Western Alliance Bancorporation
Market Cap
US$5.0b
Last Updated
2019/10/22 23:51 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.
Snowflake
Fundamentals
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
Market Performance
7 Day Return
6.5%
WAL
2.9%
US Banks
0.07%
US Market
1 Year Return
0.9%
WAL
8.6%
US Banks
8.9%
US Market
Return vs Industry: WAL underperformed the US Banks industry which returned 8.6% over the past year.
Return vs Market: WAL underperformed the US Market which returned 8.9% over the past year.
Shareholder returns
| WAL | Industry | Market | |
|---|---|---|---|
| 7 Day | 6.5% | 2.9% | 0.07% |
| 30 Day | 5.7% | 3.4% | -0.3% |
| 90 Day | 0.5% | 2.1% | -1.6% |
| 1 Year | 1.5%0.9% | 11.8%8.6% | 11.3%8.9% |
| 3 Year | 31.4%30.6% | 54.8%44.1% | 46.3%36.8% |
| 5 Year | 92.8%91.6% | 70.2%51.6% | 62.1%44.3% |
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
5 days ago | Simply Wall St
Here's Why I Think Western Alliance Bancorporation (NYSE:WAL) Might Deserve Your Attention Today2 weeks ago | Simply Wall St
Should You Be Concerned About Western Alliance Bancorporation's (NYSE:WAL) Historical Volatility?1 month ago | Simply Wall St
Does Western Alliance Bancorporation's (NYSE:WAL) P/E Ratio Signal A Buying Opportunity?Valuation
Is Western Alliance Bancorporation undervalued compared to its fair value and its price relative to the market?
47.7%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: WAL ($48.75) is trading below our estimate of fair value ($93.21)
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 (10.3x) compared to the Banks industry average (12.6x).
PE vs Market: WAL is good value based on its PE Ratio (10.3x) compared to the US market (17.8x).
Price to Earnings Growth Ratio
PEG Ratio: WAL is poor value based on its PEG Ratio (2.9x)
Price to Book Ratio
PB vs Industry: WAL is overvalued based on its PB Ratio (1.7x) 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 12 analysts?
3.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: WAL's forecast earnings growth (3.6% per year) is above the savings rate (2.7%).
Earnings vs Market: WAL's earnings (3.6% per year) are forecast to grow slower than the US market (14.5% per year).
High Growth Earnings: WAL's earnings are forecast to grow, but not significantly.
Revenue vs Market: WAL's revenue (7.6% per year) is forecast to grow faster than the US market (7.2% per year).
High Growth Revenue: WAL's revenue (7.6% 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?
25.0%
Historical annual earnings growth
Earnings and Revenue History
Past Earnings Growth Analysis
Earnings Trend: WAL's earnings have grown significantly by 25% per year over the past 5 years.
Accelerating Growth: WAL's earnings growth over the past year (20.7%) is below its 5-year average (25% per year).
Earnings vs Industry: WAL earnings growth over the past year (20.7%) underperformed the Banks industry 29.7%.
Return on Equity
High ROE: WAL's Return on Equity (16.8%) is considered low.
Return on Assets
ROA vs Industry: WAL has a higher Return on Assets than the Banks industry average last year.
Return on Capital Employed
ROCE Improving: Insufficient data to calculate WAL's Return on Capital Employed to determine if it has improved over the past 3 years.
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 2.251540x 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 (0.25%)
Next Steps
Dividend
What is Western Alliance Bancorporation's current dividend yield, its reliability and sustainability?
2.05%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Stability and Growth of Payments
Notable Dividend: WAL's dividend (2.05%) is higher than the bottom 25% of dividend payers in the US market (1.45%).
High Dividend: WAL's dividend (2.05%) is low compared to the top 25% of dividend payers in the US market (3.68%).
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 (5.3%), 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 (19.4% payout ratio).
Next Steps
Management
What is the CEO of Western Alliance Bancorporation's salary, the management and board of directors tenure and is there insider trading?
2.9yrs
Average management tenure
CEO
Ken Vecchione (65yo)
1.5yrs
Tenure
US$4,830,831
Compensation
Mr. Kenneth A. Vecchione, also known as Ken, has been Chief Executive Officer of Western Alliance Bancorporation and Western Alliance Bank since April 01, 2018. Mr. Vecchione served as President of Western ...
CEO Compensation Analysis
Compensation vs. Market: Ken has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.
Compensation vs Earnings: Ken's compensation has been consistent with company performance over the past year.
Management Age and Tenure
2.9yrs
Average Tenure
59yo
Average Age
Experienced Management: WAL's management team is considered experienced (2.9 years average tenure).
Board Age and Tenure
14.4yrs
Average Tenure
68.5yo
Average Age
Experienced Board: WAL's board of directors are seasoned and experienced ( 14.4 years average tenure).
Insider Trading
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Shares | 2,500 |
| Max Price | US$45.25 |
| Entity | Individual |
| Role | Chairman of the Board Executive Chairman of the Board |
| Shares | 66,351 |
| Max Price | US$46.71 |
| Entity | Individual |
| Role | Senior Key Executive Chairman of Senior Loan Committee |
| Shares | 2,000 |
| Max Price | US$44.97 |
| Entity | Individual |
| Role | Chief Legal Officer Executive VP |
| Shares | 6,358 |
| Max Price | US$46.17 |
| Entity | Individual |
| Role | Lead Director Lead Independent Director |
| Shares | 3,750 |
| Max Price | US$46.55 |
| Entity | Individual |
| Role | Chief Legal Officer Executive VP |
| Shares | 2,370 |
| Max Price | US$46.09 |
| Entity | Individual |
| Role | Senior Key Executive Chairman of Senior Loan Committee |
| Shares | 2,000 |
| Max Price | US$46.00 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 2,140 |
| Max Price | US$46.78 |
Ownership Breakdown
Management Team
Dale Gibbons (59yo)
Vice Chairman & CFO
- Tenure: 16.4yrs
- Compensation: US$2.35m
Robert Sarver (58yo)
Executive Chairman of the Board
- Tenure: 16.8yrs
- Compensation: US$4.57m
Ken Vecchione (65yo)
CEO & Director
- Tenure: 1.5yrs
- Compensation: US$4.83m
Dan Myers (59yo)
Executive Vice President of Northern California Administration
- Tenure: 4.3yrs
- Compensation: US$1.66m
Bob McAuslan (71yo)
Chairman of Senior Loan Committee
- Tenure: 8.5yrs
- Compensation: US$1.27m
James Ardrey (51yo)
Senior VP & Chief Accounting Officer
- Tenure: 8.1yrs
Barbara Kennedy (52yo)
Executive VP & Chief Human Resource Officer
- Tenure: 1.5yrs
- Compensation: US$1.63m
Randall Theisen (61yo)
Executive VP
- Tenure: 0yrs
Robyn Young
Executive VP & Chief Marketing Officer
- Tenure: 0yrs
Jim Haught (50yo)
President & COO
- Tenure: 1.5yrs
- Compensation: US$2.21m
Board Members
Steve Hilton (58yo)
Director
- Tenure: 16.8yrs
- Compensation: US$282.29k
Donald Snyder (72yo)
Independent Director
- Tenure: 22.8yrs
- Compensation: US$292.29k
Marianne Johnson (61yo)
Independent Director
- Tenure: 24yrs
- Compensation: US$282.29k
Robert Sarver (58yo)
Executive Chairman of the Board
- Tenure: 16.8yrs
- Compensation: US$4.57m
James Nave (75yo)
Independent Director
- Tenure: 24yrs
- Compensation: US$292.29k
Ken Vecchione (65yo)
CEO & Director
- Tenure: 1.5yrs
- Compensation: US$4.83m
Bruce Beach (70yo)
Lead Independent Director
- Tenure: 9.8yrs
- Compensation: US$307.29k
Sung Sohn (75yo)
Independent Director
- Tenure: 9yrs
- Compensation: US$302.29k
Howard Gould (69yo)
Independent Director
- Tenure: 4yrs
- Compensation: US$292.29k
Michael Patriarca (68yo)
Independent Director
- Tenure: 3.1yrs
- Compensation: US$357.29k
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$5.002b
- Shares outstanding: 102.61m
- 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 compa ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/10/22 23:51 |
| End of Day Share Price | 2019/10/22 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
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.