DB:WEA

Stock Analysis Report

Western Alliance Bancorporation

Executive Summary

Western Alliance Bancorporation operates as the holding company for Western Alliance Bank that provides various banking products and related services primarily in Arizona, California, and Nevada.


Snowflake Analysis

Flawless balance sheet and good value.


Similar Companies

Share Price & News

How has Western Alliance Bancorporation's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: WEA has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

WEA

9.1%

DE Banks

0.2%

DE Market


1 Year Return

28.3%

WEA

2.4%

DE Banks

14.4%

DE Market

Return vs Industry: WEA exceeded the German Banks industry which returned 2.4% over the past year.

Return vs Market: WEA exceeded the German Market which returned 14.4% over the past year.


Shareholder returns

WEAIndustryMarket
7 Day0%9.1%0.2%
30 Day1.0%18.8%0.9%
90 Day14.6%23.1%4.6%
1 Year30.9%28.3%5.7%2.4%17.9%14.4%
3 Year7.2%5.1%-3.2%-8.1%15.7%5.6%
5 Year112.1%107.8%-3.1%-26.8%23.4%6.5%

Price Volatility Vs. Market

How volatile is Western Alliance Bancorporation's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Western Alliance Bancorporation undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WEA (€52.5) is trading below our estimate of fair value (€121.17)

Significantly Below Fair Value: WEA is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: WEA is good value based on its PE Ratio (11.8x) compared to the Banks industry average (17.7x).

PE vs Market: WEA is good value based on its PE Ratio (11.8x) compared to the German market (20.7x).


Price to Earnings Growth Ratio

PEG Ratio: WEA is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: WEA is overvalued based on its PB Ratio (1.9x) compared to the DE Banks industry average (0.9x).


Next Steps

Future Growth

How is Western Alliance Bancorporation forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

5.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WEA's forecast earnings growth (5.2% per year) is above the savings rate (-0.4%).

Earnings vs Market: WEA's earnings (5.2% per year) are forecast to grow slower than the German market (13.3% per year).

High Growth Earnings: WEA's earnings are forecast to grow, but not significantly.

Revenue vs Market: WEA's revenue (10.2% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: WEA's revenue (10.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WEA's Return on Equity is forecast to be low in 3 years time (15.7%).


Next Steps

Past Performance

How has Western Alliance Bancorporation performed over the past 5 years?

24.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WEA has high quality earnings.

Growing Profit Margin: WEA's current net profit margins (45.9%) are lower than last year (46.6%).


Past Earnings Growth Analysis

Earnings Trend: WEA's earnings have grown significantly by 24.3% per year over the past 5 years.

Accelerating Growth: WEA's earnings growth over the past year (14.5%) is below its 5-year average (24.3% per year).

Earnings vs Industry: WEA earnings growth over the past year (14.5%) exceeded the Banks industry -7%.


Return on Equity

High ROE: WEA's Return on Equity (16.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Western Alliance Bancorporation's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: WEA has a low level of unsold assets or inventory.

Debt Coverage by Assets: WEA's debt is covered by short term assets (assets are 1.1x debt).


Financial Institutions Analysis

Asset Level: WEA's level of assets compared to its equity is low.

Allowance for Bad Loans: WEA has a sufficient allowance for bad loans.

Low Risk Liabilities: WEA's liabilities are made up of primarily low risk sources of funding.

Loan Level: WEA has an acceptable proportion of non-loan assets held.

Low Risk Deposits: WEA's loans are broadly funded by customer deposits.

Level of Bad Loans: WEA has an appropriate level of bad loans (0.27%)


Next Steps

Dividend

What is Western Alliance Bancorporation's current dividend yield, its reliability and sustainability?

1.74%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WEA's dividend (1.74%) is higher than the bottom 25% of dividend payers in the German market (1.32%).

High Dividend: WEA's dividend (1.74%) is low compared to the top 25% of dividend payers in the German market (3.63%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether WEA's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if WEA's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (10.3%), WEA's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WEA's dividends in 3 years are forecast to be well covered by earnings (17.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.6yrs

Average management tenure


CEO

Ken Vecchione (65yo)

0.3yrs

Tenure

US$4,830,831

Compensation

Mr. Kenneth A. Vecchione, also known as Ken, has been Chief Executive Officer of Western Alliance Bancorporation since November 1, 2019 and Western Alliance Bank since April 01, 2018. Mr. Vecchione has bee ...


CEO Compensation Analysis

Compensation vs Market: Ken's total compensation ($USD4.83M) is above average for companies of similar size in the German market ($USD3.35M).

Compensation vs Earnings: Ken's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Robert Sarver
Executive Chairman of the Board17.2yrsUS$4.57m0.91% $49.0m
Kenneth Vecchione
CEO, President & Director0.3yrsUS$4.83m0.30% $16.0m
Dale Gibbons
Vice Chairman & CFO16.8yrsUS$2.35m0.21% $11.0m
Barbara Kennedy
Chief Human Resource Officer1.8yrsUS$1.63m0.020% $1.1m
Robert McAuslan
Executive Vice President8.8yrsUS$1.27m0.031% $1.7m
Daniel Myers
Executive Vice President of Northern California Administration4.6yrsUS$1.66m0.10% $5.5m
Timothy Boothe
Chief Operating Officer0.3yrsno data0.054% $2.9m
James Ardrey
Senior VP & Chief Accounting Officer8.4yrsno data0.0020% $107.9k
Jeff Semonovich
Chief Information Officer0yrsno datano data
Randall Theisen
General Counsel & Secretary14yrsno data0.052% $2.8m

4.6yrs

Average Tenure

59yo

Average Age

Experienced Management: WEA's management team is considered experienced (4.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Robert Sarver
Executive Chairman of the Board17.2yrsUS$4.57m0.91% $49.0m
Kenneth Vecchione
CEO, President & Director0.3yrsUS$4.83m0.30% $16.0m
Steven Hilton
Director17.2yrsUS$282.29k0.13% $7.1m
Donald Snyder
Independent Director23.1yrsUS$292.29k0.10% $5.6m
Marianne Johnson
Independent Director24.3yrsUS$282.29k0.37% $20.1m
James Nave
Independent Director24.3yrsUS$292.29k0.33% $17.5m
Bruce Beach
Lead Independent Director10.1yrsUS$307.29k0.038% $2.0m
Sung Sohn
Independent Director9.3yrsUS$302.29k0.040% $2.2m
Howard Gould
Independent Director4.3yrsUS$292.29k0.035% $1.9m
Michael Patriarca
Independent Director3.4yrsUS$357.29k0.020% $1.1m

14.8yrs

Average Tenure

68.5yo

Average Age

Experienced Board: WEA's board of directors are seasoned and experienced ( 14.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: WEA insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Western Alliance Bancorporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Western Alliance Bancorporation
  • Ticker: WEA
  • Exchange: DB
  • Founded: 1994
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$5.798b
  • Listing Market Cap: US$5.370b
  • Shares outstanding: 101.50m
  • Website: https://www.westernalliancebancorporation.com

Number of Employees


Location

  • Western Alliance Bancorporation
  • One East Washington Street
  • Suite 1400
  • Phoenix
  • Arizona
  • 85004
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WALNYSE (New York Stock Exchange)YesCommon SharesUSUSDJun 2005
WEADB (Deutsche Boerse AG)YesCommon SharesDEEURJun 2005
WABC34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 1 REP 1 COM USD0.0001BRBRLMay 2019

Biography

Western Alliance Bancorporation operates as the holding company for Western Alliance Bank that provides various banking products and related services primarily in Arizona, California, and Nevada. The company offers deposit products, including checking accounts, savings accounts, and money market accounts, as well as fixed-rate and fixed maturity certificates of deposit accounts. It also offers commercial and industrial loan products, such as working capital lines of credit, inventory and accounts receivable lines, mortgage warehouse lines, equipment loans and leases, and other commercial loans; commercial real estate loans, which are secured by multi-family residential properties, professional offices, industrial facilities, retail centers, hotels, and other commercial properties; construction and land development loans for single family and multi-family residential projects, industrial/warehouse properties, office buildings, retail centers, medical office facilities, and residential lot developments; and consumer loans. In addition, the company provides other financial services, such as Internet banking, wire transfers, electronic bill payment and presentment, lock box services, courier, and cash management services. Further, it holds certain investment securities, municipal and non-profit loans, and leases; invests primarily in low income housing tax credits and small business investment corporations; and holds certain real estate loans and related securities. As of December 31, 2018, the company operated 38 branch locations and 11 loan production offices. Western Alliance Bancorporation was founded in 1994 and is headquartered in Phoenix, Arizona. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 22:42
End of Day Share Price2020/02/19 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.