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.

Ally Financial, Inc.

East West Bancorp, Inc.

First Citizens BancShares, Inc. (North Carolina)

Commerce Bancshares, Inc. (Missouri)

Prosperity Bancshares, Inc.

Cullen/Frost Bankers, Inc.

Western Alliance Bancorp.

Fifth Third Bancorp

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.

10.81%

1.16

43.88%

S&P 500

22.99%

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)

12.98%

EBIT to Interest (avg)

Debt to EBITDA (avg)

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

Dividend Payout Ratio

17.86%

Pledged Shares

Institutional Holding

94.60%

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

0.99

EV to EBIT

5.49

EV to EBITDA

4.89

EV to Capital Employed

0.99

EV to Sales

1.24

PEG Ratio

0.34

Dividend Yield

1.71%

ROCE (Latest)

18.07%

ROE (Latest)

12.66%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

No Trend

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

8What is working for the Company

NII(Q)

Highest at USD 766.3 MM

DIVIDEND PER SHARE(HY)

Highest at USD 0

CASH AND EQV(HY)

Highest at USD 1,073 MM

-6What is not working for the Company

CREDIT DEPOSIT RATIO(HY)

Lowest at 71.49%

OPERATING PROFIT(Q)

Lowest at USD 167.5 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 14.1 %

PRE-TAX PROFIT(Q)

Lowest at USD 231.3 MM

NET PROFIT(Q)

Lowest at USD 182.1 MM

EPS(Q)

Lowest at USD 1.65

Here's what is working for Western Alliance Bancorp.

NII

Highest at USD 766.3 MM and Grown

In each period in the last five periods

MOJO Watch

The bank's income from core business is increasing

Net NPA

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)

Cash and Eqv

Highest at USD 1,073 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Depreciation

Highest at USD 34.6 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

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

Operating Profit

Lowest at USD 167.5 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at 14.1 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at USD 231.3 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD 182.1 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD 1.65

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Credit Deposit Ratio

Lowest at 71.49%

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 (%)

Non Operating Income

Highest at USD 0.06 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income

Capital Adequacy Ratio

Lowest at 12%

in the last five periods

MOJO Watch

The Bank's capital base vs its risk assets is deteriorating.

CAR (%)