Bankwell Financial Group, Inc.

Bankwell Financial Group, Inc.

BWFGยทNASDAQ

$51.41

-2.5%
Financial ServicesBanks - Regional

Bankwell Financial Group, Inc. operates as the bank holding company for Bankwell Bank that provides various banking services for individual and commercial customers. It offers various traditional depository products, including checking, savings, money market, and certificates of deposit. The company also provides first mortgage loans secured by one-to-four family owner occupied residential properties for personal use; home equity loans and home equity lines of credit secured by owner occupied one-to-four family residential properties; loans secured by commercial real estate, multi-family dwellings, and investor-owned one-to-four family dwellings; commercial construction loans for commercial development projects, including apartment buildings and condominiums, as well as office buildings, retail, and other income producing properties; land loans; commercial business loans secured by assignments of corporate assets and personal guarantees of the business owners; loans secured by savings or certificate accounts and automobiles; and unsecured personal loans and overdraft lines of credit. It operates branches in New Canaan, Stamford, Fairfield, Wilton, Westport, Darien, Norwalk, and Hamden, Connecticut. The company was formerly known as BNC Financial Group, Inc. and changed its name to Bankwell Financial Group, Inc. in September 2013. Bankwell Financial Group, Inc. was founded in 2002 and is headquartered in New Canaan, Connecticut.

At a Glance

Live Snapshot
Market Cap$409.86M
EPS4.4900
P/E Ratio11.45
Earnings Date07/27/2026

Intrinsic Alpha Methodology

Thesis Lenses

Signal ยท Driver ยท Risk

Signal

High confidence

Valuation multiple is compressed (P/E 11.4).

Valuation inputs: P/E 11.4, earnings yield +8.7%, momentum -2.5%.

If multiples stay elevated while momentum fades, downside repricing risk rises.

Driver

High confidence

Return profile is soft (ROE +11.7%, ROIC +1.9%).

Profitability stack: net margin +17.0%, ROE +11.7%, ROIC +1.9%.

Quality deterioration often appears in margins before it shows up in headline EPS.

Risk

High confidence

Risk profile is balanced but has notable pressure points to monitor.

Risk factors: liabilities/assets +91.0%, momentum -2.5%, net margin +17.0%.

Higher leverage with weak momentum and thin margins can amplify drawdown severity.

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Bankwell Financial Group, Inc. Market vs Earnings Trajectory

BWFG ยท NASDAQ

Loading price and EPS data...

Bankwell Financial Group, Inc.

Bankwell Financial Group, Inc. Fair Value Envelope

BWFG ยท NASDAQ

Our analysis suggests that BWFG has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $51.405, this represents a potential HIDDEN relative to our calculated worth for Bankwell Financial Group, Inc..

Intrinsic Value
Current Price: $51.405
3Y-7.0%
5Y+499.0%
10Y+174.0%
3Y+72.0%
5Y+158.0%
10Y+226.0%
3Y-6.0%
5Y+496.0%
10Y+185.0%
3Y-67.0%
5Y-1904.0%
10Y+57.0%
3Y-66.0%
5Y+1332.0%
10Y+191.0%
3Y+3.0%
5Y+49.0%
10Y+106.0%
Bankwell Financial Group, Inc.

Bankwell Financial Group, Inc. Profit Bridge

BWFG ยท NASDAQ
Revenue207.72M
Cost of Goods Sold (100.43M)
Gross Profit107.28M
Operating Expenses (58.79M)
Operating Income48.49M
Interest Expense (99.39M)
Other Income/Expense0.00
Pretax Income48.49M
Income Tax (13.30M)
Net Income35.20M
Net Income
35.20M

Profitability Analysis

Gross Margin

51.6%

Exceptional pricing power and cost management. The company retains over half of revenue after direct costs.

Operating Margin

23.3%

Healthy operating margins demonstrate effective cost control and strong business fundamentals.

Net Profit Margin

16.9%

Strong net margins indicate efficient operations and favorable tax/interest management.

Effective Tax Rate

27.4%

Higher tax burden may reflect limited tax optimization or operations in high-tax jurisdictions.

Profitability Insight

Exceptional profitability across all levels: Strong pricing power, efficient operations, and healthy bottom line indicate a high-quality business with sustainable competitive advantages.

51.65%
Gross Profit Margin
57%
3Y-32.0%
5Y-17.0%
10Y-31.0%
23.35%
Operating Profit Margin
243%
3Y-41.0%
5Y+157.0%
10Y-19.0%
16.95%
Net Profit Margin
239%
3Y-45.0%
5Y+131.0%
10Y-13.0%
11.67%
Return on Equity
223%
3Y-26.0%
5Y+249.0%
10Y+38.0%
1.05%
Return on Assets
250%
3Y-9.0%
5Y+300.0%
10Y+38.0%
1.89%
Return on Invested Capital
-7%
3Y-80.0%
5Y+21.0%
10Y-49.0%
BWFG

Bankwell Financial Group, Inc. Cash Conversion Engine

BWFG ยท NASDAQ
Net Income35.20M
Depreciation & Amortization246.00K
Stock-Based Compensation2.35M
Change in Working Capital-6.63M
Others-3.89M
Capital Expenditures-1.14M
Free Cash Flow26.12M

Cash Flow Quality Analysis

FCF Conversion Rate

74.2%

Moderate conversion rate. Some gap between earnings and cash flow may warrant investigation into working capital or non-cash items.

CapEx Intensity

4.2%

Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.

FCF Growth Trend

-10.9%

Declining FCF warrants attention. Investigate whether due to temporary factors or fundamental deterioration.

Working Capital Impact

-$6.63M

Moderate working capital outflow. Typical for growing businesses, but ensure it's supporting revenue growth, not inefficiency.

Cash Flow Quality Insight

Solid cash generation: Positive free cash flow with reasonable earnings quality provides financial flexibility for growth investments, debt reduction, or shareholder returns.

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Bankwell Financial Group, Inc. Funding & Solvency Profile

BWFG ยท NASDAQ
Cash & Cash Equivalents208.90M
Net Receivables2.85B
Inventory0.00
Other Current Assets0.00
Total Current Assets3 B
Property, Plant & Equipment20.95M
Goodwill & Intangible Assets2.59M
Long-Term Investments0.00
Other Non-Current Assets0.00
Total Non-Current Assets21 M
Total Assets
3.37B

Financial Health Analysis

Debt-to-Equity Ratio

9.82x

High financial leverage. Heavy reliance on debt may indicate increased financial risk and potential solvency concerns.

Working Capital

3 B

Strong working capital position provides significant operational flexibility and financial cushion.

Asset Composition

91% Current

Asset-light business model with high liquidity. Majority of assets are easily convertible to cash.

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Bankwell Financial Group, Inc. Street Expectations Map

BWFG ยท NASDAQ

No Target Data

No analyst price targets available for bwfg.

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Bankwell Financial Group, Inc. Insider Positioning

BWFG ยท NASDAQ

During the last 12 months, insiders have purchased $1.81M and sold $1.52M worth of BWFG shares, resulting in $291K of net buying activity.

3 Months

Bought

19.9K

938.23K

Sold

4.3K

225.38K

Net Activity

+713K

+$713K

3-6 Months

Bought

9.9K

467.96K

Sold

14.3K

711.08K

Net Activity

-243K

-$243K

6-9 Months

Bought

4.0K

186.64K

Sold

3.0K

134.97K

Net Activity

+52K

+$52K

9-12 Months

Bought

5.5K

214.27K

Sold

11.2K

444.67K

Net Activity

-230K

-$230K

Top Buyers

1
SLB

Seidman Lawrence B

Director

31.8K sharesโ€ข20 transactions

$1.49M

2
DEJ

Dale Eric J

Director

3.2K sharesโ€ข4 transactions

$136K

3
PCM

Porto Carl M

Director

2.0K sharesโ€ข4 transactions

$85K

4
DJR

Dunne Jeffrey R

Director

1.6K sharesโ€ข4 transactions

$69K

5
DBS

Drexler Blake S

Director

630 sharesโ€ข4 transactions

$26K

Top Sellers

1
CC

Chivily Christine

Officer: Evp & Chief Credit Officer

9.2K sharesโ€ข4 transactions

$455K

2
GCR

Gruseke Christopher R

Officer: Ceo

5.1K sharesโ€ข1 transactions

$252K

3
LT

Lampert Todd

Director

5.3K sharesโ€ข2 transactions

$225K

4
HRJ

Hildebrand Ryan Jason

Officer: Chief Innovation Officer

5.2K sharesโ€ข3 transactions

$196K

5
MM

Mcneill Matt

Officer: President & Cbo

3.8K sharesโ€ข1 transactions

$189K

Insider Activity Analysis

Net Insider Sentiment

Bullish

Moderately bullish with $291K net buying. Insiders show cautious optimism through measured share purchases.

Buy/Sell Ratio

1.19:1

Positive buy/sell ratio. Buying exceeds or matches selling, indicating net positive insider sentiment.

Recent Trend (3 Months)

$713K

Very strong recent buying momentum. Recent insider purchases significantly outpace sales, suggesting near-term optimism.

Insider Participation

Balanced

5 insider buyers and 5 sellers. Equal participation suggests mixed or neutral insider views.

Insider Activity Insight

Broad-based insider buying: When multiple insiders independently decide to purchase shares, it often reflects genuine confidence rather than coordinated optics. This pattern deserves attention, especially if buying followed a price decline.

0.41%
Dividend Yield
-6%
3Y-50.0%
5Y-22.0%
10Y+78.0%
ย 

bwfg Dividend History

BWFG
10Y CAGR +15%
Latest $0.2
Annual $1
5 year growth trend
Last Period: +0%