Western Alliance (WAL) AI Stock Analysis

• Market Cap: $8.95B
• Dividend Yield: 1.88%
• Average Volume (3M): 765.39K
• Price to Earnings (P/E): 11.1
• Beta (1Y): 1.61
• Revenue Growth: 11.01%
• EPS Growth: 6.63%
• Country: US
• Employees: 3,562
• Sector: Financial
• Sector Strength: 81
• Industry: Banks - Regional
• EPS (TTM): 1.79
• Shares Outstanding: 110,404,260
• 10 Day Avg. Volume: 881,040
• 30 Day Avg. Volume: 765,393
• PEG Ratio: 0.52
• Price to Book (P/B): 1.19
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.03
• Enterprise Value/Market Cap: 0.66
• Enterprise Value/Revenue: 0.30
• Enterprise Value/Gross Profit: 1.93
• Enterprise Value/Ebitda: 1.35
• 1Y Price Target: $95.10
• Price Target Upside: 12.97% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12

• Rating: 74 Outperform
• Price Target: $91.00 ▲(8.10%Upside)

Western Alliance's stock score is bolstered by strong technical momentum and a positive earnings call outlook. While facing financial performance challenges related to cash flow and leverage, the company's valuation remains reasonable. Stability in leadership and optimistic growth projections further enhance the stock's attractiveness.

Positive Factors

Capital Position

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.

Growth Prospects

Despite superior growth prospects, the stock trades at a meaningful discount to peers, indicating potential undervaluation.

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

Credit Reserves

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.

Expense Guidance

Shares lagged peers by ~300bps after raising FY25 expense guidance, implying a 2% reduction to FY25 PPNR.

Interest Rates

Elevated interest rates are likely to remain a concern for stock valuation due to impacts on funding costs and perceived credit risk.

Western Alliance Business Overview & Revenue Model

Company Description

Western Alliance Bancorporation (WAL) is a leading financial services company headquartered in Phoenix, Arizona. It operates as the bank holding company for Western Alliance Bank, offering a wide range of banking and financial solutions. The company primarily serves commercial clients, providing services such as commercial and industrial loans, real estate loans, and deposit products. Western Alliance is recognized for its robust regional banking network, catering to businesses and individual clients across several states in the U.S., with a focus on growth-oriented companies across diverse industries.

How the Company Makes Money

Western Alliance Bancorporation generates revenue through various financial services and products. The primary source of income is interest income from loans and leases, including commercial and industrial loans, commercial real estate loans, and consumer loans. The company also earns non-interest income through service fees, which include deposit account fees, treasury management services, and card-related fees. Additionally, Western Alliance benefits from strategic partnerships and investments in sectors that complement its core banking operations, enhancing its ability to generate diverse revenue streams. The company's earnings are further supported by a strong focus on managing interest rate spreads and maintaining asset quality.

Western Alliance Financial Statement Overview

Summary

Western Alliance demonstrates financial resilience with a strong balance sheet and improving cash flows. However, the income statement raises concerns due to missing revenue data for 2024, creating uncertainty about revenue-generating ability.

Income Statement

The income statement shows volatility in revenue and profit margins. The company experienced a drop in total revenue in the latest year, with total revenue at zero for 2024, which is unusual and suggests data inconsistency or reporting issues. The net income for 2024 is higher than in previous years, indicating some level of profitability. However, the absence of revenue figures raises concerns about sustainability.

Balance Sheet

The balance sheet displays a solid equity base with stockholders' equity rising to $6.7 billion in 2024 from $6.1 billion in 2023. The debt-to-equity ratio improved significantly, with total debt dropping to zero, indicating strong balance sheet management. The equity ratio increased, reflecting a stable capital structure. Overall, the balance sheet indicates financial stability with reduced leverage.

Cash Flow

Cash flow analysis reveals improvements but also inconsistencies. The operating cash flow turned positive in 2024 after a negative outflow in 2023, showing better cash generation. Free cash flow also improved significantly, swinging from negative to positive. However, the volatility in cash flows over recent years suggests some operational challenges.

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	-874.80M	235.90M	-442.90M	2.10B	-2.72B	643.40M
Operating Cash Flow	-866.90M	235.90M	-328.60M	2.25B	-2.65B	670.20M
Investing Cash Flow	-3.40B	-8.88B	-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: 84.18
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 84.18 is above the 20-day moving average (MA) of 75.02, above the 50-day MA of 73.79, and above the 200-day MA of 80.95, indicating a bullish trend. The MACD of 1.92 indicates Negative momentum. The RSI at 73.68 is Negative, neither overbought nor oversold. The STOCH value of 90.79 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	82 Outperform	$8.72B	12.88	11.58%	1.53%	7.10%	4.65%
WBS	79 Outperform	$9.72B	13.00	8.59%	2.77%	2.69%	-9.07%
CFR	78 Outperform	$8.64B	14.77	15.26%	2.97%	5.99%	7.75%
PNFP	75 Outperform	$9.07B	18.91	7.77%	0.82%	8.08%	-11.31%
WAL	74 Outperform	$8.95B	11.13	12.36%	1.88%	11.01%	6.63%
CMA	72 Outperform	$8.19B	11.82	11.11%	4.55%	-9.81%	5.22%
Sector *	58 Neutral	$12.53B	5.19	-2.71%	5.24%	5.88%	-56.03%

Western Alliance Corporate Events

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.

Western Alliance Reappoints Kenneth Vecchione as CEO

Western Alliance Bancorporation announced the reappointment of Kenneth A. Vecchione as President and CEO, effective April 15, 2025, following his temporary medical leave. Dale Gibbons, who served as interim CEO, will continue as Vice Chair and CFO. The company reported solid financial results for the first quarter of 2025, with net income of $199.1 million and earnings per share of $1.79. Despite a decrease in net revenue compared to the previous quarter, the company saw growth in loans and deposits, and maintained strong asset quality and capital levels, positioning it well for future business momentum.