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 398 industry peers in the Banks industry. There are concerns on the financial health of WBS while its profitability can be described as average. WBS is valued quite cheap, while showing a decent growth score. This is a good combination! Finally WBS also has an excellent dividend rating.
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
WBS's Return On Assets of 1.21% is fine compared to the rest of the industry. WBS outperforms 77.89% of its industry peers.
WBS has a Return On Equity of 10.45%. This is in the better half of the industry: WBS outperforms 71.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.21% | ||
| ROE | 10.45% | ||
| 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
The Profit Margin of WBS (29.29%) is better than 80.90% 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) | 29.29% | ||
| 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.
The debt/assets ratio for WBS has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of WBS is 0.92, which is an excellent value as it means it would take WBS, only 0.92 years of fcf income to pay off all of its debts.
WBS's Debt to FCF ratio of 0.92 is fine compared to the rest of the industry. WBS outperforms 77.64% of its industry peers.
A Debt/Equity ratio of 0.14 indicates that WBS is not too dependend on debt financing.
WBS's Debt to Equity ratio of 0.14 is fine compared to the rest of the industry. WBS outperforms 63.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.92 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC16.95%
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%.
The Earnings Per Share has been growing slightly by 5.74% on average over the past years.
Looking at the last year, WBS shows a decrease in Revenue. The Revenue has decreased by -2.31% in the last 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)-2.31%
Revenue growth 3Y28.37%
Revenue growth 5Y15.87%
Sales Q2Q%24.14%
3.2 Future
The Earnings Per Share is expected to grow by 9.51% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.01% on average over the next years.
EPS Next Y9.49%
EPS Next 2Y10.6%
EPS Next 3Y9.51%
EPS Next 5YN/A
Revenue Next Year8.37%
Revenue Next 2Y6.95%
Revenue Next 3Y7.01%
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
With a Price/Earnings ratio of 8.91, the valuation of WBS can be described as very reasonable.
84.67% of the companies in the same industry are more expensive than WBS, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of WBS to the average of the S&P500 Index (28.79), we can say WBS is valued rather cheaply.
With a Price/Forward Earnings ratio of 7.22, the valuation of WBS can be described as very cheap.
Based on the Price/Forward Earnings ratio, WBS is valued cheaper than 87.19% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of WBS to the average of the S&P500 Index (21.38), we can say WBS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.91 | ||
| Fwd PE | 7.22 |
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 89.45% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.84 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.94
PEG (5Y)1.55
EPS Next 2Y10.6%
EPS Next 3Y9.51%
5. Dividend
5.1 Amount
WBS has a Yearly Dividend Yield of 3.34%. Purely for dividend investing, there may be better candidates out there.
WBS's Dividend Yield is comparable with the industry average which is at 3.54.
WBS's Dividend Yield is a higher than the S&P500 average which is at 2.47.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.34% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)0.97%
Div Incr Years0
Div Non Decr Years15
5.3 Sustainability
30.52% of the earnings are spent on dividend by WBS. This is a low number and sustainable payout ratio.
The dividend of WBS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP30.52%
EPS Next 2Y10.6%
EPS Next 3Y9.51%
47.5
-0.4 (-0.84%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners90.08%
Inst Owner Change-0.08%
Ins Owners0.48%
Ins Owner Change1.82%
Market Cap7.99B
Analysts81.05
Price Target66.23 (39.43%)
Short Float %2.11%
Short Ratio2.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.34% |
Yearly Dividend1.7
Dividend Growth(5Y)0.97%
DP30.52%
Div Incr Years0
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.67%
Min EPS beat(2)-1.47%
Max EPS beat(2)4.82%
EPS beat(4)1
Avg EPS beat(4)-2.08%
Min EPS beat(4)-6.66%
Max EPS beat(4)4.82%
EPS beat(8)3
Avg EPS beat(8)-1.62%
EPS beat(12)6
Avg EPS beat(12)-0.14%
EPS beat(16)9
Avg EPS beat(16)4.57%
Revenue beat(2)0
Avg Revenue beat(2)-2.01%
Min Revenue beat(2)-2.16%
Max Revenue beat(2)-1.87%
Revenue beat(4)0
Avg Revenue beat(4)-4.19%
Min Revenue beat(4)-8.86%
Max Revenue beat(4)-1.87%
Revenue beat(8)1
Avg Revenue beat(8)-3.29%
Revenue beat(12)5
Avg Revenue beat(12)14.6%
Revenue beat(16)9
Avg Revenue beat(16)18.85%
PT rev (1m)-1.32%
PT rev (3m)4.56%
EPS NQ rev (1m)0.29%
EPS NQ rev (3m)5.26%
EPS NY rev (1m)-0.94%
EPS NY rev (3m)1.96%
Revenue NQ rev (1m)2.18%
Revenue NQ rev (3m)3.04%
Revenue NY rev (1m)1.52%
Revenue NY rev (3m)1.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.91 | ||
| Fwd PE | 7.22 | ||
| P/S | 2.45 | ||
| P/FCF | 5.84 | ||
| P/OCF | 5.69 | ||
| P/B | 0.88 | ||
| P/tB | 1.35 | ||
| EV/EBITDA | N/A |
EPS(TTM)5.33
EY11.22%
EPS(NY)6.58
Fwd EY13.85%
FCF(TTM)8.13
FCFY17.12%
OCF(TTM)8.34
OCFY17.57%
SpS19.35
BVpS54.27
TBVpS35.24
PEG (NY)0.94
PEG (5Y)1.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.21% | ||
| ROE | 10.45% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 29.29% | ||
| GM | N/A | ||
| FCFM | 42.01% |
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 | 0.14 | ||
| Debt/FCF | 0.92 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 50.11% | ||
| Cap/Sales | 1.1% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 143.43% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score5
WACC16.95%
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 Y9.49%
EPS Next 2Y10.6%
EPS Next 3Y9.51%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.31%
Revenue growth 3Y28.37%
Revenue growth 5Y15.87%
Sales Q2Q%24.14%
Revenue Next Year8.37%
Revenue Next 2Y6.95%
Revenue Next 3Y7.01%
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 1Y45.84%
FCF growth 3Y26.75%
FCF growth 5Y37.52%
OCF growth 1Y43.49%
OCF growth 3Y26.81%
OCF growth 5Y35.81%