BWB

Bridgewater Bancshares

Fundamental data last updated:April 13, 2026

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company profile

SECTOR

Financial Services

industry

Banks - Regional

Exchange

Nasdaq

County of HQ

United States

Next Earnings Date

04/21/26

Business Summary

Bridgewater Bancshares operates as a regional banking institution, generating revenue primarily through interest income on loans and related banking services. Its moat is relationship-driven, built on localized market knowledge, underwriting discipline, and customer stickiness rather than scale dominance. The bank converts deposits into earning assets, capturing net interest spread while leveraging its balance sheet to drive returns, as reflected in its 18.70% ROIC. Sustainable cash generation depends on disciplined credit risk management and maintaining spreads wide enough to protect its 12.70% return on equity in varying rate environments.

 


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VALUATION

P/E

12.7

Market Cap ($M USD)

$526

Forward P/E

8.6

PEG

1.1

PRICE TO SALES

3.8

PRICE TO BOOK

1.2

EV / EBITDA

-

5-Year Average P/E

Free Cash Flow Yield

DCF Value

Graham Number

Price to FCF

EV to FCF

Earnings Yield

FCF Yield

DIVIDEND

Yield

-

Annual Payout

-

Payout Ratio

-

Consecutive Years of Dividend Growth

0

5-Year Dividend Growth Rate

-

Financial Health & Profitability

Earnings Per Share

$1.53

Next Year EPS Growth Estimate

$2.20

Next Year Revenue Growth Estimate

12.70%

Return on Equity (ROE)

8.10%

FREE CASH FLOW

Operating Margin

46.50%

Debt-to-Equity

1

Piotroski F-Score

4

Altman Z-Score

0.2

Return on Invested Capital (ROIC)

18.70%

Current Ratio

-

Quick Ratio

Net Debt to EBITDA

Interest Coverage

Gross Profit margin

FCF PER SHARE

REVENUE PER SHARE

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Gainseekers Quantitative Analysis

Summary

At 12.7x earnings and just 8.6x forward earnings, BWB screens statistically cheap for a Regional Bank generating 12.70% ROE and 18.70% ROIC. The 1.1 forward PEG suggests growth is fairly priced rather than speculative, and the compression from trailing to forward P/E implies earnings acceleration into the $1.53 EPS estimate next year. However, the Altman Z-Score of 0.2 is a material red flag, signaling balance sheet fragility that cannot be ignored despite a moderate 46.50% Debt/Equity ratio. This is a classic case of a bank trading at a reasonable multiple because the market is pricing in financial stress risk; the valuation is attractive, but it is not a “safe” balance sheet story.

AI Exposure / Tech Reliance

As a Regional Bank in Financial Services, BWB’s AI exposure is operational rather than product-driven. Efficiency gains will come from underwriting automation, credit analytics, and cost control rather than top-line disruption. Banks that fail to digitize lose margin, and with an 8.10% operating margin, incremental tech efficiency could materially impact profitability.

The Bull Case

A value-oriented GARP investor buys this because the math is compelling: 8.6x forward earnings for a business producing 18.70% ROIC is a strong capital efficiency-to-price mismatch. A 12.70% ROE at a 1.2x price-to-book multiple implies the market is not pricing in sustained compounding, especially with EPS projected at $1.53 next year and a forward PEG of 1.1. The Piotroski F-Score of 4 is neutral, not broken, suggesting the fundamentals are stable enough to support recovery upside. If management sustains double-digit returns on equity while the multiple re-rates even modestly toward sector averages, the upside from a $526M market cap base could be meaningful for institutional investors seeking disciplined regional banking exposure.

The Bear Case

The bear case hinges on fragility. An Altman Z-Score of 0.2 is deeply concerning and suggests elevated financial distress risk regardless of valuation optics. Operating margins at 8.10% are not robust for a bank in a volatile rate environment, and the absence of a listed dividend payout combined with a TTM Yield of 1 limits income-based downside support. With Debt/Equity at 46.50% and only a mid-tier Piotroski F-Score of 4, this is not a fortress balance sheet, and if credit conditions deteriorate, the low multiple could prove to be a value trap rather than a bargain.

Market Sentiment & Smart Money

Short Interest %

1.60%

Analyst Consensus

1.8

Average Analyst Price Target

$21.88

Institutional Ownership %

68.10%

1-Year Beta

0.96

Insider Buying % (6 Mo)

20.60%%

Distance to 52-Week High

93.20%

Distance to 52-Week Low

153.80%

EARNINGS SURPRISE %

50-DAY SMA

200-DAY SMA

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.