WEBSTER FINANCIAL CORP (WBS)
US9478901096 - Common Stock
WBS gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 406 industry peers in the Banks industry. WBS has a medium profitability rating, but doesn't score so well on its financial health evaluation. WBS has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
WBS had positive earnings in the past year.
In the past year WBS had a positive cash flow from operations.
In the past 5 years WBS has always been profitable.
In the past 5 years WBS always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of WBS (1.21%) is better than 79.95% of its industry peers.
WBS has a Return On Equity of 10.46%. This is in the better half of the industry: WBS outperforms 75.99% 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 has a better Profit Margin (29.77%) than 83.42% of its industry peers.
In the last couple of years the Profit Margin of WBS has remained more or less at the same level.
WBS does not have Operating Margin and Gross Margin available, so we won't be analyzing them here.
| 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.
Compared to 1 year ago, WBS has less shares outstanding
The number of shares outstanding for WBS has been increased compared to 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 better Debt to FCF ratio (1.77) than 63.61% 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.
With a decent Debt to Equity ratio value of 0.11, WBS is doing good in the industry, outperforming 71.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 1.77 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC12.07%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
WBS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.89%.
WBS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.91% yearly.
WBS shows a decrease in Revenue. In the last year, the revenue decreased by -4.61%.
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
WBS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.70% yearly.
WBS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.72% yearly.
EPS Next Y-10.63%
EPS Next 2Y-1.95%
EPS Next 3Y3.7%
EPS Next 5YN/A
Revenue Next Year-2.39%
Revenue Next 2Y1.88%
Revenue Next 3Y3.72%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
WBS is valuated reasonably with a Price/Earnings ratio of 10.90.
WBS's Price/Earnings ratio is rather cheap when compared to the industry. WBS is cheaper than 80.20% of the companies in the same industry.
WBS's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.00.
The Price/Forward Earnings ratio is 10.22, which indicates a very decent valuation of WBS.
Based on the Price/Forward Earnings ratio, WBS is valued a bit cheaper than the industry average as 79.46% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.60. WBS is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.9 | ||
| Fwd PE | 10.22 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WBS indicates a slightly more expensive valuation: WBS is more expensive than 61.14% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.7 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.1
EPS Next 2Y-1.95%
EPS Next 3Y3.7%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.71%, WBS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.02, 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 2.24.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.71% |
5.2 History
The dividend of WBS has a limited annual growth rate of 5.00%.
WBS has been paying a dividend for at least 10 years, so it has 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-1.95%
EPS Next 3Y3.7%
WEBSTER FINANCIAL CORP
NYSE:WBS (12/13/2024, 8:04:00 PM)
Premarket: 59.6 +0.64 (+1.09%)58.96
-0.11 (-0.19%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap10.11B
Analysts
Price Target
Short Float %
Short Ratio
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.71% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.9 | ||
| Fwd PE | 10.22 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)1.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.21% | ||
| ROE | 10.46% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | 29.77% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-11.89%
EPS 3Y36.68%
EPS 5Y
EPS Q2Q%
EPS Next Y-10.63%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-4.61%
Revenue growth 3Y31.1%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y