Washington Federal (WAFD) AI Stock Analysis

• Market Cap: $2.56B
• Dividend Yield: 3.23%
• Average Volume (3M): 506.91K
• Price to Earnings (P/E): 12.7
• Beta (1Y): 0.56
• Revenue Growth: -1.58%
• EPS Growth: 6.34%
• Country: US
• Employees: 2,018
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.72
• Shares Outstanding: 76,701,004
• 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): 3.38
• P/FCF Ratio: 11.66
• Enterprise Value/Market Cap: 1.50
• Enterprise Value/Revenue: 3.07
• Enterprise Value/Gross Profit: 5.35
• Enterprise Value/Ebitda: 12.83
• 1Y Price Target: $31.50
• Price Target Upside: -6.22% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: $35.00 ▲(4.20% Upside)

Washington Federal's stock is supported by strong technical indicators and positive corporate events, such as strategic shifts and regulatory improvements. However, mixed financial performance, particularly in revenue and cash flow growth, tempers the overall score. The stock's reasonable valuation and attractive dividend yield further contribute to its appeal.

Positive Factors

Strategic Shift to Commercial Banking

The strategic shift to commercial banking diversifies revenue streams and aligns with market demand, potentially enhancing long-term growth and stability.

Regulatory Improvement

The termination of Consent Orders by the CFPB improves regulatory standing, reducing compliance costs and enhancing stakeholder confidence.

Strong Profitability Margins

High profitability margins indicate efficient operations and strong pricing power, supporting sustainable earnings over the long term.

Negative Factors

Decline in Revenue Growth

A sharp decline in revenue growth poses a risk to future profitability and may indicate challenges in maintaining market share or product demand.

Decline in Free Cash Flow Growth

Reduced free cash flow growth limits reinvestment capabilities and may impact the company's ability to fund future growth initiatives.

Low Return on Equity

Low return on equity suggests inefficiency in using equity capital to generate profits, potentially impacting investor returns and growth prospects.

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

Washington Federal shows a mixed financial performance. Strong profitability margins are overshadowed by a significant decline in revenue growth and free cash flow growth. The balance sheet is stable with a manageable debt level, but improvement in revenue and cash flow growth is needed.

Income Statement

The income statement shows a significant decline in revenue growth rate by 50.7% in the latest year, which is concerning. However, the company maintains a strong gross profit margin of 100% and a healthy net profit margin of 31.5%. The EBIT margin is also robust at 40.4%, indicating efficient cost management. Despite these strengths, the sharp revenue decline poses a risk to future profitability.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio of 0.60, which is a positive sign of financial stability compared to previous years. Return on equity is relatively low at 7.4%, suggesting limited efficiency in generating returns from equity. The equity ratio stands at 11.4%, indicating a stable capital structure, but there is room for improvement in leveraging equity for growth.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth by 6% in the latest year, which is a concern. The operating cash flow to net income ratio is low at 1.9%, suggesting potential liquidity issues. However, the free cash flow to net income ratio is strong at 100%, indicating that the company is generating sufficient cash to cover its net income.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.25B	717.73M	1.43B	1.10B	733.38M	652.60M
Gross Profit	717.96M	717.73M	704.33M	701.11M	658.61M	565.60M
EBITDA	299.36M	299.36M	390.16M	348.05M	364.09M	267.05M
Net Income	226.07M	226.07M	200.04M	257.43M	236.33M	183.62M
Balance Sheet
Total Assets	26.70B	26.70B	28.06B	22.47B	20.77B	19.65B
Cash, Cash Equivalents and Short-Term Investments	4.19B	4.19B	4.95B	2.98B	2.74B	4.23B
Total Debt	1.82B	1.82B	3.32B	3.65B	2.13B	1.72B
Total Liabilities	23.66B	23.66B	25.06B	20.05B	18.50B	17.52B
Stockholders Equity	3.04B	3.04B	3.00B	2.43B	2.27B	2.13B
Cash Flow
Free Cash Flow	208.25M	208.25M	414.55M	198.89M	256.68M	284.98M
Operating Cash Flow	236.95M	236.95M	439.23M	213.96M	268.46M	314.45M
Investing Cash Flow	-318.41M	-318.41M	3.29B	-1.38B	-2.49B	-579.75M
Financing Cash Flow	-1.64B	-1.64B	-2.33B	1.46B	817.86M	653.12M

Washington Federal Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 33.59
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 33.59 is above the 20-day moving average (MA) of 32.37, above the 50-day MA of 30.55, and above the 200-day MA of 29.25, indicating a bullish trend. The MACD of 0.75 indicates Negative momentum. The RSI at 67.09 is Neutral, neither overbought nor oversold. The STOCH value of 74.30 is Neutral, 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	80 Outperform	$2.62B	9.87	10.16%	3.69%	5.15%	16.42%
FRME	80 Outperform	$2.25B	9.74	9.90%	3.67%	-1.76%	32.44%
PFS	80 Outperform	$2.73B	10.65	9.51%	4.53%	38.34%	89.73%
BANR	79 Outperform	$2.28B	12.21	10.28%	2.87%	6.98%	15.08%
WAFD	68 Neutral	$2.56B	12.69	7.49%	3.23%	-1.58%	6.34%
TRMK	68 Neutral	$2.45B	11.19	10.87%	2.34%	17.95%	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Washington Federal Corporate Events

Washington Federal’s Profitability at Risk: Navigating Interest Rate Fluctuations

Washington Federal faces a significant business risk due to its exposure to fluctuating interest rates, which can impact its net interest income and overall financial performance. As interest rates rise or fall, the bank’s ability to manage its interest rate spread becomes crucial, potentially affecting its profitability. Additionally, changes in interest rates can influence customer behavior, such as loan demand and deposit levels, further complicating financial stability. This risk necessitates careful monitoring and strategic adjustments to mitigate potential adverse effects on the company’s earnings.

WaFd Highlights Strategic Shift in Investor Presentation

WaFd, Inc. has released a slide presentation intended for institutional investors and industry analysts, highlighting its financial performance and strategic initiatives as of September 30, 2025. The presentation underscores WaFd’s transition towards a commercial banking focus, with commercial loans now constituting a larger portion of its portfolio compared to mortgage and consumer loans. The bank has maintained strong credit quality with low non-performing assets, and its investments in customer service and technology have resulted in high customer satisfaction scores. WaFd continues to emphasize community development, with significant investments in affordable housing and local community initiatives.

The most recent analyst rating on (WAFD) stock is a Hold with a $31.00 price target. To see the full list of analyst forecasts on Washington Federal stock, see the WAFD Stock Forecast page.

Washington Federal Declares Dividend for Preferred Stock

On November 11, 2025, WaFd, Inc.’s Board of Directors announced a cash dividend of $12.1875 per share for its 4.875% Fixed Rate Series A Non-Cumulative Perpetual Preferred Stock. This dividend, amounting to $0.30468750 per depositary share, is scheduled for payment on January 15, 2026, to shareholders recorded by December 31, 2025.

The most recent analyst rating on (WAFD) stock is a Hold with a $31.00 price target. To see the full list of analyst forecasts on Washington Federal stock, see the WAFD Stock Forecast page.

WaFd Inc. Reports Strong Fiscal 2025 Results

Washington Federal, Inc., operating as WaFd Bank, is a financial institution headquartered in Seattle, Washington, with a focus on providing banking services across nine western states. The company has transitioned from mortgage lending to offering solutions for businesses, aiming to enhance long-term shareholder returns.

Washington Federal to Announce Earnings Results Soon

On October 3, 2025, WaFd Inc. announced plans to release its earnings results for the quarter and fiscal year ended September 30, 2025, on October 16, 2025. A conference call for investors and analysts is scheduled for October 17, 2025, to discuss these financial results, which may impact stakeholders’ perspectives on the company’s performance and future outlook.

The most recent analyst rating on (WAFD) stock is a Hold with a $33.00 price target. To see the full list of analyst forecasts on Washington Federal stock, see the WAFD Stock Forecast page.

Washington Federal Rebrands as WaFd Bank

On September 25, 2025, Washington Federal Bank officially changed its name to WaFd Bank by filing necessary documents with the Washington Secretary of State. This name change reflects the bank’s updated branding and corporate identity.

The most recent analyst rating on (WAFD) stock is a Hold with a $33.00 price target. To see the full list of analyst forecasts on Washington Federal stock, see the WAFD Stock Forecast page.

Washington Federal’s Consent Orders Terminated by CFPB

On September 19, 2025, the Consumer Financial Protection Bureau notified Washington Federal Bank that it had terminated the Consent Orders related to the Bank’s Home Mortgage Disclosure Act program, effective September 18, 2025. This termination marks a significant development in the Bank’s regulatory landscape, potentially impacting its compliance operations and stakeholder confidence.

The most recent analyst rating on (WAFD) stock is a Buy with a $35.00 price target. To see the full list of analyst forecasts on Washington Federal stock, see the WAFD Stock Forecast page.

WaFd, Inc. Highlights Strategic Focus in Investor Meetings

WaFd, Inc. has released a slide presentation for meetings with institutional investors and industry analysts, highlighting its strategic focus and operational performance as of June 30, 2025. The presentation emphasizes WaFd’s strong credit quality, low non-performing assets, and commitment to customer service and ESG principles. It also outlines the bank’s evolution towards a commercial bank with a digital focus, and its efforts in community development and diversity. The bank’s strategic objectives include delivering exceptional customer service and expanding its business through credit and treasury solutions.

The most recent analyst rating on (WAFD) stock is a Buy with a $33.00 price target. To see the full list of analyst forecasts on Washington Federal stock, see the WAFD Stock Forecast page.