WEBSTER FINANCIAL CORP (WBS) Stock Fundamental Analysis
USA - NYSE:WBS - US9478901096 - Common Stock
57.56 USD
+0.94 (+1.66%)
57.56 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to WBS. WBS was compared to 390 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. WBS also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year WBS was profitable.
In the past year WBS had a positive cash flow from operations.
Each year in the past 5 years WBS has been profitable.
In the past 5 years WBS always reported a positive cash flow from operatings.
1.2 Ratios
WBS has a better Return On Assets (1.01%) than 64.87% of its industry peers.
WBS has a Return On Equity of 8.90%. This is comparable to the rest of the industry: WBS outperforms 53.59% 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 has a Profit Margin of 30.44%. This is amongst the best in the industry. WBS outperforms 81.79% of its industry peers.
WBS's Profit Margin has been stable in the last couple of years.
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.
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 better debt/assets ratio than last year.
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.
With a decent Debt to FCF ratio value of 1.02, WBS is doing good in the industry, outperforming 68.46% of the companies in the same industry.
A Debt/Equity ratio of 0.14 indicates that WBS is not too dependend on debt financing.
The Debt to Equity ratio of WBS (0.14) is better than 60.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.02 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC15.9%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
WBS shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.02%.
The Earnings Per Share has been growing slightly by 5.74% on average over the past years.
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.
The Revenue is expected to grow by 5.67% on average over the next years.
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
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 9.94.
74.36% of the companies in the same industry are more expensive than WBS, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 25.83. WBS is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 8.74, the valuation of WBS can be described as reasonable.
WBS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. WBS is cheaper than 72.05% of the companies in the same industry.
WBS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 32.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.94 | ||
| Fwd PE | 8.74 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, WBS is valued cheaper than 84.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.54 | ||
| 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)0.94
PEG (5Y)1.73
EPS Next 2Y10.61%
EPS Next 3Y10.55%
5. Dividend
5.1 Amount
WBS has a Yearly Dividend Yield of 2.81%.
WBS's Dividend Yield is rather good when compared to the industry average which is at 3.38. WBS pays more dividend than 94.62% of the companies in the same industry.
WBS's Dividend Yield is comparable with the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.81% |
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
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 2Y10.61%
EPS Next 3Y10.55%
57.56
+0.94 (+1.66%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners91.84%
Inst Owner Change0.01%
Ins Owners0.52%
Ins Owner Change-0.66%
Market Cap9.49B
Revenue(TTM)2.81B
Net Income(TTM)830.82M
Analysts81.82
Price Target72.06 (25.19%)
Short Float %2.28%
Short Ratio2.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.81% |
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)0.35%
PT rev (3m)7.48%
EPS NQ rev (1m)0.22%
EPS NQ rev (3m)0.05%
EPS NY rev (1m)0.22%
EPS NY rev (3m)2.53%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-1.18%
Revenue NY rev (1m)1.03%
Revenue NY rev (3m)-0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.94 | ||
| Fwd PE | 8.74 | ||
| P/S | 3.48 | ||
| P/FCF | 7.54 | ||
| P/OCF | 7.29 | ||
| P/B | 1.02 | ||
| P/tB | 1.54 | ||
| EV/EBITDA | N/A |
EPS(TTM)5.79
EY10.06%
EPS(NY)6.58
Fwd EY11.44%
FCF(TTM)7.63
FCFY13.26%
OCF(TTM)7.9
OCFY13.73%
SpS16.56
BVpS56.65
TBVpS37.34
PEG (NY)0.94
PEG (5Y)1.73
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
WACC15.9%
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%.