Washington Federal (WAFD) AI Stock Analysis

• Market Cap: $2.33B
• Dividend Yield: 3.65%
• Average Volume (3M): 474.13K
• Price to Earnings (P/E): 11.0
• Beta (1Y): 0.77
• Revenue Growth: 24.53%
• EPS Growth: 0.16%
• Country: US
• Employees: 2,018
• Sector: Financial
• Sector Strength: 82
• Industry: Banks - Regional
• EPS (TTM): 0.65
• Shares Outstanding: 80,158,260
• 10 Day Avg. Volume: 354,764
• 30 Day Avg. Volume: 474,135
• PEG Ratio: 0.06
• Price to Book (P/B): 0.77
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.23
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $30.00
• Price Target Upside: 3.34% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 71 Outperform
• Price Target: ―

Washington Federal's overall stock score reflects its strong financial performance and attractive valuation. The robust cash flow management and high equity levels support financial stability, while the low P/E ratio and solid dividend yield enhance its investment appeal. Technical indicators show moderate positive momentum, contributing to the positive outlook. Despite these strengths, historical revenue volatility and past leverage fluctuations present potential risks.

Washington Federal Business Overview & Revenue Model

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.

How the Company Makes Money

Washington Federal makes money primarily through the interest income it earns on loans and investments. The bank generates revenue from the interest charged on residential and commercial real estate loans, construction loans, and commercial and industrial loans. Additionally, WAFD earns income from service charges on deposit accounts, fees for treasury management services, and other financial services. The bank also invests in securities, which provides another source of interest income. Key factors contributing to its earnings include its ability to manage interest rate risk, maintain asset quality, and expand its customer base through strategic branch locations and customer service.

Washington Federal Financial Statement Overview

Summary

Washington Federal shows a robust financial structure with strong gross profits and efficient cash flow management. Despite some volatility in revenue growth and past leverage, the company's current financial position is stable. The balance sheet is strengthened by high equity levels, though past fluctuations in leverage highlight potential risks.

Income Statement

The company exhibits a strong gross profit margin, indicating effective cost management. However, there is volatility in EBIT margins, with a notable negative EBIT in the recent annual report. While revenue growth was positive from 2023 to 2024, the trajectory remains inconsistent, suggesting potential challenges in maintaining steady growth.

Balance Sheet

The company maintains a solid equity position with no debt in the latest TTM period, enhancing financial stability. However, the debt-to-equity ratio was significant in the annual report, implying past leverage. A high equity ratio further supports balance sheet strength, though the fluctuations in equity and liabilities over the years suggest potential risks.

Cash Flow

Strong operating and free cash flow growth is evident, demonstrating efficient cash management. The company's capacity to convert net income into cash flow is robust, indicating healthy cash flow operations. However, the negative financing cash flow in recent periods suggests a focus on debt repayment or reduced external financing.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
1.17B	721.83M	742.61M	661.61M	566.10M	556.49M
	Gross Profit
814.54M	721.83M	742.61M	661.61M	566.10M	556.49M
	EBIT
579.94M	256.06M	325.08M	285.41M	233.14M	219.19M
	EBITDA
92.63M	0.00	348.05M	364.09M	267.05M	259.10M
	Net Income Common Stockholders
229.22M	200.04M	257.43M	236.33M	183.62M	173.44M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
0.00	25.97M	2.98B	950.00	4.23B	3.95B
	Total Assets
27.64B	28.06B	22.47B	20.77B	19.65B	18.79B
	Total Debt
2.81B	3.32B	3.65B	2.13B	1.72B	2.70B
	Net Debt
2.81B	937.21M	2.67B	1.44B	-370.81M	997.02M
	Total Liabilities
24.61B	25.06B	3.65B	300.04M	1.72B	2.70B
	Stockholders Equity
3.03B	3.00B	2.43B	2.27B	2.13B	2.01B
Cash Flow		Free Cash Flow
190.70M	414.55M	198.89M	256.68M	284.98M	134.66M
	Operating Cash Flow
209.20M	439.23M	213.96M	268.46M	314.45M	166.60M
	Investing Cash Flow
2.36B	3.29B	-1.38B	-2.49B	-579.75M	-920.98M
	Financing Cash Flow
-2.57B	-2.33B	1.46B	817.86M	653.12M	2.04B

Washington Federal Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 29.03
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WAFD, the sentiment is Positive. The current price of 29.03 is above the 20-day moving average (MA) of 28.92, above the 50-day MA of 27.99, and below the 200-day MA of 31.36, indicating a neutral trend. The MACD of 0.09 indicates Positive momentum. The RSI at 55.28 is Neutral, neither overbought nor oversold. The STOCH value of 59.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WAFD.

Washington Federal Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FFBC	75 Outperform	$2.29B	9.97	9.58%	3.96%	8.05%	-3.31%
FRME	75 Outperform	$2.15B	10.41	9.16%	3.79%	1.42%	2.77%
WAFD	71 Outperform	$2.33B	11.02	7.70%	3.65%	24.53%	0.16%
TBBK	70 Outperform	$2.44B	11.79	26.52%	―	10.99%	21.05%
PFS	68 Neutral	$2.19B	15.12	6.77%	5.72%	80.24%	-30.60%
Sector *	64 Neutral	$12.87B	9.81	7.76%	16985.65%	12.28%	-7.83%
BANC	61 Neutral	$2.20B	21.51	4.33%	2.86%	121.04%	―

Washington Federal Corporate Events

Washington Federal Approves 2025 Stock Incentive Plan

On February 11, 2025, WaFd, Inc. held its Annual Meeting of Shareholders where the stockholders approved the 2025 Stock Incentive Plan, which replaces the expired 2020 plan. This new plan aims to advance the company’s interests by attracting and retaining qualified personnel and aligning their incentives with shareholder value through various stock-based awards. It reserves 3,250,000 shares of common stock for issuance and will be administered by the Board’s Compensation Committee. Additionally, the meeting saw the election of directors and approval of executive compensation and Deloitte & Touche, LLP’s appointment as independent auditors for fiscal 2025.

Washington Federal Highlights Growth in Investor Presentation

WaFd, Inc. presented a slide presentation for institutional investors and industry analysts as of December 31, 2024, highlighting its strong performance, strategic growth, and commitment to customer satisfaction. The presentation illustrated WaFd’s evolution into a commercial bank with a digital focus, emphasizing its solid asset quality and growth in commercial loans despite fluctuating interest rates. WaFd’s investments in ESG initiatives and technology have resulted in increased web traffic and high customer satisfaction scores, underscoring its steadfast dedication to community development and stakeholder value.