Western Alliance (WAL) AI Stock Analysis

• Market Cap: $9.49B
• Dividend Yield: 1.81%
• Average Volume (3M): 839.24K
• Price to Earnings (P/E): 10.7
• Beta (1Y): 1.43
• Revenue Growth: 6.30%
• EPS Growth: 25.28%
• Country: US
• Employees: 3,562
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 2.28
• Shares Outstanding: 110,053,665
• 10 Day Avg. Volume: 957,777
• 30 Day Avg. Volume: 839,239
• 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: 1.51
• Enterprise Value/Revenue: 2.77
• Enterprise Value/Gross Profit: 4.60
• Enterprise Value/Ebitda: 11.54
• 1Y Price Target: $102.50
• Price Target Upside: 18.90% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: $96.00 ▲(11.36% Upside)

Western Alliance's overall score reflects strong financial performance and positive technical indicators. The company's strategic initiatives and valuation are favorable, but challenges in cash flow and credit quality require attention.

Positive Factors

Board Expansion

The strategic board expansion enhances expertise in cybersecurity and risk management, supporting long-term growth as the company approaches the $100 billion asset threshold.

Capital Position

A strong capital position indicates robust financial health, enabling the company to support growth initiatives and withstand economic fluctuations.

Efficiency Improvements

Improved efficiency ratios reflect enhanced operational performance, contributing to long-term profitability and competitiveness.

Negative Factors

Credit Risk

Credit risk due to alleged fraud raises concerns over asset quality, potentially impacting financial stability and necessitating increased reserves.

Cash Flow Challenges

Negative cash flow trends highlight liquidity issues, which could hinder the company's ability to fund operations and growth without external financing.

Deposit Cost Pressures

Rising deposit costs increase non-interest expenses, potentially squeezing margins and affecting long-term profitability if not managed effectively.

Western Alliance Business Overview & Revenue Model

Company Description

Western Alliance Bancorporation (WAL) is a diversified financial services company headquartered in Phoenix, Arizona. It operates through several key segments, including commercial banking, specialty finance, and mortgage banking. The company primarily focuses on providing a wide range of banking products and services to businesses and individuals, including loans, deposits, and treasury management solutions. With a strong emphasis on customer service and a commitment to leveraging technology, Western Alliance serves various sectors, including real estate, healthcare, and technology.

How the Company Makes Money

Western Alliance generates revenue primarily through interest income from loans and fees associated with banking services. The company offers commercial loans, residential mortgages, and consumer loans, which collectively contribute significantly to its interest income. Additionally, Western Alliance earns non-interest income from service fees related to deposit accounts, treasury management services, and investment banking activities. Key revenue streams include loan origination fees, mortgage servicing fees, and transaction fees from cash management services. The company also benefits from strategic partnerships with various industry players, which help expand its service offerings and customer base, further enhancing its earnings potential.

Western Alliance Financial Statement Overview

Summary

Western Alliance shows strong profitability and operational efficiency, but faces challenges in revenue growth and cash flow management. The balance sheet is stable yet leveraged, requiring careful monitoring.

Income Statement

Western Alliance's income statement shows a mixed performance. The TTM data indicates a slight decline in revenue growth, but the company maintains healthy gross and net profit margins. The EBIT and EBITDA margins are stable, suggesting efficient operations. However, the negative revenue growth rate in the TTM period is a concern, indicating potential challenges in revenue generation.

Balance Sheet

The balance sheet reflects a moderate financial position with a manageable debt-to-equity ratio, which has improved in the TTM period. The return on equity is satisfactory, indicating effective use of equity to generate profits. However, the equity ratio is relatively low, suggesting a higher reliance on debt financing, which could pose risks if not managed properly.

Cash Flow

Cash flow analysis reveals challenges, with negative operating and free cash flows in the TTM period. The free cash flow to net income ratio is positive, indicating some level of cash generation relative to net income. However, the negative growth in free cash flow and operating cash flow coverage ratio highlight liquidity concerns that need addressing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.18B	5.02B	4.26B	2.96B	2.00B	1.33B
Gross Profit	3.12B	2.95B	2.50B	2.42B	1.92B	1.12B
EBITDA	1.24B	1.11B	1.02B	1.39B	1.17B	657.10M
Net Income	899.80M	787.70M	722.40M	1.06B	899.20M	506.60M
Balance Sheet
Total Assets	90.97B	80.93B	70.86B	67.73B	55.98B	36.46B
Cash, Cash Equivalents and Short-Term Investments	5.76B	8.53B	12.74B	8.13B	6.71B	7.38B
Total Debt	4.71B	6.63B	8.30B	7.38B	2.54B	649.60M
Total Liabilities	83.28B	74.23B	64.78B	62.38B	51.02B	33.05B
Stockholders Equity	7.40B	6.71B	6.08B	5.36B	4.96B	3.41B
Cash Flow
Free Cash Flow	-3.32B	-2.83B	-442.90M	2.10B	-2.72B	643.40M
Operating Cash Flow	-3.23B	-2.74B	-328.60M	2.25B	-2.65B	670.20M
Investing Cash Flow	-5.57B	-5.97B	-2.16B	-13.13B	-14.71B	-7.54B
Financing Cash Flow	11.96B	11.23B	3.02B	11.41B	15.21B	9.10B

Western Alliance Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 86.21
• 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 WAL, the sentiment is Positive. The current price of 86.21 is above the 20-day moving average (MA) of 83.02, above the 50-day MA of 79.60, and above the 200-day MA of 78.20, indicating a bullish trend. The MACD of 2.05 indicates Negative momentum. The RSI at 62.04 is Neutral, neither overbought nor oversold. The STOCH value of 56.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WAL.

Western Alliance Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SSB	79 Outperform	$9.72B	13.28	9.32%	2.33%	33.87%	12.26%
WTFC	78 Outperform	$9.45B	12.97	11.69%	1.42%	3.58%	13.93%
UMBF	77 Outperform	$9.04B	13.47	11.06%	1.37%	38.81%	10.38%
WBS	77 Outperform	$10.27B	11.86	9.80%	2.50%	4.78%	21.68%
WAL	71 Outperform	$9.49B	10.66	12.79%	1.81%	6.30%	25.28%
CMA	71 Outperform	$11.21B	16.78	9.64%	3.22%	-7.07%	31.09%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Western Alliance Corporate Events

Western Alliance Expands Board with Strategic Appointments

On December 10, 2025, Western Alliance Bancorporation appointed Dr. Michael Papay and Mr. Clarke Starnes III to its Board of Directors, expanding the board to fifteen members. Dr. Papay, a cybersecurity expert, and Mr. Starnes, a former Chief Risk Officer, bring significant expertise in cybersecurity and risk management as the company approaches the $100 billion asset threshold. This strategic move is part of Western Alliance’s preparation to become a Large Financial Institution, aligning with its National Commercial Bank Strategy to ensure strong performance and growth.

Western Alliance Issues $400M Subordinated Notes

On November 24, 2025, Western Alliance Bank issued $400 million in 6.537% Fixed Rate Reset Subordinated Notes due in 2035. The proceeds from this issuance, amounting to $397.2 million after discounts and commissions, will be used for general corporate purposes, including growth support and securities management. The Notes are designed to qualify as Tier 2 capital for regulatory purposes, with interest payable semi-annually and redemption options available under specific conditions. These Notes are subordinated obligations, ranking below the Bank’s senior indebtedness and are sold exclusively to institutional accredited investors.

Western Alliance Prices $400M Subordinated Notes

On November 19, 2025, Western Alliance Bank announced the successful pricing of $400 million in 6.537% Fixed Rate Reset Subordinated Notes due 2035. The offering, expected to settle on November 24, 2025, aims to support the bank’s growth and manage existing securities, with the Notes qualifying as Tier 2 capital for regulatory purposes.

Western Alliance Files Lawsuit Against Cantor Group

In August, Western Alliance Bank initiated a lawsuit against Cantor Group V, LLC, alleging fraud related to a revolving credit facility secured by commercial real estate loans. Despite these allegations, the bank believes the existing collateral is adequate to cover the obligations. The company maintains its financial outlook for 2025, noting that its criticized assets have decreased since June 30, 2025.

Western Alliance Announces $300 Million Share Buyback

On September 12, 2025, Western Alliance Bancorporation announced a $300 million share repurchase program authorized by its Board of Directors. This initiative reflects the company’s strong business momentum and capital position, aiming to enhance shareholder returns and mitigate share price volatility. The repurchase program allows for flexibility in purchasing shares through various transaction methods, with the timing and amount of repurchases dependent on market conditions and other factors.