A Business at a Glance
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WEBSTER FINANCIAL CORP
WBS
$12.6B
Mkt Cap
$76.07
+0.81%
WEBSTER FINANCIAL CORP (WBS) has a current P/E ratio of 12.9, compared to its historical median P/E of 11.1. The stock is currently considered Fair based on its historical valuation range.
WEBSTER FINANCIAL CORP (WBS) has a 5-year average return on invested capital (ROIC) of 9.2%. This is below average and may indicate limited pricing power.
WEBSTER FINANCIAL CORP (WBS) has a market capitalization of $12.3B. It is classified as a large-cap stock.
Yes, WEBSTER FINANCIAL CORP (WBS) pays a dividend with a trailing twelve-month yield of 2.13%. The company also returns capital through share buybacks, with a buyback yield of 3.35%.
Based on historical P/E analysis, WEBSTER FINANCIAL CORP (WBS) appears fair. The current P/E of 12.9 is 16% above its historical median of 11.1. The estimated fair value CAGR (P/E method) is 7.8%.
WEBSTER FINANCIAL CORP (WBS) operates in the National Commercial Banks industry, within the Financials sector.
WEBSTER FINANCIAL CORP (WBS) reported annual revenue of $4.4 billion in its most recent fiscal year, based on SEC EDGAR filings.
Webster Financial Corporation is a bank holding company headquartered in Stamford, Connecticut, with $84.1 billion in total consolidated assets as of December 31, 2025, operating as a commercial bank with a national charter focused on businesses, individuals, and families. The company operates three differentiated business segments: Commercial Banking, which delivers financial solutions nationally to companies, investors, and institutions across commercial real estate, middle market, sponsor and specialty finance, and treasury management; Healthcare Financial Services, comprising HSA Bank (one of the country's largest providers of employee benefits solutions and HSA administrators) and Ametros (the nation's largest professional administrator of medical insurance claim settlements); and Consumer Banking, which serves individuals and families through 195 banking centers in the Northeast with deposit, lending, wealth management, and digital banking solutions. The company's core geographic footprint spans the Northeast from the New York metropolitan area to Rhode Island and Massachusetts, with certain businesses operating in extended geographies, and it generates revenue through traditional banking activities including lending, deposits, treasury management, and fee-based services. Webster's business model emphasizes diverse loan origination capabilities, attractive funding characteristics through its healthcare services deposits, and a combination of on-balance-sheet lending and asset management partnerships to strengthen competitive positioning in sponsor lending and private credit markets.
【Strategic transition underway】 Management anticipates continued organic growth across diversified lending categories and deposit channels, with particular emphasis on healthcare services expansion through HSA Bank's newly eligible Bronze and Catastrophic plan participants and Ametros' strong mid-20% deposit growth trajectory. The company expects to benefit from macro tailwinds in the banking industry and is positioned to leverage its funding advantage and origination capabilities for accelerated growth relative to peers, though near-term uncertainty exists given the pending Banco Santander acquisition announced in February 2026 with expected close in the second half of 2026. Management is maintaining flexibility on capital deployment, focusing on organic growth and targeted tuck-in acquisitions in healthcare services while managing regulatory capital ratios above well-capitalized levels, and the Marathon Asset Management joint venture is expected to enhance sponsor loan growth and drive fee revenue beginning in 2026.
| Metric | Target | Period |
|---|---|---|
| Loan growth | 5%-7% | FY2026 |
| Deposit growth | 4%-6% | FY2026 |
| Revenue | $3 billion | FY2026 |
| Net interest income | $2.57 billion-$2.63 billion | FY2026 |
| Fees | $390 million-$410 million | FY2026 |
| Expenses | $1.46 billion-$1.48 billion | FY2026 |
| HSA Bank deposit growth | $50 million-$100 million | FY2026 |
| Net interest margin | 3.35% | FY2026 |
Loan growth (FY2026): “We're anticipating loan growth of 5%-7%”
Deposit growth (FY2026): “deposit growth of 4%-6%”
Revenue (FY2026): “The midpoint of the guide has expected revenue of $3 billion for 2026. On a GAAP basis.”
Net interest income (FY2026): “We expect net interest income of $2.57 billion-$2.63 billion, which assumes 225 basis points Fed funds cuts in June and September.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call, Q4 FY2024 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 2.9B | 4.4B | 4.2B | 3.9B | 2.7B | 1.3B |
| Net Income | 994M | 975M | 744M | 843M | 628M | 399M |
| EPS | $6.07 | $5.90 | $4.37 | $4.91 | $3.72 | $2.21 |
| Free Cash Flow | 1.2B | 1.0B | 1.4B | 938M | 1.3B | 672M |
| ROIC | 15.6% | 9.6% | 7.5% | 8.9% | 9.6% | 10.2% |
| Gross Margin | - | 60.8% | 56.7% | 63.6% | 80.8% | 92.4% |
| Debt/Equity | 0.08 | 0.08 | 0.10 | 0.12 | 0.13 | 0.16 |
| Dividends/Share | $1.62 | $1.60 | $1.60 | $1.60 | $1.60 | $0.80 |
| Operating Income | 1.5B | 1.5B | 1.2B | 1.2B | 1.1B | 479M |
| Operating Margin | 50.0% | 33.2% | 29.6% | 31.3% | 39.6% | 37.9% |
| ROE | 10.4% | 10.5% | 8.3% | 10.1% | 10.9% | 11.9% |
| Shares Outstanding | 162M | 165M | 170M | 172M | 169M | 180M |
WEBSTER FINANCIAL CORP passes 6 of 9 quality checks, suggesting mixed fundamentals.
WEBSTER FINANCIAL CORP trades at 12.9x trailing earnings, compared to its 15-year median P/E of 11.1x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 12.2x vs a median of 14.6x. The company's 5-year average ROIC is 9.2% with a gross margin of 70.9%. Total shareholder yield (dividends + buybacks) is 5.5%. At current prices, the estimated annualized return to fair value is +11.1%.
WEBSTER FINANCIAL CORP (WBS) has a net profit margin of 22.0%. This is a strong margin indicating high profitability.
WEBSTER FINANCIAL CORP (WBS) generated $1.0 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
WEBSTER FINANCIAL CORP (WBS) has a debt-to-equity ratio of 0.08. This indicates a conservatively financed balance sheet.
WEBSTER FINANCIAL CORP (WBS) reported earnings per share (EPS) of $5.90 in its most recent fiscal year.
WEBSTER FINANCIAL CORP (WBS) has a return on equity (ROE) of 10.5%. This indicates moderate shareholder returns.
WEBSTER FINANCIAL CORP (WBS) has a 5-year average gross margin of 70.9%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 16 years of financial data for WEBSTER FINANCIAL CORP (WBS), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
WEBSTER FINANCIAL CORP (WBS) has a book value per share of $57.45, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management anticipates continued organic growth across diversified lending categories and deposit channels, with particular emphasis on healthcare services expansion through HSA Bank's newly eligible Bronze and Catastrophic plan participants and Ametros' strong mid-20% deposit growth trajectory. The company expects to benefit from macro tailwinds in the banking industry and is positioned to leverage its funding advantage and origination capabilities for accelerated growth relative to peers, though near-term uncertainty exists given the pending Banco Santander acquisition announced in February 2026 with expected close in the second half of 2026. Management is maintaining flexibility on capital deployment, focusing on organic growth and targeted tuck-in acquisitions in healthcare services while managing regulatory capital ratios above well-capitalized levels, and the Marathon Asset Management joint venture is expected to enhance sponsor loan growth and drive fee revenue beginning in 2026.
Based on recent SEC filings and earnings calls, WEBSTER FINANCIAL CORP (WBS) has provided the following forward guidance: Loan growth: 5%-7% (FY2026); Deposit growth: 4%-6% (FY2026); Revenue: $3 billion (FY2026); Net interest income: $2.57 billion-$2.63 billion (FY2026); Fees: $390 million-$410 million (FY2026), plus 3 additional metrics.
Fees (FY2026): “We expect fees to be $390 million-$410 million”
Expenses (FY2026): “expenses to be $1.46 billion-$1.48 billion”
HSA Bank deposit growth (FY2026): “newly HSA eligible plan participants will drive $1 billion-$2.5 billion in incremental deposit growth at HSA Bank over the next five years, including $50 million-$100 million of growth in 2026”
Net interest margin (FY2026): “We expect that exit rate to maintain throughout 2026, and so we should see kind of a 335 for the full year.”
No recent press releases.