NYSE:WDR

Stock Analysis Report

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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.

Rewards


Snowflake Analysis


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.5%

WDR

3.4%

US Capital Markets

2.3%

US Market


1 Year Return

-8.2%

WDR

3.1%

US Capital Markets

6.7%

US Market

Return vs Industry: WDR underperformed the US Capital Markets industry which returned 1.8% over the past year.

Return vs Market: WDR underperformed the US Market which returned 6.1% over the past year.


Shareholder returns

WDRIndustryMarket
7 Day-0.5%3.4%2.3%
30 Day-1.2%-0.6%1.5%
90 Day21.2%12.1%17.8%
1 Year-1.5%-8.2%5.3%3.1%9.0%6.7%
3 Year-8.6%-24.1%23.8%16.5%36.6%27.7%
5 Year-50.9%-65.8%52.1%37.6%64.2%46.2%

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

Valuation

Is Waddell & Reed Financial undervalued compared to its fair value and its price relative to the market?

42.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WDR ($15.41) is trading below our estimate of fair value ($26.61)

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 (10.4x) compared to the US Capital Markets industry average (31.9x).

PE vs Market: WDR is good value based on its PE Ratio (10.4x) compared to the US market (15.8x).


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 (1.3x) compared to the US Capital Markets industry average (9.3x).

Future Growth

How is Waddell & Reed Financial forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

-19.8%

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 (-19.8% per year).

Earnings vs Market: WDR's earnings are forecast to decline over the next 3 years (-19.8% per year).

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

Revenue vs Market: WDR's revenue is expected to decline over the next 3 years (-1.7% per year).

High Growth Revenue: WDR's revenue is forecast to decline over the next 3 years (-1.7% 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 (7.6%).

Past Performance

How has Waddell & Reed Financial performed over the past 5 years?

-15.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WDR has high quality earnings.

Growing Profit Margin: WDR's current net profit margins (9.8%) are lower than last year (15.1%).


Past Earnings Growth Analysis

Earnings Trend: WDR's earnings have declined by -15.5% 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 (-38%) over the past year, making it difficult to compare to the Capital Markets industry average (16.6%).


Return on Equity

High ROE: WDR's Return on Equity (13.3%) is considered low.

Financial Health

How is Waddell & Reed Financial's financial position?


Financial Position Analysis

Short Term Liabilities: WDR's short term assets ($934.3M) exceed its short term liabilities ($353.7M).

Long Term Liabilities: WDR's short term assets ($934.3M) exceed its long term liabilities ($29.3M).


Debt to Equity History and Analysis

Debt Level: WDR's debt to equity ratio (12.1%) is considered satisfactory.

Reducing Debt: WDR's debt to equity ratio has reduced from 22.9% to 12.1% over the past 5 years.

Debt Coverage: WDR's debt is well covered by operating cash flow (224.1%).

Interest Coverage: WDR earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Dividend

What is Waddell & Reed Financial current dividend yield, its reliability and sustainability?

6.49%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WDR's dividend (6.49%) is higher than the bottom 25% of dividend payers in the US market (1.7%).

High Dividend: WDR's dividend (6.49%) is in the top 25% of dividend payers in the US market (4.69%)


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 (67.8%), WDR's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WDR's dividends in 3 years are not forecast to be well covered by earnings (93.8% payout ratio).

Management

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

1.9yrs

Average management tenure


CEO

Phil Sanders (61yo)

3.92yrs

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 ($USD1.93M) is below average for companies of similar size in the US market ($USD3.20M).

Compensation vs Earnings: Phil's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Philip Sanders
CEO & Director3.92yrsUS$1.93m1.23% $12.4m
Brent Bloss
President0.42yrUS$1.42m0.61% $6.2m
Benjamin Clouse
Senior VP & CFO2.42yrsUS$1.01m0.18% $1.8m
Daniel Hanson
Senior VP & Chief Investment Officer1.08yrsUS$3.49m0.59% $6.0m
Shawn Mihal
Senior Vice President of Wealth Managementno dataUS$915.07k0.14% $1.5m
Michael Daley
VP, Chief Accounting Officerno datano data0.013% $131.5k
Joan Albeck
Senior VP & Chief Technology Officer1.92yrsno datano data
Christopher Rackers
Senior VP & Chief Administrative Officer1.08yrsno data0.099% $1.0m
Mark Buyle
Senior VP2.25yrsUS$1.35m0.14% $1.4m
Roger Hoadley
Vice President of Communicationsno datano datano data

1.9yrs

Average Tenure

49yo

Average Age

Experienced Management: WDR's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Philip Sanders
CEO & Director3.92yrsUS$1.93m1.23% $12.4m
Matthew Norris
Portfolio Mngr & Director of Equity Research - Waddell & Reed Investment Mgmt Co.15.08yrsno datano data
Jerry Walton
Independent Director20.25yrsUS$239.01k0.12% $1.2m
Thomas Godlasky
Independent Non-Executive Chairman2.25yrsUS$390.01k0.088% $894.1k
Dennis Logue
Independent Director18.5yrsUS$221.01k0.12% $1.2m
Michael Morrissey
Independent Director10yrsUS$238.51k0.080% $804.2k
Sharilyn Gasaway
Independent Director10yrsUS$224.01k0.080% $804.2k
Kathie Andrade
Independent Director1.33yrsUS$177.71k0.020% $202.7k
Katherine M. Kline
Independent Director0.42yrno data0.010% $104.7k
James Jessee
Independent Director1yrUS$107.38k0.017% $173.0k

7.0yrs

Average Tenure

62yo

Average Age

Experienced Board: WDR's board of directors are considered experienced (7 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

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$1.011b
  • Shares outstanding: 65.62m
  • Website: https://www.waddell.com

Number of Employees


Location

  • Waddell & Reed Financial, Inc.
  • 6300 Lamar Avenue
  • Overland Park
  • Kansas
  • 66202
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WDRNYSE (New York Stock Exchange)YesClass A Common StockUSUSDMar 1998
WDDADB (Deutsche Boerse AG)YesClass A Common StockDEEURMar 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 funds, and institutional and separately managed accounts in the United States. The company acts as an investment adviser for institutional and other private investors, and provides sub advisory services to other investment companies; and underwrites and distributes registered open-end mutual fund portfolios. It also offers fee-based asset allocation investment advisory products to advisors channel customers; distributes business partners’ variable annuity products, and retirement and life insurance products to advisors channel customers; and sells life insurance and disability products underwritten by various carriers. The company distributes investment products through its wholesale channel comprising other broker/dealers, various retirement platforms, and registered investment advisors, as well as through independent financial advisors; and markets investment advisory services to institutional investors directly or through consultants. Waddell & Reed Financial, Inc. was founded in 1937 and is based in Overland Park, Kansas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/10 23:56
End of Day Share Price2020/07/10 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.