Western Alliance Bancorp. (WAL) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Pinnacle Financial Partners, Inc.

SouthState Corp.

East West Bancorp, Inc.

First Citizens BancShares, Inc. (North Carolina)

Western Alliance Bancorp.

Fifth Third Bancorp

Commerce Bancshares, Inc. (Missouri)

Prosperity Bancshares, Inc.

Cullen/Frost Bankers, Inc.

Ally Financial, Inc.

First Horizon Corp. (Tennessee)

Why is Western Alliance Bancorp. ?

High Profitability with a Net Interest Margin of 22.75%

Healthy long term growth as Net Interest Income (ex other income) has grown by an annual rate of 0% and Net profit at 14.36%

Positive results in Jun 25

DIVIDEND PER SHARE(HY) Highest at USD 0
NII(Q) Highest at USD 697.6 MM
CASH AND EQV(HY) Highest at USD 879 MM

With ROA of 0.70%, it has a fair valuation with a 1.21 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -3.76%, its profits have risen by 11% ; the PEG ratio of the company is 1

Below par performance in long term as well as near term

Along with generating -3.76% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Western Alliance Bancorp. should be less than 10%
Overall Portfolio exposure to Regional Banks should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Regional Banks)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Western Alliance Bancorp. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Western Alliance Bancorp.

4.47%

1.16

43.88%

S&P 500

12.95%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

30.04%

EBIT Growth (5y)

13.68%

EBIT to Interest (avg)

Debt to EBITDA (avg)

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

Dividend Payout Ratio

17.87%

Pledged Shares

Institutional Holding

96.13%

ROCE (avg)

ROE (avg)

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.19

EV to EBIT

8.89

EV to EBITDA

7.79

EV to Capital Employed

1.21

EV to Sales

1.76

PEG Ratio

0.52

Dividend Yield

1.96%

ROCE (Latest)

13.58%

ROE (Latest)

11.89%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Sideways

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

18What is working for the Company

ROCE(HY)

Highest at 1.11%

DIVIDEND PER SHARE(HY)

Highest at USD 0

OPERATING PROFIT(Q)

Highest at USD 336.1 MM

OPERATING PROFIT MARGIN(Q)

Highest at 27.61 %

GROSS NPA (%)

NII(Q)

Highest at USD 766.2 MM

CASH AND EQV(HY)

Highest at USD 4,059 MM

PRE-TAX PROFIT(Q)

Highest at USD 355.7 MM

NET PROFIT(Q)

Highest at USD 286.1 MM

EPS(Q)

Highest at USD 2.59

-6What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD -2,609.1 MM

ROCE(HY)

Lowest at 1.11%

CREDIT DEPOSIT RATIO(HY)

Lowest at 76.05%

Here's what is working for Western Alliance Bancorp.

Operating Profit

Highest at USD 336.1 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite positive

Operating Profit (USD MM)

Operating Profit Margin

Highest at 27.61 % and Grown

In each period in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Non Performing Loans (%)

Lowest at 0.85%

in the last four Semi-Annual periods

MOJO Watch

Proportion of stressed loans given by the bank are falling

Non Performing Loans (%)

NII

Highest at USD 766.2 MM

in the last five periods

MOJO Watch

The bank's income from core business is increasing

NII (USD MM)

Dividend per share

Highest at USD 0 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Pre-Tax Profit

Highest at USD 355.7 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

Highest at USD 286.1 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

EPS

Highest at USD 2.59

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Cash and Eqv

Highest at USD 4,059 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Western Alliance Bancorp.

Operating Cash Flow

Lowest at USD -2,609.1 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Credit Deposit Ratio

Lowest at 76.05%

in the last four Semi-Annual periods

MOJO Watch

Bank has been creating proportionately lower loans against its deposits, thereby creating fewer revenue generating assets

Credit Deposit Ratio (%)