Webster Financial Net Income vs. Return On Equity
| WBS Stock | USD 62.02 0.80 1.27% |
Net Income | First Reported 1989-06-30 | Previous Quarter 181.6 M | Current Value 193 M | Quarterly Volatility 62.1 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Gross Profit Margin | 0.8 | 0.9 |
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| Net Profit Margin | 0.36 | 0.3471 |
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| Operating Profit Margin | 0.41 | 0.4364 |
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| Pretax Profit Margin | 0.46 | 0.4338 |
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| Return On Assets | 0.0122 | 0.0116 |
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| Return On Equity | 0.0657 | 0.0999 |
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For Webster Financial profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Webster Financial to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Webster Financial utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Webster Financial's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Webster Financial over time as well as its relative position and ranking within its peers.
Webster |
Webster Financial's Revenue Breakdown by Earning Segment
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Is Regional Banks space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Webster Financial. If investors know Webster will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Webster Financial listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.14) | Dividend Share 1.6 | Earnings Share 4.42 | Revenue Per Share 13.933 | Quarterly Revenue Growth (0.07) |
The market value of Webster Financial is measured differently than its book value, which is the value of Webster that is recorded on the company's balance sheet. Investors also form their own opinion of Webster Financial's value that differs from its market value or its book value, called intrinsic value, which is Webster Financial's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Webster Financial's market value can be influenced by many factors that don't directly affect Webster Financial's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Webster Financial's value and its price as these two are different measures arrived at by different means. Investors typically determine if Webster Financial is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Webster Financial's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Webster Financial Return On Equity vs. Net Income Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Webster Financial's current stock value. Our valuation model uses many indicators to compare Webster Financial value to that of its competitors to determine the firm's financial worth. Webster Financial is rated first in net income category among its peers. It is rated second in return on equity category among its peers . The ratio of Net Income to Return On Equity for Webster Financial is about 9,629,540,873 . At this time, Webster Financial's Net Income is comparatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Webster Financial by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Webster Return On Equity vs. Net Income
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Webster Financial |
| = | 859.92 M |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Webster Financial |
| = | 0.0893 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Webster Return On Equity Comparison
Webster Financial is currently under evaluation in return on equity category among its peers.
Webster Financial Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Webster Financial, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Webster Financial will eventually generate negative long term returns. The profitability progress is the general direction of Webster Financial's change in net profit over the period of time. It can combine multiple indicators of Webster Financial, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -550.6 M | -523 M | |
| Operating Income | 1.1 B | 1.1 B | |
| Net Income | 859.9 M | 902.9 M | |
| Income Tax Expense | 216.7 M | 227.5 M | |
| Income Before Tax | 1.1 B | 1.1 B | |
| Total Other Income Expense Net | -6.5 M | -6.8 M | |
| Net Income Applicable To Common Shares | 722.6 M | 758.7 M | |
| Net Income From Continuing Ops | 927.2 M | 973.6 M | |
| Net Interest Income | 2.4 B | 1.3 B | |
| Interest Income | 3.4 B | 3.6 B | |
| Change To Netincome | 266.3 M | 279.7 M | |
| Net Income Per Share | 5.05 | 5.30 | |
| Income Quality | 1.14 | 1.84 | |
| Net Income Per E B T | 0.80 | 0.83 |
Webster Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Webster Financial. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Webster Financial position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Webster Financial's important profitability drivers and their relationship over time.
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Additional Tools for Webster Stock Analysis
When running Webster Financial's price analysis, check to measure Webster Financial's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Webster Financial is operating at the current time. Most of Webster Financial's value examination focuses on studying past and present price action to predict the probability of Webster Financial's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Webster Financial's price. Additionally, you may evaluate how the addition of Webster Financial to your portfolios can decrease your overall portfolio volatility.