Wintrust Financial (WTFC) AI Stock Analysis

Compare

184 Followers

Top Page

Wintrust Financial

(NASDAQ:WTFC)

Rating:75Outperform

Price Target:―

Wintrust Financial demonstrates strong financial health, with consistent revenue and profit growth, and a solid balance sheet. While the technicals suggest caution due to potential overbought conditions, the stock is attractively valued with a favorable P/E ratio. Positive earnings call highlights reinforce the optimistic outlook, despite some economic uncertainties. Overall, the company is well-positioned for stability and growth.

Wintrust Financial (WTFC) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$8.17B

Dividend Yield1.57%

Average Volume (3M)452.30K

Price to Earnings (P/E)12.1

Beta (1Y)1.25

Revenue Growth6.79%

EPS Growth4.65%

CountryUS

Employees5,903

SectorFinancial

Sector Strength81

IndustryBanks - Regional

Share Statistics

EPS (TTM)2.69

Shares Outstanding66,930,330

10 Day Avg. Volume338,593

30 Day Avg. Volume452,301

Financial Highlights & Ratios

PEG Ratio-5.79

Price to Book (P/B)1.16

Price to Sales (P/S)0.00

P/FCF Ratio10.05

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$139.78

Price Target Upside17.75% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering11

Wintrust Financial Business Overview & Revenue Model

Company DescriptionWintrust Financial Corporation operates as a financial holding company. It operates in three segments: Community Banking, Specialty Finance, and Wealth Management. The Community Banking segment offers non-interest bearing deposits, non-brokered interest-bearing transaction accounts, and savings and domestic time deposits; home equity, consumer, and real estate loans; safe deposit facilities; and automatic teller machine (ATM), online and mobile banking, and other services. It also engages in the retail origination and purchase of residential mortgages for sale into the secondary market; and provision of lending, deposits, and treasury management services to condominium, homeowner, and community associations, as well as asset-based lending for middle-market companies. In addition, this segment offers loan and deposit services to mortgage brokerage companies; lending to restaurant franchisees; direct leasing; small business administration loans; commercial mortgages and construction loans; and financial solutions. It provides personal and commercial banking services primarily to individuals, small to mid-sized businesses, local governmental units, and institutional clients. The Specialty Finance segment offers commercial and life insurance premiums financing for businesses and individuals; accounts receivable financing, value-added, and out-sourced administrative services; and other specialty finance services, as well as data processing of payrolls, billing, and cash management services to temporary staffing industry. The Wealth Management segment provides trust and investment, asset management, tax-deferred exchange, securities brokerage, and retirement plan services. The company operates 173 banking facilities and 228 ATMs in the Chicago metropolitan area, southern Wisconsin, northwest Indiana, and Florida. Wintrust Financial Corporation was founded in 1991 and is headquartered in Rosemont, Illinois.

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 displays solid financial performance with stable growth and improving profitability. The company has effectively reduced its leverage, and its strong equity base underpins financial stability. However, operational efficiency needs attention due to the declining EBIT margin, though its cash flow generation remains robust, supporting its long-term financial health.

Income Statement

Positive

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.

Balance Sheet

Positive

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.

Cash Flow

Positive

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.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
3.51B	3.48B	2.16B	1.96B	1.71B	1.64B
	Gross Profit
2.77B	3.48B	2.16B	1.96B	1.71B	1.64B
	EBIT
722.80M	58.71M	1.05B	124.51M	637.80M	389.78M
	EBITDA
905.63M	58.71M	0.00	0.00	697.10M	486.15M
	Net Income Common Stockholders
696.79M	695.04M	622.63M	509.68M	466.15M	292.99M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
0.00	4.59B	423.46M	5.72B	8.11B	8.18B
	Total Assets
65.87B	64.88B	56.26B	52.95B	50.14B	45.08B
	Total Debt
4.23B	4.24B	3.65B	3.89B	2.43B	2.44B
	Net Debt
4.23B	-452.02M	1.14B	1.41B	-3.36B	-2.69B
	Total Liabilities
59.27B	58.54B	50.86B	48.15B	45.64B	40.96B
	Stockholders Equity
6.60B	6.34B	5.40B	4.80B	4.50B	4.12B
Cash Flow		Free Cash Flow
761.21M	635.52M	697.97M	1.32B	1.07B	-582.11M
	Operating Cash Flow
770.19M	721.56M	744.38M	1.38B	1.13B	-518.47M
	Investing Cash Flow
-5.50B	-5.95B	-3.24B	-3.49B	-5.93B	-7.18B
	Financing Cash Flow
4.97B	5.26B	2.43B	2.20B	4.89B	7.74B

Wintrust Financial Technical Analysis

Technical Analysis Sentiment

Positive

Last Price118.71

Price Trends

50DMA

110.90

Positive

100DMA

118.24

Positive

200DMA

116.48

Positive

Market Momentum

MACD

3.15

Negative

RSI

57.14

Neutral

STOCH

48.01

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WTFC, the sentiment is Positive. The current price of 118.71 is above the 20-day moving average (MA) of 116.98, above the 50-day MA of 110.90, and above the 200-day MA of 116.48, indicating a bullish trend. The MACD of 3.15 indicates Negative momentum. The RSI at 57.14 is Neutral, neither overbought nor oversold. The STOCH value of 48.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 2 New Risks

Investors' and other stakeholders' expectations of our performance relating to environmental, social and governance factors may impose additional costs and expose us to new risks. Q4, 2024

Our business could be adversely affected by fraud. Q4, 2024

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
PNFP	78 Outperform	$8.52B	17.76	7.77%	0.82%	8.09%	-11.31%
ZION	78 Outperform	$7.18B	9.47	13.06%	3.60%	4.84%	28.90%
PB	76 Outperform	$6.86B	13.75	6.83%	3.26%	9.02%	20.88%
WTFC	75 Outperform	$8.17B	12.07	11.58%	1.57%	6.79%	4.65%
CMA	75 Outperform	$7.64B	11.02	11.11%	5.08%	-9.81%	5.22%
UMBF	72 Outperform	$8.06B	13.35	8.33%	1.49%	20.50%	5.69%
Sector *	64 Neutral	$12.66B	9.81	7.67%	17015.07%	12.33%	-5.97%

* Financial Sector Average

Performance Comparison

WTFC

Wintrust Financial

118.71

23.48

24.66%

CMA

Comerica

56.36

8.60

18.01%

PNFP

Pinnacle Financial Partners

106.04

27.69

35.34%

Prosperity Bancshares

69.91

10.00

16.69%

UMBF

UMB Financial

102.13

21.26

26.29%

ZION

Zions Bancorporation National Association

46.96

5.77

14.01%

Wintrust Financial Earnings Call Summary

Earnings Call Date:Apr 21, 2025

(Q1-2025)

% Change Since: 17.55%|

Next Earnings Date:Jul 16, 2025

Earnings Call Sentiment Positive

The earnings call reflected solid financial performance with record net interest income and strong loan and deposit growth. Credit performance was stable, and the bank received several awards for customer service and employment practices. However, economic uncertainty related to potential tariffs and funding cuts caused some concern, leading to a slightly increased provision for credit losses and a minor increase in commercial real estate non-performing loans. Despite these challenges, the overall performance and outlook remain positive.

Q1-2025 Updates

Positive Updates

Record Net Interest Income

Wintrust Financial reported record net interest income of $526 million for Q1 2025, despite two fewer business days, reflecting disciplined loan and deposit pricing.

Strong Loan and Deposit Growth

Loans grew by over $650 million and deposits by over $1.1 billion in Q1 2025, with a loan growth rate of 6% and deposit growth of approximately 8% on an annualized basis.

Stable Credit Performance

Non-performing loans were stable, and charge-offs decreased to 11 basis points, indicating stable credit quality.

Improved Net Interest Margin

Net interest margin increased by five basis points to 3.56% from the previous quarter.

Recognition and Awards

Wintrust received fourteen Coalition Greenwich Awards, the J.D. Power Award for best customer service in Illinois for the fourth consecutive year, and was recognized as a top employer in its material markets.

Negative Updates

Economic Uncertainty Impact

Concerns about potential tariffs, tax law changes, and funding cuts are causing uncertainty in the market, leading clients to pause major investments.

Increased Provision for Credit Losses

The provision for credit losses increased slightly due to uncertain economic conditions and wider credit spreads.

Slight Increase in Commercial Real Estate NPLs

Commercial real estate non-performing loans increased slightly from 16.16% to 20%.

Mortgage Banking Activity Subdued

Mortgage banking activity remained low and was unchanged from the prior quarter.

Company Guidance

During the first quarter of 2025, Wintrust Financial Corporation reported a quarterly net income of $189 million and a record net interest income of $526 million, despite having two fewer business days compared to the previous period. The company experienced loan growth of over $650 million and deposit growth of over $1.1 billion, maintaining a loan-to-deposit ratio of approximately 91%. The net interest margin improved to 3.56%, up five basis points from the prior quarter. Charge-offs declined to 11 basis points, and the provision for credit losses was $24 million. Non-interest income increased by $3.2 million to $116.6 million, while non-interest expenses decreased by $2.4 million to $366.1 million. The company expects a solid second quarter in terms of loan growth, with continued stability in the net interest margin. Wintrust's capital position improved, with a tangible book value per common share of $78.83, up from $75.39 in the previous quarter.

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.