Washington Federal (WAFD) AI Stock Analysis

• Market Cap: $2.37B
• Dividend Yield: 3.59%
• Average Volume (3M): 530.20K
• Price to Earnings (P/E): 11.5
• Beta (1Y): 0.79
• Revenue Growth: 8.74%
• EPS Growth: 5.16%
• Country: US
• Employees: 2,018
• Sector: Financial
• Sector Strength: 72
• Industry: Banks - Regional
• EPS (TTM): 0.73
• Shares Outstanding: 80,158,260
• 10 Day Avg. Volume: 673,866
• 30 Day Avg. Volume: 530,204
• PEG Ratio: 0.48
• Price to Book (P/B): 0.80
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.32
• Enterprise Value/Market Cap: 1.68
• Enterprise Value/Revenue: 0.69
• Enterprise Value/Gross Profit: 5.45
• Enterprise Value/Ebitda: 2.62
• 1Y Price Target: $31.75
• Price Target Upside: 7.52% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 72 Outperform
• Price Target: $33.00 ▲(11.75%Upside)

Washington Federal demonstrates solid financial performance and reasonable valuation, making it a stable investment choice. The neutral technical analysis suggests a cautious approach for short-term traders, but the robust financial health supports a positive outlook for long-term investors.

Washington Federal Business Overview & Revenue Model

Company Description

Washington Federal, Inc. (WAFD), headquartered in Seattle, Washington, operates as the holding company for Washington Federal Bank, a federally chartered savings bank. Established in 1917, the company offers a wide range of financial services primarily in the western United States. Its core services include providing consumer and commercial deposit accounts, residential real estate loans, commercial real estate loans, construction loans, and small business banking services. With a focus on personalized banking solutions, Washington Federal is committed to serving individual and business clients through its numerous branches and online platforms.

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 solid financial health with strong revenue growth and efficient operational performance. While the balance sheet shows moderate leverage, the company's cash flow generation remains robust. The primary concern lies in the declining free cash flow, which could impact future financial flexibility.

Income Statement

Washington Federal has demonstrated strong revenue growth, with a TTM revenue of $1.51 billion, up from $1.09 billion two years ago, indicating a positive trajectory. The gross profit margin stands at 48.17%, showcasing efficient cost management. The net profit margin has slightly declined to 15.13% from the previous year, reflecting some pressure on profitability. However, the EBIT and EBITDA margins remain healthy at 19.51% and 16.40% respectively, demonstrating solid operational performance.

Balance Sheet

The company's balance sheet is stable, with a debt-to-equity ratio of 0.93, which is manageable within the banking industry. The return on equity is 7.56%, indicating effective use of equity to generate profits. The equity ratio at 10.97% is slightly below the optimal range, hinting at a higher reliance on liabilities, which could pose risks during financial downturns. Overall, the balance sheet shows moderate leverage and effective equity utilization.

Cash Flow

Washington Federal's cash flow performance is strong, with a robust operating cash flow to net income ratio of 1.23, indicating strong cash generation relative to earnings. However, the free cash flow has decreased over the period, with a negative growth rate of -37.94% in the TTM, suggesting potential challenges in maintaining free cash flow levels. Despite this, the company maintains a healthy free cash flow to net income ratio of 1.12, reflecting efficient cash use.

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

Washington Federal Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 29.53
• 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 Negative. The current price of 29.53 is below the 20-day moving average (MA) of 30.21, above the 50-day MA of 29.35, and below the 200-day MA of 30.56, indicating a neutral trend. The MACD of 0.14 indicates Positive momentum. The RSI at 49.60 is Neutral, neither overbought nor oversold. The STOCH value of 39.17 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
FRME	79 Outperform	$2.32B	10.70	9.90%	3.54%	-1.18%	23.42%
FFBC	77 Outperform	$2.28B	10.12	9.77%	4.03%	4.62%	2.69%
TBBK	75 Outperform	$3.25B	13.68	27.41%	―	18.40%	21.96%
PFS	75 Outperform	$2.40B	16.47	8.78%	5.23%	66.95%	67.27%
WAFD	72 Outperform	$2.37B	11.54	7.59%	3.59%	8.74%	5.16%
BANC	70 Neutral	$2.40B	23.63	4.32%	2.74%	49.00%	―
Sector *	63 Neutral	AU$10.03B	9.11	11.83%	4.86%	33.36%	41.81%

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.