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Wintrust Financial Corp (WTFC)
NASDAQ:WTFC
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Wintrust Financial
(NASDAQ:WTFC)
68Neutral
Wintrust Financial (WTFC) vs. S&P 500 (SPY)
Market Cap
$7.48B
Dividend Yield1.65%
Average Volume (3M)452.30K
Price to Earnings (P/E)10.9
Beta (1Y)1.27
Revenue Growth11.51%
EPS Growth7.73%
CountryUS
Employees5,903
SectorFinancial
Sector Strength81
IndustryBanks - Regional
Share Statistics
EPS (TTM)10.31
Shares Outstanding66,707,800
10 Day Avg. Volume525,438
30 Day Avg. Volume452,300
Financial Highlights & Ratios
PEG Ratio1.41
Price to Book (P/B)N/A
Price to Sales (P/S)3.22
Price to Cash Flow (P/CF)3.90
P/FCF Ratio2.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$150.00Price Target Upside33.79% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
Wintrust Financial Business Overview & Revenue Model
Company DescriptionWintrust Financial Corporation (WTFC) is a financial holding company based in Rosemont, Illinois. It operates through a network of community banks primarily in the Chicago metropolitan area and southern Wisconsin. Wintrust provides a wide range of financial services, including personal and commercial banking, wealth management, and mortgage lending. The company aims to offer personalized service with a broad suite of products typically associated with larger financial institutions.
How the Company Makes MoneyWintrust Financial makes money through a variety of revenue streams. The primary source of income is interest income from loans and securities, which includes residential and commercial mortgages, home equity lines, and commercial loans. The company also generates non-interest income from service charges on deposit accounts, trust and investment management fees, and mortgage banking operations. Additionally, Wintrust gains revenue through its wealth management services, encompassing investment advisory and asset management fees. Significant partnerships with local businesses and community involvement help drive customer engagement and contribute to its earnings.
Wintrust Financial Financial Statement Overview
Summary
Wintrust Financial exhibits solid financial health with consistent revenue growth and improved net profit margins. The balance sheet is robust with a strong equity base and low leverage. Cash flow is strong, though there is a need to improve operational efficiency due to a declining EBIT margin.Income Statement
Wintrust Financial's income statement shows a strong performance with consistent revenue growth, notably from $1.45 billion in 2019 to $3.48 billion in 2024. The gross profit margin is stable at 100% due to the nature of the banking industry. The net profit margin improved significantly to 19.98% in 2024 from 16.48% in 2019, indicating efficient cost management and increasing profitability. However, the decline in EBIT margin from the previous year shows potential pressure on operational efficiency.75
Positive
Balance Sheet
The balance sheet of Wintrust Financial is strong, with a debt-to-equity ratio effectively at zero in 2024, showcasing a significant reduction in leverage. The equity ratio improved to 9.78%, indicating a solid equity base relative to assets. Return on equity (ROE) increased to 10.95% in 2024 from 9.64% in 2019, reflecting improved profitability for shareholders. The high level of cash and cash equivalents supports financial stability and liquidity.80
Positive
Cash Flow
Wintrust Financial's cash flow statement reflects a robust operating cash flow that increased to $721.6 million in 2024. Free cash flow growth is positive, highlighting strong cash generation capabilities. However, the operating cash flow to net income ratio decreased compared to previous years, indicating a divergence between cash flow and net earnings. The free cash flow to net income ratio is strong, supporting ongoing financial health.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 3.48B | 2.16B | 1.96B | 1.71B | 1.64B | Gross Profit |
| 3.48B | 2.16B | 1.96B | 1.71B | 1.64B | EBIT |
| 58.71M | 1.05B | 124.51M | 637.80M | 389.78M | EBITDA |
| 58.71M | 0.00 | 0.00 | 697.10M | 486.15M | Net Income Common Stockholders |
| 695.04M | 622.63M | 509.68M | 466.15M | 292.99M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 4.59B | 423.46M | 5.72B | 8.11B | 8.18B | Total Assets |
| 64.88B | 56.26B | 52.95B | 50.14B | 45.08B | Total Debt |
| 4.24B | 3.65B | 3.89B | 2.43B | 2.44B | Net Debt |
| -452.02M | 1.14B | 1.41B | -3.36B | -2.69B | Total Liabilities |
| 58.54B | 50.86B | 48.15B | 45.64B | 40.96B | Stockholders Equity |
| 6.34B | 5.40B | 4.80B | 4.50B | 4.12B |
| Cash Flow | Free Cash Flow | |||
| 721.56M | 697.97M | 1.32B | 1.07B | -582.11M | Operating Cash Flow |
| 721.56M | 744.38M | 1.38B | 1.13B | -518.47M | Investing Cash Flow |
| -5.95B | -3.24B | -3.49B | -5.93B | -7.18B | Financing Cash Flow |
| 5.26B | 2.43B | 2.20B | 4.89B | 7.74B |
Wintrust Financial Technical Analysis
Negative
112.12
Price Trends
122.94
Negative
126.11
Negative
114.92
Negative
Market Momentum
-2.37
Negative
39.04
Neutral
44.41
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WTFC, the sentiment is Negative. The current price of 112.12 is below the 20-day moving average (MA) of 113.15, below the 50-day MA of 122.94, and below the 200-day MA of 114.92, indicating a bearish trend. The MACD of -2.37 indicates Negative momentum. The RSI at 39.04 is Neutral, neither overbought nor oversold. The STOCH value of 44.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WTFC.
Wintrust Financial Risk Analysis
Wintrust Financial disclosed 52 risk factors in its most recent earnings report. Wintrust Financial reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Wintrust Financial Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $4.82B | 10.59 | 7.53% | 3.58% | 15.34% | -3.89% | |
72 Outperform | $21.60B | 12.12 | 9.93% | 4.19% | 10.13% | -1.25% | |
71 Outperform | $7.30B | 9.99 | 13.15% | 3.40% | 7.91% | 13.79% | |
71 Outperform | $19.40B | 11.08 | 10.72% | 4.58% | 2.70% | -8.16% | |
68 Neutral | $7.48B | 10.87 | 11.84% | 1.65% | 11.51% | 7.73% | |
65 Neutral | $7.70B | 11.73 | 10.72% | 4.84% | -6.54% | -21.90% | |
64 Neutral | $14.24B | 10.27 | 8.97% | 4.33% | 16.38% | -11.94% |
* Financial Sector Average
Performance Comparison
WTFC
Wintrust Financial
112.12
10.73
10.58%
CMA
Comerica
58.72
7.29
14.17%
FNB
F.N.B.
13.41
0.03
0.22%
HBAN
Huntington Bancshares
14.79
1.64
12.47%
RF
Regions Financial
21.42
1.73
8.79%
ZION
Zions Bancorporation National Association
49.47
7.90
19.00%
Wintrust Financial Earnings Call Summary
Earnings Call Date: Jan 21, 2025 | % Change Since: -17.79% | Next Earnings Date: Apr 16, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial results, including record net income and robust growth in loans and deposits. However, challenges such as muted mortgage activity and increased competition in loan markets were noted. The overall sentiment reflects cautious optimism with a positive outlook for continued growth in 2025.Highlights
Record Net Income
Wintrust reported a record net income of $695 million for the year, up 11.5% from 2023.
Loan and Deposit Growth
Loans and deposits both grew by approximately $1 billion in the fourth quarter, with an annualized loan growth rate of 8% and deposit growth of 9%.
Stable Net Interest Margin
The net interest margin was stable at 3.51% for the fourth quarter, consistent with the previous quarter.
Reduced Nonperforming Loans
Nonperforming loans decreased from 38 basis points to 36 basis points, showing improved credit performance.
Continued Growth in Wealth and Treasury Management
Both the wealth management and treasury management businesses exhibited steady growth.
Lowlights
Muted Mortgage Activity
Mortgage activity remained muted with expectations of a seasonal spring pickup, but current activity is still low.
Increased Competition in Loan Markets
Increased competition in CRE and other loan markets was noted, which may affect pricing and growth opportunities.
Acquisition Costs Impact
Acquisition-related costs of approximately $1.8 million and other uncommon items impacted the financials.
Company Guidance
During the Wintrust Financial Corporation's Q4 2024 earnings call, several key financial metrics and guidance for 2025 were discussed. The company reported a record net income of $695 million for the year, reflecting an 11.5% increase from 2023. For the fourth quarter alone, net income was approximately $185.4 million, with a net interest margin of 3.51%, aligning with expectations. Wintrust saw balanced growth in both loans and deposits, each increasing by about $1 billion during the quarter. The loan growth was 8% on an annualized basis, matching the previously guided mid- to high single-digit growth range. Additionally, nonperforming loans decreased, with the percentage of total loans dropping from 38 to 36 basis points. The company maintains a strong capital position, with total assets growing to $64.9 billion and risk-based capital ratios remaining stable. Looking ahead, Wintrust is optimistic about continued growth in 2025, with a focus on maintaining a stable margin and leveraging diverse business segments to navigate market conditions.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.