WesBanco, Inc. Fundamental Analysis (NASDAQ: WSBC)
WesBanco, Inc. (NASDAQ: WSBC) shows strong financial fundamentals with a PE ratio of 11.65, profit margin of 23.50%, and ROE of 8.72%. The company generates $1.5B in annual revenue with strong year-over-year growth of 51.41%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 66.5/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze WSBC's fundamental strength across five key dimensions:
Efficiency Score
WeakWSBC struggles to generate sufficient returns from assets.
Valuation Score
ExcellentWSBC trades at attractive valuation levels.
Growth Score
ModerateWSBC shows steady but slowing expansion.
Financial Health Score
ModerateWSBC shows balanced financial health with some risks.
Profitability Score
ModerateWSBC maintains healthy but balanced margins.
Key Financial Metrics
Is WSBC Expensive or Cheap?
P/E Ratio
WSBC trades at 11.65 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, WSBC's PEG of 0.10 indicates potential undervaluation.
Price to Book
The market values WesBanco, Inc. at 0.96 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.44 times EBITDA. This is generally considered low.
How Well Does WSBC Make Money?
Net Profit Margin
For every $100 in sales, WesBanco, Inc. keeps $23.50 as profit after all expenses.
Operating Margin
Core operations generate 29.70 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.72 in profit for every $100 of shareholder equity.
ROA
WesBanco, Inc. generates $1.28 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
WesBanco, Inc. generates strong operating cash flow of $395.57M, reflecting robust business health.
Free Cash Flow
WesBanco, Inc. generates strong free cash flow of $376.36M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.92 in free cash annually.
FCF Yield
WSBC converts 9.62% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.65
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.10
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.96
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.59
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.43
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.24
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How WSBC Stacks Against Its Sector Peers
| Metric | WSBC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.65 | 21.07 | Better (Cheaper) |
| ROE | 8.72% | 647.00% | Weak |
| Net Margin | 23.50% | -1594.00% (disorted) | Strong |
| Debt/Equity | 0.43 | 0.90 | Strong (Low Leverage) |
| Current Ratio | 0.24 | 912.43 | Weak Liquidity |
| ROA | 1.28% | -579.00% (disorted) | Weak |
WSBC outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews WesBanco, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
62.93%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
37.24%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
265.77%
Industry Style: Value, Dividend, Cyclical
High Growth