tiprankstipranks
Trending News
More News >
Washington Federal (WAFD)
:WAFD
Advertisement

Washington Federal (WAFD) AI Stock Analysis

Compare
124 Followers

Top Page

WAFD

Washington Federal

(NASDAQ:WAFD)

Rating:72Outperform
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 (WAFD) vs. SPDR S&P 500 ETF (SPY)

Washington Federal Business Overview & Revenue Model

Company DescriptionWashington 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 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 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
78
Positive
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
74
Positive
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
81
Very Positive
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.
BreakdownSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income Statement
Total Revenue1.43B1.10B733.38M652.60M708.25M
Gross Profit704.33M701.11M661.61M566.10M534.74M
EBITDA390.16M348.05M364.09M267.05M259.10M
Net Income200.04M257.43M236.33M183.62M173.44M
Balance Sheet
Total Assets28.06B22.47B20.77B19.65B18.79B
Cash, Cash Equivalents and Short-Term Investments4.95B2.98B2.74B4.23B3.95B
Total Debt3.32B3.65B2.13B1.72B2.70B
Total Liabilities25.06B20.05B18.50B17.52B16.78B
Stockholders Equity3.00B2.43B2.27B2.13B2.01B
Cash Flow
Free Cash Flow414.55M198.89M256.68M284.98M134.66M
Operating Cash Flow439.23M213.96M268.46M314.45M166.60M
Investing Cash Flow3.29B-1.38B-2.49B-579.75M-920.98M
Financing Cash Flow-2.33B1.46B817.86M653.12M2.04B

Washington Federal Technical Analysis

Technical Analysis Sentiment
Negative
Last Price29.53
Price Trends
50DMA
29.35
Positive
100DMA
28.54
Positive
200DMA
30.56
Negative
Market Momentum
MACD
0.14
Positive
RSI
49.60
Neutral
STOCH
39.17
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 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 (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$2.32B10.709.90%3.54%-1.18%23.42%
77
Outperform
$2.28B10.129.77%4.03%4.62%2.69%
75
Outperform
$3.25B13.6827.41%18.40%21.96%
75
Outperform
$2.40B16.478.78%5.23%66.95%67.27%
72
Outperform
$2.37B11.547.59%3.59%8.74%5.16%
70
Neutral
$2.40B23.634.32%2.74%49.00%
63
Neutral
AU$10.03B9.1111.83%4.86%33.36%41.81%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
WAFD
Washington Federal
29.74
-4.46
-13.04%
FFBC
First Financial Bancorp
24.86
-1.47
-5.58%
FRME
First Merchants
39.80
0.92
2.37%
BANC
Banc of California
15.11
1.53
11.27%
PFS
Provident Financial Services
19.04
1.33
7.51%
TBBK
Bancorp
63.66
13.18
26.11%

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: Jul 25, 2025