WBS
Webster Financial Corp
$76.04
▲ 0.9%Updated Today 12:18 PM ET
WBS at a glance — five pillars scored 0–100 from real filed financials.
Overall: Strong · 88/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.
▲ Up 31.7% over the last 12 months
Market Cap
$12.12B
P/E
12.09x
Forward P/E (est.)
8.84x
ROE
10.8%
Revenue Growth
93.5%
EPS Growth
36.8%
Profit Margin
34.1%
FCF Yield
7.4%
Debt / Equity
0.14x
ROIC
11.0%
Interest Coverage
0.96x
Current Ratio
—
Dividend Yield
2.2%
Implied Growth (rev. DCF)
0.6%
Rating Score
88/100
Webster Financial Corp (WBS) is a large-cap company in the Banking industry, part of the Financials sector of the S&P 500, with a market value around $12.12B.
In its latest reported year it generated about $237.97M in revenue and $1.00B in net profit.
Our model rates WBS Strong (88/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
Evidence of durable competitive advantage in the filed financials (10 years of history).
Some durable-advantage evidence, but not across the board — dig into which ingredient is weak and whether it's cyclical or structural.
550.4% average over the last 3 years
±151.1 pts around 354.9% across 9 years
grew in 6 of the last 9 year-over-year periods
positive in 10 of 10 years
11.0% latest fiscal year
A moat can't be proven by numbers alone — this scores the evidence a durable advantage leaves behind (pricing power, consistency, returns on capital), computed the same way for every stock. Pair it with the business overview before concluding anything.
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what WBS's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. WBS trades near $76.04, above its 50-day average ($73.29) and 200-day average ($66.60). Price above both averages, with the shorter one above the longer, is the textbook definition of an uptrend — momentum favours buyers.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 85 it is overbought — the recent rally is stretched and can cool off.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently positive — short-term momentum is improving.
Volatility — ATR. Average True Range is the typical daily move. WBS's is $0.70 (~0.9% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. Over the last month WBS found buyers near $71.81 (support) and sellers near $77.33 (resistance); its 52-week range is $52.69–$77.33. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 0.2× the 20-day average — lighter than usual, so the move carries less conviction. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.
4Y CAGR
2.9%
Revenue moved from $173.38M in 2016 to $237.97M in 2025, a 3.6% compound annual growth rate. The most recent year grew a strong 93.5% year over year. Consistent top-line growth is one sign of healthy demand.
Gross Margin
—
Operating Margin
617.8%
Net Margin
421.4%
ROE
10.8%
Webster Financial Corp keeps about 34.1% of each sales dollar as net profit. Return on equity is 10.8% and return on invested capital about 11.0%. Margins this wide usually signal pricing power or a cost advantage.
Total Debt
$738.31M
Net Debt
$738.31M
Net Debt / EBITDA
0.5x
Debt / Equity
0.14x
Leverage: debt-to-equity is 0.1x, and operating profit covers interest about 1.0x. That is a conservative balance sheet — a cushion in downturns.
Operating CF
$1.06B
Free Cash Flow
$1.01B
FCF Margin
423.8%
In the latest year Webster Financial Corp produced about $1.06B of operating cash flow and $1.01B of free cash flow after capital spending. That is a free-cash-flow yield of about 7.4% on today's price. Strong cash generation funds dividends, buybacks, and reinvestment.
Can the payout survive a bad year? Scored from filed cash flow, earnings coverage, and the raise/cut record.
The payout is comfortably covered by cash the business actually generates, with a raise habit behind it.
Dividend yield
2.2%
Per share (latest FY)
$1.60
Total paid (latest FY)
$266.83M
History on record
10 years
dividend uses 26% of free cash flow
27% of net income paid out
no current raise streak
no cuts in the last 10 years on record
Coverage uses the latest fiscal year as filed with the SEC; the streak counts total dollars paid (per-share figures can carry split artifacts). Educational information, not income advice.
P/E
12.09x
P/S
3x
P/B
1.07x
EV / EBITDA
8.33x
WBS trades at 12.1x trailing earnings (about 8.8x on estimated forward earnings), 3.0x sales, and 1.1x book value. Reverse-engineering today's price implies the market expects roughly 0.6% long-term free-cash-flow growth. That is an undemanding multiple — potentially cheap if the business is stable.
A two-stage discounted cash flow on real SEC-filed free cash flow — the intrinsic-value anchor professional analysts triangulate from.
DCF fair value / share
$257.77
Current price
$76.04
Starting FCF (latest 10-K)
$1.01B
Growth, years 1–5
20.0%
Fade to terminal, years 6–10
2.5%
Discount rate
9.0%
Cash flows grow at the stage-1 rate (trailing revenue growth, capped at 20%) for five years, fade to 2.5% by year 10, and continue at that rate forever (Gordon terminal value), all discounted at 9.0%. Small changes in assumptions move the result a lot — treat this as one reference point, not a target price. Educational only, not investment advice.
Where WBS sits versus its Financials sector peers in the S&P 500.
Bands show the middle half (25th–75th percentile) of the 141 Financials companies in the S&P 500 — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.
How WBS stacks up against its Financials peers — valuation, profitability, and growth versus the sector median.
In the Financials sector (289 S&P 500 companies), WBS ranks #2 of 289 by our overall rating. It trades at a discount versus the sector on earnings (12.1x P/E vs. 15.3x median) with a lower return on equity (10.8% vs. 13.6%) and faster revenue growth (93.5% vs. 15.9%).
P/E vs sector
12.1x
median 15.3x
ROE vs sector
10.8%
median 13.6%
Growth vs sector
93.5%
median 15.9%
Sector rank
#2
of 289 by rating
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Financials companies by sub-industry and size. Sector median is across all 289 S&P 500 names in the sector. Educational, not a recommendation.
Project revenue → earnings → price. Edit the assumptions to build your own case.
2030 price target (Base Case)
$0.00 – $0.00
vs. $76.04 today · expected CAGR -15% – -5%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $345.05M | $500.33M | $725.47M | $1.05B | $1.53B |
| Net income | $172.53M | $250.16M | $362.74M | $525.97M | $762.65M |
| EPS | $1.08 | $1.57 | $2.28 | $3.30 | $4.78 |
| Share price (low) | $7.58 | $10.98 | $15.93 | $23.09 | $33.49 |
| Share price (high) | $12.99 | $18.83 | $27.30 | $39.59 | $57.40 |
| CAGR (low–high) | -90% / -83% | -62% / -50% | -41% / -29% | -26% / -15% | -15% / -5% |
Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.
The case for WBS:
- Revenue is growing 93.5% a year, a sign of real demand.
- High net margins (34.1%) point to pricing power or efficiency.
- Healthy free-cash-flow yield (~7.4%) funds buybacks and dividends.
- A conservative balance sheet (debt/equity 0.1x) lowers risk.
- Pays a 2.2% dividend on top of any price gains.
- Our model's overall read is Strong (88/100).
The case against WBS:
- Interest coverage is thin (1.0x), so debt costs bite.
- Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
On balance, the fundamentals screen favourably: Webster Financial Corp is a large-cap financials business still growing nicely, with solid profitability, and a sound balance sheet. It trades at 12.1x earnings, which our model scores Strong (88/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
Analyst Ratings
What 18 Wall Street analysts covering WBS recommend (July 2026). Consensus is a useful sanity check — not a substitute for your own homework.
Analysts have turned more cautious over the last three months (-4 pts of buy ratings).
Latest SEC Filings
WBS's most recent filings, straight from SEC EDGAR. Annual and quarterly reports are the deep dives; 8-Ks flag material events the moment they happen.
In the Idea Lab
WBS — frequently asked questions
Is WBS a good stock to buy?
We don't give buy or sell advice. Our model rates Webster Financial Corp Strong (88/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.
What is WBS's rating on The Stocks School?
Webster Financial Corp currently scores 88/100 (Strong) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.
How our ratings work →Where does WBS's data come from?
Live price data plus real fundamentals and 5-year financials pulled directly from Webster Financial Corp's SEC filings — refreshed automatically, not hand-entered.
How is the 5-year projection for WBS calculated?
It's a scenario model: it grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — it's a tool for thinking, not a prediction.
Is this WBS analysis financial advice?
No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell WBS. Always do your own research and consider a licensed professional.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.