WEBSTER FINANCIAL CORP (WBS)
US9478901096 - Common Stock
Overall WBS gets a fundamental rating of 5 out of 10. We evaluated WBS against 411 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 correct valuation and a medium growth rate. WBS also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year WBS was profitable.
In the past year WBS had a positive cash flow from operations.
WBS had positive earnings in each of the past 5 years.
Each year in the past 5 years WBS had a positive operating cash flow.
1.2 Ratios
WBS's Return On Assets of 1.41% is amongst the best of the industry. WBS outperforms 86.37% of its industry peers.
Looking at the Return On Equity, with a value of 12.18%, WBS is in the better half of the industry, outperforming 79.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.41% | ||
| ROE | 12.18% | ||
| 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 31.90% is amongst the best of the industry. WBS outperforms 82.73% of its industry peers.
WBS's Profit Margin has been stable in the last couple of years.
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) | 31.9% | ||
| 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 1.61, which is an excellent value as it means it would take WBS, only 1.61 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 1.61, WBS is doing good in the industry, outperforming 64.96% of the companies in the same industry.
WBS has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.17, WBS is doing good in the industry, outperforming 62.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 1.61 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC14.34%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.33% over the past year.
WBS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.91% yearly.
The Revenue has grown by 11.58% in the past year. This is quite good.
Measured over the past years, WBS shows a quite strong growth in Revenue. The Revenue has been growing by 17.39% on average per year.
EPS 1Y (TTM)7.33%
EPS 3Y36.68%
EPS 5Y9.91%
EPS growth Q2Q-8.75%
Revenue 1Y (TTM)11.58%
Revenue growth 3Y31.1%
Revenue growth 5Y17.39%
Revenue growth Q2Q-9.9%
3.2 Future
The Earnings Per Share is expected to grow by 8.53% on average over the next years. This is quite good.
The Revenue is expected to grow by 8.42% on average over the next years. This is quite good.
EPS Next Y-0.93%
EPS Next 2Y3.99%
EPS Next 3Y8.53%
EPS Next 5YN/A
Revenue Next Year3.89%
Revenue Next 2Y4.53%
Revenue Next 3Y8.42%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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
With a Price/Earnings ratio of 7.48, the valuation of WBS can be described as very cheap.
Based on the Price/Earnings ratio, WBS is valued a bit cheaper than 75.18% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.20, WBS is valued rather cheaply.
With a Price/Forward Earnings ratio of 7.55, the valuation of WBS can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WBS indicates a rather cheap valuation: WBS is cheaper than 81.02% of the companies listed in the same industry.
WBS is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.60, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.48 | ||
| Fwd PE | 7.55 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WBS is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.21 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.75
EPS Next 2Y3.99%
EPS Next 3Y8.53%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.53%, WBS has a reasonable but not impressive dividend return.
WBS's Dividend Yield is comparable with the industry average which is at 3.92.
WBS's Dividend Yield is a higher than the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.53% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)5%
Div Incr Years0
Div Non Decr Years14
5.3 Sustainability
WBS pays out 27.86% of its income as dividend. This is a sustainable payout ratio.
WBS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP27.86%
EPS Next 2Y3.99%
EPS Next 3Y8.53%
WEBSTER FINANCIAL CORP
NYSE:WBS (4/23/2024, 7:04:00 PM)
After market: 44.88 0 (0%)44.88
-2.29 (-4.85%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap7.70B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.53% |
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 | 7.48 | ||
| Fwd PE | 7.55 | ||
| 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)0.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.41% | ||
| ROE | 12.18% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | 31.9% | ||
| 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 | 0.17 | ||
| 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)
Growth
EPS 1Y (TTM)7.33%
EPS 3Y36.68%
EPS 5Y
EPS growth Q2Q
EPS Next Y-0.93%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)11.58%
Revenue growth 3Y31.1%
Revenue growth 5Y
Revenue growth 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