11%	-8.85%
FVCB	59 Neutral	$183.07M	12.21	6.66%	―	22.60%	284.38%
FUNC	58 Neutral	$175.04M	8.60	12.06%	3.11%	16.56%	40.31%

Western New England Bancorp Corporate Events

Western New England Bancorp Reports Strong Financial Results

On January 28, 2025, Western New England Bancorp announced its financial results for the quarter and year ending December 31, 2024, reporting a quarterly net income increase to $3.3 million, partly due to a disciplined approach to managing funding costs. The company declared a quarterly cash dividend and highlighted an increase in deposits and a decrease in the loan-to-deposit ratio. Western New England Bancorp also emphasized its strong asset quality and capital management strategies, having repurchased 934,282 shares of common stock over the past year, reflecting its commitment to shareholder value despite a challenging banking environment.