NasdaqGS:WSFS

Stock Analysis Report

Executive Summary

WSFS Financial Corporation operates as the savings and loan holding company for the Wilmington Savings Fund Society, FSB that provides various banking services in the United States.

Rewards

Trading at 53.7% below its fair value

Earnings are forecast to grow 4.04% per year

Earnings grew by 10.4% over the past year

Pays a high and reliable dividend of 1.98%

Risk Analysis

Shareholders have been substantially diluted in the past year

Highly volatile share price over past 3 months

Large one-off items impacting financial results



Snowflake Analysis

Flawless balance sheet, undervalued and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: WSFS's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

17.1%

WSFS

5.7%

US Mortgage

9.9%

US Market


1 Year Return

-37.3%

WSFS

-24.5%

US Mortgage

-11.9%

US Market

Return vs Industry: WSFS underperformed the US Mortgage industry which returned -23.6% over the past year.

Return vs Market: WSFS underperformed the US Market which returned -11.5% over the past year.


Shareholder returns

WSFSIndustryMarket
7 Day17.1%5.7%9.9%
30 Day-29.8%-25.3%-15.0%
90 Day-45.2%-33.6%-21.5%
1 Year-36.6%-37.3%-22.7%-24.5%-10.0%-11.9%
3 Year-45.9%-47.3%-17.3%-23.1%12.3%5.1%
5 Year0.7%-3.4%4.6%-7.1%32.5%18.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is WSFS Financial 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: WSFS ($24.2) is trading below our estimate of fair value ($52.22)

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


Price To Earnings Ratio

PE vs Industry: WSFS is good value based on its PE Ratio (8x) compared to the Mortgage industry average (10.7x).

PE vs Market: WSFS is good value based on its PE Ratio (8x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: WSFS is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: WSFS is good value based on its PB Ratio (0.7x) compared to the US Mortgage industry average (0.8x).


Next Steps

Future Growth

How is WSFS Financial forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

4.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WSFS's forecast earnings growth (4% per year) is above the savings rate (1.7%).

Earnings vs Market: WSFS's earnings (4% per year) are forecast to grow slower than the US market (12.3% per year).

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

Revenue vs Market: WSFS's revenue is expected to decline over the next 3 years (-15.5% per year).

High Growth Revenue: WSFS's revenue is forecast to decline over the next 3 years (-15.5% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WSFS's Return on Equity is forecast to be low in 3 years time (8.8%).


Next Steps

Past Performance

How has WSFS Financial performed over the past 5 years?

22.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WSFS has a large one-off loss of $71.4M impacting its December 31 2019 financial results.

Growing Profit Margin: WSFS's current net profit margins (24.5%) are lower than last year (34%).


Past Earnings Growth Analysis

Earnings Trend: WSFS's earnings have grown significantly by 22.5% per year over the past 5 years.

Accelerating Growth: WSFS's earnings growth over the past year (10.4%) is below its 5-year average (22.5% per year).

Earnings vs Industry: WSFS earnings growth over the past year (10.4%) exceeded the Mortgage industry 8.7%.


Return on Equity

High ROE: WSFS's Return on Equity (8%) is considered low.


Next Steps

Financial Health

How is WSFS Financial'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: WSFS has a low level of unsold assets or inventory.

Debt Coverage by Assets: WSFS's debt is covered by short term assets (assets are 1.4x debt).


Financial Institutions Analysis

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

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

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

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

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

Level of Bad Loans: WSFS has an appropriate level of bad loans (0.44%)


Next Steps

Dividend

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

1.98%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WSFS's dividend (1.98%) is higher than the bottom 25% of dividend payers in the US market (1.98%).

High Dividend: WSFS's dividend (1.98%) is low compared to the top 25% of dividend payers in the US market (5.45%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (15.6%), WSFS's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WSFS's dividends in 3 years are forecast to be well covered by earnings (15.6% payout ratio).


Next Steps

Management

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

3.7yrs

Average management tenure


CEO

Rodger Levenson (58yo)

1.17s

Tenure

US$1,902,592

Compensation

Mr. Rodger Levenson has been the Chief Executive Officer, President and Director of WSFS Financial Corp. since January 1, 2019 and Chairman of the Board since January 1, 2020. Mr. Levenson is Chief Executi ...


CEO Compensation Analysis

Compensation vs Market: Rodger's total compensation ($USD1.90M) is below average for companies of similar size in the US market ($USD4.54M).

Compensation vs Earnings: Rodger's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Rodger Levenson
Chairman1.17yrsUS$1.90m0.12% $1.5m
Dominic Canuso
Executive VP & CFO3.75yrsUS$1.00m0.016% $195.3k
Richard Wright
Executive VP & Chief Retail Banking Officer14yrsUS$956.05k0.097% $1.2m
Peggy Eddens
Executive VP and Chief Associate & Customer Experience Officer12.58yrsUS$956.42k0.10% $1.2m
Stephen Clark
Chief Commercial Banking Officer & Executive VP5yrsUS$937.88k0.022% $266.6k
Patrick Ward
Executive VP3.58yrsno data0.24% $2.9m
Charles Mosher
Senior VP & Chief Accounting Officerno datano datano data
Lisa Brubaker
Executive VP & CTO1.83yrsno data0.027% $328.8k
Lisa Washington
Senior VP & Chief Legal Officer0.42yrno datano data
Justin Dunn
Senior VP & Chief Marketing Officerno datano datano data

3.7yrs

Average Tenure

59.5yo

Average Age

Experienced Management: WSFS's management team is considered experienced (3.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Rodger Levenson
Chairman1.17yrsUS$1.90m0.12% $1.5m
Patrick Ward
Executive VP3.58yrsno data0.24% $2.9m
Marvin Schoenhals
Director30.17yrsUS$107.83k0.060% $737.0k
Mark Turner
Director12.92yrsUS$1.34m0.34% $4.2m
Anat Bird
Independent Director9.92yrsUS$111.08k0.038% $474.5k
David Turner
Independent Director7yrsUS$115.58k0.029% $362.3k
Eleuthère du Pont
Lead Independent Director3.58yrsUS$151.08k0.026% $314.8k
Francis Brake
Independent Director5.92yrsUS$103.58k0.019% $240.2k
Jennifer Davis
Independent Director11.17yrsUS$94.83k0.039% $482.1k
Christopher Gheysens
Independent Director2.75yrsUS$123.71k0.0078% $96.7k

6.5yrs

Average Tenure

55.5yo

Average Age

Experienced Board: WSFS's board of directors are considered experienced (6.5 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 been substantially diluted in the past year, with total shares outstanding growing by 56.2%.


Top Shareholders

Company Information

WSFS Financial Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: WSFS Financial Corporation
  • Ticker: WSFS
  • Exchange: NasdaqGS
  • Founded: 1988
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Market Cap: US$1.233b
  • Shares outstanding: 50.96m
  • Website: https://www.wsfsbank.com

Number of Employees


Location

  • WSFS Financial Corporation
  • 500 Delaware Avenue
  • Wilmington
  • Delaware
  • 19801
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WSFSNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDNov 1986

Biography

WSFS Financial Corporation operates as the savings and loan holding company for the Wilmington Savings Fund Society, FSB that provides various banking services in the United States. It operates through three segments: WSFS Bank, Cash Connect, and Wealth Management. The company offers various deposit products, including savings accounts, demand deposits, interest-bearing demand deposits, money market deposit accounts, and certificates of deposit, as well as jumbo certificates of deposit. It also provides a range of loans, which comprise residential real estate loans; commercial real estate mortgage loans; commercial construction loans to developers; commercial loans for working capital, financing equipment and real estate acquisitions, business expansion, and other business purposes; and consumer credit products, such as home improvement, automobile, and other secured and unsecured personal installment loans, as well as home equity lines and unsecured lines of credit. In addition, the company offers cash management, trust, and wealth management services. Further, it markets various third-party investment and insurance products, such as single-premium annuities, whole life policies, and securities; provides investment advisory services to high net worth individuals and institutions; and offers mortgage and title services. Additionally, the company provides ATM vault cash, smart safe, and other cash logistics services; and online reporting and ATM cash management, predictive cash ordering, armored carrier management, and ATM processing equipment sales, and deposit safe cash logistics services. As of March 1, 2019, it operated 76 offices, including 45 in Delaware, 29 in Pennsylvania, 1 in Virginia, and 1 in Nevada. WSFS Financial Corporation was founded in 1988 and is headquartered in Wilmington, Delaware. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/29 00:00
End of Day Share Price2020/03/27 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.