Company Overview
WaFd, Inc. operates as the bank holding company for Washington Federal Bank, delivering a comprehensive suite of financial services including lending, depository solutions, insurance, and other banking products across the United States. The company functions within the Financial Services sector, specifically classified under the Banks - Regional industry, which distinguishes its operational scope from national institutions and emphasizes localized market presence. As of the latest data, the entity commands a market capitalization of $2.37B and employs 1,979 individuals, generating annual revenue of $734.47M. These valuation and revenue figures indicate that WaFd, Inc. maintains a significant regional footprint, positioning it as a substantial player within the regional banking landscape with a balance sheet large enough to support diverse financial offerings while retaining a focused operational structure.
Financial Health
The company reported revenue of $734.47M and net income of $228.37M over the trailing twelve months, while EBITDA data is not available for this specific reporting period. The substantial difference between total revenue and net income reveals a cost structure where operating expenses consume approximately 69% of gross revenue, which is typical for banking operations where interest income is offset by cost of funds and overhead. Unlike many manufacturing or technology firms, the company does not report a free cash flow figure, suggesting that cash flow generation is primarily tied to net income and deposit mobilization rather than operational cash conversion distinct from earnings. The company's margin profile includes a gross margin of 0.0%, reflecting the nature of banking where net interest income is the primary revenue driver before operating expenses; an operating margin of 46.6% indicates strong efficiency in managing those overhead costs, while a profit margin of 33.1% demonstrates the company's ability to retain a significant portion of revenue as net earnings. In terms of liquidity and leverage, the company holds $767.08M in cash against total debt of $2.56B, and a debt-to-equity ratio is not available, meaning the balance sheet appears leveraged by traditional debt standards but relies on capitalization structure typical for financial institutions. Current ratio data is unavailable, so short-term liquidity is assessed through the relationship of cash reserves to immediate obligations rather than a standard current asset to current liability metric. Regarding return metrics, the company achieved a return on equity of 8.0% and a return on assets of 0.9%, revealing that while the bank generates healthy returns on shareholder capital, its return on assets is modest, which is consistent with the low-risk, low-yield nature of asset-heavy banking models.
Valuation Assessment
The valuation metrics show a trailing P/E ratio of 10.78 and a forward P/E of 9.60, implying that the market expects earnings growth that will compress the multiple over the coming year. The price-to-book ratio stands at 0.87, indicating that the stock trades below its book value, which suggests the market prices the bank conservatively relative to its net asset worth. Alternative valuation measures include a price-to-sales ratio of 3.23 and an EV/EBITDA ratio that is not available, suggesting the market values the company based on revenue generation rather than earnings multiples or enterprise value metrics. The stock has traded between a 52-week high of $34.30 and a 52-week low of $23.75, meaning the current trading price sits within this historical range but is closer to the lower end than the upper bound of volatility. The beta value is 0.85, which signifies that the stock price is less volatile than the broader market, offering a lower-risk profile for investors seeking stability within the financial services sector.
Growth & Income
Revenue growth year-over-year stands at 9.8%, while earnings growth year-over-year is significantly higher at 46.6%, implying that operational efficiencies or margin expansion are driving profitability faster than top-line revenue expansion. For dividend payers, the company offers a dividend yield of 3.5% with a payout ratio of 37.5%, indicating that the dividend is highly sustainable as it covers less than half of the generated earnings. Because the payout ratio is well below 100%, the company retains a majority of its earnings to reinvest in the business, pay down debt, or increase future dividends rather than distributing all profits. Overall, the growth and income profile combines moderate revenue expansion with robust earnings acceleration and a sustainable dividend yield, presenting a balanced financial trajectory for regional banking investors.