WBS Fundamental Analysis - WEBSTER FINANCIAL CORP

Fundamental Rating

We assign a fundamental rating of 4 out of 10 to WBS. WBS was compared to 392 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 correct valuation and a medium growth rate.

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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.

WBS had positive earnings in each of the past 5 years.

WBS had a positive operating cash flow in each of the past 5 years.

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 79.59% of the companies in the same industry.

WBS's Return On Equity of 10.48% is fine compared to the rest of the industry. WBS outperforms 72.70% of its industry peers.

		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 81.63% 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)	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

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ROA

ROE

ROIC

Operating and Profit Margin

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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

Compared to 5 years ago, WBS has more shares outstanding

Compared to 1 year ago, WBS has an improved debt to assets ratio.

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 78.83% 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's Debt to Equity ratio of 0.11 is fine compared to the rest of the industry. WBS outperforms 67.86% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.11
Debt/FCF	0.81
Altman-Z	N/A

ROIC/WACCN/A

WACC16.04%

2.3 Liquidity

		Industry Rank	Sector Rank
Current Ratio	N/A
Quick Ratio	N/A

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

WBS shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.53%.

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 for WBS has decreased by -16.31% in the past year. This is quite bad

The Revenue has been growing by 15.87% on average over the past years. This is quite good.

EPS 1Y (TTM)-0.53%

EPS 3Y3.52%

EPS 5Y5.74%

EPS Q2Q%20.63%

Revenue 1Y (TTM)-16.31%

Revenue growth 3Y28.37%

Revenue growth 5Y15.87%

Sales Q2Q%8.54%

3.2 Future

Based on estimates for the next years, WBS will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.50% on average per year.

Based on estimates for the next years, WBS will show a small growth in Revenue. The Revenue will grow by 6.43% on average per year.

EPS Next Y7.83%

EPS Next 2Y9.99%

EPS Next 3Y9.5%

EPS Next 5YN/A

Revenue Next Year6.21%

Revenue Next 2Y6.25%

Revenue Next 3Y6.43%

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.

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.

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 10.05 indicates a reasonable valuation of WBS.

WBS's Price/Earnings ratio is a bit cheaper when compared to the industry. WBS is cheaper than 73.98% 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 26.99.

WBS is valuated reasonably with a Price/Forward Earnings ratio of 8.63.

WBS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. WBS is cheaper than 69.13% of the companies in the same industry.

WBS is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.36, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	10.05
Fwd PE	8.63

4.2 Price Multiples

Compared to the rest of the industry, the Price/Free Cash Flow ratio of WBS indicates a rather cheap valuation: WBS is cheaper than 81.63% of the companies listed in the same industry.

		Industry Rank	Sector Rank
P/FCF	7.72
EV/EBITDA	N/A

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.

PEG (NY)1.28

PEG (5Y)1.75

EPS Next 2Y9.99%

EPS Next 3Y9.5%

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5. Dividend

5.1 Amount

WBS has a Yearly Dividend Yield of 2.78%.

Compared to an average industry Dividend Yield of 3.51, WBS has a dividend in line with its industry peers.

Compared to an average S&P500 Dividend Yield of 2.40, WBS has a dividend comparable with the average S&P500 company.

		Industry Rank	Sector Rank
Dividend Yield	2.78%

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.

The dividend of WBS is growing, but earnings are growing more, so the dividend growth is sustainable.

DP30.19%

EPS Next 2Y9.99%

EPS Next 3Y9.5%

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WEBSTER FINANCIAL CORP

NYSE:WBS (8/6/2025, 7:00:00 PM)

After market: 56.18 0 (0%)

56.18

-0.48 (-0.85%)

Chartmill FA Rating

GICS SectorFinancials

GICS IndustryGroupBanks

GICS IndustryBanks

Earnings (Last)07-17 2025-07-17/bmo

Earnings (Next)10-15 2025-10-15/bmo

Inst Owners89.73%

Inst Owner Change-0.29%

Ins Owners0.54%

Ins Owner Change3.11%

Market Cap9.39B

Analysts83

Price Target67.05 (19.35%)

Short Float %2.4%

Short Ratio2.76

Dividend

		Industry Rank	Sector Rank
Dividend Yield	2.78%

Yearly Dividend1.7

Dividend Growth(5Y)0.97%

DP30.19%

Div Incr Years0

Div Non Decr Years15

Ex-Date08-11 2025-08-11 (0.4)

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)5.01%

PT rev (3m)1.24%

EPS NQ rev (1m)-0.39%

EPS NQ rev (3m)-0.5%

EPS NY rev (1m)0.13%

EPS NY rev (3m)-1.51%

Revenue NQ rev (1m)0.07%

Revenue NQ rev (3m)-2.52%

Revenue NY rev (1m)-1.23%

Revenue NY rev (3m)-1.99%

Valuation

		Industry Rank	Sector Rank
PE	10.05
Fwd PE	8.63
P/S	2.85
P/FCF	7.72
P/OCF	7.48
P/B	1.02
P/tB	1.56
EV/EBITDA	N/A

EPS(TTM)5.59

EY9.95%

EPS(NY)6.51

Fwd EY11.59%

FCF(TTM)7.28

FCFY12.96%

OCF(TTM)7.51

OCFY13.38%

SpS19.72

BVpS55.09

TBVpS35.98

PEG (NY)1.28

PEG (5Y)1.75

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

WACC16.04%

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)-0.53%

EPS 3Y3.52%

EPS 5Y5.74%

EPS Q2Q%20.63%

EPS Next Y7.83%

EPS Next 2Y9.99%

EPS Next 3Y9.5%

EPS Next 5YN/A

Revenue 1Y (TTM)-16.31%

Revenue growth 3Y28.37%

Revenue growth 5Y15.87%

Sales Q2Q%8.54%

Revenue Next Year6.21%

Revenue Next 2Y6.25%

Revenue Next 3Y6.43%

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%

WEBSTER FINANCIAL CORP (WBS) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

More info and screens

5. Dividend

5.1 Amount

5.2 History

5.3 Sustainability

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