Investment Thesis
Bridgewater Bancshares demonstrates strong revenue growth of 112.8% YoY and solid net income expansion of 9.6%, with respectable profitability margins of 16.4% net and 21.3% operating. However, weak interest coverage of 1.8x and modest ROA of 0.9% raise concerns about operational efficiency and earnings quality relative to the balance sheet size, suggesting growth may be from acquisitions rather than organic improvement.
Strengths
- Exceptional revenue growth of 112.8% year-over-year
- Healthy net profit margin of 16.4% and operating margin of 21.3%
- Strong equity position with $517.1M stockholders equity and zero long-term debt
- Positive free cash flow of $22.0M with 7.8% FCF margin
Risks
- Weak interest coverage ratio of 1.8x indicates limited cushion for earnings volatility in banking sector
- Low ROA of 0.9% suggests inefficient asset utilization across $5.4B balance sheet
- Revenue growth of 112.8% significantly outpaces net income growth of 9.6%, indicating margin compression or acquisition dilution
- Modest ROE of 8.9% below banking sector averages
Key Metrics to Watch
- Interest coverage ratio trend and debt service capacity
- Return on assets improvement and asset quality metrics
- Sustainability of revenue growth and organic vs. inorganic growth breakdown
- Net interest margin and loan portfolio performance
Financial Metrics
Revenue
281.8M
Net Income
46.1M
EPS (Diluted)
$1.49
Free Cash Flow
22.0M
Total Assets
5.4B
Cash
123.5M
Profitability Ratios
Gross Margin
N/A
Operating Margin
21.3%
Net Margin
16.4%
ROE
8.9%
ROA
0.9%
FCF Margin
7.8%
Balance Sheet & Liquidity
Current Ratio
N/A
Quick Ratio
N/A
Debt/Equity
0.00x
Debt/Assets
90.4%
Interest Coverage
1.76x
Long-term Debt
N/A
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-03-21T17:58:11.838824 |
Data as of: 2025-12-31 |
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