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RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
Wesbanco, Inc. (XNAS:WSBC) In-Depth Stock/Fundamental/Options Analysis Today
Primary Facts
WSBC
Name:
WESBANCO, INC. (XNAS:WSBC)
Sector:
47.74M
Industry:
Banks�Regional
CEO:
Mr. Todd Clossin
Total Employees:
2,389
Our Technological Advancement Rating
Our Rating:
A
Technological advancement compared to industry is 244.37% higher
ANALYSIS OF ALL CRITICAL FACTORS & RISKS RELATED TO THE STOCK & FUNDAMENTAL/LONG-TERM ANALYSIS OF WESBANCO, INC.(WSBC) AS PER DATA ANALYSIS OF LAST 3 YEARS AND COMPARISON WITH COMPETITORS/PEERS, AND BANKS�REGIONAL INDUSTRY. DATE: 07/09/2022
Primary Targets/Price Insights
Previous Close ($) :
34.41
One Month Price Target:
$34.59
Six Month Price Target :
$35.46
Likely Price in One Year's Time:
Ticker:
$36.51
Likely Trading Range Today Under (Normal Volatility)
$34.26
Price Upper limit ($) :
$34.58
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
$32.49
This week:
$30.13
This month :
$25.85
Other Primary facts
Market Cap:
2.03B
Market Cap Classification:
Mid Cap
Number of Shares
IPO Date:
59.70M
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
16.93%
-13.75%
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$43.30
$39.24
$25.52
$29.58
Medium risk (<10%) entry points
Buy Call
Sell Call
$37.91
Buy Put:
Sell Put:
$37.05
$30.89
$31.77
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
WSBC
Sharpe Ratio:
0.70%
Comparison:
WSBC, is amongst the top 60% stocks with highest risk-adjusted returns
Sharpe ratio is -42.74% lower than the industry
& is -69.14% lower than the market/S&P 500 average
Average Returns/Yield of
WSBC
Daily returns:
0.03%
Weekly returns:
0.14%
Monthly returns:
0.56%
Yearly returns:
10.91%
Comparison of returns:
Average annual returns/yield (last 3 years) is -38.40% below industry average
Classification:
WSBC, is amongst the top 60% highest yielding stocks in terms of daily returns
Results of T-Test of Returns:
0.98
Statistical test of Returns:
WSBC has yielded returns statistically similar to the market
Volatility (measured by Standard Deviation)
Daily Volatility:
2.72%
Weekly Volatility:
6.09%
Monthly Volatility:
12.18%
Yearly Volatility:
42.19%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
0.25%
Volatility in last five trading days has been -90.91% below long-term volatility
Value at Risk Analysis (VaR)
Daily VaR:
-5.57%
Weekly VaR:
-12.44%
Monthly VaR:
-24.89%
How Much Can the price of
WSBC
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
-22%
Worst case (decline):
-86.22%
This translates to price declining to:
$26.95
This translates to price declining to:
$4.74
Severe Crash Probability
Risk of crash in next 6/12 months: Medium (<50%)
What is Value at Risk (VaR)?
Risk Fundamentals
WSBC is a 75.67% riskier investment compared to the market/S&P 500 & is 50.49% riskier than Nasdaq (IXIC)
Risk (measured by volatility) is -4.66% below industry average
Overall, it is amongst the top 50% most risky stocks
Beta Examination of
WSBC
Beta in relation to market/S&P 500--0.91
Expected beta in 1 year's time:
0.798
Expected beta in 3 year's time:
1.129
Unlevered (debt free) Beta:
0.173
Beta in relation to Nasdaq (XNAS):
0.484
Beta in relation to all global stocks::
0.844
Beta Comparison & Analysis
Beta of competitors/peers::
1.186
Beta is -23.30% lower than peers
Average Industry Beta:
0.964
Beta is -5.58% below industry average
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
5.79%
Sustainable growth rate is -36.56% below industry average
Alpha provided | Alpha Analysis
Alpha provided:
-0.027
Alpha is -329.42% below industry average alpha yield
Alpha is -169% below the market average
Analysis of Cost of Capital of
WSBC
Equity cost of capital:
0.094
Equity cost of capital is -3.78% below industry mean WACC
Unlevered (without debt) cost of capital:
1.78%
Before-tax cost of debt:
13.32%
After-tax cost of debt:
10.53%
Overall debt rating:
Non-investment grade (junk/speculative grade
Weighted average cost of capital (WACC):
10.53%
WACC is -18.24% below industry mean WACC
Key Per-Share Metrics & Analysis
Revenue per share:
$9.19
Revenue growth rate per share of (3Y):
0.81
Annual revenue growth rate is -109.51% below industry average
EPS:
$3.15
Expected Annual growth rate of EPS (3Y):
7.65%
Expected future EPS growth rate is -36.41% lower than the Banks�Regional industry
Free cash flow (FCF) per share:
$5.08
Balance sheet equity growth per share: 17.33%
Equity growth rate per share is -55.25% lower than the industry
Debt per share
$0.00
EBITDA per share
$5.01
Valuation Analysis Today of
WSBC
P/E Ratio:
12.25
P/E Ratio of Competitors/Peers:
48.85
P/E ratio is -74.93% lower than main peers & is -1.29% lower than the industry
Stock price/value with industry average P/E ratio: $39.09
WSBC is -11.97% undervalued if valued using industry average P/E ratio
Share value as per dividend discount (DDM) model: $41.55
Present value of the expected future dividends only: $16.02
P/S (Price to Sales ratio):
3.75
Price to sales ratio is -12.41% below the industry mean
P/B (Price to book value ratio):
0.81
Price to free cash flow: 6.77
-
Net income growth rate (3Y):
23.04%
Net income growth rate is -58.16% lower than the industry average net income growth rate
Dividend Analysis
Dividend payout rate: 9.76%
Dividend yeild: 3.89%
Previous Dividend: $0.34
Previous adjusted dividend: $0.34
Previous Dividend: $1.34
Expected next dividend best case: $0.35
Expected next dividend worst case: $0.33
Average dividend payment (long-term): $0.33
Average dividend increase/decrease (growth rate) % per period: 0.94%
Expected next dividend payment date: 29/09/2022
Expected next dividend record date: 09/08/2022
-
Previous dividend payment date: 07/01/2022
Previous dividend record date: 06/10/2022
-
Dividend History:
2022-06-09--$0.34
2021-12-09--$0.33
2021-06-10--$0.33
2022-03-10--$0.34
2021-09-09--$0.33
2021-03-11--$0.33
Dividend growth rate is -96.01% lower than the industry average
In-depth Debt & Leverage Analysis
Debt to equity ratio:
528.52%
Net debt to equity ratio:
-47.54%
Debt to assets ratio:
84.09%
Net debt to assets ratio:
-7.08%
Debt-to-asset ratio is -49.50% below industry average
Ability to repay debt:
Interest coverage ratio:
14.17
Interest coverage ratio is 1609.80% more than industry average
Looking forward:
Debt growth rate:
-53.35%
Annual debt growth is -16946% lower than industry average debt growth rate
Debt repayment rate in last quarter: 100.00%
Analysis of Key Statistics
Correlation of price movement with the market:
0.462
Statistical significance of correlation:
WSBC has a statistically significant correlation with the market
Average Correlation of the industry with the market:
0.501
Stock price is -7.82% less correlated with the market compared to the industry average correlation
R Squared (percentage of price movement explained by movement of the market):
0.501
Correlation of price movement with Nasdaq (^IXIC):
0.03
Covariance of price movement with the market:
0.047
Kurtosis
4.975
Returns have moderate fat-tails (leptokurtic), i.e., returns considerably higher or lower than the mean returns are more probable, compared to assets with normally distributed returns
Skewness of returns:
0.195
Returns are, approximately, symmetrical
Fundamental Analysis & Dupont Analysis of
WSBC
Gross Profit Margin Ratio:
100%
Operating Profit Margin Ratio:
0.00%
-
Net Profit Margin Ratio:
100%
Effective Tax Rate:
19.37%
Effective tax rate is -10.09% lower than the industry
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
8.27%
Return on equity (ROE) is -30.65% lower than the industry
Financial Leverage
Asset Turnover Ratio (ROA):
1.23%
Return on assets (ROA) is -46.54% lower than the industry
Financial Leverage:
6.3x
Current Ratio:
27.38
Current ratio is -54.31% below industry average
Cash Conversion Cycle (days):
0
-
The remaining useful life of property plant & equipment is: 23.6 years
Stock based compensation to net income ratio:
-
In-depth Efficiency Analysis
Revenue generated per employee:
229.6K
Each employee generates -40% less revenue than industry average revenue per employee
EBITDA generated per employee:
125.3K
Each employee generates -45% less EBITDA than industry average revenue per employee
Profit generated per employee:
88.2K
Each employee generates -38% less net income/profit than industry average revenue per employee
Free cash flow (FCF) generated per employee:
20.0K
Each employee generates -76% less free cash flow than industry average revenue per employee
Assets/Capital per employee
573.0K
Each employee generates -76% less free cash flow than industry average revenue per employee
Research & Development (R&D) Analysis
-
-
Competitors/Peer firms of
WSBC
ROOT, INC. (XNAS:ROOT)
INDEPENDENT BANK CORPORATION (XNAS:IBCP)
FIRST MERCHANTS CORPORATION (XNAS:FRME)
BRP GROUP, INC. (XNAS:BRP)
Renasant Corporation (XNAS:RNST)
LENDINGTREE, INC. (XNAS:TREE)
GCM Grosvenor Inc. (XNAS:GCMG)
WSFS FINANCIAL CORPORATION (XNAS:WSFS)
Calamos Strat Tot Ret (XNAS:CSQ)
Current Analyst Ratings
Strong buy�8%
Buy�0%
Hold�21%
Sell�0%
Strong sell�0%
Overall analyst sentiment is: Hold
Income Statement
Period:
TTM
Date:
3/31/22
Revenue:
548.42M
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
-
141.04M
-
166.65M
175.32M
8.67M
19.23M
86.14M
472.09M
21.12M
16.24M
299.35M
-
210.74M
264.51M
51.25M
210.74M
Statement of Cash Flow
Date:
Period:
-
Differed Income Tax :
-
Stock Based Compensation :
-
Change in Working Capital :
47.74M
Accounts Receivables:
-
Other Working Capital:
-
Other Non-Cash Items:
-
Net Cash Provided by Operating Activities:
47.74M
Investments in PP&E:
-
Net Acquisitions:
-
Purchases of Investments:
180.09M
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
3/31/22
2022
Q1
1.37B
2.91B
4.28B
60.37M
-
-
4.34B
219.91M
-
1.15B
-
-
-
1.37B
14.13B
17.10B
-
158.54M
-
-
-
158.54M
-
14.40B
14.40B
-
14.56B
141.83M
998.32M
- 111312.0K
1.52B
March 31, 2022 at 6:00:00 AM
-
2.55B
17.10B
-
158.54M
- 1210960.0K
201.89M
- 563372.00K
- 181387.00K
- 60163.00K
-
- 61950.00K
- 20570.00K
394.47M
251.79M
-
118.14M
1.37B
1.25B
47.74M
-
47.74M
Our Proprietary Portfolio Rating
Our Rating:
A+
Price Forecast/Expected Price in Next 5 Years of
WSBC
2023
2024
2025
2026
2027
$36.69
$79.18
$84.02
$89.16
$94.61