Loading...

Webster Financial

NYSE:WBS
Snowflake Description

Flawless balance sheet established dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
WBS
NYSE
$5B
Market Cap
  1. Home
  2. US
  3. Banks
Company description

Webster Financial Corporation operates as the 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. The last earnings update was 18 days ago. More info.


Add to Portfolio Compare Print
WBS Share Price and Events
7 Day Returns
-0.8%
NYSE:WBS
2.9%
US Banks
1.6%
US Market
1 Year Returns
-3.5%
NYSE:WBS
-8.1%
US Banks
3.2%
US Market
WBS Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Webster Financial (WBS) -0.8% -1.6% 14.4% -3.5% 52.6% 74.1%
US Banks 2.9% 1.7% 15% -8.1% 50.7% 42.7%
US Market 1.6% 2.1% 12.8% 3.2% 38.6% 43.6%
1 Year Return vs Industry and Market
  • WBS outperformed the Banks industry which returned -8.1% over the past year.
  • WBS underperformed the Market in United States of America which returned 3.2% over the past year.
Price Volatility
WBS
Industry
5yr Volatility vs Market

WBS Value

 Is Webster Financial undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Webster Financial to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data    Our intrinsic value calculation method has changed recently, learn more here.

Below are the data sources, inputs and calculation used to determine the intrinsic value for Webster Financial.

NYSE:WBS Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 12 analysts.
= Stable Book Value * Return on Equity
= $34.14 * 13.3%
$4.52
Book Value of Equity per Share Weighted future Book Value estimates from 10 analysts. $34.14
Discount Rate (Cost of Equity) See below 8.3%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:WBS
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Banks Unlevered Beta Simply Wall St/ S&P Global 0.64
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.641 (1 + (1- 21%) (51.94%))
0.936
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.94
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.936 * 5.96%)
8.31%

Discounted Cash Flow Calculation for NYSE:WBS using Excess Returns Model Model

The calculations below outline how an intrinsic value for Webster Financial is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

NYSE:WBS Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (13.3% – 8.31%) * $34.14)
$1.69
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $1.69 / (8.31% - 2.73%)
$30.29
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $34.14 + $30.29
$64.43
NYSE:WBS Discount to Share Price
Calculation Result
Value per share (USD) From above. $64.43
Current discount Discount to share price of $54.97
= -1 x ($54.97 - $64.43) / $64.43
14.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Webster Financial is available for.
Intrinsic value
15%
Share price is $54.97 vs Future cash flow value of $64.43
Current Discount Checks
For Webster Financial to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Webster Financial's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Webster Financial's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Webster Financial's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Webster Financial's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:WBS PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $3.83
NYSE:WBS Share Price ** NYSE (2019-03-19) in USD $54.97
United States of America Banks Industry PE Ratio Median Figure of 587 Publicly-Listed Banks Companies 13.41x
United States of America Market PE Ratio Median Figure of 3,056 Publicly-Listed Companies 17.77x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Webster Financial.

NYSE:WBS PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:WBS Share Price ÷ EPS (both in USD)

= 54.97 ÷ 3.83

14.37x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Webster Financial is overvalued based on earnings compared to the US Banks industry average.
  • Webster Financial is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Webster Financial's expected growth come at a high price?
Raw Data
NYSE:WBS PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 14.37x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts
6.4%per year
United States of America Banks Industry PEG Ratio Median Figure of 260 Publicly-Listed Banks Companies 1.25x
United States of America Market PEG Ratio Median Figure of 2,107 Publicly-Listed Companies 1.49x

*Line of best fit is calculated by linear regression .

NYSE:WBS PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 14.37x ÷ 6.4%

2.26x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Webster Financial is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Webster Financial's assets?
Raw Data
NYSE:WBS PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $29.74
NYSE:WBS Share Price * NYSE (2019-03-19) in USD $54.97
United States of America Banks Industry PB Ratio Median Figure of 592 Publicly-Listed Banks Companies 1.26x
United States of America Market PB Ratio Median Figure of 5,154 Publicly-Listed Companies 1.89x
NYSE:WBS PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:WBS Share Price ÷ Book Value per Share (both in USD)

= 54.97 ÷ 29.74

1.85x

* Primary Listing of Webster Financial.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Webster Financial is overvalued based on assets compared to the US Banks industry average.
X
Value checks
We assess Webster Financial's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Banks industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Banks industry average (and greater than 0)? (1 check)
  5. Webster Financial has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

WBS Future Performance

 How is Webster Financial expected to perform in the next 1 to 3 years based on estimates from 12 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
6.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Webster Financial expected to grow at an attractive rate?
  • Webster Financial's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Webster Financial's earnings growth is positive but not above the United States of America market average.
  • Webster Financial's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:WBS Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:WBS Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts 6.4%
NYSE:WBS Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 12 Analysts 7%
United States of America Banks Industry Earnings Growth Rate Market Cap Weighted Average 4.3%
United States of America Banks Industry Revenue Growth Rate Market Cap Weighted Average 5.3%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:WBS Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:WBS Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 1,415 428 1
2020-12-31 1,333 404 8
2019-12-31 1,271 386 8
NYSE:WBS Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 1,147 469 352
2018-09-30 1,105 641 323
2018-06-30 1,069 519 288
2018-03-31 1,042 433 268
2017-12-31 1,015 445 247
2017-09-30 1,000 511 235
2017-06-30 976 481 222
2017-03-31 949 528 211
2016-12-31 927 398 198
2016-09-30 902 308 193
2016-06-30 886 301 192
2016-03-31 868 281 193

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Webster Financial's earnings are expected to grow by 6.4% yearly, however this is not considered high growth (20% yearly).
  • Webster Financial's revenue is expected to grow by 7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:WBS Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below

All data from Webster Financial Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:WBS Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 4.69 4.71 4.66 2.00
2020-12-31 4.37 4.71 4.10 14.00
2019-12-31 4.17 4.31 4.05 14.00
NYSE:WBS Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 3.83
2018-09-30 3.51
2018-06-30 3.13
2018-03-31 2.91
2017-12-31 2.68
2017-09-30 2.55
2017-06-30 2.42
2017-03-31 2.30
2016-12-31 2.17
2016-09-30 2.11
2016-06-30 2.10
2016-03-31 2.12

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Webster Financial is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Webster Financial's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Webster Financial has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

WBS Past Performance

  How has Webster Financial performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Webster Financial's growth in the last year to its industry (Banks).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Webster Financial's year on year earnings growth rate has been positive over the past 5 years.
  • Webster Financial's 1-year earnings growth exceeds its 5-year average (42.5% vs 12.8%)
  • Webster Financial's earnings growth has not exceeded the US Banks industry average in the past year (42.5% vs 43.2%).
Earnings and Revenue History
Webster Financial's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Webster Financial Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:WBS Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 1,147.25 351.70 575.97
2018-09-30 1,104.93 322.61 571.91
2018-06-30 1,069.37 287.58 561.03
2018-03-31 1,041.57 267.57 551.27
2017-12-31 1,014.87 246.83 540.74
2017-09-30 1,000.27 234.76 535.78
2017-06-30 976.03 221.97 529.31
2017-03-31 948.92 210.84 519.17
2016-12-31 926.64 198.42 501.49
2016-09-30 902.48 192.57 490.75
2016-06-30 886.43 192.11 477.21
2016-03-31 868.12 193.35 467.49
2015-12-31 853.10 195.36 454.38
2015-09-30 838.81 193.94 441.61
2015-06-30 821.28 192.40 428.16
2015-03-31 805.07 187.82 413.46
2014-12-31 793.30 188.50 403.14
2014-09-30 777.52 181.27 400.45
2014-06-30 766.49 178.13 397.78
2014-03-31 763.83 176.67 397.77
2013-12-31 754.28 168.04 398.99
2013-09-30 756.84 174.87 396.39
2013-06-30 757.47 174.56 399.76
2013-03-31 753.39 171.43 401.99
2012-12-31 750.17 170.49 404.62
2012-09-30 739.21 162.16 409.27
2012-06-30 732.22 159.15 405.70
2012-03-31 727.59 151.89 405.62

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Webster Financial has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Webster Financial used its assets more efficiently than the US Banks industry average last year based on Return on Assets.
  • Unable to establish if Webster Financial improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess Webster Financial's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Banks industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Webster Financial has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

WBS Health

 How is Webster Financial's financial position? (This company is analysed differently as a bank or financial institution)

This company is a bank or financial institution.

Fundamentally a bank's business is based upon borrowing and lending money, for this reason they typically have high levels of debt and we analyse them differently.
Net Worth
Balance sheet
This treemap shows a more detailed breakdown of Webster Financial's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Webster Financial Company Filings, last reported 2 months ago.

NYSE:WBS Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 2,886.52 2,634.77 250.80
2018-09-30 2,816.20 2,232.39 226.87
2018-06-30 2,761.72 2,665.50 217.62
2018-03-31 2,716.14 2,359.25 140.94
2017-12-31 2,701.96 2,546.28 174.53
2017-09-30 2,638.79 2,636.44 166.51
2017-06-30 2,605.13 2,866.28 195.51
2017-03-31 2,560.36 2,956.19 164.77
2016-12-31 2,527.01 4,018.39 161.52
2016-09-30 2,511.63 3,614.14 276.97
2016-06-30 2,476.97 3,588.64 338.55
2016-03-31 2,437.97 3,504.83 256.17
2015-12-31 2,413.96 4,046.25 246.20
2015-09-30 2,402.55 3,899.98 349.89
2015-06-30 2,379.70 3,777.41 393.67
2015-03-31 2,355.58 2,952.59 426.50
2014-12-31 2,322.82 4,373.20 408.83
2014-09-30 2,310.85 3,778.03 355.88
2014-06-30 2,284.48 3,874.94 352.60
2014-03-31 2,239.63 3,751.88 324.63
2013-12-31 2,209.19 3,636.45 247.79
2013-09-30 2,167.66 3,230.91 323.84
2013-06-30 2,127.48 3,095.23 254.21
2013-03-31 2,128.13 3,203.10 218.04
2012-12-31 2,093.53 3,281.22 362.36
2012-09-30 1,983.68 3,163.94 302.10
2012-06-30 1,931.55 3,264.98 347.23
2012-03-31 1,894.94 3,145.67 297.69
BANK ANALYSIS

This company is a bank or financial institution, which is analysed accordingly below.

Below we check the amount of loans the bank has, how many of those are bad, and its ability to cover any bad loans.
  • Webster Financial has an acceptable proportion of non-loan assets held.
  • Webster Financial's liabilities are made up of primarily low risk sources of funding.
  • Loans at Webster Financial are broadly funded by customer deposits.
  • Webster Financial's level of assets compared to its equity is low (i.e. an appropriate level of borrowing to fund lending).
  • Webster Financial has a sufficient allowance for bad loans.
  • Webster Financial has an acceptable level of bad loans (less than 2%).
X
Financial health checks
We assess Webster Financial's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Webster Financial has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

WBS Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.4%
Current annual income from Webster Financial dividends. Estimated to be 2.67% next year.
If you bought $2,000 of Webster Financial shares you are expected to receive $48 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Webster Financial's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).
  • Webster Financial's dividend is below the markets top 25% of dividend payers in United States of America (3.63%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:WBS Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
United States of America Banks Industry Average Dividend Yield Market Cap Weighted Average of 470 Stocks 2.8%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2004 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:WBS Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 1.91 2.00
2020-12-31 1.47 12.00
2019-12-31 1.39 12.00
NYSE:WBS Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-01-29 1.320 2.362
2018-10-23 1.320 2.411
2018-07-23 1.320 2.075
2018-04-23 1.320 2.049
2018-01-30 1.040 1.861
2017-10-24 1.040 1.857
2017-07-24 1.040 2.082
2017-04-24 1.040 2.020
2017-01-31 1.000 1.920
2016-10-25 1.000 2.022
2016-07-25 1.000 2.659
2016-04-25 1.000 2.778
2016-01-26 0.920 2.636
2015-10-27 0.920 2.488
2015-07-27 0.920 2.529
2015-04-20 0.920 2.400
2015-01-27 0.800 2.294
2014-10-28 0.800 2.539
2014-07-28 0.800 2.738
2014-04-21 0.800 2.630
2014-01-28 0.600 1.958
2013-10-29 0.600 2.027
2013-07-29 0.600 2.261
2013-04-22 0.600 2.445
2013-01-30 0.400 1.732
2012-10-22 0.400 1.883
2012-07-23 0.400 1.804
2012-04-23 0.400 1.902
2012-01-23 0.200 0.900
2011-10-24 0.200 1.019
2011-07-26 0.200 1.165
2011-04-26 0.200 0.966
2011-01-24 0.040 0.181
2010-10-26 0.040 0.217
2010-07-19 0.040 0.229
2010-04-19 0.040 0.206
2010-01-26 0.040 0.237
2009-10-20 0.040 0.318
2009-07-20 0.040 0.331
2009-04-21 0.040 0.565
2009-03-20 0.040 0.814

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Webster Financial's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.4x coverage).
X
Income/ dividend checks
We assess Webster Financial's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Webster Financial afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Webster Financial has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

WBS Management

 What is the CEO of Webster Financial's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
John Ciulla
COMPENSATION $2,290,226
AGE 52
TENURE AS CEO 1.2 years
CEO Bio

Mr. John R. Ciulla has been the President of Webster Financial Corp. since October 28, 2015 and has been its Chief Executive Officer and a Director since January 1, 2018. He is also the President, Chief Executive Officer, and Director of Webster Bank, N.A. Mr. Ciulla served as the President of Fairfield and Westchester Counties Region of Webster Bank N.A. since September 17, 2007. Mr. Ciulla joined Webster in 2004. He served as Executive Vice President of Commercial Banking at Webster Financial Corp. Mr. Ciulla served as an Executive Vice President of Commercial Banking at Webster Financial Corporation and Webster Bank, National Association since January 1, 2014. He served as Chief Credit Risk Officer and Executive Vice President of Webster Bank National Association, a subsidiary of Webster Financial Corp. from January 2008 to January 1, 2014 and as its Chairman of Regional President Council since September 2010. Mr. Ciulla served as the Head of Middle Market banking group at Webster Bank, National Association from September 2010 to January 1, 2014. He served as Executive Vice President of Middle Market - Webster Bank N A of Webster Financial Corp. He joined Webster Bank NA and serves as its Senior Vice President of Commercial Banking Unit, where he was responsible for several business units. He was promoted from Executive Vice President and Head of Middle Market Banking to lead Commercial Banking in January 2014 and to President in October 2015. Mr. Ciulla assumes the added responsibilities of coordinating Webster's business and community affairs activities in this region. He served as Managing Director of Media & Communications of FirstLight Financial Corporation. He spent three years in commercial banking with Webster. His career includes having been Managing Director of The Bank of New York, practicing law in New York City from 1997 to 2004 with McDermott Will & Emery and with Hughes Hubbard & Reed and banking experience with Bankers Trust Company in New York, People's Bank in Bridgeport and Connecticut National Bank in Hartford and New Haven. He has been Director of Federal Reserve Bank of Boston. He has been a Director of Webster Bank, N.A. since October 28, 2015. He also serves on the board of the Connecticut Business and Industry Association (CBIA) and was its Chairman. Mr. Ciulla is also a member of the board of the Business Council of Fairfield County. Mr. Ciulla holds B.A. in political science and history from Williams College and has a J.D. from Fordham University and an M.B.A. from Columbia University.

CEO Compensation
  • John's compensation has increased by more than 20% in the past year.
  • John's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Webster Financial management team in years:

5
Average Tenure
49
Average Age
  • The average tenure for the Webster Financial management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

John Ciulla

TITLE
President
COMPENSATION
$2M
AGE
52
TENURE
1.2 yrs

Glenn Maclnnes

TITLE
Executive VP & CFO
COMPENSATION
$2M
AGE
57
TENURE
7.8 yrs

Nitin Mhatre

TITLE
Executive VP & Head of Community Banking
COMPENSATION
$1M
AGE
47
TENURE
10.2 yrs

Chris Motl

TITLE
Executive VP & Head of Commercial Banking
COMPENSATION
$2M
AGE
47
TENURE
2.2 yrs

Al Wang

TITLE
Chief Accounting Officer
AGE
43
TENURE
1.5 yrs

Karen Higgins-Carter

TITLE
Executive VP & Chief Information Officer
AGE
48
TENURE
0.7 yrs

Terry Mangan

TITLE
Senior Vice President of Investor Relations

Harriet Wolfe

TITLE
Executive VP
AGE
65
TENURE
19.5 yrs

Bernard Garrigues

TITLE
Executive VP & Chief HR Officer
AGE
59

Daniel Bley

TITLE
Executive VP & Chief Risk Officer
COMPENSATION
$1M
AGE
49
TENURE
8.6 yrs
Board of Directors Tenure

Average tenure and age of the Webster Financial board of directors in years:

11.4
Average Tenure
67
Average Age
  • The average tenure for the Webster Financial board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Jim Smith

TITLE
Non-Executive Chairman of the Board
COMPENSATION
$6M
AGE
69
TENURE
24.2 yrs

John Ciulla

TITLE
President
COMPENSATION
$2M
AGE
52
TENURE
1.2 yrs

John Crawford

TITLE
Lead Independent Director
COMPENSATION
$167K
AGE
73
TENURE
23.2 yrs

Laurence Morse

TITLE
Director
COMPENSATION
$121K
AGE
67
TENURE
15.2 yrs

Karen Osar

TITLE
Director
COMPENSATION
$141K
AGE
69
TENURE
12.9 yrs

Mark Pettie

TITLE
Director
COMPENSATION
$140K
AGE
62
TENURE
9.9 yrs

Joel Becker

TITLE
Director
COMPENSATION
$123K
AGE
70
TENURE
33.2 yrs

Bill Atwell

TITLE
Director
COMPENSATION
$123K
AGE
67
TENURE
4.7 yrs

Liz Flynn

TITLE
Director
COMPENSATION
$125K
AGE
57
TENURE
4.5 yrs

Lauren States

TITLE
Director
COMPENSATION
$124K
AGE
61
TENURE
2.5 yrs
Who owns this company?
Recent Insider Trading
  • Webster Financial insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
08. Feb 19 Sell Karen Osar Individual 08. Feb 19 08. Feb 19 -4,000 $55.29 $-221,148
08. Feb 19 Sell John Crawford Individual 07. Feb 19 07. Feb 19 -2,407 $55.89 $-134,484
06. Feb 19 Sell James Smith Individual 04. Feb 19 05. Feb 19 -55,000 $55.20 $-3,028,110
04. Feb 19 Sell James Smith Individual 31. Jan 19 31. Jan 19 -45,859 $53.94 $-2,473,772
31. Jul 18 Sell Daniel Bley Individual 30. Jul 18 30. Jul 18 -1,469 $66.36 $-97,484
26. Jul 18 Sell Charles Wilkins Individual 25. Jul 18 25. Jul 18 -3,000 $67.51 $-202,544
24. Apr 18 Sell Daniel Bley Individual 23. Apr 18 23. Apr 18 -4,900 $59.94 $-293,706
24. Apr 18 Sell Dawn Morris Individual 23. Apr 18 23. Apr 18 -2,431 $60.51 $-147,100
X
Management checks
We assess Webster Financial's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Webster Financial has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

WBS News

Simply Wall St News

What Do Analysts Think About The Future Of Webster Financial Corporation's (NYSE:WBS)?

In December 2018, Webster Financial Corporation (NYSE:WBS) announced its most recent earnings update, whicha

Simply Wall St -

Intrinsic Calculation For Webster Financial Corporation (NYSE:WBS) Shows Investors Are Overpaying

Given that these companies adhere to a different set of rules relative to other companies, their cash flows should also be valued differently. … The tiered capital structure is common for banks to abide by, in order to ensure they maintain a sufficient level of cash for their customers.

Simply Wall St -

Can Webster Financial Corporation (NYSE:WBS) Survive The Next Financial Crisis?

As a small-cap finance stock with a market capitalisation of US$5.1b, the risk and profitability of Webster Financial Corporation (NYSE:WBS) are largely tied to the underlying economic growth of the region it operates in US. … These reforms target bank level regulation and aims to improve the banking sector’s ability to absorb shocks arising from economic stress which could expose financial institutions to vulnerabilities. … Low levels of leverage coupled with sufficient liquidity may place Webster Financial in a safe position in the face of adverse headwinds.

Simply Wall St -

Why Webster Financial Corporation (NYSE:WBS) May Not Be As Risky Than You Think

Risk associated with repayment is measured by bad debt which is written off as an expense, impacting Webster Financial’s bottom line. … Looking through a risk-lens is a useful way to assess the attractiveness of Webster Financial's a stock investment. … See our latest analysis for Webster Financial

Simply Wall St -

Have Insiders Been Selling Webster Financial Corporation (NYSE:WBS) Shares?

So shareholders might well want to know whether insiders have been buying or selling shares in Webster Financial Corporation (NYSE:WBS). … That means that an insider was selling shares at around the current price of US$45.55. … We generally tread carefully if insiders have been selling on market, even if they sold slightly above the current price.

Simply Wall St -

At US$52.61, Is It Time To Put Webster Financial Corporation (NYSE:WBS) On Your Watch List?

Webster Financial Corporation (NYSE:WBS), operating in the financial services industry based in United States,. … A question to answer is whether Webster Financial's current trading price of $52.61 reflective of the actual value of the? … Let’s take a look at Webster Financial’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change

Simply Wall St -

Should We Worry About Webster Financial Corporation's (NYSE:WBS) P/E Ratio?

To keep it practical, we'll show how Webster Financial Corporation's (NYSE:WBS) P/E ratio could help you assess the value on offer. … Based on the last twelve months, Webster Financial's P/E ratio is 16.8. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

What To Know Before Buying Webster Financial Corporation (NYSE:WBS) For Its Dividend

Historically, Webster Financial Corporation (NYSE:WBS) has paid dividends to shareholders, and these days it yields 2.2%. … Let's dig deeper into whether Webster Financial should have a place in your portfolio. … Check out our latest analysis for Webster Financial

Simply Wall St -

Is It Too Late To Buy Webster Financial Corporation (NYSE:WBS) At Its October Price?

Looking at Webster Financial Corporation’s (NYSE:WBS) fundamentals some investors are wondering if its last closing price of $59.6 represents a good value for money for this high growth stock. … View our latest analysis for Webster Financial? … Analysts are predicting good growth prospects for Webster Financial over the next couple of years

Simply Wall St -

Webster Financial Corporation (NYSE:WBS) Investors Are Paying Above The Intrinsic Value

Valuing WBS, a bank stock, can be daunting since these financial companies have cash flows that are impacted by regulations that are not imposed upon other industries. … The tiered capital structure is common for banks to abide by, in order to ensure they maintain a sufficient level of cash for their customers.

Simply Wall St -

WBS Company Info

Description

Webster Financial Corporation operates as the 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. This segment also offers relationship banking services for high net worth clients, not-for-profit organizations, and business clients with deposit and loan products; and asset management, financial planning, and trust services. The HSA Bank segment offers health savings accounts, health reimbursement accounts, flexible spending accounts, and other financial solutions to employers for the benefit of their employees and individuals. The Community Banking segment offers deposit and fee-based services, residential mortgages, home equity lines/loans, unsecured consumer loans, and credit cards to consumers, as well as investment and securities-related services, including brokerage and investment advice through a strategic partnership with LPL Financial Holdings Inc. This segment also provides credit, deposit, and cash flow management products to businesses and professional service firms. The company also provides telephone and mobile banking services, as well as through its Website. As of February 21, 2019, it operated 157 banking centers and 316 ATMs. Webster Financial Corporation was founded in 1935 and is headquartered in Waterbury, Connecticut.

Details
Name: Webster Financial Corporation
WBS
Exchange: NYSE
Founded: 1935
$5,073,093,842
92,288,409
Website: http://public.websteronline.com
Address: Webster Financial Corporation
145 Bank Street,
Waterbury,
Connecticut, 06702,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE WBS Common Stock New York Stock Exchange US USD 12. Dec 1986
DB WED Common Stock Deutsche Boerse AG DE EUR 12. Dec 1986
NYSE WBS.PRF DEP SHS RP PFD F New York Stock Exchange US USD 05. Dec 2017
Number of employees
Current staff
Staff numbers
3,265
Webster Financial employees.
Industry
Regional Banks
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/19 23:46
End of day share price update: 2019/03/19 00:00
Last estimates confirmation: 2019/03/19
Last earnings filing: 2019/03/01
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.