Waterstone Financial Inc. Common Stock (MD) (WSBF)

FairStock Score: 68/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Buffett-Graham investor, I start with the bank's economics. Waterstone is a $356 million market-cap holding company for a southeastern Wisconsin bank with a mortgage arm. It is not a wide-moat business; community banking is competitive, and scale is modest at 593 employees. The numbers are mixed. FairStock calculations put it at 11.4 times earnings and 1.01 times book as of the 2026-10-13 close, with an 8.69% return on equity, a 1.20 PEG, and a 7/9 Piotroski score. That is not expensive, but an 8.69% ROE is only decent, not exceptional. The 3.44% dividend yield and 0.74 beta suggest a steady, income-oriented profile. Filed results show improvement: fiscal Q2 2026 net income of $8.5 million and diluted EPS of $0.49, versus $7.7 million and $0.43 in fiscal Q2 2025. Fiscal Q1 2026 earned $6.0 million, or $0.34 per share. Full-year FY2025 net income was $26.4 million, or $1.48 per share, up from FY2024's $18.7 million and FY2023's $9.4 million. So recent annual earnings have recovered. Yet the computed Lynch category is SLOW GROWER - Shrinking, because profit fell about 20.1% a year over five years. That warning matters. For a bank, I want CET1, net interest margin and credit trends; those are not in the data. I can only see that price-to-book is near 1 and earnings are improving. Fairly valued, not a bargain.

In plain English: Waterstone Financial is a small Wisconsin bank holding company that takes deposits, makes loans and also runs a mortgage business. Its profits have bounced around but were better in recent quarters, and the stock trades near the value of its accounting net worth while paying a modest dividend. Based on the numbers given, the price looks roughly fair: not a screaming bargain, but not wildly expensive either.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer