Taking everything into account, WBS scores 4 out of 10 in our fundamental rating. WBS was compared to 383 industry peers in the Banks industry. There are concerns on the financial health of WBS while its profitability can be described as average. WBS has a correct valuation and a medium growth rate. Finally WBS also has an excellent dividend rating.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year WBS was profitable.
WBS had a positive operating cash flow in the past year.
WBS had positive earnings in each of the past 5 years.
Of the past 5 years WBS 4 years had a positive operating cash flow.

1.2 Ratios

With a decent Return On Assets value of 1.08%, WBS is doing good in the industry, outperforming 69.19% of the companies in the same industry.
WBS has a Return On Equity of 9.49%. This is comparable to the rest of the industry: WBS outperforms 57.70% of its industry peers.

		Industry Rank	Sector Rank
ROA	1.08%
ROE	9.49%
ROIC	N/A

ROA(3y)1.08%

ROA(5y)1.05%

ROE(3y)9.37%

ROE(5y)9.49%

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

WBS has a better Profit Margin (31.91%) than 84.33% of its industry peers.
In the last couple of years the Profit Margin of WBS has grown nicely.
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)	31.91%
GM	N/A

OM growth 3YN/A

OM growth 5YN/A

PM growth 3Y10.15%

PM growth 5Y13.34%

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.
WBS has less shares outstanding than it did 1 year ago.
The number of shares outstanding for WBS has been increased compared to 5 years ago.
WBS has a worse debt/assets ratio than last year.

2.2 Solvency

The Debt to FCF ratio of WBS is 0.85, which is an excellent value as it means it would take WBS, only 0.85 years of fcf income to pay off all of its debts.
WBS has a better Debt to FCF ratio (0.85) than 71.02% of its industry peers.
A Debt/Equity ratio of 0.14 indicates that WBS is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.14, WBS is in line with its industry, outperforming 56.66% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	0.14
Debt/FCF	0.85
Altman-Z	N/A

ROIC/WACCN/A

WACC15.45%

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 strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.59%, which is quite good.
Measured over the past years, WBS shows a very strong growth in Earnings Per Share. The EPS has been growing by 20.42% on average per year.
The Revenue for WBS has decreased by -10.99% in the past year. This is quite bad
Measured over the past years, WBS shows a quite strong growth in Revenue. The Revenue has been growing by 19.76% on average per year.

EPS 1Y (TTM)10.59%

EPS 3Y2.1%

EPS 5Y20.42%

EPS Q2Q%11.19%

Revenue 1Y (TTM)-10.99%

Revenue growth 3Y5.42%

Revenue growth 5Y19.76%

Sales Q2Q%4.01%

3.2 Future

The Earnings Per Share is expected to grow by 11.00% on average over the next years. This is quite good.
WBS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.48% yearly.

EPS Next Y10.83%

EPS Next 2Y11%

EPS Next 3YN/A

EPS Next 5YN/A

Revenue Next Year8.37%

Revenue Next 2Y7.48%

Revenue Next 3YN/A

Revenue Next 5YN/A

3.3 Evolution

Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 11.05, the valuation of WBS can be described as very reasonable.
Based on the Price/Earnings ratio, WBS is valued a bit cheaper than 71.02% of the companies in the same industry.
When comparing the Price/Earnings ratio of WBS to the average of the S&P500 Index (28.32), we can say WBS is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.97, the valuation of WBS can be described as very reasonable.
Based on the Price/Forward Earnings ratio, WBS is valued a bit cheaper than the industry average as 64.49% of the companies are valued more expensively.
WBS is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	11.05
Fwd PE	9.97

4.2 Price Multiples

Based on the Price/Free Cash Flow ratio, WBS is valued cheaper than 88.25% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	6.69
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)1.02

PEG (5Y)0.54

EPS Next 2Y11%

EPS Next 3YN/A

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5. Dividend

5.1 Amount

WBS has a Yearly Dividend Yield of 2.44%. Purely for dividend investing, there may be better candidates out there.
WBS's Dividend Yield is comparable with the industry average which is at 2.67.
WBS's Dividend Yield is a higher than the S&P500 average which is at 1.83.

		Industry Rank	Sector Rank
Dividend Yield	2.44%

5.2 History

The dividend of WBS has a limited annual growth rate of 0.97%.
WBS has been paying a dividend for at least 10 years, so it has 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 31.96% 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.

DP31.96%

EPS Next 2Y11%

EPS Next 3YN/A

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WEBSTER FINANCIAL CORP / WBS FAQ

What is the ChartMill fundamental rating of WEBSTER FINANCIAL CORP (WBS) stock?

ChartMill assigns a fundamental rating of 4 / 10 to WBS.

What is the valuation status for WBS stock?

ChartMill assigns a valuation rating of 6 / 10 to WEBSTER FINANCIAL CORP (WBS). This can be considered as Fairly Valued.

What is the profitability of WBS stock?

WEBSTER FINANCIAL CORP (WBS) has a profitability rating of 4 / 10.

Can you provide the expected EPS growth for WBS stock?

The Earnings per Share (EPS) of WEBSTER FINANCIAL CORP (WBS) is expected to grow by 10.83% in the next year.

Can you provide the dividend sustainability for WBS stock?

The dividend rating of WEBSTER FINANCIAL CORP (WBS) is 7 / 10 and the dividend payout ratio is 31.96%.