NYSE:WBS

Stock Analysis Report

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Market Cap

US$4.4b

Last Updated

2021/07/31 22:07 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Flawless balance sheet with high growth potential and pays a dividend.


Similar Companies

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 +/- 5% a week.

Volatility Over Time: WBS's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

0.5%

WBS

0.9%

US Banks

-0.5%

US Market


1 Year Return

76.4%

WBS

59.1%

US Banks

35.9%

US Market

Return vs Industry: WBS exceeded the US Banks industry which returned 59.1% over the past year.

Return vs Market: WBS exceeded the US Market which returned 35.9% over the past year.


Shareholder returns

WBSIndustryMarket
7 Day0.5%0.9%-0.5%
30 Day-11.5%-4.3%0.09%
90 Day-9.1%-4.4%3.2%
1 Year84.1%76.4%63.5%59.1%38.0%35.9%
3 Year-19.0%-26.9%17.3%7.2%62.8%52.6%
5 Year49.8%29.8%89.6%65.9%121.2%96.9%

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

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 ($48.1) is trading below our estimate of fair value ($99.15)

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 (13.4x) compared to the US Banks industry average (10.8x).

PE vs Market: WBS is good value based on its PE Ratio (13.4x) compared to the US market (18x).


Price to Earnings Growth Ratio

PEG Ratio: WBS is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: WBS is overvalued based on its PB Ratio (1.4x) 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?

54.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WBS's forecast earnings growth (54.1% per year) is above the savings rate (2%).

Earnings vs Market: WBS's earnings (54.1% per year) are forecast to grow faster than the US market (14.9% 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 (9.2% 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 (11.4%).


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 34.3%.


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?

3.33%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WBS's dividend (3.33%) is higher than the bottom 25% of dividend payers in the US market (1.31%).

High Dividend: WBS's dividend (3.33%) is low compared to the top 25% of dividend payers in the US market (3.54%).


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 (44.6%), 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 (31.1% payout ratio).


Next Steps

Management

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

7.3yrs

Average management tenure


CEO

John Ciulla (55 yo)

3.5yrs

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 ($USD3.49M) is below average for companies of similar size in the US market ($USD5.31M).

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 (7.3 years average tenure).


Board Members

Experienced Board: WBS's board of directors are considered experienced (5.8 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 company bio, 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$4.358b
  • 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


Biography

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/31 22:07
End of Day Share Price2021/07/30 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.