Western Alliance (WAL) AI Stock Analysis

• Market Cap: $9.81B
• Dividend Yield: 1.8%
• Average Volume (3M): 747.90K
• Price to Earnings (P/E): 10.2
• Beta (1Y): 1.39
• Revenue Growth: 6.30%
• EPS Growth: 25.28%
• Country: US
• Employees: 3,562
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 2.59
• Shares Outstanding: 110,053,665
• 10 Day Avg. Volume: 1,014,345
• 30 Day Avg. Volume: 747,904
• PEG Ratio: 1.28
• Price to Book (P/B): 1.35
• Price to Sales (P/S): 1.81
• P/FCF Ratio: -3.21
• Enterprise Value/Market Cap: 0.63
• Enterprise Value/Revenue: 1.20
• Enterprise Value/Gross Profit: 1.99
• Enterprise Value/Ebitda: 5.00
• 1Y Price Target: $104.40
• Price Target Upside: 17.11% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: $97.00 ▲(8.81% Upside)

The score is driven primarily by decent financial performance but held back by weak TTM cash flow and softer revenue growth. Valuation is a clear positive (low P/E), technicals show a constructive trend, and the latest earnings call supports the outlook with strong growth guidance—tempered by near-term credit and rate-sensitivity risks.

Positive Factors

Strong Loan and Deposit Growth

Sustained, large-scale organic loan and deposit growth expands the interest-earning asset base and funding stability, supporting durable NII growth and cross-sell opportunities. Scale gains also help spread fixed costs and reinforce the franchise’s push toward $100B assets.

Core NII and PPNR Strength

Robust net interest income and materially higher pre-provision net revenue indicate durable core earnings power. Stable margins plus operating leverage improve cash generation capacity and provide a buffer to absorb credit cycles and fund strategic investments over the medium term.

Improved Capital and Liquidity Position

Raising Tier 2 capital and maintaining CET1 near targets strengthens regulatory buffers and supports continued balance-sheet growth. A healthier capital mix enables opportunistic buybacks while preserving capacity to absorb losses and meet Large Financial Institution requirements as assets grow.

Negative Factors

Negative Operating and Free Cash Flow

Persistently negative operating and free cash flows undermine liquidity flexibility, limiting internal funding for loan growth, capital returns, and investments. Over 2–6 months this increases reliance on external funding or capital actions, raising execution risk if credit trends worsen.

Elevated Charge-offs and Problem Assets

Higher charge-offs and a meaningful criticized-asset stock signal credit stress that can compress earnings and require increased provisioning. Uncertainty in timing of nonaccrual resolutions creates earnings volatility and constrains capital deployment until asset work-outs complete.

Rate-Path Sensitivity and Lumpy Fee Income

Earnings outlook depends materially on assumed Fed cuts and variable ECR deposit sensitivity; absent rate relief deposit-cost savings and NII gains may be smaller. Reliance on irregular settlement/disbursement fees adds unpredictability to noninterest income sustainability.

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 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

Profitability and operating efficiency are solid (stable margins), and leverage metrics are manageable, but the TTM revenue growth decline and especially negative operating/free cash flow in the TTM period weigh meaningfully on overall financial quality.

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: 89.15
• 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 Positive. The current price of 89.15 is above the 20-day moving average (MA) of 88.54, above the 50-day MA of 85.60, and above the 200-day MA of 80.44, indicating a bullish trend. The MACD of 1.00 indicates Positive momentum. The RSI at 53.73 is Neutral, neither overbought nor oversold. The STOCH value of 53.81 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	82 Outperform	$10.29B	13.00	10.68%	2.38%	33.87%	12.26%
WTFC	79 Outperform	$9.88B	12.94	12.11%	1.40%	3.58%	13.93%
UMBF	76 Outperform	$9.66B	13.69	12.59%	1.37%	38.81%	10.38%
WBS	76 Outperform	$10.61B	11.15	10.81%	2.49%	4.78%	21.68%
CMA	70 Outperform	$11.33B	16.79	10.09%	3.21%	-7.07%	31.09%
WAL	69 Neutral	$9.81B	10.21	13.50%	1.80%	6.30%	25.28%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Western Alliance Corporate Events

Western Alliance Adopts Executive Stock and Bonus Deferral Plan

On December 19, 2025, Western Alliance Bancorporation’s Compensation Committee approved the establishment of the Western Alliance Bancorporation Executive Stock and Bonus Deferral Plan, an unfunded, nonqualified deferred compensation arrangement for select members of its Executive Leadership Team. The plan allows designated executives to defer 0%, 25%, or 50% of eligible annual cash bonuses and certain stock awards into deferred stock units, which follow the original vesting schedule and can earn dividend equivalents, with no company contributions permitted. Upon separation from service, executives receive deferred amounts in two or three annual installments, while any vested balance is paid in a lump sum to beneficiaries upon death, and deferred annual cash bonuses remain subject to the company’s Dodd-Frank Clawback Policy, signaling a tighter alignment of executive compensation with long-term shareholder and regulatory expectations.

The most recent analyst rating on (WAL) stock is a Buy with a $115.00 price target. To see the full list of analyst forecasts on Western Alliance stock, see the WAL Stock Forecast page.

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.

The most recent analyst rating on (WAL) stock is a Buy with a $93.00 price target. To see the full list of analyst forecasts on Western Alliance stock, see the WAL Stock Forecast page.

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.

The most recent analyst rating on (WAL) stock is a Hold with a $86.00 price target. To see the full list of analyst forecasts on Western Alliance stock, see the WAL Stock Forecast page.

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.

The most recent analyst rating on (WAL) stock is a Hold with a $86.00 price target. To see the full list of analyst forecasts on Western Alliance stock, see the WAL Stock Forecast page.