Western Alliance Bancorporation
Market Cap
US$5.7b
Last Updated
2020/02/23 01:44 UTC
Data Sources
Company Financials +
Executive Summary
Western Alliance Bancorporation operates as the holding company for Western Alliance Bank that provides various banking products and related services primarily in Arizona, California, and Nevada.
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet and good value.
Similar Companies
Share Price & News
How has Western Alliance Bancorporation's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: WAL has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-3.9%
WAL
-1.2%
US Banks
-1.1%
US Market
1 Year Return
19.6%
WAL
10.3%
US Banks
17.9%
US Market
Return vs Industry: WAL exceeded the US Banks industry which returned 10.3% over the past year.
Return vs Market: WAL exceeded the US Market which returned 17.9% over the past year.
Shareholder returns
| WAL | Industry | Market | |
|---|---|---|---|
| 7 Day | -3.9% | -1.2% | -1.1% |
| 30 Day | -2.7% | -0.3% | 1.4% |
| 90 Day | 6.5% | -0.9% | 6.9% |
| 1 Year | 21.4%19.6% | 13.5%10.3% | 20.3%17.9% |
| 3 Year | 10.0%8.4% | 24.0%15.1% | 47.8%38.3% |
| 5 Year | 100.0%97.0% | 73.8%54.1% | 71.9%53.0% |
Price Volatility Vs. Market
How volatile is Western Alliance Bancorporation's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall St
Here's Why I Think Western Alliance Bancorporation (NYSE:WAL) Is An Interesting Stock1 month ago | Simply Wall St
When Should You Buy Western Alliance Bancorporation (NYSE:WAL)?2 months ago | Simply Wall St
How Many Western Alliance Bancorporation (NYSE:WAL) Shares Have Insiders Sold, In The Last Year?Valuation
Is Western Alliance Bancorporation 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: WAL ($55.92) is trading below our estimate of fair value ($115.51)
Significantly Below Fair Value: WAL is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: WAL is good value based on its PE Ratio (11.5x) compared to the Banks industry average (12.6x).
PE vs Market: WAL is good value based on its PE Ratio (11.5x) compared to the US market (18.2x).
Price to Earnings Growth Ratio
PEG Ratio: WAL is poor value based on its PEG Ratio (2.2x)
Price to Book Ratio
PB vs Industry: WAL is overvalued based on its PB Ratio (1.9x) compared to the US Banks industry average (1.2x).
Next Steps
Future Growth
How is Western Alliance Bancorporation forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
5.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: WAL's forecast earnings growth (5.2% per year) is above the savings rate (1.7%).
Earnings vs Market: WAL's earnings (5.2% per year) are forecast to grow slower than the US market (14.1% per year).
High Growth Earnings: WAL's earnings are forecast to grow, but not significantly.
Revenue vs Market: WAL's revenue (10.2% per year) is forecast to grow faster than the US market (7.6% per year).
High Growth Revenue: WAL's revenue (10.2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: WAL's Return on Equity is forecast to be low in 3 years time (15.7%).
Next Steps
Past Performance
How has Western Alliance Bancorporation performed over the past 5 years?
24.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: WAL has high quality earnings.
Growing Profit Margin: WAL's current net profit margins (45.9%) are lower than last year (46.6%).
Past Earnings Growth Analysis
Earnings Trend: WAL's earnings have grown significantly by 24.3% per year over the past 5 years.
Accelerating Growth: WAL's earnings growth over the past year (14.5%) is below its 5-year average (24.3% per year).
Earnings vs Industry: WAL earnings growth over the past year (14.5%) exceeded the Banks industry 12.2%.
Return on Equity
High ROE: WAL's Return on Equity (16.5%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Western Alliance Bancorporation'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: WAL has a low level of unsold assets or inventory.
Debt Coverage by Assets: WAL's debt is covered by short term assets (assets are 1.1x debt).
Financial Institutions Analysis
Asset Level: WAL's level of assets compared to its equity is low.
Allowance for Bad Loans: WAL has a sufficient allowance for bad loans.
Low Risk Liabilities: WAL's liabilities are made up of primarily low risk sources of funding.
Loan Level: WAL has an acceptable proportion of non-loan assets held.
Low Risk Deposits: WAL's loans are broadly funded by customer deposits.
Level of Bad Loans: WAL has an appropriate level of bad loans (0.27%)
Next Steps
Dividend
What is Western Alliance Bancorporation's current dividend yield, its reliability and sustainability?
1.79%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: WAL's dividend (1.79%) is higher than the bottom 25% of dividend payers in the US market (1.45%).
High Dividend: WAL's dividend (1.79%) is low compared to the top 25% of dividend payers in the US market (3.73%).
Stability and Growth of Payments
Stable Dividend: Too early to tell whether WAL's dividend payments have been stable as they only just started paying a dividend.
Growing Dividend: Too early to tell if WAL's dividend payments are increasing as they only just started paying a dividend.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (10.3%), WAL's dividend payments are thoroughly covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: WAL's dividends in 3 years are forecast to be well covered by earnings (17.2% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.6yrs
Average management tenure
CEO
Ken Vecchione (65yo)
0.3yrs
Tenure
US$4,830,831
Compensation
Mr. Kenneth A. Vecchione, also known as Ken, has been Chief Executive Officer of Western Alliance Bancorporation since November 1, 2019 and Western Alliance Bank since April 01, 2018. Mr. Vecchione has bee ...
CEO Compensation Analysis
Compensation vs Market: Ken's total compensation ($USD4.83M) is about average for companies of similar size in the US market ($USD6.39M).
Compensation vs Earnings: Ken's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman of the Board | 17.2yrs | US$4.57m | 0.91% $51.8m | |
| CEO, President & Director | 0.3yrs | US$4.83m | 0.30% $17.0m | |
| Vice Chairman & CFO | 16.8yrs | US$2.35m | 0.21% $11.6m | |
| Chief Human Resource Officer | 1.8yrs | US$1.63m | 0.020% $1.1m | |
| Executive Vice President | 8.8yrs | US$1.27m | 0.031% $1.8m | |
| Executive Vice President of Northern California Administration | 4.6yrs | US$1.66m | 0.10% $5.8m | |
| Chief Operating Officer | 0.3yrs | no data | 0.054% $3.1m | |
| Senior VP & Chief Accounting Officer | 8.4yrs | no data | 0.0020% $114.1k | |
| Chief Information Officer | 0yrs | no data | no data | |
| General Counsel & Secretary | 14yrs | no data | 0.052% $2.9m |
4.6yrs
Average Tenure
59yo
Average Age
Experienced Management: WAL's management team is considered experienced (4.6 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman of the Board | 17.2yrs | US$4.57m | 0.91% $51.8m | |
| CEO, President & Director | 0.3yrs | US$4.83m | 0.30% $17.0m | |
| Director | 17.2yrs | US$282.29k | 0.13% $7.5m | |
| Independent Director | 23.1yrs | US$292.29k | 0.10% $6.0m | |
| Independent Director | 24.3yrs | US$282.29k | 0.37% $21.2m | |
| Independent Director | 24.3yrs | US$292.29k | 0.33% $18.5m | |
| Lead Independent Director | 10.1yrs | US$307.29k | 0.038% $2.1m | |
| Independent Director | 9.3yrs | US$302.29k | 0.040% $2.3m | |
| Independent Director | 4.3yrs | US$292.29k | 0.035% $2.0m | |
| Independent Director | 3.4yrs | US$357.29k | 0.020% $1.1m |
14.8yrs
Average Tenure
68.5yo
Average Age
Experienced Board: WAL's board of directors are seasoned and experienced ( 14.8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: WAL insiders have only sold shares 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
Western Alliance Bancorporation's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Western Alliance Bancorporation
- Ticker: WAL
- Exchange: NYSE
- Founded: 1994
- Industry: Regional Banks
- Sector: Banks
- Market Cap: US$5.676b
- Shares outstanding: 101.50m
- Website: https://www.westernalliancebancorporation.com
Number of Employees
Location
- Western Alliance Bancorporation
- One East Washington Street
- Suite 1400
- Phoenix
- Arizona
- 85004
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| WAL | NYSE (New York Stock Exchange) | Yes | Common Shares | US | USD | Jun 2005 |
| WEA | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Jun 2005 |
| WABC34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH 1 REP 1 COM USD0.0001 | BR | BRL | May 2019 |
Biography
Western Alliance Bancorporation operates as the holding company for Western Alliance Bank that provides various banking products and related services primarily in Arizona, California, and Nevada. The company offers deposit products, including checking accounts, savings accounts, and money market accounts, as well as fixed-rate and fixed maturity certificates of deposit accounts. It also offers commercial and industrial loan products, such as working capital lines of credit, inventory and accounts receivable lines, mortgage warehouse lines, equipment loans and leases, and other commercial loans; commercial real estate loans, which are secured by multi-family residential properties, professional offices, industrial facilities, retail centers, hotels, and other commercial properties; construction and land development loans for single family and multi-family residential projects, industrial/warehouse properties, office buildings, retail centers, medical office facilities, and residential lot developments; and consumer loans. In addition, the company provides other financial services, such as Internet banking, wire transfers, electronic bill payment and presentment, lock box services, courier, and cash management services. Further, it holds certain investment securities, municipal and non-profit loans, and leases; invests primarily in low income housing tax credits and small business investment corporations; and holds certain real estate loans and related securities. As of December 31, 2018, the company operated 38 branch locations and 11 loan production offices. Western Alliance Bancorporation was founded in 1994 and is headquartered in Phoenix, Arizona.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/23 01:44 |
| End of Day Share Price | 2020/02/21 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.