Western Alliance (WAL) AI Stock Analysis

• Market Cap: $9.26B
• Dividend Yield: 1.79%
• Average Volume (3M): 1.02M
• Price to Earnings (P/E): 11.0
• Beta (1Y): 1.66
• Revenue Growth: 7.14%
• EPS Growth: 14.94%
• Country: US
• Employees: 3,562
• Sector: Financial
• Sector Strength: 71
• Industry: Banks - Regional
• EPS (TTM): 2.07
• Shares Outstanding: 110,368,810
• 10 Day Avg. Volume: 949,635
• 30 Day Avg. Volume: 1,021,019
• 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: 1.68
• Enterprise Value/Revenue: 3.04
• Enterprise Value/Gross Profit: 5.11
• Enterprise Value/Ebitda: 13.81
• 1Y Price Target: $96.45
• Price Target Upside: 14.90% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12

• Rating: 72 Outperform
• Price Target: $92.00 ▲(9.60% Upside)

Western Alliance's strong earnings performance and attractive valuation are key strengths, while challenges in cash flow management and leverage present risks. The positive technical indicators and strategic leadership changes further support a favorable outlook.

Positive Factors

Earnings

NII results came in ahead of estimates and guidance has been revised higher.

Risk/Reward

Risk/reward is seen as positively skewed given capital positioning, superior growth/return potential, potential lift to valuation from a pick-up in bank M&A activity, and a strong management team.

Valuation

The discount valuation looks particularly attractive given the forecast which implies ~18% average annual EPS growth for 2025 and 2026, or nearly twice peer average.

Negative Factors

Expenses

Higher expense guidance has been issued, which offsets some of the positive impact of NII results.

Growth

Loan and deposit growth were slower than expected, missing the estimates.

Investor Sentiment

Persistent concerns tied to credit reserves, potential headwinds to management’s loan/deposit growth target, and fading hopes for a mortgage rebound could continue to weigh on investor sentiment.

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 shows strong revenue and profitability growth, yet faces challenges with cash flow management and high leverage. While profitability remains robust, improving cash flow and reducing leverage are crucial for sustained stability.

Income Statement

Western Alliance shows a steady increase in total revenue and gross profit over the years. The gross profit margin is consistently strong, and the EBIT and EBITDA margins indicate solid operational efficiency. However, a declining net profit margin suggests rising costs or other financial pressures.

Balance Sheet

The debt-to-equity ratio is relatively high, indicating a higher reliance on debt financing, which poses leverage risk. However, the return on equity is robust, demonstrating effective utilization of shareholders' capital. The equity ratio is stable, suggesting a balanced asset structure.

Cash Flow

The company faces challenges with negative free cash flow and operating cash flow, signaling potential liquidity issues. Despite this, the free cash flow to net income ratio reflects some resilience in cash management amidst fluctuating cash flows.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.12B	5.08B	4.32B	3.02B	2.06B	1.33B
Gross Profit	3.05B	3.02B	2.56B	2.47B	1.97B	1.12B
EBITDA	1.13B	1.11B	1.02B	1.39B	1.17B	657.10M
Net Income	809.40M	787.70M	722.40M	1.06B	899.20M	506.60M
Balance Sheet
Total Assets	83.04B	80.93B	70.86B	67.73B	55.98B	36.46B
Cash, Cash Equivalents and Short-Term Investments	7.01B	8.53B	12.74B	8.13B	6.71B	7.38B
Total Debt	5.20B	6.63B	8.30B	7.38B	2.54B	649.60M
Total Liabilities	75.83B	74.23B	64.78B	62.38B	51.02B	33.05B
Stockholders Equity	6.92B	6.71B	6.08B	5.36B	4.96B	3.41B
Cash Flow
Free Cash Flow	-4.17B	-2.83B	-442.90M	2.10B	-2.72B	643.40M
Operating Cash Flow	-4.09B	-2.74B	-328.60M	2.25B	-2.65B	670.20M
Investing Cash Flow	-3.91B	-5.97B	-2.16B	-13.13B	-14.71B	-7.54B
Financing Cash Flow	7.73B	11.23B	3.02B	11.41B	15.21B	9.10B

Western Alliance Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 83.94
• 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 WAL, the sentiment is Positive. The current price of 83.94 is above the 20-day moving average (MA) of 79.97, above the 50-day MA of 78.60, and above the 200-day MA of 80.18, indicating a bullish trend. The MACD of 0.56 indicates Negative momentum. The RSI at 60.29 is Neutral, neither overbought nor oversold. The STOCH value of 93.68 is Negative, 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
WTFC	80 Outperform	$8.53B	12.04	11.60%	1.52%	4.74%	10.10%
WBS	79 Outperform	$9.60B	11.73	9.34%	2.74%	4.73%	7.12%
CMA	76 Outperform	$8.74B	13.08	11.07%	4.11%	-8.62%	15.37%
CFR	73 Outperform	$8.13B	13.61	15.34%	3.05%	4.04%	13.30%
WAL	72 Outperform	$9.26B	11.04	12.58%	1.79%	7.14%	14.94%
PNFP	68 Neutral	$7.17B	12.25	9.32%	1.01%	10.19%	48.39%
Sector *	62 Neutral	C$15.64B	6.67	13.72%	5.97%	22.38%	-10.22%

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.

The most recent analyst rating on (WAL) stock is a Buy with a $106.00 price target. To see the full list of analyst forecasts on Western Alliance stock, see the WAL Stock Forecast page.

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.

The most recent analyst rating on (WAL) stock is a Buy with a $100.00 price target. To see the full list of analyst forecasts on Western Alliance stock, see the WAL Stock Forecast page.

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.

The most recent analyst rating on (WAL) stock is a Buy with a $100.00 price target. To see the full list of analyst forecasts on Western Alliance stock, see the WAL Stock Forecast page.