NasdaqGS:WTFC

Stock Analysis Report

Executive Summary

Wintrust Financial Corporation operates as a financial holding company in the Chicago metropolitan area, southern Wisconsin, and northwest Indiana.


Snowflake Analysis

Flawless balance sheet, undervalued and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

19.2%

WTFC

10.1%

US Banks

8.0%

US Market


1 Year Return

-48.6%

WTFC

-26.0%

US Banks

-8.1%

US Market

Return vs Industry: WTFC underperformed the US Banks industry which returned -28.9% over the past year.

Return vs Market: WTFC underperformed the US Market which returned -10% over the past year.


Shareholder returns

WTFCIndustryMarket
7 Day19.2%10.1%8.0%
30 Day-11.4%-7.5%-4.5%
90 Day-45.0%-36.1%-17.8%
1 Year-47.8%-48.6%-23.8%-26.0%-6.0%-8.1%
3 Year-40.0%-41.9%-11.9%-18.4%21.3%13.2%
5 Year-19.3%-23.3%12.5%-0.4%39.1%23.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

45.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WTFC ($36.43) is trading below our estimate of fair value ($70.8)

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


Price To Earnings Ratio

PE vs Industry: WTFC is good value based on its PE Ratio (6x) compared to the Banks industry average (8.7x).

PE vs Market: WTFC is good value based on its PE Ratio (6x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: WTFC's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: WTFC is good value based on its PB Ratio (0.6x) compared to the US Banks industry average (0.8x).


Next Steps

Future Growth

How is Wintrust Financial forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

-16.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WTFC's earnings are forecast to decline over the next 3 years (-16.2% per year).

Earnings vs Market: WTFC's earnings are forecast to decline over the next 3 years (-16.2% per year).

High Growth Earnings: WTFC's earnings are forecast to decline over the next 3 years.

Revenue vs Market: WTFC's revenue (2.4% per year) is forecast to grow slower than the US market (7% per year).

High Growth Revenue: WTFC's revenue (2.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WTFC's Return on Equity is forecast to be low in 3 years time (7.2%).


Next Steps

Past Performance

How has Wintrust Financial performed over the past 5 years?

21.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WTFC has high quality earnings.

Growing Profit Margin: WTFC's current net profit margins (24.7%) are lower than last year (26.1%).


Past Earnings Growth Analysis

Earnings Trend: WTFC's earnings have grown significantly by 21.1% per year over the past 5 years.

Accelerating Growth: WTFC's earnings growth over the past year (3.7%) is below its 5-year average (21.1% per year).

Earnings vs Industry: WTFC earnings growth over the past year (3.7%) underperformed the Banks industry 10.8%.


Return on Equity

High ROE: WTFC's Return on Equity (9.6%) is considered low.


Next Steps

Financial Health

How is Wintrust 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


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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

2.96%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WTFC's dividend (3.07%) is higher than the bottom 25% of dividend payers in the US market (1.93%).

High Dividend: WTFC's dividend (3.07%) is low compared to the top 25% of dividend payers in the US market (5.46%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (16.4%), WTFC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WTFC's dividends in 3 years are forecast to be well covered by earnings (23.9% payout ratio).


Next Steps

Management

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

13.8yrs

Average management tenure


CEO

Ed Wehmer (65yo)

21.92s

Tenure

US$4,900,431

Compensation

Mr. Edward Joseph Wehmer, also known as Ed, is Founder, CHief Executive Officer and Director at Wintrust Financial Corporation since February 02, 2020. He had been the President at Wintrust Financial Corpo ...


CEO Compensation Analysis

Compensation vs Market: Ed's total compensation ($USD4.90M) is about average for companies of similar size in the US market ($USD4.67M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Edward Wehmer
Founder21.92yrsUS$4.90m0.35% $7.6m
Timothy Crane
President0.17yrUS$1.21m0.039% $841.5k
David Stoehr
Executive VP & CFO17.5yrsUS$1.22m0.022% $466.7k
David Dykstra
Vice Chairman & COO18.25yrsUS$2.17m0.33% $7.1m
Richard Murphy
Vice Chairman of Lending0.17yrUS$1.58m0.059% $1.3m
Tony Buttrick
Executive VP & Chief Information Officer2.17yrsno datano data
Leona Gleason
Chief Administrative Officer & Executive VPno dataUS$901.80k0.028% $608.4k
Kathleen Boege
Executive VPno datano data0.018% $389.1k
Thomas Zidar
Executive VP & Market Head of Wealth Management Services13.83yrsno data0.071% $1.5m
David Larson
Executive VP & Regional Market Headno datano data0.017% $358.0k

13.8yrs

Average Tenure

58yo

Average Age

Experienced Management: WTFC's management team is seasoned and experienced (13.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Edward Wehmer
Founder21.92yrsUS$4.90m0.35% $7.6m
Christopher Perry
Independent Director10.92yrsUS$129.40k0.044% $945.6k
Bruce Crowther
Independent Director22.25yrsUS$157.14k0.062% $1.4m
Ingrid Stafford
Independent Director21.92yrsUS$153.22k0.039% $851.9k
Peter Crist
Independent Director24.25yrsUS$170.96k0.091% $2.0m
Scott Heitmann
Independent Director11.92yrsUS$158.96k0.035% $758.8k
Gary Sweeney
Independent Director4.92yrsUS$118.30k0.0098% $213.5k
H. Hackett
Independent Chairman of the Board3.25yrsUS$152.20k0.061% $1.3m
Marla Gay Glabe
Independent Director4.92yrsUS$118.30k0.017% $376.9k
Karin Teglia
Director0.92yrno data0.0038% $82.5k

11.4yrs

Average Tenure

65yo

Average Age

Experienced Board: WTFC's board of directors are seasoned and experienced ( 11.4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: WTFC 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

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


Key Information

  • Name: Wintrust Financial Corporation
  • Ticker: WTFC
  • Exchange: NasdaqGS
  • Founded: 1991
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$2.170b
  • Shares outstanding: 57.37m
  • Website: https://www.wintrust.com

Number of Employees


Location

  • Wintrust Financial Corporation
  • 9700 West Higgins Road
  • Suite 800
  • Rosemont
  • Illinois
  • 60018
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WTFCNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDSep 1996
WF2DB (Deutsche Boerse AG)YesCommon StockDEEURSep 1996
WTFC.MNasdaqGS (Nasdaq Global Select)PFD-D FIX/FLTUSUSDJun 2015

Biography

Wintrust Financial Corporation operates as a financial holding company in the Chicago metropolitan area, southern Wisconsin, and northwest Indiana. It operates in three segments: Community Banking, Specialty Finance, and Wealth Management. The Community Banking segment offers non-interest bearing deposits, non-brokered interest-bearing transaction accounts, and savings and domestic time deposits; home equity, consumer, and real estate loans; safe deposit facilities; and automatic teller machine (ATM), online and mobile banking, and other services. It also engages in the origination and purchase of residential mortgages for sale into the secondary market; and provision of lending, deposits, and cash management services to condominium, homeowner, and community associations, as well as asset-based lending for middle-market companies. In addition, this segment offers loan and deposit services to mortgage brokerage companies; lending to restaurant franchisees; direct leasing; small business administration loans; commercial mortgages and construction loans; and financial solutions. It provides personal and commercial banking services primarily to individuals, small to mid-sized businesses, local governmental units, and institutional customers. The Specialty Finance segment offers commercial and life insurance premiums financing for businesses and individuals; accounts receivable financing, value-added, and out-sourced administrative services; and other specialty finance services, as well as data processing of payrolls, billing, and cash management services to temporary staffing industry. The Wealth Management segment provides trust and investment, asset management, tax-deferred exchange services, securities brokerage, and retirement plan services. As of December 31, 2019, the company had approximately 187 banking facilities and 230 ATMs. Wintrust Financial Corporation was founded in 1991 and is headquartered in Rosemont, Illinois. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/09 01:49
End of Day Share Price2020/04/08 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.