WEBSTER FINANCIAL CORP (WBS)
US9478901096 - Common Stock
WBS gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 410 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 has a decent growth rate and is not valued too expensively. Finally WBS also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year WBS was profitable.
WBS had a positive operating cash flow in the past year.
Each year in the past 5 years WBS has been profitable.
Each year in the past 5 years WBS had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.38%, WBS belongs to the top of the industry, outperforming 86.34% of the companies in the same industry.
The Return On Equity of WBS (12.04%) is better than 79.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.38% | ||
| ROE | 12.04% | ||
| 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 (31.74%) than 85.61% 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) | 31.74% | ||
| 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.
The number of shares outstanding for WBS has been reduced compared to 1 year ago.
Compared to 5 years ago, WBS has more shares outstanding
WBS has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of WBS is 1.31, which is an excellent value as it means it would take WBS, only 1.31 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 1.31, WBS is doing good in the industry, outperforming 72.44% of the companies in the same industry.
A Debt/Equity ratio of 0.15 indicates that WBS is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.15, WBS is doing good in the industry, outperforming 67.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.31 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC13.62%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
WBS shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.34%.
WBS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.91% yearly.
Looking at the last year, WBS shows a small growth in Revenue. The Revenue has grown by 5.65% in the last year.
The Revenue has been growing by 17.39% on average over the past years. This is quite good.
EPS 1Y (TTM)0.34%
EPS 3Y36.68%
EPS 5Y9.91%
EPS Q2Q%-9.4%
Revenue 1Y (TTM)5.65%
Revenue growth 3Y31.1%
Revenue growth 5Y17.39%
Sales Q2Q%-14.76%
3.2 Future
WBS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.92% yearly.
The Revenue is expected to grow by 5.21% on average over the next years.
EPS Next Y-5.41%
EPS Next 2Y2.9%
EPS Next 3Y6.92%
EPS Next 5YN/A
Revenue Next Year-1.05%
Revenue Next 2Y3.01%
Revenue Next 3Y5.21%
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.
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
The Price/Earnings ratio is 6.77, which indicates a rather cheap valuation of WBS.
WBS's Price/Earnings ratio is rather cheap when compared to the industry. WBS is cheaper than 88.54% of the companies in the same industry.
When comparing the Price/Earnings ratio of WBS to the average of the S&P500 Index (28.42), we can say WBS is valued rather cheaply.
A Price/Forward Earnings ratio of 6.24 indicates a rather cheap valuation of WBS.
89.27% of the companies in the same industry are more expensive than WBS, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of WBS to the average of the S&P500 Index (20.02), we can say WBS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.77 | ||
| Fwd PE | 6.24 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WBS indicates a somewhat cheap valuation: WBS is cheaper than 71.22% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.99 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.68
EPS Next 2Y2.9%
EPS Next 3Y6.92%
5. Dividend
5.1 Amount
WBS has a Yearly Dividend Yield of 3.95%.
Compared to an average industry Dividend Yield of 3.93, WBS has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.39, WBS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.95% |
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 Years14
5.3 Sustainability
WBS pays out 27.84% of its income as dividend. This is a sustainable payout ratio.
The dividend of WBS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP27.84%
EPS Next 2Y2.9%
EPS Next 3Y6.92%
WEBSTER FINANCIAL CORP
NYSE:WBS (6/17/2024, 9:05:08 AM)
39.65
+0.01 (+0.03%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap6.80B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.95% |
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 | 6.77 | ||
| Fwd PE | 6.24 | ||
| 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)0.68
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.38% | ||
| ROE | 12.04% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | 31.74% | ||
| 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 | 0.15 | ||
| 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)0.34%
EPS 3Y36.68%
EPS 5Y
EPS Q2Q%
EPS Next Y-5.41%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.65%
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