-1.28%
7.19%
17.25%
34.85%
26.37%
0.44%
31.11%
AI Spotlight on WBS
Company Description
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.It operates through three segments: Commercial Banking, HSA Bank, and Retail Banking.The Commercial Banking segment provides lending, deposit, and cash management services; commercial and industrial lending and leasing, commercial real estate lending, equipment financing, and asset-based lending, as well as treasury and payment services; wealth management solutions to business owners, operators, and consumers; and trust, asset management, financial planning, insurance, retirement, and investment products.
The HSA Bank segment offers health savings accounts, health reimbursement arrangements, flexible spending accounts, and commuter services that are distributed directly to employers and individual consumers, as well as through national and regional insurance carriers, consultants, and financial advisors.The Retail Banking segment provides deposit and fee-based services, residential mortgages, home equity lines, secured and unsecured loans, and credit cards to consumers.The company also offers online and mobile banking services.
As of December 31, 2021, it operated 130 banking centers and 251 ATMs. The company was founded in 1935 and is headquartered in Stamford, Connecticut.
Market Data
| Last Price | 59.47 |
| Change Percentage | -1.28% |
| Open | 58.81 |
| Previous Close | 60.24 |
| Market Cap ( Millions) | 10194 |
| Volume | 534774 |
| Year High | 63.99 |
| Year Low | 39.34 |
| M A 50 | 58.27 |
| M A 200 | 49.43 |
Financial Ratios
| FCF Yield | 1.02% |
| Dividend Yield | 2.02% |
| ROE | 8.76% |
| Debt / Equity | 43.72% |
| Net Debt / EBIDTA | 102.06% |
| Price To Book | 1.1 |
| Price Earnings Ratio | 12.99 |
| Price To FCF | 97.99 |
| Price To sales | 3.33 |
| EV / EBITDA | 13.42 |
News
- Jan -20 - Webster Financial Q4 Earnings Beat on Higher NII & Lower Expenses
- Jan -17 - Webster Financial Corporation (WBS) Q4 2024 Earnings Call Transcript
- Jan -17 - Webster Financial (WBS) Q4 Earnings: How Key Metrics Compare to Wall Street Estimates
- Jan -17 - Webster Financial (WBS) Q4 Earnings Top Estimates
- Jan -17 - Webster Reports Fourth Quarter 2024 EPS of $1.01; Adjusted EPS of $1.43
- Jan -16 - Webster Financial Earnings Are Imminent; These Most Accurate Analysts Revise Forecasts Ahead Of Earnings Call
- Jan -14 - Curious about Webster Financial (WBS) Q4 Performance? Explore Wall Street Estimates for Key Metrics
- Jan -07 - Webster Financial Corporation Announces Q4 2024 Earnings Release and Conference Call
- Jan -07 - Webster Financial: Risks Are Exaggerated
- Jan -03 - Webster Financial Rides on Top-Line Growth Amid Higher Expenses
- Dec -18 - Webster Lowers Prime Lending Rate to 7.50 Percent
- Nov -07 - Webster Lowers Prime Lending Rate to 7.75 Percent
- Oct -18 - Webster Financial Q3 Earnings Miss Estimates, Revenues Decline Y/Y
- Oct -18 - Webster Financial: Shares Roar Higher On Solid Outlook, Yet I Retain 'Hold'
- Oct -17 - Webster Financial Corporation (WBS) Q3 2024 Earnings Call Transcript
- Oct -17 - Webster Financial (WBS) Reports Q3 Earnings: What Key Metrics Have to Say
- Oct -17 - Webster Financial (WBS) Lags Q3 Earnings and Revenue Estimates
- Oct -17 - Marathon Asset Management and Webster Bank Provide Senior Secured Financing for the Acquisition of PK Companies
- Oct -17 - Webster Reports Third Quarter 2024 EPS of $1.10; Adjusted EPS of $1.34
- Oct -10 - Webster Financial (WBS) Expected to Beat Earnings Estimates: Should You Buy?
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Commercial Banking
Expected Growth : 7.5 %
What the company do ?
Commercial Banking from Webster Financial Corporation provides financial solutions to businesses, including cash management, lending, and treasury services to help them grow and succeed.
Why we expect these perspectives ?
Webster Financial Corporation's 7.5% growth in Commercial Banking is driven by strong loan growth, fueled by a robust economy and increased demand for commercial and industrial loans. Additionally, the bank's strategic expansion into new markets, improved operating efficiency, and enhanced digital capabilities have contributed to the segment's growth.
Segment n°2 -> Consumer Banking
Expected Growth : 7.8 %
What the company do ?
Consumer Banking from Webster Financial Corporation offers personal banking services, including checking and savings accounts, credit cards, loans, and investment products to individuals and families.
Why we expect these perspectives ?
Webster Financial Corporation's 7.8% growth in Consumer Banking is driven by increasing demand for digital banking services, strategic branch expansion, and competitive loan and deposit offerings. Additionally, the corporation's focus on customer experience, cross-selling initiatives, and effective cost management have contributed to the segment's growth.
Segment n°3 -> Health Savings Account Bank
Expected Growth : 8.2 %
What the company do ?
Webster Bank's Health Savings Account (HSA) allows individuals with high-deductible health plans to set aside tax-free funds for medical expenses.
Why we expect these perspectives ?
Webster Financial Corporation's Health Savings Account (HSA) growth of 8.2% is driven by increasing adoption of consumer-directed health plans, rising healthcare costs, and growing awareness of HSAs as a tax-advantaged savings vehicle. Additionally, Webster's strong online platform, competitive interest rates, and user-friendly interface contribute to its market share gain.
Segment n°4 -> Corporate and Reconciling
Expected Growth : 7.2 %
What the company do ?
Webster Financial Corporation's Corporate and Reconciling segment includes unallocated corporate-level expenses, differences between reported and budgeted results, and reconciling items.
Why we expect these perspectives ?
Webster Financial Corporation's 7.2% growth is driven by strong corporate loan growth, fueled by a robust commercial and industrial loan pipeline, as well as continued expansion in the commercial real estate sector. Additionally, reconciling items such as lower provision for loan losses and increased fee income from treasury services and mortgage banking also contributed to the growth.
Webster Financial Corporation Products
| Product Range | What is it ? |
|---|---|
| Commercial Banking | Webster Financial Corporation provides commercial banking services to businesses, including cash management, lending, and treasury management solutions. |
| Consumer Banking | Webster Financial Corporation offers consumer banking services, including checking and savings accounts, credit cards, and personal loans. |
| Home Lending | Webster Financial Corporation provides home lending services, including mortgages, refinancing, and home equity loans. |
| Private Banking | Webster Financial Corporation offers private banking services, including wealth management, investment, and trust services. |
| Insurance Services | Webster Financial Corporation provides insurance services, including life insurance, disability insurance, and long-term care insurance. |
| Wealth Management | Webster Financial Corporation offers wealth management services, including investment management, financial planning, and retirement planning. |
Webster Financial Corporation's Porter Forces
Threat Of Substitutes
Webster Financial Corporation operates in a highly competitive industry, and customers have various alternatives to choose from. However, the company's strong brand reputation and customer loyalty mitigate the threat of substitutes.
Bargaining Power Of Customers
Webster Financial Corporation's customers have limited bargaining power due to the company's diversified customer base and lack of concentration. This reduces the threat of customers negotiating better prices or terms.
Bargaining Power Of Suppliers
Webster Financial Corporation relies on a few large suppliers for its operations, giving them some bargaining power. However, the company's strong relationships with suppliers and its ability to negotiate contracts mitigate this threat.
Threat Of New Entrants
The financial services industry has high barriers to entry, including regulatory hurdles and capital requirements. This makes it difficult for new entrants to compete with established players like Webster Financial Corporation.
Intensity Of Rivalry
The financial services industry is highly competitive, with many established players competing for market share. Webster Financial Corporation faces intense rivalry from other banks and financial institutions, which can lead to pricing pressures and reduced market share.
Capital Structure
| Value | |
|---|---|
| Debt Weight | 31.01% |
| Debt Cost | 7.90% |
| Equity Weight | 68.99% |
| Equity Cost | 10.63% |
| WACC | 9.78% |
| Leverage | 44.95% |
Webster Financial Corporation : Quality Control
Webster Financial Corporation passed 3 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| UMBF | UMB Financial Corporation operates as the bank holding company for the UMB Bank that provides various banking and other financial services. The Commercial Banking segment provides commercial loans and credit … |
| HWC | Hancock Whitney Corporation operates as the financial holding company for Hancock Whitney Bank that provides traditional and online banking services to commercial, small business, and retail customers. It accepts various … |
| ABCB | Ameris Bancorp operates as the bank holding company for Ameris Bank that provides range of banking services to retail and commercial customers primarily in Georgia, Alabama, Florida, North Carolina, and … |
| AUB | Atlantic Union Bankshares Corporation operates as the holding company for Atlantic Union Bank that provides banking and related financial services to consumers and businesses. The company accepts various deposit products, … |
| ZION | Zions Bancorporation, National Association provides various banking and related services primarily in the states of Arizona, California, Colorado, Idaho, Nevada, New Mexico, Oregon, Texas, Utah, Washington, and Wyoming. The company … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
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Hancock Whitney
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UMB
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1-Year Total Return ->
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Ameris
A-Score
1-Year Total Return ->
4
Zions Bank
A-Score
1-Year Total Return ->
5
Webster
A-Score
1-Year Total Return ->
6
