NasdaqGS:WSBC

Stock Analysis Report

Executive Summary

WesBanco, Inc. operates as the holding company for WesBanco Bank, Inc.

Rewards

Trading at 20.8% below its fair value

Earnings are forecast to grow 16.13% per year

Earnings grew by 44.6% over the past year

Risk Analysis

Unstable dividend track record

Significant insider selling over the past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

Flawless balance sheet, undervalued and pays a dividend.


Similar Companies

SunTrust Banks

NYSE:STI

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.7%

WSBC

-1.0%

US Banks

-0.09%

US Market


1 Year Return

-8.0%

WSBC

14.7%

US Banks

23.9%

US Market

Return vs Industry: WSBC underperformed the US Banks industry which returned 21.7% over the past year.

Return vs Market: WSBC underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

WSBCIndustryMarket
7 Day-1.7%-1.0%-0.09%
30 Day-5.0%-3.0%3.1%
90 Day-2.0%4.5%10.4%
1 Year-4.8%-8.0%18.0%14.7%26.6%23.9%
3 Year-8.9%-16.5%28.6%19.4%50.9%41.2%
5 Year35.8%17.6%86.7%65.8%78.1%58.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is WesBanco undervalued compared to its fair value and its price relative to the market?

19.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WSBC ($36.44) is trading below our estimate of fair value ($46.03)

Significantly Below Fair Value: WSBC is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: WSBC is good value based on its PE Ratio (12x) compared to the Banks industry average (12.8x).

PE vs Market: WSBC is good value based on its PE Ratio (12x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: WSBC is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: WSBC is good value based on its PB Ratio (0.9x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is WesBanco forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

16.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WSBC's forecast earnings growth (16.1% per year) is above the savings rate (1.7%).

Earnings vs Market: WSBC's earnings (16.1% per year) are forecast to grow faster than the US market (14.3% per year).

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

Revenue vs Market: WSBC's revenue (10.7% per year) is forecast to grow faster than the US market (7.5% per year).

High Growth Revenue: WSBC's revenue (10.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WSBC's Return on Equity is forecast to be low in 3 years time (7.9%).


Next Steps

Past Performance

How has WesBanco performed over the past 5 years?

17.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WSBC has high quality earnings.

Growing Profit Margin: WSBC's current net profit margins (33.6%) are higher than last year (28.2%).


Past Earnings Growth Analysis

Earnings Trend: WSBC's earnings have grown by 17.9% per year over the past 5 years.

Accelerating Growth: WSBC's earnings growth over the past year (44.6%) exceeds its 5-year average (17.9% per year).

Earnings vs Industry: WSBC earnings growth over the past year (44.6%) exceeded the Banks industry 27.1%.


Return on Equity

High ROE: WSBC's Return on Equity (7.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is WesBanco'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: WSBC has a low level of unsold assets or inventory.

Debt Coverage by Assets: WSBC's debt is not covered by short term assets (assets are 0.2x debt).


Financial Institutions Analysis

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

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

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

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

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

Level of Bad Loans: WSBC has an appropriate level of bad loans (0.52%)


Next Steps

Dividend

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

3.42%

Current Dividend Yield


Dividend Yield vs Market

company3.4%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years3.6%

Current dividend yield vs market & industry

Notable Dividend: WSBC's dividend (3.4%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: WSBC's dividend (3.4%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

Stable Dividend: WSBC's dividend payments have been volatile in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (40.1%), WSBC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WSBC's dividends in 3 years are forecast to be well covered by earnings (41.8% payout ratio).


Next Steps

Management

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

5.3yrs

Average management tenure


CEO

Todd Clossin (57yo)

5.8yrs

Tenure

US$1,894,631

Compensation

Mr. Todd F. Clossin has been the Chief Executive Officer and President of WesBanco Inc., and its subsidiary Wesbanco Bank, Inc. since April 30, 2014. Mr. Clossin served as the Chief Operating Officer, Exec ...


CEO Compensation Analysis

Compensation vs Market: Todd's total compensation ($USD1.89M) is below average for companies of similar size in the US market ($USD4.99M).

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


Management Age and Tenure

5.3yrs

Average Tenure

59yo

Average Age

Experienced Management: WSBC's management team is seasoned and experienced (5.3 years average tenure).


Board Age and Tenure

9.0yrs

Average Tenure

60.5yo

Average Age

Experienced Board: WSBC's board of directors are considered experienced (9 years average tenure).


Insider Trading

Insider Buying: WSBC insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

SellUS$171,58307 Nov 19
Jonathan Dargusch
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Wealth Management
Shares4,504
Max PriceUS$38.10
SellUS$375,09631 Oct 19
Michael Crawford
EntityIndividual
Shares10,000
Max PriceUS$37.51
BuyUS$273,47725 Oct 19
Todd Clossin
EntityIndividual
Role
Chief Executive Officer
President
Shares7,500
Max PriceUS$36.46
BuyUS$236,32416 Aug 19
Stephen Callen
EntityIndividual
Shares7,000
Max PriceUS$33.79
SellUS$194,42329 Jul 19
Brent Richmond
EntityIndividual
Shares5,323
Max PriceUS$36.53
BuyUS$44,65222 Mar 19
Kerry Stemler
EntityIndividual
Shares1,183
Max PriceUS$37.75
BuyUS$50,57122 Mar 19
Kerry Stemler
EntityIndividual
Shares1,343
Max PriceUS$37.67
BuyUS$28,59222 Feb 19
Denise Knouse-Snyder
EntityIndividual
Shares675
Max PriceUS$42.36

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 18.2%.


Management Team

  • Bob Young (62yo)

    Executive VP & CFO

    • Tenure: 18.4yrs
    • Compensation: US$746.98k
  • Jay Zatta (59yo)

    Executive VP & Chief Banking Officer

    • Tenure: 4.8yrs
    • Compensation: US$816.99k
  • Stephen Lawrence (62yo)

    Executive VP & Chief Internal Auditor

    • Mike Perkins (53yo)

      Executive VP and Chief Risk & Administrative Officer

      • Todd Clossin (57yo)

        President

        • Tenure: 5.8yrs
        • Compensation: US$1.89m
      • Jonathan Dargusch (61yo)

        Executive Vice President of Wealth Management

        • Tenure: 7.6yrs
        • Compensation: US$620.14k
      • Anthony Pietranton (59yo)

        Executive Vice President of Human Resources

        • Compensation: US$578.04k
      • John Iannone

        Senior Vice President of Investor & Public Relations

        • Tenure: 4yrs
      • Jan Pattishall-Krupinski

        Executive VP & Director of Operations

        • Tenure: 0.2yrs
      • Jennifer Roth (44yo)

        Chief Compliance Officer


        Board Members

        • Charlotte Zuschlag (67yo)

          Director

          • Tenure: 4.9yrs
          • Compensation: US$48.00k
        • D. Knox (58yo)

          Independent Director

          • Tenure: 12.2yrs
          • Compensation: US$48.25k
        • Jay McCamic (63yo)

          Independent Director

          • Tenure: 17yrs
          • Compensation: US$40.00k
        • Reed Tanner (65yo)

          Independent Director

          • Tenure: 23.1yrs
          • Compensation: US$45.25k
        • Christopher Criss (63yo)

          Chairman of the Board

          • Tenure: 0.8yrs
          • Compensation: US$70.75k
        • Abigail Feinknopf (51yo)

          Independent Director

          • Tenure: 17.8yrs
          • Compensation: US$41.00k
        • Lisa Knutson (53yo)

          Independent Director

          • Tenure: 3.8yrs
          • Compensation: US$34.00k
        • F. Nelson (58yo)

          Independent Director

          • Tenure: 12.8yrs
          • Compensation: US$39.50k
        • Todd Clossin (57yo)

          President

          • Tenure: 5.8yrs
          • Compensation: US$1.89m
        • Ronald Owen (69yo)

          Independent Director

          • Tenure: 4.9yrs
          • Compensation: US$35.00k

        Company Information

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


        Key Information

        • Name: WesBanco, Inc.
        • Ticker: WSBC
        • Exchange: NasdaqGS
        • Founded: 1870
        • Industry: Regional Banks
        • Sector: Banks
        • Market Cap: US$2.471b
        • Shares outstanding: 68.25m
        • Website: https://www.wesbanco.com

        Number of Employees


        Location

        • WesBanco, Inc.
        • 1 Bank Plaza
        • Wheeling
        • West Virginia
        • 26003
        • United States

        Listings

        TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
        WSBCNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDApr 1977

        Biography

        WesBanco, Inc. operates as the holding company for WesBanco Bank, Inc. that provides retail banking, corporate banking, personal and corporate trust, brokerage, and mortgage banking and insurance services in the United States. It operates in two segments, Community Banking, and Trust and Investment Services. The company offers commercial demand, individual demand, and time deposit accounts; money market accounts; interest bearing and non-interest bearing demand deposits, as well as savings deposits; and certificates of deposit. It also provides commercial real estate loans; commercial and industrial loans; residential real estate loans, including loans to purchase, construct, or refinance borrower’s home; home equity lines of credit; installment loans to finance the purchases of automobiles, trucks, motorcycles, boats, and other recreational vehicles, as well as home equity installment loans, unsecured home improvement loans, and revolving lines of credit; and commercial, mortgage, and individual installment loans. In addition, the company offers trust and investment services, as well as various investment products comprising mutual funds and annuities; and securities brokerage services. Further, WesBanco, Inc., through its non-banking subsidiaries, acts as an agency that specializes in property, casualty, life, and title insurance, as well as benefit plan sales and administration to personal and commercial clients; provides broker dealer and discount brokerage services; holds investment securities and loans; and holds and leases commercial real estate properties, as well as acts as an investment adviser to a family of mutual funds. As of December 31, 2018, the company operated through 209 branches and 202 ATMs in West Virginia, Ohio, western Pennsylvania, Kentucky, and southern Indiana, as well as 4 loan production offices in West Virginia, Ohio, and western Pennsylvania. WesBanco, Inc. was founded in 1870 and is headquartered in Wheeling, West Virginia. 


        Company Analysis and Financial Data Status

        All financial data provided by Standard & Poor's Capital IQ.
        DataLast Updated (UTC time)
        Company Analysis2020/01/23 23:57
        End of Day Share Price2020/01/23 00:00
        Earnings2019/09/30
        Annual Earnings2018/12/31


        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.