WEBSTER FINANCIAL CORP (WBS) Stock Fundamental Analysis
NYSE:WBS - US9478901096 - Common Stock
61.77 USD
-0.48 (-0.77%)
61.77 USD
0 (0%)
WBS gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals 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.
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.
Each year in the past 5 years WBS has been profitable.
WBS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of WBS (1.01%) is better than 65.06% of its industry peers.
WBS's Return On Equity of 8.90% is in line compared to the rest of the industry. WBS outperforms 55.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.01% | ||
| ROE | 8.9% | ||
| 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
With an excellent Profit Margin value of 30.44%, WBS belongs to the best of the industry, outperforming 82.03% of the companies in the same industry.
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) | 30.44% | ||
| 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.
The number of shares outstanding for WBS has been reduced compared to 1 year ago.
WBS has more shares outstanding than it did 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 1.02, which is an excellent value as it means it would take WBS, only 1.02 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of WBS (1.02) is better than 69.37% of its industry peers.
WBS has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
WBS has a Debt to Equity ratio (0.14) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.02 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC15.59%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The earnings per share for WBS have decreased by -0.53% in the last year.
WBS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.74% yearly.
Looking at the last year, WBS shows a very negative growth in Revenue. The Revenue has decreased by -16.31% in the last year.
Measured over the past years, WBS shows a quite strong growth in Revenue. The Revenue has been growing by 15.87% on average per year.
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 10.44% on average per year.
WBS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.28% yearly.
EPS Next Y10.31%
EPS Next 2Y11.11%
EPS Next 3Y10.44%
EPS Next 5YN/A
Revenue Next Year4.97%
Revenue Next 2Y4.91%
Revenue Next 3Y5.28%
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.
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
WBS is valuated reasonably with a Price/Earnings ratio of 11.05.
Based on the Price/Earnings ratio, WBS is valued a bit cheaper than the industry average as 70.89% of the companies are valued more expensively.
WBS's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.84.
Based on the Price/Forward Earnings ratio of 9.30, the valuation of WBS can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WBS indicates a somewhat cheap valuation: WBS is cheaper than 67.09% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of WBS to the average of the S&P500 Index (22.48), we can say WBS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.05 | ||
| Fwd PE | 9.3 |
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 82.03% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.16 | ||
| 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)1.07
PEG (5Y)1.93
EPS Next 2Y11.11%
EPS Next 3Y10.44%
5. Dividend
5.1 Amount
WBS has a Yearly Dividend Yield of 2.57%. Purely for dividend investing, there may be better candidates out there.
WBS's Dividend Yield is comparable with the industry average which is at 3.17.
Compared to an average S&P500 Dividend Yield of 2.32, WBS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.57% |
5.2 History
The dividend of WBS has a limited annual growth rate of 0.98%.
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)0.98%
Div Incr Years0
Div Non Decr Years15
5.3 Sustainability
WBS pays out 34.83% 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.
DP34.83%
EPS Next 2Y11.11%
EPS Next 3Y10.44%
61.77
-0.48 (-0.77%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners90.03%
Inst Owner Change0.76%
Ins Owners0.52%
Ins Owner Change3.36%
Market Cap10.27B
Analysts82
Price Target71.47 (15.7%)
Short Float %1.88%
Short Ratio2.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.57% |
Yearly Dividend1.7
Dividend Growth(5Y)0.98%
DP34.83%
Div Incr Years0
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.75%
Min EPS beat(2)-6.83%
Max EPS beat(2)5.32%
EPS beat(4)2
Avg EPS beat(4)0.46%
Min EPS beat(4)-6.83%
Max EPS beat(4)5.32%
EPS beat(8)3
Avg EPS beat(8)-1.03%
EPS beat(12)5
Avg EPS beat(12)-1.38%
EPS beat(16)8
Avg EPS beat(16)1.03%
Revenue beat(2)0
Avg Revenue beat(2)-4.3%
Min Revenue beat(2)-4.52%
Max Revenue beat(2)-4.07%
Revenue beat(4)0
Avg Revenue beat(4)-3.15%
Min Revenue beat(4)-4.52%
Max Revenue beat(4)-1.87%
Revenue beat(8)0
Avg Revenue beat(8)-4.66%
Revenue beat(12)3
Avg Revenue beat(12)0.54%
Revenue beat(16)7
Avg Revenue beat(16)14.87%
PT rev (1m)6.6%
PT rev (3m)13.3%
EPS NQ rev (1m)-0.17%
EPS NQ rev (3m)0.4%
EPS NY rev (1m)2.3%
EPS NY rev (3m)2.46%
Revenue NQ rev (1m)-1.14%
Revenue NQ rev (3m)-1.73%
Revenue NY rev (1m)-1.17%
Revenue NY rev (3m)-2.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.05 | ||
| Fwd PE | 9.3 | ||
| P/S | 3.76 | ||
| P/FCF | 8.16 | ||
| P/OCF | 7.88 | ||
| P/B | 1.1 | ||
| P/tB | 1.67 | ||
| EV/EBITDA | N/A |
EPS(TTM)5.59
EY9.05%
EPS(NY)6.64
Fwd EY10.75%
FCF(TTM)7.57
FCFY12.25%
OCF(TTM)7.84
OCFY12.68%
SpS16.42
BVpS56.19
TBVpS37.03
PEG (NY)1.07
PEG (5Y)1.93
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.01% | ||
| ROE | 8.9% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 30.44% | ||
| GM | N/A | ||
| FCFM | 46.08% |
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-Score6
Asset Turnover0.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.02 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 62.63% | ||
| Cap/Sales | 1.63% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 151.38% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score6
WACC15.59%
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 Y10.31%
EPS Next 2Y11.11%
EPS Next 3Y10.44%
EPS Next 5YN/A
Revenue 1Y (TTM)-16.31%
Revenue growth 3Y28.37%
Revenue growth 5Y15.87%
Sales Q2Q%8.54%
Revenue Next Year4.97%
Revenue Next 2Y4.91%
Revenue Next 3Y5.28%
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 1Y12.07%
FCF growth 3Y26.75%
FCF growth 5Y37.52%
OCF growth 1Y12.17%
OCF growth 3Y26.81%
OCF growth 5Y35.81%