WaFd Inc (WAFD) stock analysis

P/E below its 5-year median

WaFd's P/E of 9.3 is below its own 5-year median of 11.4.

P/E below the industry

WaFd's P/E of 9.3 is below the Commercial Banks median of 12.1.

P/S above the industry

WaFd's price-to-sales of 68.70 is above the Commercial Banks median of 3.60.

P/B below the industry

WaFd's price-to-book of 0.72 is below the Commercial Banks median of 1.29.

Trading below fair value

The share price of $29.37 is below our fair value estimate of $40.24.

Margin of safety over 20%

The price is 27.0% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 4.6% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -8.1% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 13.2% over the last twelve months, against a 5-year average of 5.4% a year.

Growing slower than the industry

Revenue grew 10.1% over the last twelve months; the Commercial Banks median is 11.3%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin trend

Banks and insurers do not report gross profit.

Return on equity under 15%

Return on equity was 8.5% over the last twelve months and averaged 9.1% over five years; we look for 15% on both.

Return on assets under 1%

Return on assets was 0.9%; for a bank or insurer, 1% or more is considered good.

Return on equity below the industry

WaFd's return on equity of 8.5% is below the Commercial Banks median of 11.5%.

Earnings grew over 5 years

Net income grew 5.4% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 811% over the last twelve months, against a 5-year average of 827%.

Net margin above the industry

WaFd's net margin of 811% is above the Commercial Banks median of 30.3%.

Well capitalized

Equity is 11.0% of total assets; 8% or more is a comfortable cushion.

Loans funded by deposits

Loans equal 95.6% of deposits, so lending is funded by customer deposits.

Adequate loan-loss reserve

The allowance for credit losses is 1.1% of loans; we look for at least 1%.

Efficient operations

Non-interest expense takes 55.3% of revenue; under 60% is efficient for a bank.

Deposits shrinking

Deposits fell 2.1% over the past year.

Borrowings

Needs debt and equity figures.

Pays a dividend

WaFd paid dividends worth 3.7% of the share price over the last twelve months.

Yield below Treasuries

The 3.7% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; WaFd yields 3.7%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 10 fiscal years.

Covered by earnings

Dividends take 31.6% of net income.

Covered by free cash flow

Dividends take 35.7% of free cash flow.