Executive Summary
Winchester Bancorp's QQ3 2024 results show a continuation of topline resilience with a solid year-over-year revenue uptick and margin expansion relative to prior quarters, supported by a favorable mix of expense controls and ongoing deposit activity. Revenue reached $10.912 million for the quarter, up roughly 14.6% year-over-year, while gross profit rose to $4.693 million and gross margin stood at about 43.0%. Operating income was $0.372 million and net income was $0.305 million, translating to an EPS of $0.0323. These quarterly figures reflect improving operating leverage after a prior period of volatility, with YoY improvements in gross margin and operating income, and a positive trajectory in net income despite a volatile quarterly path.
However, profitability remains modest by bank standards. Return on assets (ROA) is listed at 0.033% and return on equity (ROE) at 0.377%, with net margin near 2.8% and operating margin around 3.41%. The balance sheet shows pronounced leverage (debt-to-capitalization around 0.618 and an equity multiplier of 11.41), alongside liquidity metrics that indicate modest short-term liquidity (current ratio and quick ratio both reported at 0.148). The company trades at a rich multiple in some metrics (P/E ~ 70.9, P/B ~ 1.07), underscoring a high valuation relative to current earnings power and the scale of the balance sheet.
Looking ahead, there is no formal forward guidance provided in the data, and the lack of an earnings call transcript limits qualitative read-through on management’s strategic emphasis. Investors should monitor net interest income sensitivity to rate shifts, loan growth, credit costs, and capital adequacy, as well as any strategic actions to de-risk the balance sheet or improve efficiency. Overall, WSBK presents a low- to moderate-conviction opportunity: it offers earnings growth potential and liquidity support from cash per share, but faces meaningful profitability and leverage headwinds that warrant a cautious stance until clearer growth and risk-mitigating actions emerge.
Key Performance Indicators
QoQ: -10.14% | YoY:115.03%
QoQ: -18.23% | YoY:58.85%
QoQ: -18.23% | YoY:59.11%
Key Insights
Revenue: $10.912 million in QQ3 2024; YoY +14.62%; QoQ +0.16%
Gross Profit: $4.693 million; YoY +22.05%; QoQ +12.25%
Operating Income: $0.372 million; YoY +115.03%; QoQ -10.14%
Net Income: $0.305 million; YoY +58.85%; QoQ -18.23%
EPS: $0.0323; YoY +59.11%; QoQ -18.23%
Gross Profit Margin: 0.4301; Operating Margin: 0.0341; Net Margin: 0.0280
ROA: 0.033% (0.00033); ROE: 0.377% (0.00377);
Debt to Capitalization: 0.618; Debt Ratio: 0.142; Equity Multiplier: 11.41
Cash per Share: $10.93; Operating Ca...
Financial Highlights
Revenue: $10.912 million in QQ3 2024; YoY +14.62%; QoQ +0.16%
Gross Profit: $4.693 million; YoY +22.05%; QoQ +12.25%
Operating Income: $0.372 million; YoY +115.03%; QoQ -10.14%
Net Income: $0.305 million; YoY +58.85%; QoQ -18.23%
EPS: $0.0323; YoY +59.11%; QoQ -18.23%
Gross Profit Margin: 0.4301; Operating Margin: 0.0341; Net Margin: 0.0280
ROA: 0.033% (0.00033); ROE: 0.377% (0.00377);
Debt to Capitalization: 0.618; Debt Ratio: 0.142; Equity Multiplier: 11.41
Cash per Share: $10.93; Operating Cash Flow per Share: $0.0912; Free Cash Flow per Share: $0.0781
P/Book: 1.068; P/E: 70.86; P/S: 7.92; P/FCF: 119.07
Dividend Yield: 0%
Market Valuation Signals: Price-to-Book around 1.07 suggests modestly above tangible book value, but the high P/E and elevated enterprise value metrics imply investors are pricing in earnings stability and potential thin margin expansion. Four-quarter performance shows improving revenue and profitability from Q1 2024 troughs to Q3 2024, albeit with episodic quarterly volatility.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
10.91M |
14.62% |
0.16% |
| Gross Profit |
4.69M |
22.05% |
12.25% |
| Operating Income |
372.00K |
115.03% |
-10.14% |
| Net Income |
305.00K |
58.85% |
-18.23% |
| EPS |
0.03 |
59.11% |
-18.23% |
Key Financial Ratios
operatingProfitMargin
3.41%
operatingCashFlowPerShare
$0.09
freeCashFlowPerShare
$0.08
Management Commentary
No earnings call transcript data provided for QQ3 2024. As a result, thematic highlights and management quotes are not available in the dataset to date. If transcripts are released, we should extract themes around strategy, risk controls, loan growth, NIM outlook, and capital allocation.
No transcript quotes available in the provided data.
— N/A
No transcript quotes available in the provided data.
— N/A
Forward Guidance
There is no explicit management guidance in the provided data. In the absence of a formal outlook, the near-term trajectory will depend on: (1) net interest income sensitivity to the rate environment and funding costs; (2) loan growth and mix (residential/commercial real estate, consumer lending) and credit quality; (3) operating efficiency and expense control; (4) capital adequacy and liquidity. Given the current leverage and thin margins, the bank may need to demonstrate sustained margin resilience and cost discipline to support earnings upside. Key factors to monitor include: rate-driven NII, reserve releases or provisions, non-interest income diversification, and any strategic steps to reduce leverage or accelerate cost savings.