Waddell & Reed Financial
Market Cap
US$1.6b
Last Updated
2021/01/17 23:22 UTC
Data Sources
Company Financials +
Executive Summary
Waddell & Reed Financial, Inc., through its subsidiaries, provides investment management and advisory, investment product underwriting and distribution, and shareholder services administration to mutual funds, and institutional and separately managed accounts in the United States. More Details
Rewards
Risk Analysis
Earnings are forecast to decline by an average of 6.7% per year for the next 3 years
Snowflake Analysis
Flawless balance sheet 6 star dividend payer.
Similar Companies
Share Price & News
How has Waddell & Reed Financial's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: WDR is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 15% a week.
Volatility Over Time: WDR's weekly volatility has increased from 10% to 15% over the past year.
Market Performance
7 Day Return
0%
WDR
-0.4%
US Capital Markets
-1.0%
US Market
1 Year Return
48.7%
WDR
15.7%
US Capital Markets
19.6%
US Market
Return vs Industry: WDR exceeded the US Capital Markets industry which returned 15.7% over the past year.
Return vs Market: WDR exceeded the US Market which returned 19.6% over the past year.
Shareholder returns
| WDR | Industry | Market | |
|---|---|---|---|
| 7 Day | 0% | -0.4% | -1.0% |
| 30 Day | -0.6% | 7.3% | 2.3% |
| 90 Day | 44.7% | 22.0% | 13.1% |
| 1 Year | 58.6%48.7% | 18.6%15.7% | 22.3%19.6% |
| 3 Year | 30.0%9.0% | 31.0%20.9% | 45.3%35.7% |
| 5 Year | 39.0%-2.9% | 145.6%114.8% | 124.8%99.8% |
Long-Term Price Volatility Vs. Market
How volatile is Waddell & Reed Financial's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 month ago | Simply Wall St
Waddell & Reed Financial's (NYSE:WDR) Stock Price Has Reduced 55% In The Past Five Years2 months ago | Simply Wall St
Waddell & Reed Financial, Inc. Beat Analyst Estimates: See What The Consensus Is Forecasting For Next Year2 months ago | Simply Wall St
Here's What We Learned About The CEO Pay At Waddell & Reed Financial, Inc. (NYSE:WDR)Valuation
Is Waddell & Reed Financial undervalued compared to its fair value and its price relative to the market?
28.5%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: WDR ($25.03) is trading below our estimate of fair value ($35.02)
Significantly Below Fair Value: WDR is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: WDR is good value based on its PE Ratio (17.9x) compared to the US Capital Markets industry average (27.1x).
PE vs Market: WDR is good value based on its PE Ratio (17.9x) compared to the US market (21x).
Price to Earnings Growth Ratio
PEG Ratio: WDR's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: WDR is good value based on its PB Ratio (2.1x) compared to the US Capital Markets industry average (5x).
Next Steps
Future Growth
How is Waddell & Reed Financial forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
-6.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: WDR's earnings are forecast to decline over the next 3 years (-6.7% per year).
Earnings vs Market: WDR's earnings are forecast to decline over the next 3 years (-6.7% per year).
High Growth Earnings: WDR's earnings are forecast to decline over the next 3 years.
Revenue vs Market: WDR's revenue (1.1% per year) is forecast to grow slower than the US market (10.3% per year).
High Growth Revenue: WDR's revenue (1.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: WDR's Return on Equity is forecast to be low in 3 years time (10.2%).
Next Steps
Past Performance
How has Waddell & Reed Financial performed over the past 5 years?
-13.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: WDR has high quality earnings.
Growing Profit Margin: WDR's current net profit margins (9%) are lower than last year (13.5%).
Past Earnings Growth Analysis
Earnings Trend: WDR's earnings have declined by 13.9% per year over the past 5 years.
Accelerating Growth: WDR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: WDR had negative earnings growth (-35.8%) over the past year, making it difficult to compare to the Capital Markets industry average (4.9%).
Return on Equity
High ROE: WDR's Return on Equity (12.8%) is considered low.
Next Steps
Financial Health
How is Waddell & Reed Financial's financial position?
Financial Position Analysis
Short Term Liabilities: WDR's short term assets ($913.3M) exceed its short term liabilities ($350.2M).
Long Term Liabilities: WDR's short term assets ($913.3M) exceed its long term liabilities ($27.8M).
Debt to Equity History and Analysis
Debt Level: WDR's debt to equity ratio (12.7%) is considered satisfactory.
Reducing Debt: WDR's debt to equity ratio has reduced from 22.7% to 12.7% over the past 5 years.
Debt Coverage: WDR's debt is well covered by operating cash flow (182.9%).
Interest Coverage: WDR earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
Next Steps
Dividend
What is Waddell & Reed Financial current dividend yield, its reliability and sustainability?
4.00%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: WDR's dividend (4%) is higher than the bottom 25% of dividend payers in the US market (1.39%).
High Dividend: WDR's dividend (4%) is in the top 25% of dividend payers in the US market (3.85%)
Stability and Growth of Payments
Stable Dividend: WDR's dividends per share have been stable in the past 10 years.
Growing Dividend: WDR's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (71.6%), WDR's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: WDR's dividends in 3 years are forecast to be well covered by earnings (34% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.8yrs
Average management tenure
CEO
Phil Sanders (61 yo)
4.42yrs
Tenure
US$1,926,810
Compensation
Mr. Philip James Sanders, also known as Phil, CFA, MBA serves as Chief Executive Officer at Waddell & Reed, Inc. He also serves as President of the company’s asset manager, Ivy Investment Management Compan...
CEO Compensation Analysis
Compensation vs Market: Phil's total compensation ($USD1.93M) is below average for companies of similar size in the US market ($USD3.88M).
Compensation vs Earnings: Phil's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 4.42yrs | US$1.93m | 1.21% $ 18.9m | |
| President | 0.92yr | US$1.42m | 0.60% $ 9.4m | |
| Senior VP & CFO | 2.92yrs | US$1.01m | 0.18% $ 2.8m | |
| Senior VP & Chief Investment Officer | 1.58yrs | US$3.49m | 0.62% $ 9.7m | |
| Senior Vice President of Wealth Management | no data | US$915.07k | 0.14% $ 2.2m | |
| VP, Chief Accounting Officer | no data | no data | 0.013% $ 204.3k | |
| Senior VP & CTO | 0.42yr | no data | no data | |
| Senior VP | 2.75yrs | US$1.35m | 0.14% $ 2.2m | |
| VP & Director of Communications | no data | no data | no data | |
| Senior VP and Chief People & Brand Officer | 0.50yr | no data | 0.098% $ 1.5m | |
| Senior VP & Chief Administrative Officer of Investments | 21.5yrs | US$2.39m | no data | |
| Chief Risk Officer | 4.5yrs | no data | no data |
2.8yrs
Average Tenure
51yo
Average Age
Experienced Management: WDR's management team is considered experienced (2.8 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 4.42yrs | US$1.93m | 1.21% $ 18.9m | |
| Portfolio Mngr & Director of Equity Research - Waddell & Reed Investment Mgmt Co. | 15.58yrs | no data | no data | |
| Independent Director | 20.75yrs | US$239.01k | 0.12% $ 1.9m | |
| Independent Non-Executive Chairman | 2.75yrs | US$390.01k | 0.093% $ 1.5m | |
| Independent Director | 19yrs | US$221.01k | 0.12% $ 1.9m | |
| Independent Director | 10.5yrs | US$238.51k | 0.083% $ 1.3m | |
| Independent Director | 10.5yrs | US$224.01k | 0.083% $ 1.3m | |
| Independent Director | 1.83yrs | US$177.71k | 0.021% $ 329.2k | |
| Independent Director | 0.92yr | no data | 0.011% $ 170.1k | |
| Independent Director | 1.5yrs | US$107.38k | 0.018% $ 281.0k |
7.5yrs
Average Tenure
62yo
Average Age
Experienced Board: WDR's board of directors are considered experienced (7.5 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.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Waddell & Reed Financial, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Waddell & Reed Financial, Inc.
- Ticker: WDR
- Exchange: NYSE
- Founded: 1937
- Industry: Asset Management and Custody Banks
- Sector: Diversified Financials
- Market Cap: US$1.565b
- Shares outstanding: 62.51m
- Website: https://www.waddell.com
Number of Employees
Location
- Waddell & Reed Financial, Inc.
- 6300 Lamar Avenue
- Overland Park
- Kansas
- 66202
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| WDR | NYSE (New York Stock Exchange) | Yes | Class A Common Stock | US | USD | Mar 1998 |
| WDDA | DB (Deutsche Boerse AG) | Yes | Class A Common Stock | DE | EUR | Mar 1998 |
Biography
Waddell & Reed Financial, Inc., through its subsidiaries, provides investment management and advisory, investment product underwriting and distribution, and shareholder services administration to mutual fu...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/17 23:22 |
| End of Day Share Price | 2021/01/15 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
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.