Washington Federal (WAFD) AI Stock Analysis

• Market Cap: $2.46B
• Dividend Yield: 3.45%
• Average Volume (3M): 449.83K
• Price to Earnings (P/E): 11.9
• Beta (1Y): 0.75
• Revenue Growth: 8.75%
• EPS Growth: 5.16%
• Country: US
• Employees: 2,018
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.73
• Shares Outstanding: 78,792,050
• 10 Day Avg. Volume: 608,234
• 30 Day Avg. Volume: 449,835
• PEG Ratio: -0.39
• Price to Book (P/B): 0.86
• Price to Sales (P/S): 1.81
• P/FCF Ratio: 6.24
• Enterprise Value/Market Cap: 1.55
• Enterprise Value/Revenue: 2.63
• Enterprise Value/Gross Profit: 5.30
• Enterprise Value/Ebitda: 14.86
• 1Y Price Target: $32.80
• Price Target Upside: 5.67% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 75 Outperform
• Price Target: $35.00 ▲(12.76% Upside)

Washington Federal's stock is supported by solid financial health and attractive valuation. Positive technical indicators further enhance its appeal. However, challenges in revenue growth and operational efficiency slightly temper the overall score.

Washington Federal Business Overview & Revenue Model

Company Description

WaFd, Inc. engages in the provision of lending, depository, insurance, and other banking services to consumers. It also offers banking services to mid-sized to large businesses, and owners and developers of commercial real estate. The company was founded on November 15, 1994 and is headquartered in Seattle, WA.

How the Company Makes Money

Washington Federal primarily generates revenue through interest income from loans, which is the largest component of its earnings. The bank issues various types of loans, including residential mortgages, commercial real estate loans, and consumer loans, charging interest on these products. Additionally, WAFD earns money from non-interest income sources such as service charges on deposit accounts, mortgage servicing fees, and investment advisory services. The company also benefits from net interest margin, which is the difference between the interest earned on loans and the interest paid on deposits. Significant partnerships and factors contributing to its earnings include a strong focus on community banking, a diverse loan portfolio, and a commitment to customer service, which helps attract and retain clients.

Washington Federal Financial Statement Overview

Summary

Washington Federal shows stable profitability with a strong net profit margin and improved leverage management. However, challenges in revenue growth and operational efficiency, along with declining free cash flow growth, need attention.

Income Statement

Washington Federal's income statement shows a stable gross profit margin of approximately 49.5% in TTM, with a slight decline in revenue growth rate at -3.9%. The net profit margin improved to 15.6% in TTM, indicating efficient cost management. However, the EBIT and EBITDA margins have decreased compared to previous periods, suggesting potential challenges in operational efficiency.

Balance Sheet

The balance sheet reflects a healthy debt-to-equity ratio of 0.66 in TTM, showing improved leverage management. Return on equity is at 7.5%, indicating moderate profitability. The equity ratio stands at 11.3%, suggesting a stable capital structure, though slightly lower than industry standards.

Cash Flow

Cash flow analysis reveals a decrease in free cash flow growth at -2.0% in TTM, indicating potential cash management issues. The operating cash flow to net income ratio is 0.81, showing a decent conversion of income to cash. The free cash flow to net income ratio is strong at 0.91, reflecting good cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.46B	1.43B	1.10B	733.38M	652.60M	708.25M
Gross Profit	721.27M	704.33M	701.11M	661.61M	566.10M	534.74M
EBITDA	257.12M	390.16M	348.05M	364.09M	267.05M	259.10M
Net Income	226.61M	200.04M	257.43M	236.33M	183.62M	173.44M
Balance Sheet
Total Assets	26.73B	28.06B	22.47B	20.77B	19.65B	18.79B
Cash, Cash Equivalents and Short-Term Investments	4.20B	4.95B	2.98B	2.74B	4.23B	3.95B
Total Debt	1.98B	3.32B	3.65B	2.13B	1.72B	2.70B
Total Liabilities	23.72B	25.06B	20.05B	18.50B	17.52B	16.78B
Stockholders Equity	3.01B	3.00B	2.43B	2.27B	2.13B	2.01B
Cash Flow
Free Cash Flow	252.06M	414.55M	198.89M	256.68M	284.98M	134.66M
Operating Cash Flow	276.19M	439.23M	213.96M	268.46M	314.45M	166.60M
Investing Cash Flow	103.29M	3.29B	-1.38B	-2.49B	-579.75M	-920.98M
Financing Cash Flow	-2.06B	-2.33B	1.46B	817.86M	653.12M	2.04B

Washington Federal Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 31.04
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Neutral. The current price of 31.04 is below the 20-day moving average (MA) of 31.41, above the 50-day MA of 30.48, and above the 200-day MA of 29.47, indicating a neutral trend. The MACD of 0.15 indicates Positive momentum. The RSI at 49.57 is Neutral, neither overbought nor oversold. The STOCH value of 43.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for WAFD.

Washington Federal Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PFS	79 Outperform	2.56B	11.08	8.53%	4.91%	66.96%	67.27%
TBBK	78 Outperform	3.55B	16.56	26.09%	―	25.43%	21.96%
FFBC	77 Outperform	2.49B	10.34	9.33%	3.74%	4.62%	2.69%
WAFD	75 Outperform	$2.46B	11.94	7.59%	3.45%	8.75%	5.16%
BANC	71 Outperform	2.63B	25.57	4.31%	2.39%	49.10%	―
FRME	70 Outperform	2.28B	10.28	9.61%	3.59%	-1.18%	23.43%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Washington Federal Corporate Events

WaFd, Inc. Highlights Strategic Focus in Investor Meetings

WaFd, Inc. has released a slide presentation for meetings with institutional investors and industry analysts, highlighting its strategic focus and operational performance as of June 30, 2025. The presentation emphasizes WaFd’s strong credit quality, low non-performing assets, and commitment to customer service and ESG principles. It also outlines the bank’s evolution towards a commercial bank with a digital focus, and its efforts in community development and diversity. The bank’s strategic objectives include delivering exceptional customer service and expanding its business through credit and treasury solutions.

Washington Federal Declares Dividend on Preferred Stock

On August 12, 2025, WaFd, Inc.’s Board of Directors declared a cash dividend of $12.1875 per share on its 4.875% Fixed Rate Series A Non-Cumulative Perpetual Preferred Stock. The dividend, amounting to $0.30468750 per depositary share, will be payable on October 15, 2025, to shareholders recorded by September 30, 2025, potentially impacting investor returns and market perception.

Washington Federal to Announce Q2 2025 Earnings

On July 2, 2025, WaFd Inc. announced its plan to release its earnings results for the quarter ended June 30, 2025, after the close of business on July 17, 2025. This announcement indicates a forthcoming update on the company’s financial performance, which could impact stakeholders’ perspectives and the company’s market positioning.