Western Alliance Bancorporation
Market Cap
US$9.6b
Last Updated
2021/04/13 22:16 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
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet with high growth potential.
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
-0.05%
WAL
-0.1%
US Banks
1.3%
US Market
1 Year Return
193.2%
WAL
65.1%
US Banks
53.9%
US Market
Return vs Industry: WAL exceeded the US Banks industry which returned 65.1% over the past year.
Return vs Market: WAL exceeded the US Market which returned 53.9% over the past year.
Shareholder returns
| WAL | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.05% | -0.1% | 1.3% |
| 30 Day | -6.3% | -1.9% | 2.8% |
| 90 Day | 32.5% | 13.3% | 6.6% |
| 1 Year | 200.0%193.2% | 70.6%65.1% | 56.6%53.9% |
| 3 Year | 68.5%62.2% | 26.1%15.3% | 62.7%52.3% |
| 5 Year | 166.5%156.6% | 98.0%73.0% | 120.5%95.9% |
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
5 days ago | Simply Wall St
Is Western Alliance Bancorporation's (NYSE:WAL) Share Price Gain Of 162% Well Earned?1 month ago | Simply Wall St
Have Insiders Sold Western Alliance Bancorporation (NYSE:WAL) Shares Recently?1 month ago | Simply Wall St
Rainbows and Unicorns: Western Alliance Bancorporation (NYSE:WAL) Analysts Just Became A Lot More OptimisticValuation
Is Western Alliance Bancorporation undervalued compared to its fair value and its price relative to the market?
46.5%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: WAL ($92.44) is trading below our estimate of fair value ($172.66)
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 (18.3x) compared to the US Banks industry average (13.2x).
PE vs Market: WAL is good value based on its PE Ratio (18.3x) compared to the US market (22.3x).
Price to Earnings Growth Ratio
PEG Ratio: WAL is good value based on its PEG Ratio (0.9x)
Price to Book Ratio
PB vs Industry: WAL is overvalued based on its PB Ratio (2.7x) 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 9 analysts?
20.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: WAL's forecast earnings growth (20.5% per year) is above the savings rate (2%).
Earnings vs Market: WAL's earnings (20.5% per year) are forecast to grow faster than the US market (18.5% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: WAL's revenue (22.6% per year) is forecast to grow faster than the US market (9.9% per year).
High Growth Revenue: WAL's revenue (22.6% per year) is forecast to grow faster 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 (17.7%).
Past Performance
How has Western Alliance Bancorporation performed over the past 5 years?
17.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: WAL has high quality earnings.
Growing Profit Margin: WAL's current net profit margins (45.5%) are lower than last year (45.9%).
Past Earnings Growth Analysis
Earnings Trend: WAL's earnings have grown by 17.4% per year over the past 5 years.
Accelerating Growth: WAL's earnings growth over the past year (1.6%) is below its 5-year average (17.4% per year).
Earnings vs Industry: WAL earnings growth over the past year (1.6%) exceeded the Banks industry 1.4%.
Return on Equity
High ROE: WAL's Return on Equity (14.8%) 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 (10.7x) is moderate.
Allowance for Bad Loans: WAL has a sufficient allowance for bad loans (188%).
Low Risk Liabilities: 97% 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 (73%).
Low Risk Deposits: WAL's Loans to Deposits ratio (84%) is appropriate.
Level of Bad Loans: WAL has an appropriate level of bad loans (0.5%).
Dividend
What is Western Alliance Bancorporation current dividend yield, its reliability and sustainability?
1.08%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: WAL's dividend (1.08%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.26%).
High Dividend: WAL's dividend (1.08%) is low compared to the top 25% of dividend payers in the US market (3.5%).
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 has only been paying a dividend for 2 years, and since then payments have not increased.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (19.8%), WAL's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: WAL's dividends in 3 years are forecast to be thoroughly covered by earnings (14.5% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.0yrs
Average management tenure
CEO
Ken Vecchione (66 yo)
3yrs
Tenure
US$5,261,283
Compensation
Mr. Kenneth A. Vecchione, also known as Ken, has been Chief Executive Officer of Western Alliance Bancorporation and Western Alliance Bank since April 01, 2018. Mr. Vecchione served as President of Western...
CEO Compensation Analysis
Compensation vs Market: Ken's total compensation ($USD5.26M) 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
Experienced Management: WAL's management team is seasoned and experienced (5 years average tenure).
Board Members
Experienced Board: WAL's board of directors are seasoned and experienced ( 13.5 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$9.564b
- Shares outstanding: 102.44m
- Website: https://www.westernalliancebancorporation.com
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/04/13 22:16 |
| End of Day Share Price | 2021/04/13 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
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.