Washington Federal, Inc. (WAFD) | Investment Case

1. Company Snapshot

1.a. Company Description

Washington Federal, Inc.operates as the bank holding company for Washington Federal Bank, National Association that provides lending, depository, insurance, and other banking services in the United States.The company offers deposit products, including business and personal checking accounts, and term certificates of deposit, as well as money market accounts and passbook savings accounts.

It also provides single-family residential, construction, land acquisition and development, consumer lot, multi-family residential, commercial and industrial, commercial real estate, home equity, business and consumer loans.In addition, the company offers insurance brokerage services, such as individual and business insurance policies; holds and markets real estate properties; mobile and internet banking services; and debit and credit cards, as well as acts as the trustee.It serves consumers, mid-sized and large businesses, and owners and developers of commercial real estate.

As of September 30, 2021, the company had 219 branches located in Washington, Oregon, Idaho, Arizona, Utah, Nevada, New Mexico, and Texas.Washington Federal, Inc.was founded in 1917 and is headquartered in Seattle, Washington.

Show Full description

1.b. Last Insights on WAFD

Washington Federal, Inc.'s recent performance was driven by a strong Q2 earnings beat, with diluted earnings per common share of $0.65, surpassing the Zacks Consensus Estimate of $0.60. The company's net income of $56 million and return on average assets of 0.82% also showed improvement. Additionally, WaFd's shift towards business banking, implemented last quarter, is yielding early successes, with 382 new small business customers acquired. Furthermore, the company's margin bounced back, and expenses declined, contributing to improved bottom-line results. The announcement of a regular quarterly cash dividend of 27 cents per share, the 169th consecutive quarterly cash dividend, also highlights the company's commitment to returning value to shareholders.

1.c. Company Highlights

Last Price	32.14
Change Percentage	-0.19%
Open	32.15
Previous Close	32.2
Market Cap ( Millions)	2532
Volume	387666
Year High	36.53
Year Low	23.75
M A 50	30.15
M A 200	29.53

FCF Yield	8.22%
Dividend Yield	3.36%
ROE	7.47%
Debt / Equity	59.79%
Net Debt / EBIDTA	387.47%
Price To Book	0.83
Price Earnings Ratio	11.17
Price To FCF	12.16
Price To sales	2.02
EV / EBITDA	12.33

2. Transcript Summary

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3. NewsRoom

WaFd, Inc. (WAFD) Q4 2025 Earnings Call Transcript

Oct -17

Source: seekingalpha.com

WAFD Stock Falls as Q4 Earnings Miss Estimates, Revenues Decline Y/Y

Oct -17

Source: zacks.com

Compared to Estimates, WaFd (WAFD) Q4 Earnings: A Look at Key Metrics

Oct -17

Source: zacks.com

WaFd (WAFD) Q4 Earnings and Revenues Miss Estimates

Oct -16

Source: zacks.com

WaFd Announces Fourth Quarter and Fiscal 2025 Results

Oct -16

Source: businesswire.com

WaFd (WAFD) Q4 Earnings on the Horizon: Analysts' Insights on Key Performance Measures

Oct -13

Source: zacks.com

WaFd Bank CEO: Scratch my head to the timing of the Fed's upcoming rate cut

Sep -17

Source: youtube.com

WaFd Bank Approved for SBA Preferred Lender Status

Sep -16

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.00%)

6. Segments

Banking and Related Activities

Expected Growth: 10.0%

Washington Federal, Inc.'s 10.0% growth in Banking and Related Activities is driven by increasing loan demand, expansion of commercial banking services, and strategic acquisitions. Additionally, the company's focus on digital transformation, cost savings initiatives, and a strong capital position have contributed to its growth momentum.

7. Detailed Products

Consumer Banking

Washington Federal, Inc. offers a range of consumer banking products and services, including checking and savings accounts, credit cards, personal loans, and home loans.

Commercial Banking

The company provides commercial banking services, including business checking and savings accounts, commercial loans, and cash management services.

Home Loans

Washington Federal, Inc. offers a range of home loan products, including fixed-rate and adjustable-rate mortgages, refinancing options, and home equity loans.

Wealth Management

The company provides wealth management services, including investment management, financial planning, and retirement planning.

Insurance Services

Washington Federal, Inc. offers insurance services, including life insurance, disability insurance, and long-term care insurance.

8. Washington Federal, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Washington Federal, Inc. operates in a highly competitive industry, with many substitutes available to customers. However, the company's strong brand reputation and customer loyalty help to mitigate the threat of substitutes.

Bargaining Power Of Customers

Washington Federal, Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products and services are often customized to meet specific customer needs, making it difficult for customers to switch to alternative providers.

Bargaining Power Of Suppliers

Washington Federal, Inc. relies on a network of suppliers to provide goods and services. While the company has some bargaining power due to its size and scale, suppliers still have some negotiating power, particularly in industries where there are few alternative suppliers.

Threat Of New Entrants

The banking and financial services industry has high barriers to entry, including regulatory hurdles and significant capital requirements. This makes it difficult for new entrants to enter the market and compete with established players like Washington Federal, Inc.

Intensity Of Rivalry

The banking and financial services industry is highly competitive, with many established players competing for market share. Washington Federal, Inc. faces intense competition from other banks and financial institutions, which can lead to pricing pressure and reduced profitability.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	75.06%
Debt Cost	8.10%
Equity Weight	24.94%
Equity Cost	8.10%
WACC	8.10%
Leverage	300.93%

11. Quality Control: Washington Federal, Inc. passed 3 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Five Star Bank

A-Score: 6.3/10

Value: 5.9

Growth: 5.4

Quality: 7.8

Yield: 5.0

Momentum: 6.5

Volatility: 7.3

1-Year Total Return ->

WaFed

A-Score: 6.0/10

Value: 5.9

Growth: 6.8

Quality: 5.6

Yield: 7.0

Momentum: 2.5

Volatility: 8.0

1-Year Total Return ->

Southern Missouri Bancorp

A-Score: 5.9/10

Value: 7.6

Growth: 6.7

Quality: 7.0

Yield: 4.0

Momentum: 3.0

Volatility: 7.0

1-Year Total Return ->

Coastal Financial

A-Score: 5.7/10

Value: 3.2

Growth: 9.6

Quality: 6.6

Yield: 0.0

Momentum: 10.0

Volatility: 5.0

1-Year Total Return ->

National Bankshares

A-Score: 5.6/10

Value: 5.5

Growth: 3.3

Quality: 5.0

Yield: 8.0

Momentum: 5.0

Volatility: 6.7

1-Year Total Return ->

Finward

A-Score: 5.1/10

Value: 5.2

Growth: 3.6

Quality: 3.8

Yield: 4.0

Momentum: 5.5

Volatility: 8.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

0.32%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

8.10%

Washington Federal, Inc. - US9388241096

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on WAFD

1.c. Company Highlights

Average Growth

Stable Momentum

Average Yield

Earnings Beats

Revenues Beats

Average Quality

Weak Momentum

Revenues Miss

Fairly Valued

Earnings Miss

Higher Growth

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.00%)

6. Segments

Banking and Related Activities

Expected Growth: 10.0%

7. Detailed Products

Consumer Banking

Commercial Banking

Home Loans

Wealth Management

Insurance Services

8. Washington Federal, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Washington Federal, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

32.14$

Current Price

32.14$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA