WEBSTER FINANCIAL CORP (WBS)
US9478901096 - Common Stock
WBS gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 405 industry peers in the Banks industry. While WBS is still in line with the averages on profitability rating, there are concerns on its financial health. WBS is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
WBS had positive earnings in the past year.
WBS had a positive operating cash flow in the past year.
Each year in the past 5 years WBS has been profitable.
WBS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.21%, WBS is in the better half of the industry, outperforming 79.90% of the companies in the same industry.
WBS has a better Return On Equity (10.46%) than 76.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.21% | ||
| ROE | 10.46% | ||
| ROIC | N/A |
ROA(3y)1.05%
ROA(5y)1%
ROE(3y)9.68%
ROE(5y)9.44%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
WBS's Profit Margin of 29.77% is amongst the best of the industry. WBS outperforms 83.17% of its industry peers.
WBS's Profit Margin has been stable in the last couple of years.
The Operating Margin and Gross Margin are not available for WBS so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 29.77% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y20.95%
PM growth 5Y1.46%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
WBS does not have a ROIC to compare to the WACC, probably because it is not profitable.
WBS has less shares outstanding than it did 1 year ago.
WBS has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, WBS has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of WBS is 1.77, which is an excellent value as it means it would take WBS, only 1.77 years of fcf income to pay off all of its debts.
WBS has a Debt to FCF ratio of 1.77. This is in the better half of the industry: WBS outperforms 63.07% of its industry peers.
WBS has a Debt/Equity ratio of 0.11. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of WBS (0.11) is better than 71.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 1.77 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC12.34%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The earnings per share for WBS have decreased strongly by -11.89% in the last year.
The Earnings Per Share has been growing by 9.91% on average over the past years. This is quite good.
Looking at the last year, WBS shows a decrease in Revenue. The Revenue has decreased by -4.61% in the last year.
WBS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.39% yearly.
EPS 1Y (TTM)-11.89%
EPS 3Y36.68%
EPS 5Y9.91%
EPS Q2Q%-13.55%
Revenue 1Y (TTM)-4.61%
Revenue growth 3Y31.1%
Revenue growth 5Y17.39%
Sales Q2Q%0.47%
3.2 Future
The Earnings Per Share is expected to grow by 3.72% on average over the next years.
WBS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.62% yearly.
EPS Next Y-10.63%
EPS Next 2Y-1.88%
EPS Next 3Y3.72%
EPS Next 5YN/A
Revenue Next Year-2.51%
Revenue Next 2Y1.86%
Revenue Next 3Y3.62%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 10.75, the valuation of WBS can be described as reasonable.
Based on the Price/Earnings ratio, WBS is valued a bit cheaper than the industry average as 78.64% of the companies are valued more expensively.
WBS is valuated cheaply when we compare the Price/Earnings ratio to 27.63, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 10.07, the valuation of WBS can be described as reasonable.
WBS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. WBS is cheaper than 73.37% of the companies in the same industry.
WBS is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.75 | ||
| Fwd PE | 10.07 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, WBS is valued a bit more expensive than 63.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.46 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.08
EPS Next 2Y-1.88%
EPS Next 3Y3.72%
5. Dividend
5.1 Amount
WBS has a Yearly Dividend Yield of 2.89%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.29, WBS has a dividend in line with its industry peers.
WBS's Dividend Yield is a higher than the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.89% |
5.2 History
The dividend of WBS has a limited annual growth rate of 5.00%.
WBS has paid a dividend for at least 10 years, which is a reliable track record.
WBS has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5%
Div Incr Years0
Div Non Decr Years15
5.3 Sustainability
30.38% of the earnings are spent on dividend by WBS. This is a low number and sustainable payout ratio.
WBS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP30.38%
EPS Next 2Y-1.88%
EPS Next 3Y3.72%
WEBSTER FINANCIAL CORP
NYSE:WBS (1/15/2025, 8:04:00 PM)
After market: 58.16 0 (0%)58.16
+1.7 (+3.01%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners87.07%
Inst Owner Change0%
Ins Owners0.52%
Ins Owner Change-2.67%
Market Cap9.97B
Analysts80
Price Target67.59 (16.21%)
Short Float %1.89%
Short Ratio2.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.89% |
Dividend Growth(5Y)5%
DP30.38%
Div Incr Years0
Div Non Decr Years15
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.06%
Min EPS beat(2)-6.66%
Max EPS beat(2)-1.47%
EPS beat(4)0
Avg EPS beat(4)-3.6%
Min EPS beat(4)-6.66%
Max EPS beat(4)-1.25%
EPS beat(8)2
Avg EPS beat(8)-2.81%
EPS beat(12)6
Avg EPS beat(12)1.16%
EPS beat(16)8
Avg EPS beat(16)3.63%
Revenue beat(2)0
Avg Revenue beat(2)-2.87%
Min Revenue beat(2)-3.86%
Max Revenue beat(2)-1.87%
Revenue beat(4)0
Avg Revenue beat(4)-5.2%
Min Revenue beat(4)-8.86%
Max Revenue beat(4)-1.87%
Revenue beat(8)2
Avg Revenue beat(8)-0.88%
Revenue beat(12)6
Avg Revenue beat(12)17.9%
Revenue beat(16)10
Avg Revenue beat(16)20.69%
PT rev (1m)4.96%
PT rev (3m)19.76%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.89%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.09%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.73%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)-0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.75 | ||
| Fwd PE | 10.07 | ||
| P/S | 3.09 | ||
| P/FCF | 17.46 | ||
| P/OCF | 16.59 | ||
| P/B | 1.08 | ||
| P/tB | 1.67 | ||
| EV/EBITDA | N/A |
EPS(TTM)5.41
EY9.3%
EPS(NY)5.78
Fwd EY9.93%
FCF(TTM)3.33
FCFY5.73%
OCF(TTM)3.51
OCFY6.03%
SpS18.85
BVpS53.66
TBVpS34.92
PEG (NY)N/A
PEG (5Y)1.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.21% | ||
| ROE | 10.46% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 29.77% | ||
| GM | N/A | ||
| FCFM | 17.67% |
ROA(3y)1.05%
ROA(5y)1%
ROE(3y)9.68%
ROE(5y)9.44%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y20.95%
PM growth 5Y1.46%
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 1.77 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 42.33% | ||
| Cap/Sales | 0.92% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 59.36% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score5
WACC12.34%
ROIC/WACCN/A
Cap/Depr(3y)44.7%
Cap/Depr(5y)52.16%
Cap/Sales(3y)1.35%
Cap/Sales(5y)1.58%
Profit Quality(3y)163.25%
Profit Quality(5y)146.83%
High Growth Momentum
Growth
EPS 1Y (TTM)-11.89%
EPS 3Y36.68%
EPS 5Y9.91%
EPS Q2Q%-13.55%
EPS Next Y-10.63%
EPS Next 2Y-1.88%
EPS Next 3Y3.72%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.61%
Revenue growth 3Y31.1%
Revenue growth 5Y17.39%
Sales Q2Q%0.47%
Revenue Next Year-2.51%
Revenue Next 2Y1.86%
Revenue Next 3Y3.62%
Revenue Next 5YN/A
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-54.73%
FCF growth 3Y37.72%
FCF growth 5Y16.55%
OCF growth 1Y-53.25%
OCF growth 3Y37.01%
OCF growth 5Y15.83%