Washington Federal (WAFD) AI Stock Analysis

• Market Cap: $2.45B
• Dividend Yield: 3.41%
• Average Volume (3M): 549.98K
• Price to Earnings (P/E): 11.9
• Beta (1Y): 0.80
• Revenue Growth: 8.75%
• EPS Growth: 5.16%
• Country: US
• Employees: 2,018
• Sector: Financial
• Sector Strength: 72
• Industry: Banks - Regional
• EPS (TTM): 0.73
• Shares Outstanding: 78,792,050
• 10 Day Avg. Volume: 542,084
• 30 Day Avg. Volume: 549,983
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.56
• Enterprise Value/Revenue: 2.52
• Enterprise Value/Gross Profit: 5.24
• Enterprise Value/Ebitda: 15.38
• 1Y Price Target: $32.40
• Price Target Upside: 5.99% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 74 Outperform
• Price Target: $33.00 ▲(7.95% Upside)

Washington Federal's strong financial performance and reasonable valuation are the primary strengths, supporting a solid stock score. Technical analysis indicates some bearish momentum, which slightly offsets the positive financials. The absence of earnings call data and corporate events does not impact the overall score.

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 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 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: Positive
• Last Price: 30.57
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 30.57 is above the 20-day moving average (MA) of 29.82, above the 50-day MA of 29.62, and above the 200-day MA of 30.23, indicating a bullish trend. The MACD of 0.24 indicates Negative momentum. The RSI at 57.89 is Neutral, neither overbought nor oversold. The STOCH value of 88.50 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
FFBC	79 Outperform	$2.39B	9.98	9.77%	3.89%	4.62%	2.69%
TBBK	76 Outperform	$3.12B	14.58	27.41%	―	25.43%	21.96%
PFS	75 Outperform	$2.52B	10.87	8.78%	5.12%	66.96%	67.27%
WAFD	74 Outperform	$2.45B	11.85	7.59%	3.41%	8.75%	5.16%
FRME	69 Neutral	$2.28B	10.27	9.90%	3.63%	-1.18%	23.43%
Sector *	67 Neutral	¥836.32B	13.01	9.24%	3.02%	7.93%	10.80%
BANC	64 Neutral	$2.49B	24.45	4.32%	2.53%	49.10%	―

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.