Washington Federal (WAFD) AI Stock Analysis

• Market Cap: $2.48B
• Dividend Yield: 3.5%
• Average Volume (3M): 442.65K
• Price to Earnings (P/E): 11.7
• Beta (1Y): 0.78
• 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: 495,496
• 30 Day Avg. Volume: 442,649
• PEG Ratio: 0.45
• Price to Book (P/B): 0.75
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.78
• Enterprise Value/Market Cap: 1.55
• Enterprise Value/Revenue: 0.67
• Enterprise Value/Gross Profit: 5.27
• Enterprise Value/Ebitda: 2.53
• 1Y Price Target: $30.00
• Price Target Upside: -3.88% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 71 Outperform
• Price Target: $32.00 ▲(2.53%Upside)

Washington Federal's overall stock score reflects strong financial performance and positive corporate events, which are tempered by neutral technical indicators. The attractive valuation further supports the score, while the absence of earnings call data and slightly bearish short-term trends are minor concerns.

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 earned on loans and the fees collected from its banking services. The company's revenue streams include interest income from residential, commercial, and construction loans, as well as from investment securities. Additionally, it earns non-interest income from service charges, loan fees, and other banking-related activities. Washington Federal's revenue is also influenced by the interest rate environment, as it affects the spread between the interest earned on assets and the interest paid on liabilities. The company benefits from strategic partnerships with various financial service providers to enhance its product offerings and customer reach.

Washington Federal Financial Statement Overview

Summary

Washington Federal exhibits 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	1.51B	1.43B	1.10B	733.38M	652.60M	708.25M
Gross Profit	729.83M	704.33M	701.11M	661.61M	566.10M	534.74M
EBITDA	248.53M	390.16M	348.05M	364.09M	267.05M	259.10M
Net Income	229.22M	200.04M	257.43M	236.33M	183.62M	173.44M
Balance Sheet
Total Assets	27.64B	28.06B	22.47B	20.77B	19.65B	18.79B
Cash, Cash Equivalents and Short-Term Investments	3.35B	4.95B	2.98B	2.74B	4.23B	3.95B
Total Debt	2.81B	3.32B	3.65B	2.13B	1.72B	2.70B
Total Liabilities	24.61B	25.06B	20.05B	18.50B	17.52B	16.78B
Stockholders Equity	3.03B	3.00B	2.43B	2.27B	2.13B	2.01B
Cash Flow
Free Cash Flow	257.28M	414.55M	198.89M	256.68M	284.98M	134.66M
Operating Cash Flow	281.34M	439.23M	213.96M	268.46M	314.45M	166.60M
Investing Cash Flow	2.15B	3.29B	-1.38B	-2.49B	-579.75M	-920.98M
Financing Cash Flow	-2.71B	-2.33B	1.46B	817.86M	653.12M	2.04B

Washington Federal Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 31.21
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 31.21 is above the 20-day moving average (MA) of 29.05, above the 50-day MA of 28.84, and above the 200-day MA of 30.84, indicating a bullish trend. The MACD of 0.50 indicates Negative momentum. The RSI at 70.95 is Negative, neither overbought nor oversold. The STOCH value of 94.53 is Negative, 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
PFS	77 Outperform	$2.42B	16.69	6.77%	5.19%	80.24%	-30.60%
TBBK	77 Outperform	$2.75B	13.30	26.52%	―	18.52%	21.05%
FFBC	76 Outperform	$2.48B	10.76	9.58%	3.75%	8.05%	-3.31%
WAFD	71 Outperform	$2.48B	11.70	7.70%	3.50%	24.53%	0.16%
FRME	71 Outperform	$2.38B	11.47	9.16%	3.57%	1.42%	2.67%
Sector *	67 Neutral	$17.01B	11.90	9.70%	3.76%	11.63%	-9.47%
BANC	66 Neutral	$2.32B	22.69	4.33%	2.74%	121.00%	―

Washington Federal Corporate Events

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.

The most recent analyst rating on (WAFD) stock is a Hold with a $32.00 price target. To see the full list of analyst forecasts on Washington Federal stock, see the WAFD Stock Forecast page.

Washington Federal Declares Cash Dividend for Preferred Stock

On May 13, 2025, the Board of Directors of WaFd, Inc. declared a cash dividend of $12.1875 per share on its 4.875% Fixed Rate Series A Non-Cumulative Perpetual Preferred Stock. This dividend, equating to $0.30468750 per depositary share, is set to be paid on July 15, 2025, to shareholders recorded by June 30, 2025, potentially impacting shareholder returns and market perception.

The most recent analyst rating on (WAFD) stock is a Hold with a $32.00 price target. To see the full list of analyst forecasts on Washington Federal stock, see the WAFD Stock Forecast page.

WaFd Highlights Strong Financial Position and Growth

On March 31, 2025, WaFd, Inc. presented a slide presentation to institutional investors and industry analysts, highlighting the company’s strong financial position, strategic growth in commercial lending, and commitment to customer satisfaction and community development. The presentation underscored WaFd’s robust credit quality, with non-performing assets at near record lows, and emphasized its ongoing efforts in digital transformation and ESG initiatives, aiming to enhance stakeholder value and maintain its competitive edge in the banking industry.