NYSE:WAL

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Western Alliance Bancorporation

Market Cap

US$9.7b

Last Updated

2021/08/03 23:27 UTC

Data Sources

Company Financials +

Executive Summary

Western Alliance Bancorporation operates as the bank holding company for Western Alliance Bank that provides various banking products and related services primarily in Arizona, California, and Nevada. More Details


Snowflake Analysis

Flawless balance sheet with proven track record.


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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: WAL's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-0.08%

WAL

1.2%

US Banks

0.9%

US Market


1 Year Return

164.9%

WAL

61.5%

US Banks

34.7%

US Market

Return vs Industry: WAL exceeded the US Banks industry which returned 58.2% over the past year.

Return vs Market: WAL exceeded the US Market which returned 34.4% over the past year.


Shareholder returns

WALIndustryMarket
7 Day-0.08%1.2%0.9%
30 Day-2.1%-2.6%0.2%
90 Day-13.2%-5.6%4.7%
1 Year169.4%164.9%66.0%61.5%36.8%34.7%
3 Year70.4%63.7%18.3%8.1%62.5%52.4%
5 Year174.7%163.8%91.4%67.4%123.1%98.4%

Long-Term 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

Valuation

Is Western Alliance Bancorporation undervalued compared to its fair value and its price relative to the market?

37.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WAL ($93.56) is trading below our estimate of fair value ($150.7)

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


Price To Earnings Ratio

PE vs Industry: WAL is poor value based on its PE Ratio (12.6x) compared to the US Banks industry average (10.7x).

PE vs Market: WAL is good value based on its PE Ratio (12.6x) compared to the US market (17.9x).


Price to Earnings Growth Ratio

PEG Ratio: WAL is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: WAL is overvalued based on its PB Ratio (2.4x) compared to the US Banks industry average (1.1x).


Future Growth

How is Western Alliance Bancorporation forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

12.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WAL's forecast earnings growth (12.2% per year) is above the savings rate (2%).

Earnings vs Market: WAL's earnings (12.2% per year) are forecast to grow slower than the US market (15% per year).

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

Revenue vs Market: WAL's revenue (15% per year) is forecast to grow faster than the US market (9.2% per year).

High Growth Revenue: WAL's revenue (15% 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 (19.5%).


Past Performance

How has Western Alliance Bancorporation performed over the past 5 years?

18.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WAL has a high level of non-cash earnings.

Growing Profit Margin: WAL's current net profit margins (47.8%) are higher than last year (42.8%).


Past Earnings Growth Analysis

Earnings Trend: WAL's earnings have grown by 18.4% per year over the past 5 years.

Accelerating Growth: WAL's earnings growth over the past year (72.3%) exceeds its 5-year average (18.4% per year).

Earnings vs Industry: WAL earnings growth over the past year (72.3%) exceeded the Banks industry 35.1%.


Return on Equity

High ROE: WAL's Return on Equity (18.5%) is considered low.


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


Financial Institutions Analysis

Asset Level: WAL's Assets to Equity ratio (12.2x) is moderate.

Allowance for Bad Loans: WAL has a sufficient allowance for bad loans (242%).

Low Risk Liabilities: 93% of WAL's liabilities are made up of primarily low risk sources of funding.

Loan Level: WAL has an appropriate level of Loans to Assets ratio (61%).

Low Risk Deposits: WAL's Loans to Deposits ratio (71%) is appropriate.

Level of Bad Loans: WAL has an appropriate level of bad loans (0.3%).


Dividend

What is Western Alliance Bancorporation current dividend yield, its reliability and sustainability?

1.50%

Current Dividend Yield


Upcoming Dividend Payment

TodayAug 04 2021Ex Dividend DateAug 12 2021Dividend Pay DateAug 27 202115 days from Ex DividendBuy in the next 7 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: WAL's dividend (1.5%) is higher than the bottom 25% of dividend payers in the US market (1.32%).

High Dividend: WAL's dividend (1.5%) is low compared to the top 25% of dividend payers in the US market (3.57%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, WAL has been paying a dividend for less than 10 years.

Growing Dividend: WAL's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (13.5%), 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 thoroughly covered by earnings (10.8% payout ratio).


Next Steps

Management

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

6.1yrs

Average management tenure


CEO

Ken Vecchione (67 yo)

3.33yrs

Tenure

US$6,270,271

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's total compensation ($USD6.27M) is below average for companies of similar size in the US market ($USD11.16M).

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


Leadership Team

Experienced Management: WAL's management team is seasoned and experienced (6.1 years average tenure).


Board Members

Experienced Board: WAL's board of directors are seasoned and experienced ( 11.2 years average tenure).


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.4%.


Top Shareholders

Company Information

Western Alliance Bancorporation's company bio, employee growth, exchange listings and data sources


Key Information


Number of Employees


Location

  • Western Alliance Bancorporation
  • One East Washington Street
  • Suite 1400
  • Phoenix
  • Arizona
  • 85004
  • United States

Listings


Biography

Western Alliance Bancorporation operates as the bank holding company for Western Alliance Bank that provides various banking products and related services primarily in Arizona, California, and Nevada. It o...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/03 23:27
End of Day Share Price2021/08/03 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.