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Market Cap

US$2.5b

Last Updated

2021/04/16 23:04 UTC

Data Sources

Company Financials +

Executive Summary

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

Rewards

Trading at 23.1% below our estimate of its fair value

Earnings are forecast to grow 2.81% per year

Pays a reliable dividend of 2.85%

Risk Analysis

No risks detected for WAFD from our risk checks.


Snowflake Analysis

Flawless balance sheet established 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

Stable Share Price: WAFD is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: WAFD's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

6.3%

WAFD

-1.5%

US Mortgage

1.3%

US Market


1 Year Return

33.8%

WAFD

72.9%

US Mortgage

53.9%

US Market

Return vs Industry: WAFD underperformed the US Mortgage industry which returned 81.6% over the past year.

Return vs Market: WAFD underperformed the US Market which returned 57.5% over the past year.


Shareholder returns

WAFDIndustryMarket
7 Day6.3%-1.5%1.3%
30 Day0.4%-6.4%3.3%
90 Day16.8%10.8%8.9%
1 Year38.9%33.8%78.6%72.9%56.6%53.9%
3 Year12.0%2.8%33.6%23.6%64.4%53.6%
5 Year53.5%34.6%77.2%54.2%120.4%95.7%

Long-Term 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 compared to its fair value and its price relative to the market?

22.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WAFD ($32.24) is trading below our estimate of fair value ($41.92)

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


Price To Earnings Ratio

PE vs Industry: WAFD is poor value based on its PE Ratio (16.2x) compared to the US Mortgage industry average (13.9x).

PE vs Market: WAFD is good value based on its PE Ratio (16.2x) compared to the US market (22.3x).


Price to Earnings Growth Ratio

PEG Ratio: WAFD is poor value based on its PEG Ratio (5.8x)


Price to Book Ratio

PB vs Industry: WAFD is overvalued based on its PB Ratio (1.2x) compared to the US Mortgage industry average (1x).


Future Growth

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

2.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WAFD's forecast earnings growth (2.8% per year) is above the savings rate (2%).

Earnings vs Market: WAFD's earnings (2.8% per year) are forecast to grow slower than the US market (18.4% per year).

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

Revenue vs Market: WAFD's revenue (4.7% per year) is forecast to grow slower than the US market (9.4% per year).

High Growth Revenue: WAFD's revenue (4.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WAFD's Return on Equity is forecast to be low in 3 years time (7.3%).


Past Performance

How has Washington Federal performed over the past 5 years?

2.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WAFD has high quality earnings.

Growing Profit Margin: WAFD's current net profit margins (29.5%) are lower than last year (36.2%).


Past Earnings Growth Analysis

Earnings Trend: WAFD's earnings have grown by 2.2% per year over the past 5 years.

Accelerating Growth: WAFD's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: WAFD had negative earnings growth (-29.1%) over the past year, making it difficult to compare to the Mortgage industry average (5.6%).


Return on Equity

High ROE: WAFD's Return on Equity (6.6%) is considered low.


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


Financial Institutions Analysis

Asset Level: WAFD's Assets to Equity ratio (8.4x) is low.

Allowance for Bad Loans: WAFD has a sufficient allowance for bad loans (291%).

Low Risk Liabilities: 86% of WAFD's liabilities are made up of primarily low risk sources of funding.

Loan Level: WAFD has an appropriate level of Loans to Assets ratio (67%).

Low Risk Deposits: WAFD's Loans to Deposits ratio (88%) is appropriate.

Level of Bad Loans: WAFD has an appropriate level of bad loans (0.4%).


Dividend

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

2.78%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WAFD's dividend (2.85%) is higher than the bottom 25% of dividend payers in the US market (1.24%).

High Dividend: WAFD's dividend (2.85%) is low compared to the top 25% of dividend payers in the US market (3.48%).


Stability and Growth of Payments

Stable Dividend: WAFD's dividends per share have been stable in the past 10 years.

Growing Dividend: WAFD's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (22.1%), WAFD's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WAFD's dividends in 3 years are forecast to be well covered by earnings (43.8% payout ratio).


Next Steps

Management

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

4.0yrs

Average management tenure


CEO

Brent Beardall (49 yo)

4yrs

Tenure

US$1,843,898

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. As Chief Executive Officer, he provides pract...


CEO Compensation Analysis

Compensation vs Market: Brent's total compensation ($USD1.84M) is below average for companies of similar size in the US market ($USD5.19M).

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


Leadership Team

Experienced Management: WAFD's management team is considered experienced (4 years average tenure).


Board Members

Experienced Board: WAFD's board of directors are considered experienced (4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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

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$2.546b
  • Shares outstanding: 73.08m
  • Website: https://www.wafdbank.com

Number of Employees


Location

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

Listings


Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/16 23:04
End of Day Share Price2021/04/16 00:00
Earnings2021/03/31
Annual Earnings2020/09/30


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.