Washington Federal (WAFD) AI Stock Analysis

• Market Cap: $2.36B
• Dividend Yield: 3.27%
• Average Volume (3M): 506.91K
• Price to Earnings (P/E): 10.8
• Beta (1Y): 0.62
• Revenue Growth: -1.58%
• EPS Growth: 6.34%
• Country: US
• Employees: 2,018
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.79
• Shares Outstanding: 75,863,335
• 10 Day Avg. Volume: 540,448
• 30 Day Avg. Volume: 506,909
• PEG Ratio: 1.92
• Price to Book (P/B): 0.80
• Price to Sales (P/S): 1.72
• P/FCF Ratio: 11.66
• Enterprise Value/Market Cap: 1.75
• Enterprise Value/Revenue: 2.97
• Enterprise Value/Gross Profit: 5.63
• Enterprise Value/Ebitda: 14.93
• 1Y Price Target: $32.83
• Price Target Upside: 5.36% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3
• EPS Forecast (FY): 3.07
• Revenue Forecast (FY): $783.50M

• Rating: 64 Neutral
• Price Target: $34.00 ▲(9.11% Upside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is driven primarily by steady financial health and strong cash generation, supported by reasonable valuation (low-teens P/E and ~3.25% yield). These positives are tempered by weaker technical momentum and earnings-call risks tied to rising nonperformers/delinquencies and near-term net interest margin pressure.

Positive Factors

Cash Generation

Consistent, high-quality cash generation (operating cash flow ~$248M and FCF ~91% of net income) underpins durable capital returns and loss-absorption capacity. Strong FCF supports dividends, buybacks, reserves and reinvestment, improving resilience through credit cycles and funding shifts.

Loan Production & Pipeline

Robust originations and a rapidly expanding $3.2B pipeline indicate sustainable earning-asset growth if conversion holds. A diversified production mix (C&I, CRE, construction) and management targets for 6–12% loan growth suggest durable capacity to rebuild interest-earning assets and support net interest income over 1–2 years.

Regulatory/CRA Resolution

Successful CRA appeal and upgrade to Satisfactory removes operational and strategic constraints tied to a weaker rating. This durable regulatory outcome reduces execution risk for branch moves, M&A and community lending, improving ability to pursue growth and restore investor/regulatory confidence over the medium term.

Negative Factors

Rising Nonperforming Assets

A 49% increase in nonaccruals and higher NPAs erode interest income and force elevated provisioning. Persistent asset-quality deterioration can depress margins, strain capital conversion into returns, and require higher loan-loss reserves, creating multi-quarter headwinds to profitability and credit deployment.

Near-Term Margin Pressure

Nonaccrual reversals and MBS purchases are compressing reported margins. If lower-yielding securities and charge reversals persist, net interest margin recovery will be slower, limiting ROE improvement and cash generation potential until loans reprice or higher-yield assets replace runoff.

Deposit Challenges & Borrowings

A decline in deposits alongside a meaningful rise in short-term borrowings increases funding cost and liquidity sensitivity. Greater reliance on wholesale funding can durably raise interest expense and constrain margin stability, making achievement of targeted deposit mix shifts and loan growth more execution-dependent over several quarters.

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

Solid overall fundamentals: profitable TTM with ~17% net margin, manageable leverage (TTM debt-to-equity ~0.82), and strong cash generation (FCF ~91% of net income). The main drag is a slower trajectory—TTM revenue slightly down (~-1%) and profitability/returns have normalized from FY2022–FY2023 highs (ROE ~8% TTM).

Income Statement

TTM (Trailing-Twelve-Months) results show solid profitability (about 17% net margin) with margins holding up reasonably well versus FY2025, but revenue is slightly down (roughly -1%). Over the last several years, revenue expanded sharply into FY2024–FY2025, yet profitability has cooled from the very strong FY2022–FY2023 levels (net margin down from the low-30%/mid-20% range to mid-to-high teens). Overall: still profitable and resilient, but facing a slower top-line and some margin normalization.

Balance Sheet

Leverage looks manageable for a regional bank, with TTM (Trailing-Twelve-Months) debt-to-equity around 0.82 and equity of about $3.0B supporting a large asset base (~$25.5B). Returns on equity are steady but moderate (about 8% TTM), below the stronger FY2022–FY2023 period. A positive is improved leverage versus the more stretched FY2023–FY2024 levels (debt-to-equity above 1.1–1.5), though current returns suggest the balance sheet is not being converted into outsized profitability.

Cash Flow

Cash generation is a relative strength: TTM (Trailing-Twelve-Months) operating cash flow (~$248M) and free cash flow (~$226M) are healthy and track net income fairly closely (free cash flow is ~91% of net income). Free cash flow growth is positive TTM, and cash conversion has been consistently strong across years. One watch item is volatility in the cash-flow-to-earnings relationship across reporting periods (coverage metrics swing materially), but overall cash generation appears supportive of earnings quality.

Breakdown	TTM	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	1.39B	1.41B	1.43B	1.10B	733.38M	652.60M
Gross Profit	734.42M	717.73M	704.33M	701.11M	658.61M	565.60M
EBITDA	277.06M	299.36M	390.16M	348.05M	364.09M	267.05M
Net Income	243.00M	226.07M	200.04M	257.43M	236.33M	183.62M
Balance Sheet
Total Assets	27.29B	26.70B	28.06B	22.47B	20.77B	19.65B
Cash, Cash Equivalents and Short-Term Investments	3.98B	3.27B	4.95B	2.98B	2.74B	4.23B
Total Debt	2.49B	1.82B	3.32B	3.65B	2.13B	1.72B
Total Liabilities	24.26B	23.66B	25.06B	20.05B	18.50B	17.52B
Stockholders Equity	3.03B	3.04B	3.00B	2.43B	2.27B	2.13B
Cash Flow
Free Cash Flow	215.30M	208.25M	414.55M	198.89M	256.68M	284.98M
Operating Cash Flow	248.00M	236.95M	439.23M	213.96M	268.46M	314.45M
Investing Cash Flow	-315.52M	-318.41M	3.29B	-1.38B	-2.49B	-579.75M
Financing Cash Flow	-705.30M	-1.64B	-2.33B	1.46B	817.86M	653.12M

Washington Federal Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 31.16
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 31.16 is below the 20-day moving average (MA) of 32.72, below the 50-day MA of 32.55, and above the 200-day MA of 30.32, indicating a neutral trend. The MACD of -0.11 indicates Positive momentum. The RSI at 38.75 is Neutral, neither overbought nor oversold. The STOCH value of 40.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WAFD.

Washington Federal Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FFBC	78 Outperform	$2.94B	10.56	9.82%	3.79%	5.15%	16.42%
FRME	76 Outperform	$2.48B	10.07	9.47%	3.72%	-1.76%	32.44%
PFS	72 Outperform	$2.75B	9.43	10.72%	4.69%	38.34%	89.73%
BANR	69 Neutral	$2.01B	10.44	10.28%	2.97%	6.98%	15.08%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
TRMK	66 Neutral	$2.51B	11.50	10.98%	2.38%	17.95%	―
WAFD	64 Neutral	$2.36B	10.79	7.49%	3.27%	-1.58%	6.34%

Washington Federal Corporate Events

Washington Federal Highlights Strategic Shift and Credit Strength

On Dec. 31, 2025, WaFd, Inc. furnished an investor slide deck used by executives in meetings with institutional investors and analysts, detailing the bank’s franchise profile, strategy and performance metrics. The materials emphasize WaFd’s transition over the past 15 years from a thrift focused on consumer deposits and home loans to a more commercially oriented, concierge‑style relationship bank serving businesses and consumers both in person and digitally.

The presentation underscores WaFd’s concentration in high‑growth Western markets, strong customer satisfaction scores in J.D. Power’s Northwest rankings and a Net Promoter Score approaching “world‑class” levels, reinforcing its competitive positioning. It also highlights robust credit quality, with low non‑performing assets at 0.75% of total assets and limited net charge‑offs through 2026 year‑to‑date, as well as a sizable allowance for credit losses, signaling conservative risk management supportive of stakeholders in a higher‑rate, uncertain economic environment.

The most recent analyst rating on (WAFD) stock is a Buy with a $38.00 price target. To see the full list of analyst forecasts on Washington Federal stock, see the WAFD Stock Forecast page.

Washington Federal shareholders approve directors and governance measures

WaFd, Inc., the parent company of Washington Federal, is a financial institution whose board of directors oversees governance, risk management and key oversight committees such as audit and technology. At its annual meeting of shareholders held on February 3, 2026, WaFd shareholders elected four directors to new three‑year terms, approved on an advisory basis the compensation of the company’s named executive officers, and ratified the appointment of Deloitte & Touche as independent auditor for fiscal 2026, affirming board‑backed governance and pay practices. On the same date, the company disclosed that Director Steven Singh will resign from the board effective May 13, 2026 for personal reasons unrelated to any disagreement with management, while Director David Grant retired from the board following the meeting under the firm’s director retirement policy, with Director Bradley Shuster appointed to succeed Grant as chair of the audit committee, signaling an orderly leadership transition in key oversight roles.

The most recent analyst rating on (WAFD) stock is a Hold with a $30.50 price target. To see the full list of analyst forecasts on Washington Federal stock, see the WAFD Stock Forecast page.

WaFd Declares Quarterly Dividend on Series A Preferred

On February 3, 2026, 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, equivalent to $0.30468750 per depositary share, which represents a 1/40th interest in a preferred share and trades on NASDAQ under the symbol WAFDP. The dividend is scheduled to be paid on April 15, 2026, to shareholders of record as of March 31, 2026, underscoring WaFd’s ongoing capital returns to holders of its preferred securities and providing defined income timing for those investors.

The most recent analyst rating on (WAFD) stock is a Buy with a $36.00 price target. To see the full list of analyst forecasts on Washington Federal stock, see the WAFD Stock Forecast page.

Washington Federal Wins Appeal, CRA Rating Upgraded

On January 21, 2026, WaFd Bank reported that it had prevailed in its appeal to the Federal Deposit Insurance Corporation’s Supervision Appeals Review Committee over a previously issued Community Reinvestment Act rating that covered the period from June 3, 2020 to March 26, 2024. The committee’s January 16, 2026 decision upgraded the bank’s CRA lending test score from “Needs to Improve” to “Low Satisfactory” and its overall CRA rating from “Needs to Improve” to “Satisfactory,” removing operational restrictions associated with the lower rating and reinforcing WaFd’s ability to continue serving community credit needs as it enters its 109th year of operations.

The most recent analyst rating on (WAFD) stock is a Hold with a $34.00 price target. To see the full list of analyst forecasts on Washington Federal stock, see the WAFD Stock Forecast page.

WaFd Schedules Fiscal Q1 2026 Earnings Release Call

On January 5, 2026, WaFd Inc. announced it will report financial results for its first quarter of fiscal 2026, covering the period ended December 31, 2025, after the market close on January 15, 2026, and will discuss those results with investors and analysts on a conference call the following morning, January 16, 2026. The scheduled earnings release and call underscore the company’s regular financial reporting cycle and provide a forum for stakeholders to hear management’s commentary on recent performance and outlook, which may influence investor sentiment and market expectations around WaFd’s near-term business trajectory.

The most recent analyst rating on (WAFD) stock is a Hold with a $33.50 price target. To see the full list of analyst forecasts on Washington Federal stock, see the WAFD Stock Forecast page.