Western Alliance Bancorporation
$77.75
-0.90%Western Alliance Bancorporation operates as the bank holding company for Western Alliance Bank that provides various banking products and related services primarily in Arizona, California, and Nevada. It operates in Commercial, Consumer Related, and Corporate & Other segments. The company offers deposit products, including checking, savings, and money market accounts, as well as fixed-rate and fixed maturity certificates of deposit accounts; and treasury management and residential mortgage products and services. It also offers commercial and industrial loan products, such as working capital lines of credit, loans to technology companies, inventory and accounts receivable lines, mortgage warehouse lines, equipment loans and leases, and other commercial loans; commercial real estate loans, which are secured by multi-family residential properties, professional offices, industrial facilities, retail centers, hotels, and other commercial properties; construction and land development loans for single family and multi-family residential projects, industrial/warehouse properties, office buildings, retail centers, medical office facilities, and residential lot developments; and consumer loans. In addition, the company provides other financial services, such as internet banking, wire transfers, electronic bill payment and presentment, lock box services, courier, and cash management services. Further, it holds certain investment securities, municipal and non-profit loans, and leases; invests primarily in low-income housing tax credits and small business investment corporations; and holds certain real estate loans and related securities. The company operates 36 branch locations, as well as loan production offices. Western Alliance Bancorporation was founded in 1994 and is headquartered in Phoenix, Arizona.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
High confidenceValuation multiple is compressed (P/E 8.8).
Valuation inputs: P/E 8.8, earnings yield +11.3%, momentum -0.9%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is soft (ROE +12.7%, ROIC -7.3%).
Profitability stack: net margin +18.4%, ROE +12.7%, ROIC -7.3%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceRisk profile is balanced but has notable pressure points to monitor.
Risk factors: liabilities/assets +91.4%, momentum -0.9%, net margin +18.4%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Western Alliance Bancorporation Market vs Earnings Trajectory
Performance Analysis
EPS Growth
Positive earnings growth shows the company is improving its profitability over time.
Price-EPS Relationship
Stock price is moving in line with earnings growth—a healthy sign of fundamental-driven valuation.
Stock Price Change
Over the 1Y period, stock price has increased by 11.3%.
P/E Ratio (TTM)
Relatively low P/E may indicate undervaluation or lower growth expectations.
Key Insight
With growing earnings (+13.0%) and a relatively low P/E ratio (8.8x), the stock may be undervalued if the growth trend continues.
Western Alliance Bancorporation Fair Value Envelope
Western Alliance Bancorporation Profit Bridge
Profitability Analysis
Gross Margin
Exceptional pricing power and cost management. The company retains over half of revenue after direct costs.
Operating Margin
Healthy operating margins demonstrate effective cost control and strong business fundamentals.
Net Profit Margin
Strong net margins indicate efficient operations and favorable tax/interest management.
Effective Tax Rate
Moderate tax rate typical for most corporations. Represents standard tax burden on profits.
Profitability Insight
Exceptional profitability across all levels: Strong pricing power, efficient operations, and healthy bottom line indicate a high-quality business with sustainable competitive advantages.
Western Alliance Bancorporation Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Negative free cash flow despite positive earnings raises concerns about cash generation ability or heavy capital requirements.
CapEx Intensity
Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.
FCF Growth Trend
Flat FCF growth. Stable but not expanding—monitor for signs of business maturity or temporary headwinds.
Working Capital Impact
Minimal working capital impact on FCF. Changes in operating assets and liabilities well-managed.
Cash Flow Quality Insight
Cash flow concerns: Despite profitability, the company is burning cash. Review working capital management, CapEx levels, and sustainability of current operations.
Western Alliance Bancorporation Funding & Solvency Profile
Financial Health Analysis
Debt-to-Equity Ratio
High financial leverage. Heavy reliance on debt may indicate increased financial risk and potential solvency concerns.
Working Capital
Strong working capital position provides significant operational flexibility and financial cushion.
Asset Composition
Capital-intensive business with significant long-term investments in property, equipment, or intangibles.
Western Alliance Bancorporation Street Expectations Map
Wall Street analysts project that WAL stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 87.83, with estimates ranging from a low of 79.00 to a high of 96.00.
The consensus 1-year price target stands at 87.83, with estimates ranging from a low of 79.00 to a high of 96.00.
Analyst Consensus Analysis
Upside Potential
Moderate upside. Analysts expect positive returns but with limited margin of safety. Consider entry timing.
Analyst Agreement
High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.
Analyst Conviction
Positive outlook with reasonable agreement. Analysts generally optimistic about prospects with manageable uncertainty.
Market Sentiment Insight
Monitor and evaluate: Current analyst consensus suggests limited conviction or near-term catalysts. Stay informed on company developments and reassess positioning as new information emerges.
Western Alliance Bancorporation Insider Positioning
During the last 12 months, insiders have purchased $308K and sold $366K worth of WAL shares, resulting in $58K of net selling activity.
3 Months
0
0.00
0
0.00
+0
+$0
3-6 Months
0
0.00
1.7K
156.44K
-156K
-$156K
6-9 Months
4.0K
308.00K
0
0.00
+308K
+$308K
9-12 Months
0
0.00
2.5K
209.78K
-210K
-$210K
Top Buyers
Gibbons Dale
Officer: Vice Chairman And Cfo
$308K
Top Sellers
Bruckner Tim R
Officer: Cbo For Regional Banking
$210K
Johnson Marianne Boyd
Director
$95K
Mucha Ben
Officer: Chief Accounting Officer
$61K
Insider Activity Analysis
Net Insider Sentiment
Slightly bearish with $58K net selling. Selling modestly exceeds buying, which could be routine diversification rather than concern.
Buy/Sell Ratio
Moderately negative ratio. Selling is roughly double the buying, which may be routine or signal caution.
Insider Participation
3 insider sellers vs. 1 buyers. Widespread selling across multiple insiders may signal concerns.
Insider Activity Insight
Balanced insider activity: Roughly equal buying and selling suggests normal portfolio management rather than strong directional signals. Look to other metrics for clearer investment insights.
wal Dividend History
Learning Layer
Related Guides
Build conviction on WAL by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.