NasdaqGS:WAFD

Stock Analysis Report

Executive Summary

Washington Federal, Inc. operates as the bank holding company for Washington Federal, National Association that provides lending, depository, insurance, and other banking services in the United States.

Snowflake

Fundamentals

Flawless balance sheet second-rate dividend payer.


Similar Companies

Share Price & News

How has Washington Federal's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.09%

NasdaqGS:WAFD

-1.2%

US Mortgage

-1.6%

US Market


1 Year Return

-0.9%

NasdaqGS:WAFD

-2.8%

US Mortgage

-3.0%

US Market

WAFD outperformed the Mortgage industry which returned -2.8% over the past year.

WAFD outperformed the Market in United States of America which returned -3% over the past year.


Share holder returns

WAFDIndustryMarket
7 Day0.09%-1.2%-1.6%
30 Day-4.0%-3.3%-5.8%
90 Day6.8%-1.6%0.2%
1 Year1.7%-0.9%-0.7%-2.8%-0.8%-3.0%
3 Year42.8%33.0%29.8%21.1%38.0%29.1%
5 Year79.5%59.3%55.3%39.0%50.8%34.1%

Price Volatility Vs. Market

How volatile is Washington Federal's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Washington Federal undervalued based on future cash flows and its price relative to the stock market?

13.48x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Washington Federal's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Washington Federal's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Washington Federal is good value based on earnings compared to the US Mortgage industry average.

Washington Federal is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Washington Federal is poor value based on expected growth next year.


Price Based on Value of Assets

Washington Federal is overvalued based on assets compared to the US Mortgage industry average.


Next Steps

Future Growth

How is Washington Federal expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

2.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Washington Federal's revenue is expected to grow by 1.1% yearly, however this is not considered high growth (20% yearly).

Washington Federal's earnings are expected to grow by 2.4% yearly, however this is not considered high growth (20% yearly).

Washington Federal's revenue growth is positive but not above the United States of America market average.

Washington Federal's earnings growth is positive but not above the United States of America market average.

Washington Federal's earnings growth is positive but not above the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Washington Federal is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Washington Federal performed over the past 5 years?

6.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Washington Federal's year on year earnings growth rate has been positive over the past 5 years.

Washington Federal's 1-year earnings growth is less than its 5-year average (5.5% vs 6.6%)

Washington Federal's earnings growth has not exceeded the US Mortgage industry average in the past year (5.5% vs 32.9%).


Return on Equity

Washington Federal has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Washington Federal used its assets more efficiently than the US Mortgage industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if Washington Federal improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.


Next Steps

Financial Health

How is Washington Federal'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

Information is not available.

Information is not available.


Financial Institutions Analysis

Washington Federal has an acceptable proportion of non-loan assets held.

Washington Federal has a sufficient allowance for bad loans.

Washington Federal's liabilities are made up of primarily low risk sources of funding.

Washington Federal's level of assets compared to its equity is low (i.e. an appropriate level of borrowing to fund lending).

Loans at Washington Federal are broadly funded by customer deposits.

Washington Federal has an acceptable level of bad loans (less than 2%).


Next Steps

Dividend

What is Washington Federal's current dividend yield, its reliability and sustainability?

2.37%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Washington Federal's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.52%).

Washington Federal's dividend is below the markets top 25% of dividend payers in United States of America (3.93%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

No dividend growth in 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3.3x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3.3x coverage).


Next Steps

Management

What is the CEO of Washington Federal's salary, the management and board of directors tenure and is there insider trading?

2.9yrs

Average management tenure


CEO

Brent Beardall (48yo)

2.3yrs

Tenure

US$2,339,716

Compensation

Mr. Brent J. Beardall, CPA has been the Chief Executive Officer of Washington Federal, Inc. since April 1, 2017 and has been its President since July 26, 2016. Mr. Beardall has been the President of Washin ...


CEO Compensation Analysis

Brent's remuneration is lower than average for companies of similar size in United States of America.

Brent's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.


Management Age and Tenure

2.9yrs

Average Tenure

51yo

Average Age

The tenure for the Washington Federal management team is about average.


Board Age and Tenure

4.6yrs

Average Tenure

66yo

Average Age

The tenure for the Washington Federal board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Brent Beardall (48yo)

    President

    • Tenure: 2.3yrs
    • Compensation: US$2.34m
  • Cathy Cooper (53yo)

    Executive VP & Group Manager of Retail Banking

    • Tenure: 2.9yrs
    • Compensation: US$820.12k
  • Vince Beatty (59yo)

    Executive VP & CFO

    • Tenure: 3.3yrs
    • Compensation: US$1.08m
  • Bob Peters (58yo)

    Executive VP & Group Manager of Commercial Banking

    • Tenure: 2.7yrs
    • Compensation: US$925.80k
  • Lisa King

    Senior Vice President of Human Resources

    • Tenure: 0.0yrs
  • Cory Stewart (47yo)

    Principal Accounting Officer & Senior VP

    • Tenure: 3.1yrs
  • Kim Robison (49yo)

    Executive VP & Operations Manager

    • Tenure: 1.3yrs
  • Arian Colachis

    Senior VP

    • Tenure: 0.0yrs
  • Brad Goode

    Chief of Communications

    • Tenure: 2.9yrs
  • Jim Motz

    Chief Information Officer & Executive VP

    • Tenure: 0.0yrs

Board Members

  • Randy Talbot (66yo)

    Director

    • Tenure: 7.1yrs
    • Compensation: US$126.75k
  • Dave Grant (66yo)

    Independent Director

    • Tenure: 6.9yrs
    • Compensation: US$124.25k
  • Anna Johnson (68yo)

    Independent Director

    • Tenure: 24.6yrs
    • Compensation: US$123.50k
  • Stephen Graham

    Independent Director

    • Tenure: 0.3yrs
  • Linda Brower (66yo)

    Director

    • Tenure: 0.1yrs
    • Compensation: US$343.55k
  • Brent Beardall (48yo)

    President

    • Tenure: 2.3yrs
    • Compensation: US$2.34m
  • Tom Kelley (71yo)

    Chairman of the Board

    • Tenure: 0.8yrs
    • Compensation: US$131.50k
  • Barbara Smith (70yo)

    Independent Director

    • Tenure: 13.6yrs
    • Compensation: US$127.00k
  • Mark Tabbutt (55yo)

    Independent Director

    • Tenure: 8.4yrs
    • Compensation: US$129.75k
  • S. Singh (58yo)

    Independent Director

    • Tenure: 1.0yrs
    • Compensation: US$2.75k

Company Information

Washington Federal, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Washington Federal, Inc.
  • Ticker: WAFD
  • Exchange: NasdaqGS
  • Founded: 1917
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Market Cap: US$2.750b
  • Shares outstanding: 79.40m
  • Website: https://www.washingtonfederal.com

Number of Employees


Location

  • Washington Federal, Inc.
  • 425 Pike Street
  • Seattle
  • Washington
  • 98101
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WAFDNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDNov 1982
WAODB (Deutsche Boerse AG)YesCommon StockDEEURNov 1982

Biography

Washington Federal, Inc. operates as the bank holding company for Washington Federal, National Association that provides lending, depository, insurance, and other banking services in the United States. The ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/24 23:50
End of Day Share Price2019/08/23 00:00
Earnings2019/06/30
Annual Earnings2018/09/30


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.