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Wintrust Financial Corp (WTFC)
NASDAQ:WTFC
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Wintrust Financial
(NASDAQ:WTFC)
75Outperform
Wintrust Financial (WTFC) vs. S&P 500 (SPY)
Market Cap
$7.54B
Dividend Yield1.66%
Average Volume (3M)603.75K
Price to Earnings (P/E)11.1
Beta (1Y)1.28
Revenue Growth6.79%
EPS Growth4.65%
CountryUS
Employees5,903
SectorFinancial
Sector Strength88
IndustryBanks - Regional
Share Statistics
EPS (TTM)10.11
Shares Outstanding66,911,290
10 Day Avg. Volume559,849
30 Day Avg. Volume603,748
Financial Highlights & Ratios
PEG Ratio2.40
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.54
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit3.35
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$139.25Price Target Upside23.63% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering10
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 shows strong financial performance with consistent revenue growth, a stable gross profit margin, and improving net profit margin. The balance sheet is robust with reduced leverage and a solid equity base. Cash flow generation is strong, though operational efficiency could improve 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
Positive
112.63
Price Trends
111.09
Positive
120.26
Negative
115.99
Negative
Market Momentum
0.49
Negative
57.17
Neutral
88.22
Negative
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 112.63 is above the 20-day moving average (MA) of 104.12, above the 50-day MA of 111.09, and below the 200-day MA of 115.99, indicating a neutral trend. The MACD of 0.49 indicates Negative momentum. The RSI at 57.17 is Neutral, neither overbought nor oversold. The STOCH value of 88.22 is Negative, 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 0 New Risks
Wintrust Financial Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $7.54B | 11.14 | 11.58% | 1.66% | 6.79% | 4.65% | |
75 Outperform | $7.16B | 10.30 | 11.11% | 5.28% | -9.22% | 5.42% | |
71 Outperform | $6.97B | 15.10 | 7.77% | 0.90% | 8.09% | -11.31% | |
70 Outperform | $6.49B | 13.01 | 6.83% | 3.36% | 9.03% | 20.88% | |
70 Outperform | $7.10B | 12.29 | 8.33% | 1.67% | 20.50% | 5.69% | |
69 Neutral | $6.64B | 8.76 | 13.10% | 3.74% | 4.84% | 29.25% | |
63 Neutral | $12.46B | 9.56 | 8.14% | 17044.64% | 12.63% | -4.25% |
* Financial Sector Average
Performance Comparison
WTFC
Wintrust Financial
112.63
13.54
13.66%
CMA
Comerica
54.46
4.01
7.95%
PNFP
Pinnacle Financial Partners
102.55
20.88
25.57%
PB
Prosperity Bancshares
68.09
7.07
11.59%
UMBF
UMB Financial
97.78
16.52
20.33%
ZION
Zions Bancorporation National Association
45.35
3.16
7.49%
Wintrust Financial Earnings Call Summary
Earnings Call Date:Apr 21, 2025
(Q1-2025)
| % Change Since: 11.04%|
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.