Stock fact sheet · data as of
Waterstone Financial, Inc. (WSBF): fair value, margin of safety and Wheel Score
Financial Services · Banks - Regional · United States · Defensive
Is WSBF undervalued?
Waterstone Financial, Inc. (WSBF) closed at 19.73 on 16 Oct 2026. The GLS average fair value - the simple average of the 8 valuation models that produced a positive number - is 34.92, which puts the price 43% below it. 5 of the 8 models value the shares above the current price. A gap this wide is rare in our universe of ~7,400 US stocks and is exactly what the Value part of the Wheel Score rewards; it is also where the question "why is it this cheap?" matters most.
The 8 models disagree widely: GLS Growth gives 5.11 while Graham Growth gives 77.51. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
The nightly engine files WSBF under Defensive: a low beta, a dividend and positive earnings.
Nine valuation models for WSBF
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | - | - | Present value of the projected free cash flows, discounted at the cost of capital; no value tonight |
| Graham Number | 28.28 | +43% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 77.51 | +293% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 32.22 | +63% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 5.11 | -74% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 59.56 | +202% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 47.55 | +141% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 9.71 | -51% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 19.39 | -2% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -93.22 | -572% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 0.0000 | -100% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is average - WSBF passes 6 of the nine Piotroski tests, which passes the Sunday Scan's "6 or more" rule. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is low at 3.8 out of 10, which says the ten-year record of revenue, earnings, margins and returns on capital has been inconsistent - growth and shocks rather than steady compounding.
Returns on capital are thin or negative - ROIC 3.5%, ROE 7.6%, ROA 1.2% - with debt at 1.18 times equity and a free-cash-flow yield of 12.1%.
The dividend yield is 3.35% at a payout ratio of 36%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold.
Institutional ownership scores 7/10, insider activity 2/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 6 / 9 | ROIC | 3.5% |
|---|---|---|---|
| GLS Moat | 3.8 / 10 | ROE | 7.6% |
| Debt / equity | 1.18 | ROA | 1.2% |
| Free-cash-flow yield | 12.1% | Payout ratio | 36% |
| Institutions | 7 / 10 | Insiders · Congress | 2 · 5 / 10 |
Wheel Score 70: Good
WSBF scores 70 out of 100 on the Wheel Score (Good band, 65-79). The score blends the margin of safety (Value, 25/25), Piotroski health (13/20), the GLS moat (6/15), the option premium on offer (20/20) and how easily the stock trades (6/20). Stability (6/20) is the part holding the score back.
Implied volatility is 52% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is thin - 3 contracts across every expiry - so fills at a fair price are not guaranteed; a 30-45-day put may not exist at a usable strike.
Volume runs at 84k shares a day on a market cap of $355M, with a beta of 0.74 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 6 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 25 / 25 | 43% margin of safety | |
| Health | 13 / 20 | Piotroski 6/9 | |
| Moat | 6 / 15 | moat 3.8/10 | |
| Premium | 20 / 20 | implied volatility 52% | |
| Stability | 6 / 20 | 84k shares/day, $355M cap, beta 0.74 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
Waterstone Financial, Inc. reports earnings on 22 Oct 2026 (after the close) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Banks - Regional
The 12 companies below are the closest to Waterstone Financial, Inc. by market cap within the Banks - Regional industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| BRBS Blue Ridge Bankshares, Inc. | 3.95 | 3.74 | -6% | 55Fair | $354M |
| FSBW FS Bancorp, Inc. | 44.63 | 95.17 | +53% | 39No options | $351M |
| TSBK Timberland Bancorp, Inc. | 45.00 | 67.20 | +33% | 78Good | $350M |
| NWFL Norwood Financial Corp. | 33.46 | 51.08 | +34% | 39No options | $365M |
| RVRF River Financial Corp. | 47.00 | 110.43 | +57% | 39No options | $367M |
| MFGI Merchants Financial Group, Inc. | 45.00 | 37.16 | -21% | 33No options | $368M |
| MSBC Mission Bancorp | 120.00 | 135.36 | +11% | 39No options | $370M |
| SNLC Security National Corporation | 206.25 | 281.54 | +27% | 39No options | $338M |
| BCML BayCom Corp | 30.96 | 33.10 | +6% | 70Good | $338M |
| AVBH Avidbank Holdings, Inc. | 30.78 | 43.50 | +29% | 39No options | $338M |
| FDBC Fidelity D & D Bancorp, Inc. | 57.84 | 66.13 | +13% | 39No options | $336M |
| MVBF MVB Financial Corp. | 29.07 | 59.41 | +51% | 70Good | $376M |
⚖ Compare WSBF with 7 of them All Financial Services stocks →
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Start free See the Sunday ScanQuestions about WSBF
Is WSBF undervalued right now?
By the GLS models, yes: at 19.73 the stock is 43% below the average fair value of 34.92 (data as of 16 Oct 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of WSBF and what does it mean?
WSBF scores 70 out of 100 (Good). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for WSBF?
34.92 per share as of 16 Oct 2026 - the simple average of the 8 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Waterstone Financial, Inc. report earnings next?
The next earnings report is due on 22 Oct 2026 (after the close), 6 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does WSBF have listed options, and how liquid are they?
Yes. The nightly snapshot found 100 listed contracts with 3 open interest across all expiries and implied volatility of 52% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.