Waterstone Financial (WSBF) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Waterstone Financial

NasdaqGS•Financial Services•Banks - Regional

$20.74-0.07(<0.01%)Market open

Market Cap

$350.15M

P/E

11.6x

P/S

1.7x

P/B

1.0x

Waterstone Financial, Inc. operates as a bank holding company for WaterStone Bank SSB that provides various financial services to customers in southeastern Wisconsin, the United States. It operates in two segments, Community Banking and Mortgage Banking. The Community Banking segment offers consumer and business banking products and services, such as deposit and transactional solutions, such as checking, credit, debit and pre-paid cards, online banking and bill pay, and money transfer services; investable funds solutions, such as savings, money market deposits, individual retirement accounts, and certificates of deposit; residential mortgages, home equity loans and lines of credit, personal and installment loans, real estate financing, business loans, and business lines of credit; and fixed and variable annuities, insurance products, and trust and investment management accounts. It also provides transaction deposits, interest bearing transaction accounts, demand deposits, non-interest-bearing demand accounts, and time deposits; secured and unsecured lines; commercial real estate construction loans; term loans for working capital, inventory, and general corporate use; and personal term loans and investment services. The Mortgage Banking segment offers residential mortgage loans for the purpose of sale in the secondary market. It also invests in a portfolio of securities comprising mortgage-backed securities, government-sponsored and private-label enterprise bonds, collateralized mortgage obligations, municipal obligations, and other debt securities. The company was formerly known as Wauwatosa Holdings, Inc. and changed its name to Waterstone Financial, Inc. in August 2008. Waterstone Financial, Inc. was founded in 1921 and is based in Wauwatosa, Wisconsin.

How this company scores

WeakMetricSide Score: 63/100

Grade capped at D — Interest coverage below 1× (0.8x) — earnings cannot cover interest. Strongest: Profitability (21/25); weakest: Balance Sheet & Red Flags (11/25).

Profitability21/25

Growth17/25

Balance Sheet & Red Flags11/25

Cash & Earnings Quality14/25

Strengths

Strong marginsRising earningsCash-backed earningsProfit converts from growth

Grade capped at D

Interest coverage below 1× (0.8x) — earnings cannot cover interest.

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 11.6x5y range 5.7x – 29.3x

Currently near its 20-quarter median.

P/S · 1.7x5y range 1.2x – 2.1x

Currently near its 20-quarter median.

P/B · 1.0x5y range 0.6x – 1.2x

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

Some Concerns

Earnings Quality

Watch

FCF/Net Income has dropped below 0.7x in 3 quarters — monitor for earnings quality deterioration.

Cash Burn

Watch

FCF turned negative in 2 of the last 8 quarters — occasional cash consumption.

Price & Volume

Market Cap $350.15M

Metrics at a Glance

as of June 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $206.50M
Q. Revenue: $53.83M
TTM EBITDA: $40.75M
TTM Op. Income: $37.76M
Q. Op. Income: $10.87M
TTM Net Income: $30.10M
Q. Net Income: $8.46M
EPS: $0.49
Shares Out.: $17.11M

$206.50M in TTM revenue grew 4.5% YoY, reaching $53.83M last quarter. TTM EBITDA of $40.75M and TTM operating income of $37.76M show growth is flowing through to the bottom line. TTM net income of $30.10M means revenue is converting into profit. Across the last 8 quarters, TTM revenue has risen for 4 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 74.8%
EBITDA Margin: 21.7%
Op. Margin: 20.2%
Net Margin: 15.7%

Op. margin of 20.2% is up 2.0% YoY — cost efficiency is improving. Net margin at 15.7% and gross margin of 74.8% show how much of each revenue dollar survives to profit. Over the past year, operating margin is up 11% — an improving trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 11.6x
P/S Ratio: 1.7x
P/B Ratio: 1.0x

At 11.6x P/E, the stock trades below typical market levels. P/S of 1.7x and P/B of 1.0x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Over the past year, P/E is down 3% — a weakening trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $2.25B
Cash: $38.20M
Long-Term Debt: $412.00M
Book Value: $351.13M
D/E Ratio: 1.2
Debt/EBITDA: 35.3

With $2.25B in assets and $412.00M in long-term debt, D/E is 1.2and book value is $351.13M — moderate leverage. Over the past year, debt/equity is down 14% — an improving trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $9.50M
TTM Free Cash Flow: $42.78M
FCF Margin: 20.7%
FCF / Net Income: 1.4

TTM FCF of $42.78M on $9.50M in operating cash flow. The FCF / Net Income ratio of 1.4x means free cash flow covers net income — earnings are backed by cash. Over the past year, free cash flow is down 50% — an improving trend.