West Bancorporation Inc (WTBA) stock analysis

P/E above its 5-year median

West Bancorporation's P/E of 13.0 is above its own 5-year median of 11.8.

P/E above the industry

West Bancorporation's P/E of 13.0 is above the Commercial Banks median of 12.1.

P/S above the industry

West Bancorporation's price-to-sales of 4.85 is above the Commercial Banks median of 3.60.

P/B above the industry

West Bancorporation's price-to-book of 1.92 is above the Commercial Banks median of 1.29.

Trading above fair value

The share price of $30.58 is above our fair value estimate of $25.33.

Margin of safety under 20%

The price is 20.7% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew -2.2% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -11.4% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 26.3% over the last twelve months, against a 5-year average of -0.1% a year.

Growing faster than the industry

Revenue grew 15.8% over the last twelve months; the Commercial Banks median is 11.3%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin trend

Banks and insurers do not report gross profit.

Return on equity over 15%

Return on equity was 15.5% over the last twelve months and averaged 15.0% over five years.

Return on assets over 1%

Return on assets was 1.0%; for a bank or insurer, 1% or more is considered good.

Return on equity above the industry

West Bancorporation's return on equity of 15.5% is above the Commercial Banks median of 11.5%.

Earnings shrank over 5 years

Net income shrank 0.1% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 37.9% over the last twelve months, against a 5-year average of 37.5%.

Net margin above the industry

West Bancorporation's net margin of 37.9% is above the Commercial Banks median of 30.3%.

Thin capital

Equity is 7.0% of total assets; 8% or more is a comfortable cushion.

Loans funded by deposits

Needs loans and deposits.

Adequate loan-loss reserve

The allowance for credit losses is not reported.

Efficient operations

Non-interest expense takes 51.1% of revenue; under 60% is efficient for a bank.

Deposits shrinking

Deposits fell 1.1% over the past year.

Borrowings

Needs debt and equity figures.

Pays a dividend

West Bancorporation paid dividends worth 3.3% of the share price over the last twelve months.

Yield below Treasuries

The 3.3% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; West Bancorporation yields 3.3%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 42.2% of net income.

Covered by free cash flow

Dividends take 32.1% of free cash flow.