Western Alliance (WAL) AI Stock Analysis

• Market Cap: $9.19B
• Dividend Yield: 1.81%
• Average Volume (3M): 974.30K
• Price to Earnings (P/E): 11.0
• Beta (1Y): 1.63
• Revenue Growth: 7.06%
• EPS Growth: 14.94%
• Country: US
• Employees: 3,562
• Sector: Financial
• Sector Strength: 72
• Industry: Banks - Regional
• EPS (TTM): 2.07
• Shares Outstanding: 110,404,260
• 10 Day Avg. Volume: 1,318,575
• 30 Day Avg. Volume: 974,305
• PEG Ratio: 2.41
• Price to Book (P/B): 1.25
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.17
• Enterprise Value/Market Cap: 0.68
• Enterprise Value/Revenue: 0.32
• Enterprise Value/Gross Profit: 2.06
• Enterprise Value/Ebitda: 1.45
• 1Y Price Target: $96.10
• Price Target Upside: 15.49% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11

• Rating: 72 Outperform
• Price Target: $89.00 ▲(6.96%Upside)

Western Alliance's stock is supported by strong financial performance and solid valuation metrics. The earnings call provided a positive outlook with robust loan and deposit growth. However, challenges in cash flow management and increased expenses are areas of concern. Technical indicators suggest a neutral market sentiment.

Positive Factors

Earnings

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

Risk/Reward

The stock is viewed as offering a compelling risk/reward profile, with expected superior EPS growth and profitability compared to peers.

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

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

Loan and Deposit Growth

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

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 growth in revenue and profitability metrics, but faces challenges with cash flow management and higher leverage. While profitability remains a strong suit, the company should address its cash flow issues and leverage to ensure long-term 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.08B	4.32B	3.02B	2.06B	1.33B
Gross Profit	3.02B	2.56B	2.47B	1.97B	1.12B
EBITDA	1.11B	1.02B	1.39B	1.17B	657.10M
Net Income	787.70M	722.40M	1.06B	899.20M	506.60M
Balance Sheet
Total Assets	80.93B	70.86B	67.73B	55.98B	36.46B
Cash, Cash Equivalents and Short-Term Investments	8.53B	12.74B	8.13B	6.71B	7.38B
Total Debt	6.63B	8.30B	7.38B	2.54B	649.60M
Total Liabilities	74.23B	64.78B	62.38B	51.02B	33.05B
Stockholders Equity	6.71B	6.08B	5.36B	4.96B	3.41B
Cash Flow
Free Cash Flow	-2.83B	-442.90M	2.10B	-2.72B	643.40M
Operating Cash Flow	-2.74B	-328.60M	2.25B	-2.65B	670.20M
Investing Cash Flow	-5.97B	-2.16B	-13.13B	-14.71B	-7.54B
Financing Cash Flow	11.23B	3.02B	11.41B	15.21B	9.10B

Western Alliance Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 83.21
• 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 83.21 is above the 20-day moving average (MA) of 82.47, above the 50-day MA of 77.46, and above the 200-day MA of 80.94, indicating a bullish trend. The MACD of 1.70 indicates Positive momentum. The RSI at 56.79 is Neutral, neither overbought nor oversold. The STOCH value of 54.74 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
WTFC	81 Outperform	$9.07B	12.81	11.60%	1.43%	4.30%	10.10%
WBS	79 Outperform	$10.40B	12.56	9.49%	2.66%	4.65%	7.12%
CFR	78 Outperform	$8.70B	15.03	15.26%	2.84%	5.99%	7.75%
CMA	76 Outperform	$8.87B	12.80	11.07%	4.21%	-7.80%	15.43%
WAL	72 Outperform	$9.19B	10.99	12.58%	1.81%	7.06%	14.94%
PNFP	70 Outperform	$8.30B	14.18	9.32%	0.88%	10.19%	48.39%
Sector *	68 Neutral	$17.10B	11.44	9.70%	3.58%	11.11%	-4.78%

Western Alliance Corporate Events

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.