Western Alliance (WAL) AI Stock Analysis

• Market Cap: $8.80B
• Dividend Yield: 1.98%
• Average Volume (3M): 1.62M
• Price to Earnings (P/E): 9.9
• Beta (1Y): 1.49
• 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: 952,207
• 30 Day Avg. Volume: 1,617,197
• 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: 1.63
• Enterprise Value/Revenue: 2.84
• Enterprise Value/Gross Profit: 4.51
• Enterprise Value/Ebitda: 11.94
• 1Y Price Target: $102.89
• Price Target Upside: 28.63% 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: $86.00 ▲(7.51% Upside)

Western Alliance's strong earnings performance and undervaluation are significant positives. However, challenges in revenue growth, cash flow management, and credit quality concerns weigh on the overall score.

Positive Factors

Strong Revenue and Profitability

Record revenues indicate robust business operations and strong market demand, supporting long-term growth and profitability.

Efficiency Improvements

Improved efficiency ratios reflect better cost management and operational leverage, enhancing profitability and competitive positioning.

Solid Capital Position

A strong capital position ensures financial stability and capacity for growth, providing resilience against economic fluctuations.

Negative Factors

Credit Quality Concerns

Credit quality issues, such as fraud, can lead to financial losses and indicate potential weaknesses in risk management practices.

Cash Flow Challenges

Negative cash flows highlight liquidity issues that could affect the company's ability to invest in growth and meet financial obligations.

Deposit Cost Pressures

Rising deposit costs can erode net interest margins, impacting profitability and necessitating strategic adjustments to maintain competitiveness.

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 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	5.06B	5.08B	4.32B	3.02B	2.06B	1.33B
Gross Profit	3.18B	3.02B	2.56B	2.47B	1.97B	1.12B
EBITDA	1.20B	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: Neutral
• Last Price: 79.99
• 50DMA: Negative
• 100DMA: Negative
• 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 Neutral. The current price of 79.99 is above the 20-day moving average (MA) of 77.45, below the 50-day MA of 83.57, and above the 200-day MA of 79.29, indicating a neutral trend. The MACD of -1.15 indicates Negative momentum. The RSI at 51.29 is Neutral, neither overbought nor oversold. The STOCH value of 76.16 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
WTFC	78 Outperform	$8.75B	12.00	11.69%	1.53%	3.58%	13.93%
WBS	76 Outperform	$9.57B	10.72	9.95%	2.85%	4.90%	21.68%
CMA	73 Outperform	$9.99B	14.97	9.64%	3.73%	-7.07%	31.09%
WAL	69 Neutral	$8.80B	9.89	12.79%	1.98%	6.30%	25.28%
UMBF	68 Neutral	$8.28B	12.33	11.06%	1.42%	38.81%	10.38%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SSB	66 Neutral	$8.80B	12.02	9.32%	2.60%	33.87%	12.26%

Western Alliance Corporate Events

Western Alliance Bancorporation Reports Strong Q3 Results

Western Alliance Bancorporation is a prominent banking company based in Phoenix, Arizona, offering a wide range of commercial banking solutions and consumer products across the United States. In its third quarter of 2025, the company reported strong financial performance with a net income of $260.5 million and earnings per share of $2.28, marking significant growth from the previous quarter and year-over-year. The company saw a notable increase in net revenue to $938.2 million, driven by a rise in net interest income and non-interest income, alongside a stable net interest margin of 3.53%. Total assets surpassed $90 billion, fueled by substantial growth in loans and deposits, while maintaining solid asset quality metrics. Looking ahead, Western Alliance Bancorporation remains focused on sustaining its growth trajectory, supported by a healthy balance sheet and strategic initiatives to enhance shareholder value.

Western Alliance Bancorporation Reports Strong Earnings Amid Challenges

Western Alliance Bancorporation’s recent earnings call painted a picture of robust financial health, marked by record revenues and notable improvements in capital and efficiency. Despite these achievements, the company faces ongoing challenges, particularly in managing credit quality issues linked to fraud allegations and rising deposit costs.

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.

The most recent analyst rating on (WAL) stock is a Buy with a $118.00 price target. To see the full list of analyst forecasts on Western Alliance stock, see the WAL Stock Forecast page.

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.

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.