Breaking Down 1895 Bancorp of Wisconsin, Inc. (BCOW) Financial Health: Key Insights for Investors

Are you keeping a close watch on your investments in regional banks? With 1895 Bancorp of Wisconsin, Inc. (BCOW) transitioning to the OTCQX market on March 7, 2025, after delisting from Nasdaq, it's time to examine the company's financial health. While the stock is trading near its 1-year high of $10.69, Weiss Ratings has reaffirmed a 'Sell (D-)' rating, pointing to ongoing financial challenges. In Q4 2024, institutional investors like Northern Trust and Black Maple Capital reshaped their positions, and as of September 30, 2024, the company reported Total Current Liabilities of $1.2 million, with a 5-year CAGR of 25%. Considering these factors, what does this mean for your investment strategy, and what key insights can be gleaned from a deeper dive into BCOW's financials?

1895 Bancorp of Wisconsin, Inc. (BCOW) Revenue Analysis

Understanding 1895 Bancorp of Wisconsin, Inc. (BCOW)’s revenue streams is crucial for investors seeking insights into the company’s financial health and stability. A detailed analysis reveals the primary sources of income, growth trends, and the contribution of different business segments to the overall revenue.

Based on the 2024 fiscal year data, 1895 Bancorp of Wisconsin, Inc. (BCOW) primarily generates revenue through the following sources:

• Interest Income: This is derived from loans, including residential mortgages, commercial real estate, and consumer loans.
• Service Fees and Other Charges: Revenue generated from account-related services, such as overdraft fees and ATM charges.
• Investment Securities: Income from the bank's investment portfolio, including interest and dividends.

Analyzing the year-over-year revenue growth rate provides a clearer picture of the company's performance. Here's what to consider:

• Historical Trends: Examining revenue growth over the past few years helps identify long-term trends and potential cyclical patterns.
• Percentage Increase/Decrease: The percentage change in revenue from one year to the next indicates the rate at which the company is expanding or contracting.

To illustrate, let’s consider a hypothetical scenario based on available financial data:

In this example, 1895 Bancorp of Wisconsin, Inc. (BCOW) has demonstrated a consistent revenue growth rate of approximately 10% year-over-year.

Understanding how different business segments contribute to the overall revenue is also essential. Typically, a community bank like 1895 Bancorp of Wisconsin, Inc. (BCOW) will see revenue contributions from:

• Residential Mortgages: Interest and fees from mortgage loans.
• Commercial Real Estate: Income from loans to businesses for property.
• Consumer Loans: Revenue from auto loans, personal loans, and credit cards.

Significant changes in revenue streams can indicate strategic shifts or market impacts. Investors should monitor:

• New Products or Services: Introduction of new offerings that drive additional revenue.
• Regulatory Changes: Changes in banking regulations that impact fee income or lending practices.
• Market Conditions: Economic factors such as interest rate changes or local market growth that affect loan demand and profitability.

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1895 Bancorp of Wisconsin, Inc. (BCOW) Profitability Metrics

Understanding 1895 Bancorp of Wisconsin, Inc. (BCOW)'s profitability involves examining several key metrics that reveal how efficiently the company generates profit from its revenue. These metrics include gross profit, operating profit, and net profit margins, each providing a different perspective on the company's financial performance.

Analyzing these profitability metrics over time helps to identify trends and potential areas of concern or improvement. Comparing these ratios with industry averages provides context and helps investors understand whether 1895 Bancorp of Wisconsin, Inc. (BCOW) is performing above or below its peers.

Here's a detailed look into critical areas:

• Gross Profit Margin: This metric indicates the percentage of revenue remaining after deducting the cost of goods sold (COGS). A higher gross profit margin suggests that 1895 Bancorp of Wisconsin, Inc. (BCOW) is efficient in managing its production costs.
• Operating Profit Margin: The operating profit margin reveals the percentage of revenue remaining after deducting both COGS and operating expenses. It reflects the company's efficiency in managing its core business operations.
• Net Profit Margin: This is the percentage of revenue that remains as net income after all expenses, including interest and taxes, are deducted. The net profit margin is a comprehensive measure of overall profitability.

Operational efficiency is crucial for maintaining and improving profitability. Effective cost management and favorable gross margin trends are indicators of a well-managed company. For example, consistent monitoring of expenses and implementing cost-saving measures can significantly impact the bottom line.

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1895 Bancorp of Wisconsin, Inc. (BCOW) Debt vs. Equity Structure

Understanding how 1895 Bancorp of Wisconsin, Inc. (BCOW) manages its debt and equity is crucial for investors. A balanced approach can fuel growth, while excessive debt can pose risks. Here’s a breakdown:

As of the fiscal year 2024, 1895 Bancorp of Wisconsin, Inc. (BCOW) showcases a financial structure with a keen focus on managing its debt in relation to its equity. While specific figures for long-term and short-term debt, debt-to-equity ratio, recent debt issuances, credit ratings, and refinancing activities are not available, understanding these elements is vital for assessing the company's financial strategy.

Typically, an overview of 1895 Bancorp of Wisconsin, Inc. (BCOW)'s debt levels would include:

• Long-term debt: This indicates the company's obligations due beyond one year.
• Short-term debt: This reflects the debts due within a year, providing insights into immediate financial liabilities.

Analyzing the debt-to-equity ratio is essential. This ratio compares a company's total debt to its shareholder equity and can reveal how much a company is using debt to finance its assets relative to the amount of value represented in shareholders’ equity. The ideal ratio varies by industry, so comparing 1895 Bancorp of Wisconsin, Inc. (BCOW) to its peers offers valuable context.

Investors also keep an eye on any recent debt issuances, credit ratings, or refinancing activities. New debt can fund expansion, while a strong credit rating can lower borrowing costs. Refinancing might indicate efforts to improve debt terms.

Balancing debt and equity is a strategic decision. Debt financing can offer tax advantages and potentially higher returns on equity, but it also increases financial risk. Equity funding, on the other hand, dilutes ownership but strengthens the balance sheet.

Here's a general illustrative table on how debt and equity components might look (Note: This is sample data and not actual data for 1895 Bancorp of Wisconsin, Inc. (BCOW)):

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1895 Bancorp of Wisconsin, Inc. (BCOW) Liquidity and Solvency

Liquidity and solvency are vital indicators of a financial institution's ability to meet its short-term and long-term obligations. For 1895 Bancorp of Wisconsin, Inc. (BCOW), a thorough assessment involves analyzing key ratios, working capital trends, and cash flow dynamics.

Assessing 1895 Bancorp of Wisconsin, Inc. (BCOW)'s Liquidity:

Understanding 1895 Bancorp of Wisconsin, Inc. (BCOW)'s liquidity position involves examining the current and quick ratios, which provide insights into the company's ability to cover its short-term liabilities with its most liquid assets.

• Current Ratio: This ratio measures a company's ability to pay off its current liabilities with its current assets. A higher current ratio generally indicates better liquidity.
• Quick Ratio: Also known as the acid-test ratio, this is a financial ratio that measures a company's ability to meet its short-term obligations with its most liquid assets.

Analysis of Working Capital Trends:

Monitoring working capital trends helps to gauge the operational efficiency and short-term financial health of 1895 Bancorp of Wisconsin, Inc. (BCOW). Working capital, calculated as the difference between current assets and current liabilities, indicates the resources available to fund day-to-day operations. A positive and stable working capital trend is generally favorable, suggesting the company is managing its short-term assets and liabilities effectively.

Cash Flow Statements Overview:

Cash flow statements provide a comprehensive view of all cash inflows and outflows of 1895 Bancorp of Wisconsin, Inc. (BCOW), categorized into operating, investing, and financing activities.

• Operating Cash Flow: This reflects the cash generated from the company's core business activities. Positive operating cash flow is crucial for sustaining business operations and funding growth.
• Investing Cash Flow: This includes cash used for investments in assets like property, plant, and equipment (PP&E). Negative investing cash flow might indicate the company is expanding, while positive flow could mean it is divesting assets.
• Financing Cash Flow: This involves cash flow related to debt, equity, and dividends. It shows how the company raises capital and returns it to investors.

Potential Liquidity Concerns or Strengths:

Based on the analysis of liquidity ratios, working capital, and cash flow statements, it's essential to identify potential liquidity concerns or strengths for 1895 Bancorp of Wisconsin, Inc. (BCOW). Consistent positive cash flow from operations and healthy liquidity ratios would indicate financial strength. Conversely, declining working capital, negative operating cash flow, or low liquidity ratios could signal potential challenges.

For more insights into 1895 Bancorp of Wisconsin, Inc. (BCOW)'s values, see: Mission Statement, Vision, & Core Values of 1895 Bancorp of Wisconsin, Inc. (BCOW).

1895 Bancorp of Wisconsin, Inc. (BCOW) Valuation Analysis

Determining whether 1895 Bancorp of Wisconsin, Inc. (BCOW) is overvalued or undervalued requires a multifaceted approach, incorporating key financial ratios, stock performance analysis, and analyst opinions. This analysis helps investors gauge the company's current market valuation relative to its intrinsic value.

Several key financial ratios are essential for valuation analysis:

• Price-to-Earnings (P/E) Ratio: This ratio compares the company's stock price to its earnings per share. A lower P/E ratio might suggest undervaluation, while a higher ratio could indicate overvaluation, relative to industry peers.
• Price-to-Book (P/B) Ratio: This ratio compares the company's market capitalization to its book value of equity. A P/B ratio below 1.0 could suggest the stock is undervalued.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: This ratio compares the company's enterprise value (total market value plus debt, minus cash) to its earnings before interest, taxes, depreciation, and amortization (EBITDA). It provides a valuation measure independent of capital structure and accounting practices.

Analyzing BCOW's stock price trends over the past 12 months (or longer) provides insights into market sentiment and historical performance. A consistent upward trend might reflect positive investor confidence, while a downward trend could indicate concerns about the company's future prospects.

If applicable, dividend yield and payout ratios are important for assessing valuation, particularly for income-seeking investors. The dividend yield indicates the annual dividend income relative to the stock price, while the payout ratio shows the proportion of earnings paid out as dividends. A sustainable and growing dividend yield can be a sign of financial health.

Here's an example of how these valuation metrics might be organized (note that the data below is illustrative and should be replaced with actual 2024 fiscal year data for 1895 Bancorp of Wisconsin, Inc. (BCOW)):

Keep in mind that analyst consensus, categorized as buy, hold, or sell, represents the collective opinion of financial analysts covering the stock. These ratings can influence investor perception and stock valuation. It's important to consider the source and rationale behind these ratings.

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1895 Bancorp of Wisconsin, Inc. (BCOW) Risk Factors

Understanding the risks facing 1895 Bancorp of Wisconsin, Inc. (BCOW) is crucial for investors. These risks can be categorized into internal and external factors that may impact the company's financial health.

Here's an overview of key risks:

• Industry Competition: The financial services industry is highly competitive.
• Regulatory Changes: Legislative and regulatory changes can adversely affect the company's business.
• Market Conditions: Fluctuations in market conditions can impact financial performance.

Recent news and filings highlight specific challenges and strategic shifts for 1895 Bancorp of Wisconsin, Inc.:

• Nasdaq Delisting: In February 2025, 1895 Bancorp of Wisconsin, Inc. announced its plan to delist from the Nasdaq Stock Market and transition to the OTCQX market. This move is aimed at reducing compliance costs and streamlining operations.
• Strategic Alternatives: The company has engaged Keefe, Bruyette & Woods, Inc. (KBW) to explore strategic alternatives, including a potential strategic business combination or sale of control.
• Financial Challenges: Weiss Ratings reaffirmed a 'Sell (D-)' rating for 1895 Bancorp, citing financial challenges.

Operational, financial, and strategic risks can be gleaned from recent earnings reports and filings. For instance, the Annual Report on Form 10-K filed on March 29, 2024, and subsequent Quarterly Reports on Form 10-Q, detail various risk factors.

Some specific risks and mitigation strategies include:

• Interest Rate Risk: The company focuses on originating and purchasing participations in commercial real estate and commercial business loans to manage interest rate risk.
• Cybersecurity Risk: PyraMax Bank employs a comprehensive approach to cybersecurity risk management, including regular risk assessments, implementation of security best practices, and continuous monitoring capabilities. They also conduct independent third-party penetration testing and vulnerability assessments at least annually.
• Credit Risk: Maintaining a strong credit underwriting reputation is vital.

A review of the company's financial performance in 2024 indicates some challenges:

• Net income fell significantly. 1895 Bancorp of Wisconsin Inc. had net income fall 4,489.19% year on year from a loss of $148,000 to a larger loss of $6.79 million, despite a 7.20% increase in revenues from $18.18 million to $19.48 million.
• For the quarter ending March 31, 2024, the company reported an EPS of ($0.06).

The company's forward-looking statements are subject to numerous risks and uncertainties, as detailed in their SEC filings.

Here's a look at some key financial data reported in 2024:

Institutional investors have been adjusting their positions in 1895 Bancorp, with notable increases in holdings reported by firms like Northern Trust and Black Maple Capital in Q4 2024.

To delve deeper into the investor profile, consider exploring: Exploring 1895 Bancorp of Wisconsin, Inc. (BCOW) Investor Profile: Who’s Buying and Why?

1895 Bancorp of Wisconsin, Inc. (BCOW) Growth Opportunities

For 1895 Bancorp of Wisconsin, Inc. (BCOW), several factors could drive future growth. These encompass new products, market expansion, strategic initiatives, and competitive advantages.

Analysis of key growth drivers:

• Product Innovations: Evaluating whether 1895 Bancorp of Wisconsin, Inc. (BCOW) is investing in and successfully launching new or enhanced financial products and services to meet changing customer needs.
• Market Expansions: Assessing opportunities for 1895 Bancorp of Wisconsin, Inc. (BCOW) to grow by entering new geographic markets or expanding its presence in existing markets.
• Acquisitions: Determining if 1895 Bancorp of Wisconsin, Inc. (BCOW) is strategically acquiring other companies to increase market share, expand service offerings, or gain access to new technologies.

Future revenue growth projections and earnings estimates for 1895 Bancorp of Wisconsin, Inc. (BCOW) would typically involve analyzing historical financial performance, current market conditions, and any specific guidance provided by the company's management. These projections are estimates of future financial performance, which can be influenced by a variety of factors and are not guaranteed.

Strategic initiatives or partnerships that may drive future growth:

• Technology Investments: Upgrading technology infrastructure to enhance online and mobile banking services, streamline operations, and improve cybersecurity.
• Customer Experience: Implementing initiatives to improve customer satisfaction and loyalty, such as personalized services, enhanced communication, and convenient banking options.
• Community Engagement: Strengthening ties with local communities through sponsorships, charitable activities, and financial literacy programs.

Competitive advantages that position the company for growth:

• Strong Local Presence: Leveraging a deep understanding of local markets and customer needs to provide tailored financial solutions.
• Customer Relationships: Building long-term relationships with customers based on trust, personalized service, and community involvement.
• Efficient Operations: Maintaining efficient operations and cost management practices to improve profitability and competitiveness.

Here's a hypothetical projection table for illustrative purposes:

For more insights into 1895 Bancorp of Wisconsin, Inc. (BCOW)'s financial health, check out: Breaking Down 1895 Bancorp of Wisconsin, Inc. (BCOW) Financial Health: Key Insights for Investors