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. While WBS is still in line with the averages on profitability rating, there are concerns on its financial health. WBS is valued quite cheap, while showing a decent growth score. This is a good combination! 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.
WBS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
WBS has a better Return On Assets (1.21%) than 77.89% of its industry peers.
With a decent Return On Equity value of 10.45%, WBS is doing good in the industry, outperforming 71.86% of the companies in the same industry.
| 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
WBS's Profit Margin of 29.29% is amongst the best of the industry. WBS outperforms 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.
WBS has less shares outstanding than it did 1 year ago.
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 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 75.63% 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.
With a decent Debt to Equity ratio value of 0.14, WBS is doing good in the industry, outperforming 61.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.92 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC16.84%
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 -9.04% in the last 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.
Looking at the last year, WBS shows a decrease in Revenue. The Revenue has decreased by -0.71% 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)-0.71%
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.
WBS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.01% yearly.
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
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
WBS is valuated reasonably with a Price/Earnings ratio of 9.35.
WBS's Price/Earnings ratio is rather cheap when compared to the industry. WBS is cheaper than 83.92% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.75. WBS is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 7.57, the valuation of WBS can be described as very cheap.
Based on the Price/Forward Earnings ratio, WBS is valued cheaper than 85.68% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.49, WBS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.35 | ||
| Fwd PE | 7.57 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, WBS is valued cheaper than 90.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.13 | ||
| 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)0.99
PEG (5Y)1.63
EPS Next 2Y10.6%
EPS Next 3Y9.51%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.38%, WBS has a reasonable but not impressive dividend return.
The stock price of WBS dropped by -20.63% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 3.52, WBS has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, WBS pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.38% |
5.2 History
The dividend of WBS has a limited annual growth rate of 0.97%.
WBS has paid a dividend for at least 10 years, which is 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 30.52% 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.
DP30.52%
EPS Next 2Y10.6%
EPS Next 3Y9.51%
NYSE:WBS (5/2/2025, 3:10:10 PM)
49.83
+2.02 (+4.23%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners90.08%
Inst Owner Change-0.1%
Ins Owners0.48%
Ins Owner Change2.3%
Market Cap8.39B
Analysts82.22
Price Target66.23 (32.91%)
Short Float %1.97%
Short Ratio2.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.38% |
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)-7.53%
PT rev (3m)-2.02%
EPS NQ rev (1m)0.65%
EPS NQ rev (3m)5.26%
EPS NY rev (1m)-0.98%
EPS NY rev (3m)1.96%
Revenue NQ rev (1m)2.18%
Revenue NQ rev (3m)3.04%
Revenue NY rev (1m)1.63%
Revenue NY rev (3m)2.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.35 | ||
| Fwd PE | 7.57 | ||
| P/S | 2.57 | ||
| P/FCF | 6.13 | ||
| P/OCF | 5.97 | ||
| P/B | 0.92 | ||
| P/tB | 1.41 | ||
| EV/EBITDA | N/A |
EPS(TTM)5.33
EY10.7%
EPS(NY)6.58
Fwd EY13.21%
FCF(TTM)8.13
FCFY16.32%
OCF(TTM)8.34
OCFY16.74%
SpS19.35
BVpS54.27
TBVpS35.24
PEG (NY)0.99
PEG (5Y)1.63
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
WACC16.84%
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)-0.71%
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%