NYSE:WBS

Stock Analysis Report

Executive Summary

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.

Snowflake

Fundamentals

Flawless balance sheet with proven track record 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


Market Performance


7 Day Return

2.4%

WBS

1.7%

US Banks

1.3%

US Market


1 Year Return

-22.3%

WBS

0.3%

US Banks

5.9%

US Market

Return vs Industry: WBS underperformed the US Banks industry which returned 0.3% over the past year.

Return vs Market: WBS underperformed the US Market which returned 5.9% over the past year.


Shareholder returns

WBSIndustryMarket
7 Day2.4%1.7%1.3%
30 Day-8.2%-2.4%-1.9%
90 Day-1.6%1.0%-1.8%
1 Year-20.1%-22.3%3.2%0.3%8.3%5.9%
3 Year30.7%22.1%52.1%41.7%45.6%36.2%
5 Year78.8%58.6%69.8%51.4%66.1%47.9%

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?

20.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: WBS ($45.22) is trading below our estimate of fair value ($56.53)

Significantly Undervalued: WBS is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: WBS is good value based on its PE Ratio (10.7x) compared to the Banks industry average (12.5x).

PE vs Market: WBS is good value based on its PE Ratio (10.7x) compared to the US market (17.5x).


Price to Earnings Growth Ratio

Low PEG Ratio: WBS's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: WBS is overvalued based on its PB Ratio (1.4x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

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

-0.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WBS's earnings are forecast to decline over the next 3 years (-0.7% per year).

Earnings vs Market: WBS's earnings are forecast to decline over the next 3 years (-0.7% per year).

High Growth Earnings: WBS's earnings are forecast to decline over the next 3 years.

Revenue vs Market: WBS's revenue (2.9% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: WBS's revenue (2.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: WBS's Return on Equity is forecast to be low in 3 years time (11.5%).


Next Steps

Past Performance

How has Webster Financial performed over the past 5 years?

16.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: WBS's earnings have grown by 16.2% per year over the past 5 years.

Accelerating Growth: WBS's earnings growth over the past year (34.8%) exceeds its 5-year average (16.2% per year).

Earnings vs Industry: WBS earnings growth over the past year (34.8%) exceeded the Banks industry 31.8%.


Return on Equity

High ROE: WBS's Return on Equity (12.9%) is considered low.


Return on Assets

ROA vs Industry: WBS has a higher Return on Assets than the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate WBS's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

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

Inventory Level: WBS has a low level of unsold assets or inventory.

Debt Coverage by Assets: WBS's debt is not covered by short term assets (assets are 0.2x debt).


Financial Institutions Analysis

Asset Level: WBS's level of assets compared to its equity is low.

Allowance for Bad Loans: WBS has a sufficient allowance for bad loans.

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

Loan Level: WBS has an acceptable proportion of non-loan assets held.

Low Risk Deposits: WBS's loans are broadly funded by customer deposits.

Level of Bad Loans: WBS has an appropriate level of bad loans (0.77%)


Next Steps

Dividend

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

3.54%

Current Dividend Yield


Dividend Yield vs Market

company3.5%marketbottom25%1.5%markettop25%3.8%industryaverage3.1%forecastin3Years3.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: WBS's dividend (3.54%) is higher than the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: WBS's dividend (3.54%) is low compared to the top 25% of dividend payers in the US market (3.77%).

Stable Dividend: WBS's dividend payments have been volatile 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 (32.9%), 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 (41.1% payout ratio).


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

John Ciulla (53yo)

1.8yrs

Tenure

US$3,213,026

Compensation

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 Ex ...


CEO Compensation Analysis

Compensation vs. Market: John has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

Compensation vs Earnings: John's compensation has increased by more than 20% in the past year.


Management Age and Tenure

2.8yrs

Average Tenure

51yo

Average Age

Experienced Management: WBS's management team is considered experienced (2.8 years average tenure).


Board Age and Tenure

10.5yrs

Average Tenure

65.5yo

Average Age

Experienced Board: WBS's board of directors are seasoned and experienced ( 10.5 years average tenure).


Insider Trading

Insider Buying: WBS insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$102,90601 Aug 19
Daniel Bley
EntityIndividual
Shares2,000
Max PriceUS$51.45
SellUS$51,28030 Jul 19
John Crawford
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,000
Max PriceUS$51.28
SellUS$49,49024 Jul 19
John Crawford
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,000
Max PriceUS$49.49
SellUS$32,16006 May 19
John Crawford
EntityIndividual
Role
Member of the Board of Directors
Director
Shares600
Max PriceUS$53.60
SellUS$80,14501 May 19
John Crawford
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,500
Max PriceUS$53.43
SellUS$209,57930 Apr 19
Daniel Bley
EntityIndividual
Shares4,000
Max PriceUS$52.39
SellUS$221,14808 Feb 19
Karen Osar
EntityIndividual
Role
Member of the Board of Directors
Director
Shares4,000
Max PriceUS$55.29
SellUS$134,48408 Feb 19
John Crawford
EntityIndividual
Role
Member of the Board of Directors
Director
Shares2,407
Max PriceUS$55.89
SellUS$3,028,11006 Feb 19
James Smith
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman of the Board
Shares55,000
Max PriceUS$55.20
SellUS$2,473,77204 Feb 19
James Smith
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman of the Board
Shares45,859
Max PriceUS$53.94

Ownership Breakdown


Management Team

  • Harriet Wolfe (66yo)

    Executive VP

    • Tenure: 20.1yrs
  • Terry Mangan

    Senior Vice President of Investor Relations

    • Tenure: 0yrs
  • John Ciulla (53yo)

    President

    • Tenure: 1.8yrs
    • Compensation: US$3.21m
  • Nitin Mhatre (48yo)

    Executive VP & Head of Community Banking

    • Tenure: 10.8yrs
    • Compensation: US$1.10m
  • Glenn MacInnes (58yo)

    Executive VP & CFO

    • Tenure: 8.4yrs
    • Compensation: US$1.56m
  • Chris Motl (48yo)

    Executive VP & Head of Commercial Banking

    • Tenure: 2.8yrs
    • Compensation: US$1.26m
  • Chad Wilkins (57yo)

    Executive Vice President

    • Tenure: 0yrs
    • Compensation: US$1.06m
  • Al Wang (44yo)

    Senior VP & Chief Accounting Officer

    • Tenure: 2.1yrs
  • Alice Ferreira

    Senior Vice President of Corporate Communications & Public Affairs

    • Tenure: 0yrs
  • Karen Higgins-Carter (49yo)

    Executive VP & Chief Information Officer

    • Tenure: 1.3yrs

Board Members

  • Laurence Morse (68yo)

    Director

    • Tenure: 15.8yrs
    • Compensation: US$133.71k
  • John Crawford (74yo)

    Director

    • Tenure: 23.8yrs
    • Compensation: US$169.85k
  • Jim Smith (70yo)

    Non-Executive Chairman of the Board

    • Tenure: 24.8yrs
    • Compensation: US$2.70m
  • Karen Osar (70yo)

    Director

    • Tenure: 13.5yrs
    • Compensation: US$144.58k
  • Bill Atwell (68yo)

    Lead Diector

    • Tenure: 0yrs
    • Compensation: US$125.46k
  • Mark Pettie (63yo)

    Director

    • Tenure: 10.5yrs
    • Compensation: US$142.83k
  • John Ciulla (53yo)

    President

    • Tenure: 1.8yrs
    • Compensation: US$3.21m
  • Liz Flynn (58yo)

    Director

    • Tenure: 5.1yrs
    • Compensation: US$127.71k
  • E. Hayles (58yo)

    Director

    • Tenure: 1yrs
    • Compensation: US$58.26k
  • Lauren States (62yo)

    Director

    • Tenure: 3.1yrs
    • Compensation: US$129.44k

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$4.167b
  • Shares outstanding: 92.16m
  • Website: https://public.websteronline.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WBSNYSE (New York Stock Exchange)YesCommon StockUSUSDDec 1986
WEDDB (Deutsche Boerse AG)YesCommon StockDEEURDec 1986
WBS.PRFNYSE (New York Stock Exchange)DEP SHS RP PFD FUSUSDDec 2017

Biography

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 busin ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 23:44
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.