Is Waterstone Financial, Inc. (WSBF) Overvalued?
We dive into why Waterstone Financial, Inc. (WSBF) could be considered overvalued on 2026-08-17, based on AAII’s Value Score and Grade.Jenna Brashear
A+ Stock Grade Summary:
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COMPANY SUMMARY
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.
Commentary & Analysis
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Financial Summary
| Share Statistics | WSBF | Industry Median |
Percentile (All Stocks) |
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| Market Cap (Mil) | $378.2 | $2,326.5 | 34% |
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| Shares Out (Mil) | 17.2 | 72.9 | 28% |
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| Institutional Ownership | 87.6% | 86.4% | 55% |
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| Float (Mil) | 15.7 | 62.0 | 26% |
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| Beta | 0.71 | 0.87 | 42% |
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| Avg Daily Volume (000s) | 59 | 537 | 30% |
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| Price Change (52-week) |
48.1% | 78.6% | 78% |
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| Growth | WSBF | Industry Median |
Percentile (All Stocks) |
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| Sales (5yr) | (13.2%) | 10.5% | 4% |
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| Net Income (5yr) | (20.1%) | 8.2% | 20% |
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| EPS (5yr) | (14.8%) | 11.8% | 19 |
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| Dividends (5yr) | 1.4% | 0.0% | 72% |
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| Cash Flow (5yr) | 15.9% | (15.0%) | 75% |
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| Estimates | Qtrly | Current Fiscal Year |
Next Fiscal Year |
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| # of Estimates | na | na | na | |
| Current EPS | na | na | na | |
| Month Ago EPS | na | na | na | |
| # Rev Up | na | na | na | |
| # Rev Down | na | na | na | |
| Three Months Ago EPS | na | na | na | |
| Year/Year Chg | na | na | na | |
| Financials | WSBF | Industry Median |
Percentile (All Stocks) |
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| Sales (TTM) (Mil) | $151 | $1,233 | 29% |
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| Net Income (TTM) (Mil) | $30 | $86 | 51% |
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| EPS (TTM) | $1.730 | $0.700 | 69% |
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| Operating Cash Flow (TTM) (Mil) | $45 | $166 | 46% |
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| Net Cash Flow (TTM) (Mil) | ($33) | $5 | 22% |
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| Long-Term Debt (Q1) (Mil) | $213 | $730 | 50% |
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| Enterprise Value (Q1) (Mil) | na | $3,817 | na |
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| Valuation | WSBF | Industry Median |
Percentile (All Stocks) |
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| P/B | 1.08 | 1.38 | 25% |
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| P/E | 12.2 | 18.2 | 26% |
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| Dividend Yield | 3.2% | 0.0% | 86% |
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| PEG (5yr hist) | na | 0.9 | na |
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| Ratios | WSBF | Industry Median |
Percentile (All Stocks) |
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| Gross Margin | na | 61.5% | na |
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| Net Margin | 20.0% | 7.3% | 79% |
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| ROA | 1.3% | 1.0% | 50% |
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| ROE | 8.7% | 10.7% | 53% |
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| Liabilities to Assets | 84.4% | 74.8% | 78% |
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| F-Score | 5 | 5 | 50% |
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Passing Stock Screens
As of 8/20/2026, from a list of 60 stock screening strategies,
GURU STRATEGY
Graham--Defensive Investor (Utility) Screen
Factors: Yield, Value, Quality, Industry/Sector
Graham's approach leads to three separate screens that focus on the concept of intrinsic value, justified by a firm's financial strength.
| Performance Since Inception: | 6.9% |
| +/- S&P 500: | -0.6 |
