Webster Financial Corporation (WBS), Discounted Cash Flow Valuation

Webster Financial Corporation (WBS) Company Profile

US | Financial Services | Banks - Regional | NYSE
47.9 0.74 (1.57%)
Real-Time Price (USD)
Market Cap A valuation method that multiplies the price of a company's shares by the total number of outstanding shares.
8.21B
Revenue (ttm) The total amount of income generated by the sale of goods or services related to the company's primary operations.
2.53B
Net Income (ttm) The company's earnings for a period net of operating costs, taxes and interest.
768.71M
Shares Out Total number of common shares outstanding as of the latest date disclosed in a financial filing.
170M
EPS (ttm) Company's net earnings or losses from continuing operations on a per diluted share basis.
4.37
PE Ratio The price-to-earnings (PE) ratio is the ratio between a company's stock price and earnings per share. It measures the price of a stock relative to its profits.
12.64
Dividend Yield Measures the cash returned to shareholders by a firm as a percentage of the price they pay for each share of stock.
3.00%
Exchange Name of stock exchange where the trading item trades.
NYSE
Avg Volume The average number of shares traded each day over the past 30 days.
1.33M
Open The opening trade price over the trading day.
45.89
Previous Close The last closing price.
47.16
Beta A ratio that measures the risk or volatility of a company's share price in comparison to the market as a whole.
1.04
1 day delta The range between the high and low prices over the past day.
45.75-48.05
52 weeks The range between the high and low prices over the past 52 weeks.
39.34-63.99

Total Valuation

Webster Financial Corporation has a market cap or net worth of 8.21B. The enterprise value is 7.31B.
Market Cap (ttm) Market Capitalization
A valuation method that multiplies the price of a company's shares by the total number of outstanding shares.
8.21B
Enterprise Value (ttm) Enterprise Value
Enterprise value measures the total value of a company's outstanding shares, adjusted for debt and levels of cash and short-term investments.
Enterprise Value = Market Cap + Total Debt - Cash & Equivalents - Short-Term Investments
7.31B

Valuation Ratios

The trailing PE ratio is 10.96. Webster Financial Corporation's PEG ratio is -6.91.
PE Ratio (ttm) PE Ratio
The price-to-earnings (P/E) ratio is a valuation metric that shows how expensive a stock is relative to earnings.
PE Ratio = Stock Price / Earnings Per Share
10.96
PS Ratio (ttm) PS Ratio
The price-to-sales (P/S) ratio is a commonly used valuation metric. It shows how expensive a stock is compared to revenue.
PS Ratio = Market Capitalization / Revenue
3.25
PB Ratio (ttm) PB Ratio
The price-to-book (P/B) ratio measures a stock's price relative to book value. Book value is also called Shareholders' equity.
PB Ratio = Market Capitalization / Shareholders' Equity
0.92
P/FCF Ratio (ttm) P/FCF Ratio
The price to free cash flow (P/FCF) ratio is similar to the P/E ratio, except it uses free cash flow instead of accounting earnings.
P/FCF Ratio = Market Capitalization / Free Cash Flow
9.34
PEG Ratio (ttm) PEG Ratio
The price/earnings to growth (PEG) ratio is calculated by dividing a company's PE ratio by its expected earnings growth.
PEG Ratio = PE Ratio / Expected Earnings Growth
-6.91

Enterprise Valuation

The stock's EV/EBITDA ratio is 12.84, with a EV/FCF ratio of 8.31.
EV / Sales (ttm) EV / Sales Ratio
The enterprise value to sales (EV/Sales) ratio is similar to the price-to-sales ratio, but the price is adjusted for the company's debt and cash levels.
EV/Sales Ratio = Enterprise Value / Revenue
2.89
EV / EBITDA (ttm) EV / EBIT Ratio
The EV/EBITDA ratio measures a company's valuation relative to its EBITDA, or Earnings Before Interest, Taxes, Depreciation, and Amortization.
EV/EBITDA Ratio = Enterprise Value / EBITDA
12.84
EV / EBIT (ttm) EV/EBIT Ratio
The EV/EBIT is a valuation metric that measures a company's price relative to EBIT, or Earnings Before Interest and Taxes.
EV/EBIT Ratio = Enterprise Value / EBIT
8.01
EV / FCF (ttm) EV/FCF Ratio
The enterprise value to free cash flow (EV/FCF) ratio is similar to the price to free cash flow ratio, except the price is adjusted for the company's cash and debt.
EV/FCF Ratio = Enterprise Value / Free Cash Flow
8.31

Financial Efficiency

Return on equity (ROE) is 8.57% and return on invested capital (ROIC) is 1.14%.
Return on Equity (ROE) (ttm) Return on Equity (ROE)
Return on equity (ROE) is a profitability metric that shows how efficient a company is at using its equity (or "net" assets) to generate profits. It is calculated by dividing the company's net income by the average shareholders' equity over the past 12 months.
ROE = (Net Income / Average Shareholders' Equity) * 100%
8.57%
Return on Assets (ROA) (ttm) Return on Assets (ROA)
Return on assets (ROA) is a metric that measures how much profit a company is able to generate using its assets. It is calculated by dividing net income by the average total assets for the past 12 months.
ROA = (Net Income / Average Total Assets) * 100%
0.97%
Return on Capital (ROIC) (ttm) Return on Capital (ROIC)
Return on invested capital (ROIC) measures how effective a company is at investing its capital in order to increase profits. It is calculated by dividing the EBIT (Earnings Before Interest & Taxes) by the average invested capital in the previous year.
ROIC = (EBIT / Average Invested Capital) * 100%
1.14%
Asset Turnover Asset Turnover
The asset turnover ratio measures the amount of sales relative to a company's assets. It indicates how efficiently the company uses its assets to generate revenue.
Asset Turnover Ratio = Revenue / Average Assets
0.05
Inventory Turnover (ttm) Inventory Turnover
The inventory turnover ratio measures how many times inventory has been sold and replaced during a time period.
Inventory Turnover Ratio = Cost of Revenue / Average Inventory
0

Margins

Trailing 12 months gross margin is 96.06%, with operating and profit margins of 47.57% and 30.44%.
Gross Margin (ttm) Gross Margin
Gross margin is the percentage of revenue left as gross profits, after subtracting cost of goods sold from the revenue.
Gross Margin = (Gross Profit / Revenue) * 100%
96.06%
Operating Margin (ttm) Operating Margin
Operating margin is the percentage of revenue left as operating income, after subtracting cost of revenue and all operating expenses from the revenue.
Operating Margin = (Operating Income / Revenue) * 100%
47.57%
Pretax Margin (ttm) Pretax Margin
Pretax margin is the percentage of revenue left as profits before subtracting taxes.
Pretax Margin = (Pretax Income / Revenue) * 100%
40.27%
Profit Margin (ttm) Profit Margin
Profit margin is the percentage of revenue left as net income, or profits, after subtracting all costs and expenses from the revenue.
Profit Margin = (Net Income / Revenue) * 100%
30.44%
EBITDA Margin (ttm) EBITDA Margin
EBITDA margin is the percentage of revenue left as EBITDA, after subtracting all expenses except interest, taxes, depreciation and amortization from revenue.
EBITDA Margin = (EBITDA / Revenue) * 100%
22.54%

Income Statement

In the last 12 months, Webster Financial Corporation had revenue of 2.53B and earned 768.71M in profits. Earnings per share (EPS) was 4.37.
Revenue (ttm) Revenue
Revenue is the amount of money a company receives from its main business activities, such as sales of products or services. Revenue is also called sales.
2.53B
Gross Profit (ttm) Gross Profit
Gross profit is a company’s profit after subtracting the costs directly linked to making and delivering its products and services.
Gross Profit = Revenue - Cost of Revenue
2.43B
Operating Income (ttm) Operating Income
Operating income is the amount of profit in a company after paying for all the expenses related to its core operations.
Operating Income = Revenue - Cost of Revenue - Operating Expenses
1.2B
Pretax Income (ttm) Pretax Income
Pretax income is a company's profits before accounting for income taxes.
Pretax Income = Net Income + Income Taxes
1.02B
Net Income (ttm) Net Income
Net income is a company's accounting profits after subtracting all costs and expenses from the revenue. It is also called earnings, profits or "the bottom line"
Net Income = Revenue - All Expenses
768.71M
EBITDA (ttm) EBITDA
EBITDA stands for "Earnings Before Interest, Taxes, Depreciation and Amortization." It is a commonly used measure of profitability.
EBITDA = Net Income + Interest + Taxes + Depreciation and Amortization
569.18M
EBIT (ttm) EBIT
EBIT stands for "Earnings Before Interest and Taxes" and is a commonly used measure of earnings or profits. It is similar to operating income.
EBIT = Net Income + Interest + Taxes
513.77M
Earnings Per Share (EPS) (ttm) EPS (Diluted)
Earnings per share is the portion of a company's profit that is allocated to each individual stock. Diluted EPS is calculated by dividing net income by "diluted" shares outstanding.
Diluted EPS = Net Income / Shares Outstanding (Diluted)
4.37

Financial Position

The company has a trailing 12 months (ttm) current ratio of 6.02, with a ttm Debt / Equity ratio of 0.1.
Current Ratio (ttm) Current Ratio
The current ratio is used to measure a company's short-term liquidity. A low number can indicate that a company will have trouble paying its upcoming liabilities.
Current Ratio = Current Assets / Current Liabilities
6.02
Quick Ratio (ttm) Quick Ratio
The quick ratio measure a company's short-term liquidity. A low number indicates that the company may have trouble paying its upcoming financial obligations.
Quick Ratio = (Cash + Short-Term Investments + Accounts Receivable) / Current Liabilities
6.02
Debt / Equity (ttm) Debt / Equity Ratio
The debt-to-equity ratio measures a company's debt levels relative to its shareholders' equity or book value. A high ratio implies that a company has a lot of debt.
Debt / Equity Ratio = Total Debt / Shareholders' Equity
0.1
Debt / EBIT (ttm) Debt / EBIT Ratio
The debt-to-EBIT ratio is a company's debt levels relative to its trailing twelve-month EBIT. A high ratio implies that debt is high relative to the company's earnings.
Debt / EBIT Ratio = Total Debt / EBIT (ttm)
0.85

Dividends & Yields

This stock pays an annual dividend of 1.6, which amounts to a dividend yield of 3.34%.
Dividend Per Share (ttm) Dividend Per Share
Total amount paid to each outstanding share in dividends during the period.
1.6
Dividend Yield (ttm) Dividend Yield
The dividend yield is how much a stock pays in dividends each year, as a percentage of the stock price.
Dividend Yield = (Annual Dividends Per Share / Stock Price) * 100%
3.34%
Earnings Yield (ttm) Earnings Yield
The earnings yield is a valuation metric that measures a company's profits relative to stock price, expressed as a percentage yield. It is the inverse of the P/E ratio.
Earnings Yield = (Earnings Per Share / Stock Price) * 100%
9.12%
FCF Yield (ttm) FCF Yield
The free cash flow (FCF) yield measures a company's free cash flow relative to its price, shown as a percentage. It is the inverse of the P/FCF ratio.
FCF Yield = (Free Cash Flow / Market Cap) * 100%
10.71%
Dividend Growth (YoY) Dividend Growth
The change in dividend payments per share, compared to the previous period.
Dividend Growth = ((Current Dividend / Previous Dividend) - 1) * 100%
-3.54%
Payout Ratio (ttm) Payout Ratio
The payout ratio is the percentage of a company's profits that are paid out as dividends. A high ratio implies that the dividend payments may not be sustainable.
Payout Ratio = (Dividends Per Share / Earnings Per Share) * 100%
37.88%

Balance Sheet

The company has 1.82B in cash and 919.29M in debt, giving a net cash position of 898.84M.
Cash & Cash Equivalents Cash & Cash Equivalents
Cash and cash equivalents is the sum of "Cash & Equivalents" and "Short-Term Investments." This is the amount of money that a company has quick access to, assuming that the cash equivalents and short-term investments can be sold at a short notice.
Cash & Cash Equivalents = Cash & Equivalents + Short-Term Investments
1.82B
Total Debt Total Debt
Total debt is the total amount of liabilities categorized as "debt" on the balance sheet. It includes both current and long-term (non-current) debt.
Total Debt = Current Debt + Long-Term Debt
919.29M
Net Cash Net Cash / Debt
Net Cash / Debt is an indicator of the financial position of a company. It is calculated by taking the total amount of cash and cash equivalents and subtracting the total debt.
Net Cash / Debt = Total Cash - Total Debt
898.84M
Book Value Shareholders' Equity
Shareholders’ equity is also called book value or net worth. It can be seen as the amount of money held by investors inside the company. It is calculated by subtracting all liabilities from all assets.
Shareholders' Equity = Total Assets - Total Liabilities
9.13B
Book Value Per Share (ttm) Book Value Per Share
Book value per share is the total amount of book value attributable to each individual stock. It is calculated by dividing book value (shareholders' equity) by the number of outstanding shares.
Book Value Per Share = Book Value / Shares Outstanding
51.91
Working Capital (ttm) Working Capital
Working capital is the amount of money available to a business to conduct its day-to-day operations. It is calculated by subtracting total current liabilities from total current assets.
Working Capital = Current Assets - Current Liabilities
2.53B

Cash Flow

In the last 12 months, operating cash flow of the company was 912.21M and capital expenditures -35.84M, giving a free cash flow of 878.98M.
Operating Cash Flow (ttm) Operating Cash Flow
Operating cash flow, also called cash flow from operating activities, measures the amount of cash that a company generates from normal business activities. It is the amount of cash left after all cash income has been received, and all cash expenses have been paid.
912.21M
Capital Expenditures (ttm) Capital Expenditures
Capital expenditures are also called payments for property, plants and equipment. It measures cash spent on long-term assets that will be used to run the business, such as manufacturing equipment, real estate and others.
-35.84M
Free Cash Flow (ttm) Free Cash Flow
Free cash flow is the cash remaining after the company spends on everything required to maintain and grow the business. It is calculated by subtracting capital expenditures from operating cash flow.
Free Cash Flow = Operating Cash Flow - Capital Expenditures
878.98M
FCF Per Share (ttm) Free Cash Flow Per Share
Free cash flow per share is the amount of free cash flow attributed to each outstanding stock.
FCF Per Share = Free Cash Flow / Shares Outstanding
5

Webster Financial Corporation News

Apr 24, 2025 - seekingalpha.com
Webster Financial Corporation (WBS) Q1 2025 Earnings Call Transcript
Webster Financial Corporation (NYSE:WBS ) Q1 2025 Earnings Conference Call April 24, 2025 9:00 AM ET Company Participants Emlen Harmon - Director, IR John Ciulla - CEO Neal Holland - CFO Luis Massiani - President and Chief Operating Officer Conference Call Participants Andrew Leischner - KBW Jared Shaw - Barclays Mark Fitzgibbon - Piper Sandler Matthew Breese - Stephens Casey Haire - Autonomous Research Timur Braziler - Wells Fargo Manan Gosalia - Morgan Stanley Bernard Von Gizycki - Deutsche Ba...[read more]
Apr 24, 2025 - zacks.com
Here's What Key Metrics Tell Us About Webster Financial (WBS) Q1 Earnings
While the top- and bottom-line numbers for Webster Financial (WBS) give a sense of how the business performed in the quarter ended March 2025, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values....[read more]
Apr 24, 2025 - zacks.com
Webster Financial (WBS) Q1 Earnings and Revenues Lag Estimates
Webster Financial (WBS) came out with quarterly earnings of $1.30 per share, missing the Zacks Consensus Estimate of $1.38 per share. This compares to earnings of $1.35 per share a year ago....[read more]
Apr 24, 2025 - businesswire.com
Webster Reports First Quarter 2025 EPS of $1.30
STAMFORD, Conn.--(BUSINESS WIRE)--Webster Financial Corporation (“Webster”) (NYSE: WBS), the holding company for Webster Bank, N.A., today announced net income applicable to common stockholders of $220.4 million, or $1.30 per diluted share, for the quarter ended March 31, 2025, compared to $210.1 million, or $1.23 per diluted share, for the quarter ended March 31, 2024. “Webster has again proven its capacity to consistently execute through a variety of operating environments,” said John R. Ciul....[read more]
Apr 21, 2025 - zacks.com
Exploring Analyst Estimates for Webster Financial (WBS) Q1 Earnings, Beyond Revenue and EPS
Besides Wall Street's top -and-bottom-line estimates for Webster Financial (WBS), review projections for some of its key metrics to gain a deeper understanding of how the company might have fared during the quarter ended March 2025....[read more]
Apr 17, 2025 - zacks.com
Webster Financial (WBS) Reports Next Week: Wall Street Expects Earnings Growth
Webster Financial (WBS) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations....[read more]
Apr 10, 2025 - zacks.com
Webster Financial (WBS) Moves 11.6% Higher: Will This Strength Last?
Webster Financial (WBS) saw its shares surge in the last session with trading volume being higher than average. The latest trend in earnings estimate revisions may not translate into further price increase in the near term....[read more]
Apr 7, 2025 - businesswire.com
Webster Financial Corporation Announces Q1 2025 Earnings Release and Conference Call
STAMFORD, Conn.--(BUSINESS WIRE)--Webster Financial Corporation Announces Q1 2025 Earnings Release and Conference Call....[read more]
Apr 7, 2025 - seekingalpha.com
I Can Finally Bank On Webster Financial Corporation
Webster Financial Corporation's stock has dropped 21.3% since October 2024, outperforming the S&P 500's 13.4% decline, prompting a shift from 'hold' to a 'buy'. Despite a rise in provisions for credit losses, Webster Financial's net interest income and balance sheet have shown growth, indicating a resilient financial position. The company's valuation is attractive, with a price-to-earnings multiple of 7.8, making it cheaper than comparable firms, though asset quality metrics are mixed....[read more]
Apr 1, 2025 - businesswire.com
Webster Announces Chief Risk Officer Transition
STAMFORD, Conn.--(BUSINESS WIRE)--Webster Financial Corporation (NYSE: WBS) (“Webster” or “the Company”), the holding company for Webster Bank, N.A., today announced that after 14 years with the Company, Dan Bley intends to retire from his role as Executive Vice President and Chief Risk Officer (CRO). Mr. Bley will continue to serve as the Company's CRO until a successor is appointed and will then serve in an advisory role to ensure a smooth transition. “Dan has been instrumental in driving a s....[read more]

Webster Financial Corporation Details

Country US
City Stamford
Address 200 Elm Street
Ticker Symbol WBS
Exchange New York Stock Exchange
IPO Date Dec 12, 1986
CEO Mr. John R. Ciulla
Sector Financial Services
Industry Banks - Regional
Employees 4.3K

Webster Financial Corporation 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.

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