Webster Financial (WBS) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Webster Financial

NYSE•Financial Services•Banks - Regional

$77.57-0.40(-0.01%)Pre-market

Market Cap

$12.41B

P/E

12.2x

P/S

4.2x

P/B

1.3x

Webster Financial Corporation operates as the bank holding company for Webster Bank, National Association that provides various financial products and services to businesses, individuals, and families in the United States. It operates through three segments: Commercial Banking, Healthcare Financial Services, and Consumer Banking. The company offers checking, savings, and money market accounts; time deposits; individual retirement account retirement savings; certificates of deposit; mortgages; home equity loans and lines of credit; business lines of credit; overdrafts; and term, commercial mortgages, student, PPA, SBA, and personal loans. It also provides commercial lending; financial planning, life and long-term insurance, personal retirement, and portfolio management solutions; employee retirement plans; credit cards; payroll services; automated clearing house payables and wires; bill pay, remote deposit capture, merchant, and lockbox services; treasury management and investment services; private banking services; wealth management services; and online and mobile banking services. Webster Financial Corporation was founded in 1870 and is headquartered in Stamford, Connecticut.

How this company scores

WeakMetricSide Score: 72/100

Grade capped at D — Interest coverage below 1× (0.9x) — earnings cannot cover interest. Strongest: Cash & Earnings Quality (21/25); weakest: Growth (13/25).

Profitability20/25

Growth13/25

Balance Sheet & Red Flags18/25

Cash & Earnings Quality21/25

Strengths

Strong marginsRising earningsLow leverageCash-backed earnings

Grade capped at D

Interest coverage below 1× (0.9x) — earnings cannot cover interest.

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 12.2x5y range 11.9x – 39.4x

Currently near its 20-quarter median.

P/S · 4.2x5y range 2.7x – 55.5x

Currently below its 20-quarter median.

P/B · 1.3x5y range 1.3x – 2.0x

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

High Risk

Margin Pressure

Red Flag

Operating margins dropped 67.6% over recent quarters — a sharp decline suggesting serious cost or pricing challenges.

Price & Volume

Market Cap $12.41B

Metrics at a Glance

as of June 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $2.95B
Q. Revenue: $739.99M
TTM EBITDA: $1.53B
TTM Op. Income: $1.45B
Q. Op. Income: $355.03M
TTM Net Income: $1.02B
Q. Net Income: $256.79M
EPS: $1.56
Shares Out.: $159.99M

$2.95B in TTM revenue declined 23.9% YoY, reaching $739.99M last quarter. TTM EBITDA of $1.53B and TTM operating income of $1.45B show growth is flowing through to the bottom line. TTM net income of $1.02B means revenue is converting into profit. Across the last 8 quarters, TTM revenue has risen for 2 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

EBITDA Margin: 49.2%
Op. Margin: 48.0%
Net Margin: 34.7%

Op. margin of 48.0% is down 3.7% YoY — costs are rising relative to revenue. Net margin at 34.7% Across the last 8 quarters, operating margin has fallen for 4 consecutive quarters — a weakening trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 12.2x
P/S Ratio: 4.2x
P/B Ratio: 1.3x

At 12.2x P/E, the stock trades below typical market levels. P/S of 4.2x and P/B of 1.3x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Over the past year, P/E is down 17% — a weakening trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $85.95B
Cash: $2.72B
Long-Term Debt: $737.17M
Book Value: $9.76B
D/E Ratio: 0.1
Debt/EBITDA: 2.0

With $85.95B in assets and $737.17M in long-term debt, D/E is 0.1and book value is $9.76B — a conservative capital structure with a cushion to weather downturns. Across the last 8 quarters, debt/equity has fallen for 3 consecutive quarters — an improving trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $385.79M
TTM Free Cash Flow: $1.31B
FCF Margin: 44.5%
FCF / Net Income: 1.3

TTM FCF of $1.31B on $385.79M in operating cash flow. The FCF / Net Income ratio of 1.3x means free cash flow covers net income — earnings are backed by cash. Across the last 8 quarters, free cash flow has risen for 2 consecutive quarters — an improving trend.