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.
No risks detected for WBS from our risk checks.
Webster Financial Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$58.14|
|52 Week High||US$29.87|
|52 Week Low||US$63.81|
|1 Month Change||20.15%|
|3 Month Change||21.51%|
|1 Year Change||72.32%|
|3 Year Change||-0.29%|
|5 Year Change||44.52%|
|Change since IPO||1,246.40%|
Recent News & Updates
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.
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...
|WBS||US Banks||US Market|
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.
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
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
|WBS fundamental statistics|
Is WBS overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|WBS income statement (TTM)|
|Cost of Revenue||US$0|
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
|Earnings per share (EPS)||3.55|
|Net Profit Margin||26.65%|
How did WBS perform over the long term?See historical performance and comparison
2.8%Current Dividend Yield
Is Webster Financial undervalued compared to its fair value and its price relative to the market?
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).
How is Webster Financial forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
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%).
How has Webster Financial performed over the past 5 years?
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.
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
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%).
What is Webster Financial current dividend yield, its reliability and sustainability?
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).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
John Ciulla (55 yo)
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.
Experienced Management: WBS's management team is seasoned and experienced (7.6 years average tenure).
Experienced Board: WBS's board of directors are considered experienced (6.1 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Webster Financial Corporation's employee growth, exchange listings and data sources
- 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
- Webster Financial Corporation
- 145 Bank Street
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/10/22 22:54|
|End of Day Share Price||2021/10/22 00:00|
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.