WESTERN ALLIANCE BANCORP (WAL) Stock Fundamental Analysis
USA - NYSE:WAL - US9576381092 - Common Stock
76.91 USD
-0.44 (-0.57%)
76.59 USD
-0.32 (-0.42%)
WAL gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 390 industry peers in the Banks industry. Both the profitability and financial health of WAL have multiple concerns. WAL is growing strongly while it is still valued neutral. This is a good combination!
1. Profitability
1.1 Basic Checks
In the past year WAL was profitable.
WAL had a negative operating cash flow in the past year.
WAL had positive earnings in each of the past 5 years.
In multiple years WAL reported negative operating cash flow during the last 5 years.
1.2 Ratios
With a decent Return On Assets value of 0.96%, WAL is doing good in the industry, outperforming 61.03% of the companies in the same industry.
Looking at the Return On Equity, with a value of 11.71%, WAL is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.96% | ||
| ROE | 11.71% | ||
| ROIC | N/A |
ROA(3y)1.17%
ROA(5y)1.3%
ROE(3y)14.24%
ROE(5y)15.12%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of WAL (25.37%) is better than 61.54% of its industry peers.
WAL's Profit Margin has declined in the last couple of years.
The Operating Margin and Gross Margin are not available for WAL so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 25.37% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-18.85%
PM growth 5Y-11.51%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
WAL does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for WAL has been increased compared to 1 year ago.
The number of shares outstanding for WAL has been increased compared to 5 years ago.
The debt/assets ratio for WAL is higher compared to a year ago.
2.2 Solvency
WAL has a Debt/Equity ratio of 0.51. This is a neutral value indicating WAL is somewhat dependend on debt financing.
WAL has a worse Debt to Equity ratio (0.51) than 77.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC14.89%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.31% over the past year.
The Earnings Per Share has been growing by 8.21% on average over the past years. This is quite good.
WAL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.13%.
WAL shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 23.39% yearly.
EPS 1Y (TTM)13.31%
EPS 3Y-6.09%
EPS 5Y8.21%
EPS Q2Q%26.67%
Revenue 1Y (TTM)13.13%
Revenue growth 3Y17.42%
Revenue growth 5Y23.39%
Sales Q2Q%13.98%
3.2 Future
WAL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.42% yearly.
WAL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.30% yearly.
EPS Next Y18.05%
EPS Next 2Y21.02%
EPS Next 3Y18.42%
EPS Next 5YN/A
Revenue Next Year9.15%
Revenue Next 2Y9.63%
Revenue Next 3Y9.3%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
WAL is valuated reasonably with a Price/Earnings ratio of 9.51.
Based on the Price/Earnings ratio, WAL is valued a bit cheaper than 76.92% of the companies in the same industry.
WAL's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.51.
WAL is valuated cheaply with a Price/Forward Earnings ratio of 7.31.
WAL's Price/Forward Earnings ratio is rather cheap when compared to the industry. WAL is cheaper than 86.92% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.53, WAL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.51 | ||
| Fwd PE | 7.31 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
WAL's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as WAL's earnings are expected to grow with 18.42% in the coming years.
PEG (NY)0.53
PEG (5Y)1.16
EPS Next 2Y21.02%
EPS Next 3Y18.42%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.98%, WAL has a reasonable but not impressive dividend return.
WAL's Dividend Yield is slightly below the industry average, which is at 3.44.
Compared to an average S&P500 Dividend Yield of 2.38, WAL has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.98% |
5.2 History
On average, the dividend of WAL grows each year by 26.70%, which is quite nice.
WAL has been paying a dividend for over 5 years, so it has already some track record.
WAL has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)26.7%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
WAL pays out 21.51% of its income as dividend. This is a sustainable payout ratio.
WAL's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP21.51%
EPS Next 2Y21.02%
EPS Next 3Y18.42%
76.91
-0.44 (-0.57%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners90.5%
Inst Owner Change-0.35%
Ins Owners2.25%
Ins Owner Change0.07%
Market Cap8.49B
Revenue(TTM)3.40B
Net Income(TTM)833.40M
Analysts84
Price Target102.51 (33.29%)
Short Float %4.38%
Short Ratio3.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.98% |
Yearly Dividend1.61
Dividend Growth(5Y)26.7%
DP21.51%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.3%
Min EPS beat(2)-0.51%
Max EPS beat(2)1.11%
EPS beat(4)2
Avg EPS beat(4)-0.7%
Min EPS beat(4)-5.47%
Max EPS beat(4)2.05%
EPS beat(8)4
Avg EPS beat(8)-0.58%
EPS beat(12)5
Avg EPS beat(12)-0.33%
EPS beat(16)8
Avg EPS beat(16)0.42%
Revenue beat(2)0
Avg Revenue beat(2)-1.41%
Min Revenue beat(2)-2.74%
Max Revenue beat(2)-0.09%
Revenue beat(4)2
Avg Revenue beat(4)0.26%
Min Revenue beat(4)-2.74%
Max Revenue beat(4)3.04%
Revenue beat(8)5
Avg Revenue beat(8)1.02%
Revenue beat(12)6
Avg Revenue beat(12)-1.39%
Revenue beat(16)9
Avg Revenue beat(16)-0.71%
PT rev (1m)2.93%
PT rev (3m)6.67%
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)-1.38%
EPS NY rev (1m)0.12%
EPS NY rev (3m)-2.68%
Revenue NQ rev (1m)-0.15%
Revenue NQ rev (3m)0.05%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.51 | ||
| Fwd PE | 7.31 | ||
| P/S | 2.58 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.19 | ||
| P/tB | 1.57 | ||
| EV/EBITDA | N/A |
EPS(TTM)8.09
EY10.52%
EPS(NY)10.52
Fwd EY13.67%
FCF(TTM)-34.32
FCFYN/A
OCF(TTM)-33.54
OCFYN/A
SpS29.77
BVpS64.46
TBVpS49.08
PEG (NY)0.53
PEG (5Y)1.16
Graham Number108.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.96% | ||
| ROE | 11.71% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 25.37% | ||
| GM | N/A | ||
| FCFM | N/A |
ROA(3y)1.17%
ROA(5y)1.3%
ROE(3y)14.24%
ROE(5y)15.12%
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
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-18.85%
PM growth 5Y-11.51%
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 94.43% | ||
| Cap/Sales | 2.63% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score5
WACC14.89%
ROIC/WACCN/A
Cap/Depr(3y)179.76%
Cap/Depr(5y)172.45%
Cap/Sales(3y)4.19%
Cap/Sales(5y)3.66%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)13.31%
EPS 3Y-6.09%
EPS 5Y8.21%
EPS Q2Q%26.67%
EPS Next Y18.05%
EPS Next 2Y21.02%
EPS Next 3Y18.42%
EPS Next 5YN/A
Revenue 1Y (TTM)13.13%
Revenue growth 3Y17.42%
Revenue growth 5Y23.39%
Sales Q2Q%13.98%
Revenue Next Year9.15%
Revenue Next 2Y9.63%
Revenue Next 3Y9.3%
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-467.47%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-412.3%
OCF growth 3YN/A
OCF growth 5YN/A
WESTERN ALLIANCE BANCORP / WAL FAQ
What is the fundamental rating for WAL stock?
ChartMill assigns a fundamental rating of 4 / 10 to WAL.
Can you provide the valuation status for WESTERN ALLIANCE BANCORP?
ChartMill assigns a valuation rating of 6 / 10 to WESTERN ALLIANCE BANCORP (WAL). This can be considered as Fairly Valued.
Can you provide the profitability details for WESTERN ALLIANCE BANCORP?
WESTERN ALLIANCE BANCORP (WAL) has a profitability rating of 3 / 10.
What are the PE and PB ratios of WESTERN ALLIANCE BANCORP (WAL) stock?
The Price/Earnings (PE) ratio for WESTERN ALLIANCE BANCORP (WAL) is 9.51 and the Price/Book (PB) ratio is 1.19.
Is the dividend of WESTERN ALLIANCE BANCORP sustainable?
The dividend rating of WESTERN ALLIANCE BANCORP (WAL) is 5 / 10 and the dividend payout ratio is 21.51%.