Finwise Bancorp (NASDAQ: FINW)

Sector: Financial Services Industry: Banks - Regional CIK: 0001856365
Market Cap 234.31 Mn
P/B 1.25
P/E 15.65
P/S 2.92
ROIC (Qtr) 8.03
Div Yield % 0.00
Rev 1y % (Qtr) 27.87
Total Debt (Qtr) 4.68 Mn
Debt/Equity (Qtr) 0.02

About

FinWise Bancorp, often recognized by its ticker symbol FINW, is a bank holding company based in Utah. Its primary operations are conducted through FinWise Bank, a single full-service banking location in Sandy, Utah. As a nationwide lender, FinWise Bancorp offers a variety of loan products and services, with a focus on consumers and small businesses. The company's operations span across multiple loan products and customer segments. Its loan portfolio, which totaled $372.2 million as of December 31, 2023, is composed of SBA loans, commercial leases,...

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Price action

Investment thesis

Bull case

  • Strong tangible asset base of 899.93M provides 192.17x coverage of total debt 4.68M, indicating robust asset backing and low credit risk.
  • Cash reserves of 105.63M provide comfortable 125.90x coverage of tax obligations 839000, showing strong fiscal management.
  • Retained earnings of 128.28M represent substantial 0.68x of equity 187.76M, indicating strong internal capital generation.

Bear case

  • Operating cash flow of (35.84M) barely covers its investment activities of (137.42M), with a coverage ratio of 0.26, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • The company's operating cash flow of (35.84M) shows concerning coverage of stock compensation expenses of 3.20M, with a -11.19 ratio indicating potential earnings quality issues.
  • Free cash flow of (41.20M) provides weak coverage of capital expenditures of 5.36M, with a -7.69 ratio suggesting additional external financing needs for growth initiatives.
  • Operating cash flow of (35.84M) provides minimal -7.18x coverage of tax expenses of 5M, suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating cash flow of (35.84M) barely covers operating expenses of 15.13M with a -2.37 ratio, suggesting thin operational efficiency margins and limited flexibility.

Peer comparison

Companies in the Banks - Regional
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 PNC Pnc Financial Services Group, Inc. 126.73 Bn 42.27 8.85 62.34 Bn
2 USB Us Bancorp De 92.56 Bn 18.01 3.75 77.98 Bn
3 NU Nu Holdings Ltd. 84.71 Bn 33.49 6.02 4.49 Bn
4 NWG NatWest Group plc 64.34 Bn 9.55 2.95 169.04 Bn
5 MTB M&T Bank Corp 39.39 Bn 13.49 4.22 14.99 Bn
6 FITB Fifth Third Bancorp 38.93 Bn 15.70 4.83 18.94 Bn
7 TFC Truist Financial Corp 38.35 Bn 34.67 5.49 71.11 Bn
8 CFG Citizens Financial Group Inc/Ri 35.99 Bn 40.30 7.81 10.66 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.17 0.13
EV to Cash from Ops. EV/CFO -4.16 14.51
EV to Debt EV to Debt 31.85 6.80
EV to EBIT EV/EBIT 7.47 15.32
EV to EBITDA EV/EBITDA 5.89 15.64
EV to Free Cash Flow [EV/FCF] EV/FCF -3.62 28.62
EV to Market Cap EV to Market Cap 0.64 1.05
EV to Revenue EV/Rev 1.86 5.87
Price to Book Value [P/B] P/B 1.25 1.92
Price to Earnings [P/E] P/E 15.65 33.31
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 275.92
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 34.59
Dividend per Basic Share Div per Share (Qtr) 0.00 0.89
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 23.88
Interest Coverage Interest Coverage 0.00 -0.06
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 10.09 -76.09
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 23.15 16.48
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 5.36
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 6.13 112.22
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 1.39 39.25
EBIT Growth (1y) % EBIT 1y % (Qtr) 4.47 61.93
EBT Growth (1y) % EBT 1y % (Qtr) 4.47 61.84
EPS Growth (1y) % EPS 1y % (Qtr) 0.90 76.92
FCF Growth (1y) % FCF 1y % (Qtr) -246.85 164.96
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 14.63 14.29
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.09 0.04
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.25
Cash Ratio Cash Ratio 0.00 0.00
Current Ratio Current Ratio 0.00 0.01
Debt to Equity Ratio Debt/Equity (Qtr) 0.02 0.52
Interest Cover Ratio Interest Cover Ratio 0.00 -0.06
Times Interest Earned Times Interest Earned 0.00 -0.06
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 31.60 150.08
EBIT Margin % EBIT Margin % (Qtr) 24.89 157.64
EBT Margin % EBT Margin % (Qtr) 24.89 156.88
Gross Margin % Gross Margin % (Qtr) 99.90 97.78
Net Profit Margin % Net Margin % (Qtr) 18.70 117.29