| 2020 | 2021 | 2022 | 2023 (projected) | PPandE Turnover | 2.57 | 2.94 | 3.38 | 3.47 | Calculated Tax Rate | 21.24 | 21.23 | 24.42 | 28.56 |
Is Washington Federal about to shock shareholders?
 | By Ellen Johnson | Macroaxis Story |
Washington Federal (WAFD) stands out as a resilient investment opportunity, with its stock surging over 2% amidst a market downturn. The company's robust financial performance is evident in its strong operating margin of 51.02% and a profit margin of 38.63%. With a PE Ratio of 6.511, it offers an attractive valuation for investors. The company's robust net interest income of $594.6M and net income from continuing operations of $236.3M further underscore its financial strength. Analysts have a 'Buy' consensus on the stock, with an estimated target price of $33, suggesting a potential upside. The company's return on equity stands at 12.36%, reflecting its efficient use of shareholders' funds. Despite the market volatility, Washington Federal's strong financials and positive growth prospects make it a compelling investment opportunity. The company's resilience is further highlighted by its quarterly revenue growth of 20.1%, demonstrating its ability to grow amidst challenging market conditions. The Enterprise Value of Washington Federal is projected to decrease significantly, based on the last few years of reporting. The Enterprise Value for the past year stood at $2.77 billion. The Market Capitalization for the current year is expected to grow to approximately $2.5 billion, while Average Assets are forecasted to decline to about $21.5 billion. As many millennials show interest in the thrifts & mortgage finance space, it is only logical to examine Washington Federal. We will analyze why investors may still consider investing in Washington Federal. In this article, I will also discuss some crucial factors affecting Washington Federal's products and demonstrate how it may impact the company's outlook for active traders this year.
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Reviewed by Rifka Kats
The company, Washington Federal, has a market beta of 2.0529, indicating a somewhat significant risk compared to the market. To understand what this beta means for Washington Federal, consider that as the market rises, the company is projected to outperform it. Conversely, if the market yields negative returns, Washington Federal is likely to underperform.
While it's crucial to consider Washington Federal's historical price patterns, it's equally important to exercise caution when using the equity's current price history. Our approach to predicting a stock's future performance involves analyzing both its past performance charts and the overall business, including all available technical indicators. Washington Federal provides data on fifteen different technical indicators that can assist in evaluating its performance.
Washington Federal is projected to have a return of -0.14%. It's recommended to review Washington Federal's standard deviation, as well as the relationship between the Treynor ratio and potential upside, to determine if Washington Federal's past performance will be replicated at some point in the near future.
Detailed assessment
Despite the market downturn, Washington Federal (USA Stocks: WAFD) presents a resilient investment opportunity as the stock surged over 2% with a last price of $26.63. The company, part of the Financial Services sector, has shown robust financial health with a net income from continuing operations of $236.3M and a gross profit of $658M. Furthermore, the company's quarterly earnings growth stands at 0.357, suggesting potential for future profitability. With a PE ratio of 6.511 and a Wall Street target price of $33, Washington Federal offers an attractive upside potential of 4.21. However, investors should note the total risk alpha of -0.13, indicating a slightly higher risk compared to the market. The performance of Washington Federal in the marketplace will significantly impact your decision to invest in its stock. Revenue growth, profitability, competitive positioning, management quality, and industry trends can influence Washington Federal's stock prices. When investing in Washington Federal, there are several factors to consider and potential outcomes to expect. As a company performs well, its stock price may increase, allowing investors to benefit from price appreciation. However, Washington Stock can experience significant price fluctuations due to market conditions, economic factors, industry trends, or company-specific news. This is why investing in stocks such as Washington Federal carries risks, including the potential for capital loss. Stock prices can decline, and investors may incur losses if they sell shares at a lower price than their initial investment.And What about dividends?
A dividend is the distribution of a portion of Washington Federal earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Washington Federal dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Washington one year expected dividend income is about USD0.66 per share.
The current year's Dividend Payout Ratio is expected to grow to 0.44, whereas Dividends Paid is forecasted to decline to about 53.6 M. | Last Reported | Projected for Next Year | ||
| Dividends Paid | 90.2 M | 53.6 M | |
| Dividend Yield | 0.05 | 0.03 | |
| Dividend Payout Ratio | 0.35 | 0.44 | |
| Dividend Paid And Capex Coverage Ratio | 3.04 | 2.89 |
Investing in dividend-paying stocks, such as Washington Federal is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Washington Federal must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Washington Federal. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.How important is Washington Federal's Liquidity
Washington Federal financial leverage refers to using borrowed capital as a funding source to finance Washington Federal ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Washington Federal financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Washington Federal's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Washington Federal's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Washington Federal's total debt and its cash.
Washington Federal Gross Profit
Washington Federal Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Washington Federal previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Washington Federal Gross Profit growth over the last 10 years. Please check Washington Federal's gross profit and other fundamental indicators for more details.
What is driving Washington Federal Investor Appetite?
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Washington Federal has an asset utilization ratio of 3.19 percent. This indicates that the company is making $0.0319 for each dollar of assets. An increasing asset utilization means that Washington Federal is more efficient with each dollar of assets it utilizes for everyday operations.
Despite a turbulent market environment, Washington Federal (WAFD.US) has shown resilience with its stock surging over 2% recently. The bank, headquartered at 425 Pike Street, Seattle, WA, has a market capitalization of $1.75 billion and a net asset of $20.77 billion. The firm's robust performance is reflected in its EBITDA of $349.46 million and net income of $236.33 million.Washington Federal's price to book ratio stands at 1.11X, indicating that the stock is reasonably priced given its book value of $31.54 per share. The bank's EPS estimate for the current year is $3.93, and it is expected to increase to $1.07 in the next quarter. The bank's return on assets is 0.0132, and it has a PE ratio of 6.511, suggesting a potentially undervalued stock. With 85.31% of its shares owned by institutions, Washington Federal has strong backing from large financial organizations. Despite a probability of bankruptcy at 45.68%, the bank's beta of 0.82 shows less volatility compared to the overall market. In conclusion, Washington Federal presents a resilient investment opportunity in the current market downturn. The bank's strong financials and steady performance make it a compelling choice for investors looking for stability amidst market volatility. .
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