WEBSTER FINANCIAL CORP (WBS) Stock Fundamental Analysis
NYSE:WBS - New York Stock Exchange, Inc. - US9478901096 - Common Stock - Currency: USD
Overall WBS gets a fundamental rating of 4 out of 10. We evaluated WBS against 395 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 decent growth rate and is not valued too expensively. 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.
In the past 5 years WBS has always 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 1.20%, WBS is in the better half of the industry, outperforming 79.24% of the companies in the same industry.
With a decent Return On Equity value of 10.48%, WBS is doing good in the industry, outperforming 72.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.2% | ||
| ROE | 10.48% | ||
| ROIC | N/A |
ROA(3y)0.98%
ROA(5y)0.95%
ROE(3y)8.53%
ROE(5y)8.74%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
WBS has a better Profit Margin (29.27%) than 82.03% 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) | 29.27% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-4.09%
PM growth 5Y-0.91%
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.
WBS has a better debt/assets ratio than last year.
2.2 Solvency
WBS has a debt to FCF ratio of 0.81. This is a very positive value and a sign of high solvency as it would only need 0.81 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 0.81, WBS is doing good in the industry, outperforming 77.22% of the companies in the same industry.
A Debt/Equity ratio of 0.11 indicates that WBS is not too dependend on debt financing.
WBS has a Debt to Equity ratio of 0.11. This is in the better half of the industry: WBS outperforms 67.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 0.81 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC16.6%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
WBS shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -9.04%.
Measured over the past 5 years, WBS shows a small growth in Earnings Per Share. The EPS has been growing by 5.74% on average per year.
The Revenue has decreased by -0.71% in the past year.
WBS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.87% yearly.
EPS 1Y (TTM)-9.04%
EPS 3Y3.52%
EPS 5Y5.74%
EPS Q2Q%-3.7%
Revenue 1Y (TTM)-0.71%
Revenue growth 3Y28.37%
Revenue growth 5Y15.87%
Sales Q2Q%7.83%
3.2 Future
WBS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.53% yearly.
The Revenue is expected to grow by 7.17% on average over the next years.
EPS Next Y7.67%
EPS Next 2Y10.14%
EPS Next 3Y9.53%
EPS Next 5YN/A
Revenue Next Year7.95%
Revenue Next 2Y6.56%
Revenue Next 3Y7.17%
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 accelerating.
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 9.68, which indicates a very decent valuation of WBS.
WBS's Price/Earnings ratio is a bit cheaper when compared to the industry. WBS is cheaper than 79.75% of the companies in the same industry.
WBS is valuated cheaply when we compare the Price/Earnings ratio to 26.17, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 7.91, which indicates a rather cheap valuation of WBS.
WBS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. WBS is cheaper than 77.22% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, WBS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.68 | ||
| Fwd PE | 7.91 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, WBS is valued cheaply inside the industry as 83.04% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.14 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
WBS's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.26
PEG (5Y)1.69
EPS Next 2Y10.14%
EPS Next 3Y9.53%
5. Dividend
5.1 Amount
WBS has a Yearly Dividend Yield of 3.15%.
WBS's Dividend Yield is comparable with the industry average which is at 3.45.
WBS's Dividend Yield is a higher than the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.15% |
5.2 History
The dividend of WBS has a limited annual growth rate of 0.97%.
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)0.97%
Div Incr Years0
Div Non Decr Years15
5.3 Sustainability
WBS pays out 30.19% 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.
DP30.19%
EPS Next 2Y10.14%
EPS Next 3Y9.53%
51.6
-0.9 (-1.71%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners90.08%
Inst Owner Change-1.79%
Ins Owners0.48%
Ins Owner Change4.35%
Market Cap8.68B
Analysts82.22
Price Target63.08 (22.25%)
Short Float %1.98%
Short Ratio2.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.15% |
Yearly Dividend1.7
Dividend Growth(5Y)0.97%
DP30.19%
Div Incr Years0
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.01%
Min EPS beat(2)-6.83%
Max EPS beat(2)4.82%
EPS beat(4)1
Avg EPS beat(4)-2.53%
Min EPS beat(4)-6.83%
Max EPS beat(4)4.82%
EPS beat(8)3
Avg EPS beat(8)-1.55%
EPS beat(12)5
Avg EPS beat(12)-1.65%
EPS beat(16)8
Avg EPS beat(16)1.97%
Revenue beat(2)0
Avg Revenue beat(2)-3.34%
Min Revenue beat(2)-4.52%
Max Revenue beat(2)-2.16%
Revenue beat(4)0
Avg Revenue beat(4)-3.1%
Min Revenue beat(4)-4.52%
Max Revenue beat(4)-1.87%
Revenue beat(8)0
Avg Revenue beat(8)-4.95%
Revenue beat(12)4
Avg Revenue beat(12)11.3%
Revenue beat(16)8
Avg Revenue beat(16)16.76%
PT rev (1m)-4.75%
PT rev (3m)-11.92%
EPS NQ rev (1m)-0.03%
EPS NQ rev (3m)0.24%
EPS NY rev (1m)-1.66%
EPS NY rev (3m)-2.59%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)1.57%
Revenue NY rev (1m)-0.38%
Revenue NY rev (3m)1.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.68 | ||
| Fwd PE | 7.91 | ||
| P/S | 2.63 | ||
| P/FCF | 7.14 | ||
| P/OCF | 6.91 | ||
| P/B | 0.94 | ||
| P/tB | 1.44 | ||
| EV/EBITDA | N/A |
EPS(TTM)5.33
EY10.33%
EPS(NY)6.53
Fwd EY12.65%
FCF(TTM)7.23
FCFY14.01%
OCF(TTM)7.46
OCFY14.46%
SpS19.59
BVpS54.71
TBVpS35.73
PEG (NY)1.26
PEG (5Y)1.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.2% | ||
| ROE | 10.48% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 29.27% | ||
| GM | N/A | ||
| FCFM | 36.92% |
ROA(3y)0.98%
ROA(5y)0.95%
ROE(3y)8.53%
ROE(5y)8.74%
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 3Y-4.09%
PM growth 5Y-0.91%
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 0.81 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 55.27% | ||
| Cap/Sales | 1.19% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 126.13% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score5
WACC16.6%
ROIC/WACCN/A
Cap/Depr(3y)45.99%
Cap/Depr(5y)48.48%
Cap/Sales(3y)1.36%
Cap/Sales(5y)1.45%
Profit Quality(3y)168.37%
Profit Quality(5y)168.7%
High Growth Momentum
Growth
EPS 1Y (TTM)-9.04%
EPS 3Y3.52%
EPS 5Y5.74%
EPS Q2Q%-3.7%
EPS Next Y7.67%
EPS Next 2Y10.14%
EPS Next 3Y9.53%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.71%
Revenue growth 3Y28.37%
Revenue growth 5Y15.87%
Sales Q2Q%7.83%
Revenue Next Year7.95%
Revenue Next 2Y6.56%
Revenue Next 3Y7.17%
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-6.47%
FCF growth 3Y26.75%
FCF growth 5Y37.52%
OCF growth 1Y-5.95%
OCF growth 3Y26.81%
OCF growth 5Y35.81%