Western Alliance (WAL) AI Stock Analysis

• Market Cap: $9.83B
• Dividend Yield: 1.72%
• Average Volume (3M): 1.09M
• Price to Earnings (P/E): 11.7
• Beta (1Y): 1.60
• Revenue Growth: 7.14%
• EPS Growth: 14.94%
• Country: US
• Employees: 3,562
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 2.07
• Shares Outstanding: 110,368,810
• 10 Day Avg. Volume: 1,402,697
• 30 Day Avg. Volume: 1,094,306
• PEG Ratio: 1.28
• Price to Book (P/B): 1.35
• Price to Sales (P/S): 1.78
• P/FCF Ratio: -3.21
• Enterprise Value/Market Cap: 1.59
• Enterprise Value/Revenue: 3.02
• Enterprise Value/Gross Profit: 4.99
• Enterprise Value/Ebitda: 13.24
• 1Y Price Target: $101.91
• Price Target Upside: 15.48% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13

• Rating: 74 Outperform
• Price Target: $100.00 ▲(13.31% Upside)

Western Alliance's stock is supported by strong financial performance and positive technical indicators. The earnings call provided a positive outlook with robust loan and deposit growth, while the new CFO appointment is expected to bolster strategic initiatives. However, challenges in cash flow management and leverage slightly temper the overall score.

Positive Factors

Loan and Deposit Growth

Consistent loan and deposit growth indicates strong demand for services and effective customer acquisition, supporting long-term revenue expansion.

Net Interest Margin Improvement

Improved net interest margin enhances profitability, reflecting effective asset-liability management and favorable interest rate conditions.

New CFO Appointment

The new CFO's strategic focus and experience are expected to drive financial initiatives and innovation, strengthening future growth prospects.

Negative Factors

Cash Flow Challenges

Negative cash flows can hinder operational flexibility and investment capacity, posing risks to long-term financial stability and growth.

Higher Noninterest Expenses

Rising noninterest expenses can pressure profit margins, indicating potential inefficiencies or increased operational costs that may affect future profitability.

Increase in Other Real Estate Owned

An increase in repossessed real estate may tie up capital and reflect underlying asset quality issues, impacting financial flexibility and asset management.

Western Alliance Business Overview & Revenue Model

Company Description

Western Alliance Bancorporation operates as the bank holding company for Western Alliance Bank that provides various banking products and related services primarily in Arizona, California, and Nevada. It operates in Commercial, Consumer Related, and Corporate & Other segments. The company offers deposit products, including checking, savings, and money market accounts, as well as fixed-rate and fixed maturity certificates of deposit accounts; and treasury management and residential mortgage products and services. It also offers commercial and industrial loan products, such as working capital lines of credit, loans to technology companies, inventory and accounts receivable lines, mortgage warehouse lines, equipment loans and leases, and other commercial loans; commercial real estate loans, which are secured by multi-family residential properties, professional offices, industrial facilities, retail centers, hotels, and other commercial properties; construction and land development loans for single family and multi-family residential projects, industrial/warehouse properties, office buildings, retail centers, medical office facilities, and residential lot developments; and consumer loans. In addition, the company provides other financial services, such as internet banking, wire transfers, electronic bill payment and presentment, lock box services, courier, and cash management services. Further, it holds certain investment securities, municipal and non-profit loans, and leases; invests primarily in low-income housing tax credits and small business investment corporations; and holds certain real estate loans and related securities. The company operates 36 branch locations, as well as loan production offices. Western Alliance Bancorporation was founded in 1994 and is headquartered in Phoenix, Arizona.

How the Company Makes Money

Western Alliance generates revenue primarily through interest income from loans and fees associated with its banking services. The company’s key revenue streams include net interest income, which is earned from the interest differential between the loans it provides to customers and the interest it pays on deposits. Additionally, Western Alliance earns non-interest income from service charges on deposit accounts, transaction fees, and various ancillary services offered to clients. The bank also benefits from strategic partnerships with businesses and organizations that enhance its service offerings, enabling it to attract and retain a diverse customer base, further contributing to its earnings.

Western Alliance Financial Statement Overview

Summary

Western Alliance demonstrates strong revenue growth and profitability, but faces challenges with cash flow management and leverage. While the income statement shows robust performance, the balance sheet and cash flow statements highlight areas for improvement, particularly in managing debt and generating positive cash flows.

Income Statement

Western Alliance shows strong revenue growth with a TTM (Trailing-Twelve-Months) revenue increase of 73.2% compared to the previous year. Gross profit margin remains healthy at 60.5%, and net profit margin is solid at 16.4%. However, the EBIT and EBITDA margins have slightly decreased over the years, indicating potential cost pressures.

Balance Sheet

The company has a manageable debt-to-equity ratio of 0.97, showing a slight improvement from previous years. Return on equity is stable at 12.3%, reflecting consistent profitability. However, the equity ratio is relatively low, indicating higher leverage compared to total assets.

Cash Flow

The cash flow situation is concerning, with negative operating and free cash flows in the TTM period. The free cash flow to net income ratio is slightly above 1, suggesting that cash flow generation is not keeping pace with net income. The negative free cash flow growth rate indicates potential liquidity challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.16B	5.08B	4.32B	3.02B	2.06B	1.33B
Gross Profit	3.12B	3.02B	2.56B	2.47B	1.97B	1.12B
EBITDA	1.18B	1.11B	1.02B	1.39B	1.17B	657.10M
Net Income	846.20M	787.70M	722.40M	1.06B	899.20M	506.60M
Balance Sheet
Total Assets	86.72B	80.93B	70.86B	67.73B	55.98B	36.46B
Cash, Cash Equivalents and Short-Term Investments	4.42B	8.53B	12.74B	8.13B	6.71B	7.38B
Total Debt	6.89B	6.63B	8.30B	7.38B	2.54B	649.60M
Total Liabilities	79.32B	74.23B	64.78B	62.38B	51.02B	33.05B
Stockholders Equity	7.11B	6.71B	6.08B	5.36B	4.96B	3.41B
Cash Flow
Free Cash Flow	-3.79B	-2.83B	-442.90M	2.10B	-2.72B	643.40M
Operating Cash Flow	-3.70B	-2.74B	-328.60M	2.25B	-2.65B	670.20M
Investing Cash Flow	-5.36B	-5.97B	-2.16B	-13.13B	-14.71B	-7.54B
Financing Cash Flow	7.75B	11.23B	3.02B	11.41B	15.21B	9.10B

Western Alliance Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 88.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WAL, the sentiment is Neutral. The current price of 88.25 is below the 20-day moving average (MA) of 89.39, above the 50-day MA of 84.67, and above the 200-day MA of 80.10, indicating a neutral trend. The MACD of 1.24 indicates Positive momentum. The RSI at 51.65 is Neutral, neither overbought nor oversold. The STOCH value of 52.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for WAL.

Western Alliance Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UMBF	80 Outperform	9.02B	13.63	7.25%	1.35%	30.40%	12.40%
WTFC	79 Outperform	8.82B	12.45	10.24%	1.46%	4.74%	10.10%
WBS	78 Outperform	10.00B	12.22	9.17%	2.67%	4.73%	7.12%
SSB	77 Outperform	10.15B	14.90	6.72%	2.22%	21.10%	7.74%
CMA	75 Outperform	8.86B	13.25	10.57%	4.12%	-8.62%	15.37%
WAL	74 Outperform	$9.83B	11.70	12.58%	1.72%	7.14%	14.94%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Western Alliance Corporate Events

Western Alliance Declares Quarterly Cash Dividend

On July 31, 2025, Western Alliance Bancorporation’s Board of Directors declared a quarterly cash dividend of $0.38 per share of common stock, payable on August 29, 2025, to shareholders recorded by August 14, 2025. Additionally, a quarterly cash dividend of $106.25 per share on its 4.250% Fixed Rate Reset Non-Cumulative Perpetual Preferred Stock, Series A, was announced, payable on September 30, 2025, to shareholders recorded by September 15, 2025.

Western Alliance Announces New CFO Appointment

On July 14, 2025, Western Alliance Bancorporation announced a leadership transition, appointing Vishal Idnani as the new Chief Financial Officer effective January 2, 2026. Idnani, with extensive experience from J.P. Morgan, will replace Dale Gibbons, who will move to a new role focusing on deposit initiatives and innovation. This transition aims to enhance the company’s strategic initiatives and maintain its strong financial performance. Gibbons, having significantly contributed to the company’s growth and success, will continue to play a vital role in its future strategies.

Western Alliance Concludes Annual Stockholders Meeting

On June 11, 2025, Western Alliance held its Annual Meeting of Stockholders, where 91.9% of the company’s shares were voted. During the meeting, all thirteen director nominees were elected, executive compensation was approved on a non-binding basis, and RSM US LLP was ratified as the independent auditor for the fiscal year ending December 31, 2025.