Investment Thesis
Wilson Bank demonstrates solid profitability with strong 21.2% net margins and excellent leverage (0.02x debt/equity), supported by robust $86.3M free cash flow generation. However, the weak 1.6x interest coverage ratio raises material concerns about the bank's debt service capacity, and the anomalous 4193% revenue growth that fails to translate to net income growth signals potential data quality issues or significant accounting changes that warrant clarification.
Strengths
- Excellent leverage position with minimal debt (0.02x debt/equity ratio, $10.1M long-term debt)
- Strong profitability metrics with 21.2% net margin and 27.2% operating margin
- Solid free cash flow generation of $86.3M with 24.1% FCF margin
Risks
- Critically weak interest coverage of 1.6x limits financial cushion for a financial institution
- Unexplained 4193% revenue growth with essentially flat net income (-0.0% YoY) suggests data anomalies or major accounting events requiring clarification
- As a bank, vulnerability to deposit flight, credit deterioration, and interest rate shocks given thin interest coverage buffer
Key Metrics to Watch
- Interest Coverage Ratio trend and Net Interest Margin (NIM) sustainability
- Non-Performing Loan (NPL) ratio and loan loss provision adequacy
- Deposit base stability and core funding trends
Financial Metrics
Revenue
357.5M
Net Income
75.7M
EPS (Diluted)
$6.26
Free Cash Flow
86.3M
Total Assets
5.9B
Cash
367.4M
Profitability Ratios
Gross Margin
N/A
Operating Margin
27.2%
Net Margin
21.2%
ROE
13.0%
ROA
1.3%
FCF Margin
24.1%
Balance Sheet & Liquidity
Current Ratio
N/A
Quick Ratio
N/A
Debt/Equity
0.02x
Debt/Assets
90.1%
Interest Coverage
1.62x
Long-term Debt
10.1M
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: 2026-04-19T00:42:23.385238 |
Data as of: 2025-12-31 |
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