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WBS

Webster FinancialNYSE:WBS Stock Report

Market Cap

US$5.3b

7D

2.0%

1Y

72.3%

Updated

22 Oct, 2021

Data

Company Financials +
WBS fundamental analysis
Snowflake Score
Valuation4/6
Future Growth5/6
Past Performance4/6
Financial Health6/6
Dividends5/6

WBS Overview

Webster Financial Corporation operates as the bank holding company for Webster Bank, National Association that provides a range of banking, investment, and financial services to individuals, families, and businesses in the United States.

Webster Financial Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Webster Financial
Historical stock prices
Current Share PriceUS$58.14
52 Week HighUS$29.87
52 Week LowUS$63.81
Beta1.45
1 Month Change20.15%
3 Month Change21.51%
1 Year Change72.32%
3 Year Change-0.29%
5 Year Change44.52%
Change since IPO1,246.40%

Recent News & Updates

Aug 07

Webster Financial Looks Undervalued On Its Post-Merger Potential, But It Has To Convince A Skeptical Market

Webster Financial had a pretty good second quarter, and there looks to be real strength emerging again in the commercial lending operations. The pending merger with Sterling is clearly the bigger driver now, though, with the market skeptical of mergers of equals in general, and not sold on the benefits available here. This is a "show me" story tied to Webster Financial management's ability to execute, but the potential returns look attractive today.

Jul 23
Webster Financial (NYSE:WBS) Has Announced A Dividend Of US$0.40

Webster Financial (NYSE:WBS) Has Announced A Dividend Of US$0.40

Webster Financial Corporation ( NYSE:WBS ) has announced that it will pay a dividend of US$0.40 per share on the 17th...

Shareholder Returns

WBSUS BanksUS Market
7D2.0%3.3%1.7%
1Y72.3%73.9%30.3%

Return vs Industry: WBS matched the US Banks industry which returned 72.7% over the past year.

Return vs Market: WBS exceeded the US Market which returned 31.1% over the past year.

Price Volatility

Is WBS's price volatile compared to industry and market?
WBS volatility
WBS Beta1.45
Industry Beta1.32
Market Beta1

Stable Share Price: WBS is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: WBS's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19353,345John Ciullahttps://public.websteronline.com

Webster Financial Corporation operates as the bank holding company for Webster Bank, National Association that provides a range of banking, investment, and financial services to individuals, families, and businesses in the United States. It operates through three segments: Commercial Banking, HSA Bank, and Community Banking. The Commercial Banking segment provides lending, deposit, and cash management services to middle market companies; and commercial and industrial lending and leasing, commercial real estate lending, equipment financing, and asset-based lending, as well as treasury and payment services.

Webster Financial Fundamentals Summary

How do Webster Financial's earnings and revenue compare to its market cap?
WBS fundamental statistics
Market CapUS$5.27b
Earnings (TTM)US$321.79m
Revenue (TTM)US$1.21b

16.4x

P/E Ratio

1.7x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
WBS income statement (TTM)
RevenueUS$1.21b
Cost of RevenueUS$0
Gross ProfitUS$1.21b
ExpensesUS$885.79m
EarningsUS$321.79m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)3.55
Gross Margin100.00%
Net Profit Margin26.65%
Debt/Equity Ratio36.4%

How did WBS perform over the long term?

See historical performance and comparison

Dividends

2.8%

Current Dividend Yield

45%

Payout Ratio

Valuation

Is Webster Financial 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: WBS ($58.14) is trading below our estimate of fair value ($117.85)

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


Price To Earnings Ratio

PE vs Industry: WBS is poor value based on its PE Ratio (16.4x) compared to the US Banks industry average (11.2x).

PE vs Market: WBS is good value based on its PE Ratio (16.4x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: WBS is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: WBS is overvalued based on its PB Ratio (1.7x) compared to the US Banks industry average (1.1x).


Future Growth

How is Webster Financial forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

52.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WBS's forecast earnings growth (52.3% per year) is above the savings rate (2%).

Earnings vs Market: WBS's earnings (52.3% per year) are forecast to grow faster than the US market (15.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: WBS's revenue (27.1% per year) is forecast to grow faster than the US market (9.9% per year).

High Growth Revenue: WBS's revenue (27.1% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WBS's Return on Equity is forecast to be low in 3 years time (12.2%).


Past Performance

How has Webster Financial performed over the past 5 years?

7.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WBS has high quality earnings.

Growing Profit Margin: WBS's current net profit margins (26.6%) are higher than last year (24.9%).


Past Earnings Growth Analysis

Earnings Trend: WBS's earnings have grown by 7.7% per year over the past 5 years.

Accelerating Growth: WBS's earnings growth over the past year (20.9%) exceeds its 5-year average (7.7% per year).

Earnings vs Industry: WBS earnings growth over the past year (20.9%) underperformed the Banks industry 37.1%.


Return on Equity

High ROE: WBS's Return on Equity (10%) is considered low.


Financial Health

How is Webster 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: WBS's Assets to Equity ratio (10.1x) is moderate.

Allowance for Bad Loans: WBS has a sufficient allowance for bad loans (255%).

Low Risk Liabilities: 95% of WBS's liabilities are made up of primarily low risk sources of funding.

Loan Level: WBS has an appropriate level of Loans to Assets ratio (63%).

Low Risk Deposits: WBS's Loans to Deposits ratio (73%) is appropriate.

Level of Bad Loans: WBS has an appropriate level of bad loans (0.6%).


Dividend

What is Webster Financial current dividend yield, its reliability and sustainability?

2.75%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WBS's dividend (2.75%) is higher than the bottom 25% of dividend payers in the US market (1.27%).

High Dividend: WBS's dividend (2.75%) is low compared to the top 25% of dividend payers in the US market (3.49%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (44.7%), WBS's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WBS's dividends in 3 years are forecast to be well covered by earnings (31.7% payout ratio).


Next Steps

Management

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

7.6yrs

Average management tenure


CEO

John Ciulla (55 yo)

3.75yrs

Tenure

US$3,487,859

Compensation

Mr. John R. Ciulla has been the President of Webster Financial Corp. since October 28, 2015, Chief Executive Officer and a Director since January 1, 2018. He serves as Chairman of the Board at Webster Fina...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD3.49M) is below average for companies of similar size in the US market ($USD6.34M).

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


Leadership Team

Experienced Management: WBS's management team is seasoned and experienced (7.6 years average tenure).


Board Members

Experienced Board: WBS's board of directors are considered experienced (6.1 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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

Webster Financial Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: Webster Financial Corporation
  • Ticker: WBS
  • Exchange: NYSE
  • Founded: 1935
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$5.267b
  • Shares outstanding: 90.59m
  • Website: https://public.websteronline.com

Number of Employees


Location

  • Webster Financial Corporation
  • 145 Bank Street
  • Waterbury
  • Connecticut
  • 6702
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/22 22:54
End of Day Share Price2021/10/22 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.