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Relative valuation derived from Financials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 52.5GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
8.0%
Sector: 8.5%
Dividend Analysis audit
No Dividend
This company does not currently pay a dividend.
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, Bridgewater Bancshares Inc (BWB) receives a "Hold" rating with a composite score of 52.2/100, ranked #917 out of 4446 stocks. Key factor scores: Quality 53/100, Value 75/100, Momentum 55/100. This is quantitative analysis only — not investment advice.
Bridgewater Bancshares Inc (BWB) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does Bridgewater Bancshares Inc Do?
Bridgewater Bancshares, Inc. operates as the bank holding company for Bridgewater Bank that provides banking products and services to commercial real estate investors, small business entrepreneurs, and high net worth individuals in the United States. The company offers savings and money market accounts, demand deposits, time and brokered deposits, and interest and noninterest bearing transaction, as well as certificates of deposit. It also provides commercial loans to sole proprietorships, partnerships, corporations, and other business enterprises to finance accounts receivable or inventory, capital assets, or other business-related purposes; paycheck protection program loans; construction and land development loans; 1-4 family mortgage loans; multifamily lending products; owner and non-owner occupied commercial real estate loans; and consumer and other loans. In addition, the company online, mobile, and direct banking services. It operates through seven full-service offices located in Bloomington, Greenwood, Minneapolis, St. Louis Park, Orono, and St. Paul, Minnesota. The company was incorporated in 2005 and is headquartered in Saint Louis Park, Minnesota. Bridgewater Bancshares Inc (BWB) is classified as a small-cap stock in the Financials sector, specifically within the Banking industry. The company is led by CEO Jerry J. Baack and employs approximately 250 people. With a market capitalization of $498M, BWB is one of the notable companies in the Financials sector.
Bridgewater Bancshares Inc (BWB) Stock Rating — Hold (April 2026)
As of April 2026, Bridgewater Bancshares Inc receives a Hold rating with a composite score of 52.2/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.BWB ranks #917 out of 4,446 stocks in our coverage universe. Within the Financials sector, Bridgewater Bancshares Inc ranks #281 of 891 stocks, placing it in the upper half of its Financials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
BWB Stock Price and 52-Week Range
Bridgewater Bancshares Inc (BWB) currently trades at $18.92. The stock lost $0.02 (0.1%) in the most recent trading session. The 52-week high for BWB is $20.30, which means the stock is currently trading -6.8% from its annual peak. The 52-week low is $11.93, putting the stock 58.6% above its annual trough. Recent trading volume was 60K shares, suggesting relatively thin trading activity.
Is BWB Overvalued or Undervalued? — Valuation Analysis
Bridgewater Bancshares Inc (BWB) carries a value factor score of 75/100 in the Blank Capital model, suggesting the stock trades at a meaningful discount to its fundamental earning power. The trailing price-to-earnings ratio is 12.30x, compared to the Financials sector average of 14.88x — a discount of 17%. The price-to-book ratio stands at 0.99x, versus the sector average of 1.22x. The price-to-sales ratio is 1.88x, compared to 0.90x for the average Financials stock. On an enterprise value basis, BWB trades at 9.40x EV/EBITDA, versus 3.26x for the sector.
Based on these multiples, Bridgewater Bancshares Inc appears attractively valued relative to both its sector peers and the broader market. Value-oriented investors may find the current entry point compelling, particularly if the company's fundamental quality metrics also score well.
Bridgewater Bancshares Inc Profitability — ROE, Margins, and Quality Score
Bridgewater Bancshares Inc (BWB) earns a quality factor score of 53/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 8.0%, compared to the Financials sector average of 8.5%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at 0.8% versus the sector average of 1.2%.
On a margin basis, Bridgewater Bancshares Inc reports gross margins of 0.0%. The operating margin is 19.9% (sector: 21.8%). Net profit margin stands at 15.2%, versus 17.7% for the average Financials stock. Revenue growth is running at 20.9% on a trailing basis, compared to 9.4% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
BWB Debt, Balance Sheet, and Financial Health
Bridgewater Bancshares Inc has a debt-to-equity ratio of 946.0%, compared to the Financials sector average of 121.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 1.11x, suggesting adequate working capital coverage. Total debt on the balance sheet is $513M. Cash and equivalents stand at $132M.
BWB has a beta of 0.76, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for Bridgewater Bancshares Inc is 79/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
Bridgewater Bancshares Inc Revenue and Earnings History — Quarterly Trend
In TTM 2026, Bridgewater Bancshares Inc reported revenue of $272M and earnings per share (EPS) of $1.53. Net income for the quarter was $41M. Gross margin was 0.0%. Operating income came in at $54M.
In FY 2025, Bridgewater Bancshares Inc reported revenue of $282M and earnings per share (EPS) of $1.53. Net income for the quarter was $46M. Revenue grew 14.6% year-over-year compared to FY 2024. Operating income came in at $60M.
In Q3 2025, Bridgewater Bancshares Inc reported revenue of $74M and earnings per share (EPS) of $0.38. Net income for the quarter was $12M. Revenue grew 16.8% year-over-year compared to Q3 2024. Operating income came in at $15M.
In Q2 2025, Bridgewater Bancshares Inc reported revenue of $69M and earnings per share (EPS) of $0.38. Net income for the quarter was $12M. Revenue grew 13.7% year-over-year compared to Q2 2024. Operating income came in at $15M.
Over the past 8 quarters, Bridgewater Bancshares Inc has demonstrated a growth trajectory, with revenue expanding from $61M to $272M. Investors analyzing BWB stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
BWB Dividend Yield and Income Analysis
Bridgewater Bancshares Inc (BWB) does not currently pay a dividend. This is common among smaller companies in the Banking industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Financials dividend stocks may want to explore other Financials stocks or use the stock screener to filter by dividend yield.
BWB Momentum and Technical Analysis Profile
Bridgewater Bancshares Inc (BWB) has a momentum factor score of 55/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 26/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 11/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
BWB vs Competitors — Financials Sector Ranking and Peer Comparison
Comparing BWB against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full BWB vs S&P 500 (SPY) comparison to assess how Bridgewater Bancshares Inc stacks up against the broader market across all factor dimensions.
BWB Next Earnings Date
No upcoming earnings date has been announced for Bridgewater Bancshares Inc (BWB) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy BWB? — Investment Thesis Summary
Bridgewater Bancshares Inc presents a balanced picture with arguments on both sides. The value score of 75/100 suggests attractive pricing relative to fundamentals. Low volatility (stability score 79/100) reduces downside risk.
In summary, Bridgewater Bancshares Inc (BWB) earns a Hold rating with a composite score of 52.2/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on BWB stock.
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Institutional Research Dossier
Bridgewater Bancshares Inc (BWB) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
Bridgewater Bancshares (BWB) receives a Hold rating, reflecting a balanced view of its growth prospects and inherent risks. While the company exhibits strong revenue growth and attractive valuation multiples compared to the sector, its high debt-to-equity ratio and lower profitability metrics raise concerns about its long-term sustainability and ability to navigate economic downturns. The current valuation appears fair, but the risks associated with its capital structure and competitive landscape warrant a cautious approach.
The primary takeaway is that BWB presents a mixed bag of opportunities and challenges. Its focus on commercial real estate investors and small business entrepreneurs in the Minnesota market has fueled impressive revenue growth, but this niche focus also exposes it to specific risks. Investors should closely monitor the company's debt management, profitability trends, and ability to maintain its growth trajectory in a potentially volatile economic environment.
Business Strategy & Overview
Bridgewater Bancshares operates as a commercial bank primarily serving commercial real estate investors, small business entrepreneurs, and high-net-worth individuals in the Minneapolis-St. Paul metropolitan area. This targeted approach allows BWB to develop specialized expertise and build strong relationships within its chosen market segments. The bank offers a range of deposit and loan products tailored to the needs of its clientele, including commercial real estate loans, small business loans, and residential mortgages.
BWB's strategy centers on providing personalized service and local market knowledge, differentiating itself from larger national banks. The company emphasizes building long-term relationships with its customers, offering customized financial solutions, and providing responsive customer support. This approach has enabled BWB to attract and retain a loyal customer base, contributing to its consistent growth.
The bank's geographic focus on the Twin Cities region presents both opportunities and challenges. The area boasts a relatively stable economy and a strong commercial real estate market, providing a favorable environment for BWB's lending activities. However, the region is also subject to economic fluctuations and competitive pressures from other banks and financial institutions.
BWB's online, mobile, and direct banking services are crucial for attracting and retaining customers in today's digital age. These services provide convenience and accessibility, allowing customers to manage their accounts and conduct transactions remotely. The company's investment in technology is essential for maintaining its competitive edge and meeting the evolving needs of its customer base.
The Paycheck Protection Program (PPP) loans, while providing a temporary boost to loan volume, also introduced complexities in managing credit risk and regulatory compliance. The long-term impact of these loans on BWB's financial performance will depend on the borrowers' ability to repay the loans and the bank's effectiveness in managing any potential losses.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
20.9%
Sector: 9.4%
+123% VS SCTR
Economic Moat Analysis
Bridgewater Bancshares' economic moat is likely narrow. While the bank has established a presence in its target market and developed relationships with its customers, it faces significant competition from larger, more established banks and credit unions. The banking industry is characterized by relatively low switching costs, as customers can easily move their accounts to other institutions offering better rates or services.
BWB's focus on commercial real estate lending could be considered a source of specialized expertise, but this advantage is not necessarily sustainable. Other banks can develop similar expertise or hire experienced lenders to compete in this market. The bank's local market knowledge is valuable, but it is not a unique asset that cannot be replicated by competitors.
The bank's size and scale are also limiting factors in terms of its economic moat. Larger banks have greater resources to invest in technology, marketing, and product development, giving them a competitive advantage. BWB's smaller size makes it more vulnerable to economic downturns and regulatory changes.
While BWB's customer relationships are important, they do not create a strong network effect. The value of the bank's services to one customer does not significantly increase as more customers join the network. This contrasts with businesses like social media platforms or payment networks, where network effects are a key driver of competitive advantage.
The bank's brand recognition in the Twin Cities region may provide a slight advantage, but it is not a strong enough differentiator to create a wide economic moat. Brand loyalty in the banking industry is often driven by factors such as convenience, rates, and customer service, which can be easily matched by competitors.
Overall, BWB's competitive advantages are limited and do not create a significant barrier to entry for other banks. The bank's narrow focus and smaller size make it more susceptible to competitive pressures and economic headwinds. Therefore, a 'Narrow' moat rating is appropriate.
Financial Health & Profitability
Bridgewater Bancshares has demonstrated strong revenue growth in recent years, with revenue increasing from $222.35 million in FY2023 to $281.85 million in FY2025. This growth is significantly higher than the sector average of 9.3%, indicating BWB's ability to capture market share and expand its lending activities. However, the company's net income growth has been more volatile, with net income fluctuating between $32.83 million and $46.09 million over the same period.
The company's profitability metrics, such as ROE (8.0%) and net margin (15.2%), are slightly below the sector averages of 8.5% and 17.8%, respectively. This suggests that BWB may be less efficient in generating profits compared to its peers. The operating margin of 19.9% is also lower than the sector average of 22.0%, indicating potential areas for improvement in cost management.
BWB's balance sheet is characterized by a high debt-to-equity ratio of 946.00, which is significantly higher than the sector average of 115.00. This high level of leverage increases the company's financial risk and makes it more vulnerable to interest rate fluctuations and economic downturns. The company's current ratio of 1.11 indicates that it has sufficient liquid assets to cover its short-term liabilities, but the high debt level remains a concern.
The quarterly financial history reveals a consistent trend of revenue growth, but also highlights the variability in net income and operating margin. While revenue has increased steadily, the company's profitability has been affected by factors such as interest rate spreads, loan loss provisions, and operating expenses. The operating margin peaked in Q1 2023 at 30.2% but has since declined to around 20%, suggesting increased cost pressures or changes in revenue mix.
The negative free cash flow of $-103.93 million raises concerns about the company's ability to generate cash from its operations. This could be due to increased lending activity, investments in technology, or other factors. The company's reliance on debt financing to fund its growth could further exacerbate its financial risk.
Overall, BWB's financial health presents a mixed picture. While the company has demonstrated strong revenue growth, its high debt level, lower profitability metrics, and negative free cash flow warrant caution. Investors should closely monitor the company's debt management, profitability trends, and ability to generate cash from its operations.
Valuation Assessment
Bridgewater Bancshares' valuation appears attractive based on several key metrics. The company's P/E ratio of 11.1x is significantly lower than the sector average of 15.5x, suggesting that the stock is undervalued relative to its earnings. Similarly, the EV/EBITDA ratio of 2.0x is also lower than the sector average of 3.5x, indicating that the company is undervalued relative to its operating cash flow.
However, it's crucial to consider the company's growth rate and risk profile when assessing its valuation. BWB's revenue growth of 21.0% is significantly higher than the sector average of 9.3%, which could justify a higher valuation multiple. However, the company's high debt-to-equity ratio and lower profitability metrics may warrant a discount to its valuation.
The company's free cash flow is negative, which makes it difficult to assess its valuation based on traditional FCF yield metrics. However, the company's strong revenue growth and attractive P/E and EV/EBITDA ratios suggest that the stock may be undervalued if it can improve its profitability and generate positive free cash flow in the future.
Compared to its historical valuation, BWB's current multiples are within a reasonable range. The company's P/E ratio has fluctuated in the past, but it is currently trading at a discount to its historical average. Similarly, the EV/EBITDA ratio is also below its historical average, suggesting that the stock is not overvalued based on its past performance.
The market capitalization of $471.35 million reflects the company's size and growth potential. While BWB is a relatively small bank compared to its larger peers, its strong revenue growth and attractive valuation multiples could make it an attractive investment for value-oriented investors.
Overall, BWB's valuation appears fair, considering its growth prospects and risk profile. The company's attractive P/E and EV/EBITDA ratios suggest that the stock may be undervalued, but its high debt level and negative free cash flow warrant caution. Investors should closely monitor the company's financial performance and growth trajectory to determine whether the current valuation is justified.
Risk & Uncertainty
Bridgewater Bancshares faces several specific risks that could impact its financial performance and stock price. One of the primary risks is its high debt-to-equity ratio, which makes the company more vulnerable to interest rate fluctuations and economic downturns. Rising interest rates could increase the company's borrowing costs and reduce its profitability. A recession or slowdown in the commercial real estate market could lead to increased loan losses and a decline in asset quality.
Another risk is the company's concentration in the Minneapolis-St. Paul metropolitan area. This geographic concentration exposes BWB to regional economic risks and competitive pressures. A downturn in the local economy or increased competition from other banks could negatively impact the company's growth and profitability.
The company's reliance on commercial real estate lending also presents a risk. Commercial real estate loans are generally considered to be riskier than residential mortgages, as they are more sensitive to economic conditions and market fluctuations. A decline in commercial property values or an increase in vacancy rates could lead to loan losses and a decline in asset quality.
Regulatory changes and compliance costs also pose a risk to BWB. The banking industry is heavily regulated, and changes in regulations could increase the company's compliance costs and limit its ability to generate profits. The company's smaller size may make it more difficult to comply with complex regulations compared to larger banks.
Finally, competition from larger, more established banks and credit unions is a constant threat to BWB. These larger institutions have greater resources to invest in technology, marketing, and product development, giving them a competitive advantage. BWB must continue to differentiate itself through personalized service and local market knowledge to maintain its competitive edge.
Bulls Say / Bears Say
The Bull Case
BULL VIEWBridgewater Bancshares' strong revenue growth significantly outpaces the sector, indicating a successful strategy in its target market and potential for continued expansion.
BULL VIEWThe company's low P/E and EV/EBITDA ratios suggest that the stock is undervalued, offering an attractive entry point for investors seeking value and growth.
The Bear Case
BEAR VIEWBridgewater Bancshares' extremely high debt-to-equity ratio poses a significant financial risk, making it vulnerable to interest rate hikes and economic downturns.
BEAR VIEWThe company's profitability metrics, such as ROE and net margin, are below the sector average, raising concerns about its efficiency and ability to generate sustainable profits.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score BWB and 4,400+ other equities.
Bridgewater Bancshares Inc exhibits a 65% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
0.8%
Sector: 1.2%
Gross Margin
Pricing power and cost efficiency
0.0%
Sector: 0.0%
Operating Margin
Core business profitability
19.9%
Sector: 21.8%
Net Margin
Bottom-line profitability
15.2%
Sector: 17.7%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
