WEBSTER FINANCIAL CORP (WBS) Stock Fundamental Analysis
USA - NYSE:WBS - US9478901096 - Common Stock
56.48 USD
+0.67 (+1.2%)
56.48 USD
0 (0%)
Overall WBS gets a fundamental rating of 4 out of 10. We evaluated WBS against 390 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.
WBS had a positive operating cash flow in the past year.
WBS had positive earnings in each of the past 5 years.
Each year in the past 5 years WBS had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 1.01%, WBS is doing good in the industry, outperforming 65.22% of the companies in the same industry.
WBS has a Return On Equity of 8.90%. This is comparable to the rest of the industry: WBS outperforms 54.99% 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
WBS's Profit Margin of 30.44% is amongst the best of the industry. WBS outperforms 81.84% 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) | 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.
Compared to 1 year ago, WBS has less shares outstanding
Compared to 5 years ago, WBS has more shares outstanding
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 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.
WBS's Debt to FCF ratio of 1.02 is fine compared to the rest of the industry. WBS outperforms 68.29% 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 the better half of the industry, outperforming 60.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.02 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC15.94%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.02% over the past year.
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.
WBS shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -12.91%.
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)7.02%
EPS 3Y3.52%
EPS 5Y5.74%
EPS Q2Q%14.93%
Revenue 1Y (TTM)-12.91%
Revenue growth 3Y28.37%
Revenue growth 5Y15.87%
Sales Q2Q%7.08%
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 10.54% yearly.
WBS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.67% yearly.
EPS Next Y10.55%
EPS Next 2Y10.61%
EPS Next 3Y10.55%
EPS Next 5YN/A
Revenue Next Year6.05%
Revenue Next 2Y5.97%
Revenue Next 3Y5.67%
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 9.75, which indicates a very decent valuation of WBS.
78.26% of the companies in the same industry are more expensive than WBS, based on the Price/Earnings ratio.
WBS is valuated cheaply when we compare the Price/Earnings ratio to 26.89, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 8.58, which indicates a very decent valuation of WBS.
WBS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. WBS is cheaper than 74.68% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.99. WBS is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.75 | ||
| Fwd PE | 8.58 |
4.2 Price Multiples
WBS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. WBS is cheaper than 84.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.4 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
WBS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.92
PEG (5Y)1.7
EPS Next 2Y10.61%
EPS Next 3Y10.55%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.57%, WBS is a good candidate for dividend investing.
WBS's Dividend Yield is rather good when compared to the industry average which is at 3.53. WBS pays more dividend than 93.35% of the companies in the same industry.
WBS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.57% |
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
34.83% of the earnings are spent on dividend by WBS. This is a low number and sustainable payout ratio.
WBS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP34.83%
EPS Next 2Y10.61%
EPS Next 3Y10.55%
56.48
+0.67 (+1.2%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners91.84%
Inst Owner Change0.1%
Ins Owners0.52%
Ins Owner Change-1.46%
Market Cap9.31B
Revenue(TTM)2.81B
Net Income(TTM)830.82M
Analysts81.82
Price Target72.29 (27.99%)
Short Float %2.1%
Short Ratio2.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.57% |
Yearly Dividend1.7
Dividend Growth(5Y)0.97%
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)0.67%
PT rev (3m)7.82%
EPS NQ rev (1m)0.22%
EPS NQ rev (3m)0.62%
EPS NY rev (1m)0.22%
EPS NY rev (3m)2.53%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-1.08%
Revenue NY rev (1m)1.03%
Revenue NY rev (3m)-1.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.75 | ||
| Fwd PE | 8.58 | ||
| P/S | 3.41 | ||
| P/FCF | 7.4 | ||
| P/OCF | 7.15 | ||
| P/B | 1 | ||
| P/tB | 1.51 | ||
| EV/EBITDA | N/A |
EPS(TTM)5.79
EY10.25%
EPS(NY)6.58
Fwd EY11.65%
FCF(TTM)7.63
FCFY13.51%
OCF(TTM)7.9
OCFY13.99%
SpS16.56
BVpS56.65
TBVpS37.34
PEG (NY)0.92
PEG (5Y)1.7
Graham Number85.91
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
ROICexgc growth 3YN/A
ROICexgc 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
WACC15.94%
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)7.02%
EPS 3Y3.52%
EPS 5Y5.74%
EPS Q2Q%14.93%
EPS Next Y10.55%
EPS Next 2Y10.61%
EPS Next 3Y10.55%
EPS Next 5YN/A
Revenue 1Y (TTM)-12.91%
Revenue growth 3Y28.37%
Revenue growth 5Y15.87%
Sales Q2Q%7.08%
Revenue Next Year6.05%
Revenue Next 2Y5.97%
Revenue Next 3Y5.67%
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%
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 of WEBSTER FINANCIAL CORP (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.
How financially healthy is WEBSTER FINANCIAL CORP?
The financial health rating of WEBSTER FINANCIAL CORP (WBS) is 3 / 10.
Is the dividend of WEBSTER FINANCIAL CORP sustainable?
The dividend rating of WEBSTER FINANCIAL CORP (WBS) is 9 / 10 and the dividend payout ratio is 34.83%.