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. More Details
Flawless balance sheet with high growth potential and pays a dividend.
Share Price & News
How has Webster Financial's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: WBS is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: WBS's weekly volatility (6%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: WBS exceeded the US Banks industry which returned 78% over the past year.
Return vs Market: WBS exceeded the US Market which returned 52.4% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is Webster Financial's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall StWebster Financial Corporation (NYSE:WBS) Goes Ex-Dividend Soon
2 weeks ago | Simply Wall StShareholders Will Probably Not Have Any Issues With Webster Financial Corporation's (NYSE:WBS) CEO Compensation
1 month ago | Simply Wall StShareholders Are Thrilled That The Webster Financial (NYSE:WBS) Share Price Increased 147%
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 ($55.39) is trading below our estimate of fair value ($90.74)
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 (17.7x) compared to the US Banks industry average (12.1x).
PE vs Market: WBS is good value based on its PE Ratio (17.7x) compared to the US market (20.6x).
Price to Earnings Growth Ratio
PEG Ratio: WBS is good value based on its PEG Ratio (0.4x)
Price to Book Ratio
PB vs Industry: WBS is overvalued based on its PB Ratio (1.6x) 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 10 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: WBS's forecast earnings growth (46.8% per year) is above the savings rate (2%).
Earnings vs Market: WBS's earnings (46.8% per year) are forecast to grow faster than the US market (16% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: WBS's revenue (22.2% per year) is forecast to grow faster than the US market (9.3% per year).
High Growth Revenue: WBS's revenue (22.2% 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 (11.4%).
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 (24.7%) are lower than last year (27.6%).
Past Earnings Growth Analysis
Earnings Trend: WBS's earnings have grown by 8.6% per year over the past 5 years.
Accelerating Growth: WBS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: WBS had negative earnings growth (-9.8%) over the past year, making it difficult to compare to the Banks industry average (17.1%).
Return on Equity
High ROE: WBS's Return on Equity (8.9%) 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 (10.2x) is moderate.
Allowance for Bad Loans: WBS has a sufficient allowance for bad loans (218%).
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 (74%) is appropriate.
Level of Bad Loans: WBS has an appropriate level of bad loans (0.7%).
What is Webster Financial current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: WBS's dividend (2.89%) is higher than the bottom 25% of dividend payers in the US market (1.24%).
High Dividend: WBS's dividend (2.89%) is low compared to the top 25% of dividend payers in the US market (3.42%).
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 reasonable payout ratio (51.1%), WBS's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: WBS's dividends in 3 years are forecast to be well covered by earnings (34.6% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
John Ciulla (54 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 ($USD6.49M).
Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.
Experienced Management: WBS's management team is considered experienced (4.3 years average tenure).
Experienced Board: WBS's board of directors are considered experienced (5.7 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: WBS insiders have only sold shares 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 company bio, 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$4.944b
- Shares outstanding: 90.41m
- Website: https://public.websteronline.com
Number of Employees
- Webster Financial Corporation
- 145 Bank Street
- United States
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 ...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/05/06 02:41|
|End of Day Share Price||2021/05/05 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.