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Washington Federal (WAFD)
NASDAQ:WAFD

Washington Federal (WAFD) AI Stock Analysis

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Washington Federal

(NASDAQ:WAFD)

Rating:71Outperform
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 (WAFD) vs. SPDR S&P 500 ETF (SPY)

Washington Federal Business Overview & Revenue Model

Company DescriptionWashington 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 MoneyWashington 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
72
Positive
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
68
Positive
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
75
Positive
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.
BreakdownTTMSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income Statement
Total Revenue1.51B1.43B1.10B733.38M652.60M708.25M
Gross Profit729.83M704.33M701.11M661.61M566.10M534.74M
EBITDA248.53M390.16M348.05M364.09M267.05M259.10M
Net Income229.22M200.04M257.43M236.33M183.62M173.44M
Balance Sheet
Total Assets27.64B28.06B22.47B20.77B19.65B18.79B
Cash, Cash Equivalents and Short-Term Investments3.35B4.95B2.98B2.74B4.23B3.95B
Total Debt2.81B3.32B3.65B2.13B1.72B2.70B
Total Liabilities24.61B25.06B20.05B18.50B17.52B16.78B
Stockholders Equity3.03B3.00B2.43B2.27B2.13B2.01B
Cash Flow
Free Cash Flow257.28M414.55M198.89M256.68M284.98M134.66M
Operating Cash Flow281.34M439.23M213.96M268.46M314.45M166.60M
Investing Cash Flow2.15B3.29B-1.38B-2.49B-579.75M-920.98M
Financing Cash Flow-2.71B-2.33B1.46B817.86M653.12M2.04B

Washington Federal Technical Analysis

Technical Analysis Sentiment
Positive
Last Price31.21
Price Trends
50DMA
28.84
Positive
100DMA
28.41
Positive
200DMA
30.84
Positive
Market Momentum
MACD
0.50
Negative
RSI
70.95
Negative
STOCH
94.53
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 Risk Analysis

Washington Federal disclosed 40 risk factors in its most recent earnings report. Washington Federal reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Washington Federal Peers Comparison

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
PFPFS
77
Outperform
$2.42B16.696.77%5.19%80.24%-30.60%
77
Outperform
$2.75B13.3026.52%18.52%21.05%
76
Outperform
$2.48B10.769.58%3.75%8.05%-3.31%
71
Outperform
$2.48B11.707.70%3.50%24.53%0.16%
71
Outperform
$2.38B11.479.16%3.57%1.42%2.67%
67
Neutral
$17.01B11.909.70%3.76%11.63%-9.47%
66
Neutral
$2.32B22.694.33%2.74%121.00%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
WAFD
Washington Federal
31.21
4.13
15.25%
FFBC
First Financial Bancorp
25.86
4.87
23.20%
FRME
First Merchants
40.74
9.36
29.83%
BANC
Banc of California
14.76
2.60
21.38%
PFS
Provident Financial Services
18.86
5.29
38.98%
TBBK
Bancorp
58.90
20.08
51.73%

Washington Federal Corporate Events

Financial Disclosures
Washington Federal to Announce Q2 2025 Earnings
Neutral
Jul 2, 2025

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.

Dividends
Washington Federal Declares Cash Dividend for Preferred Stock
Neutral
May 13, 2025

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.

Business Operations and StrategyFinancial Disclosures
WaFd Highlights Strong Financial Position and Growth
Positive
May 5, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 24, 2025