WBS
Webster Financial Corp (Conn)
Finance/Real Estate
04/20/2015
Presented
| Date | 04/15/2015 |
| Price | $36.57 |
| Market Cap | $3.31B |
| Ent Value | $3.31B |
| P/E Ratio | 17.7x |
| Book Value | $24.34 |
| Div Yield | 2.19% |
| Shares O/S | 90.45M |
| Ave Daily Vol | 780,000 |
| Short Int | 4.64% |
Current
| Price | $48.93 |
| Market Cap | $8.39B |
| Webster Financial Corporation operates as the bank and financial holding company for Webster Bank, National Association that provides financial services to individuals, families, and businesses in the United States. It operates through three segments: Commercial Banking, Community Banking, and Other. The Commercial Banking segment provides lending, deposit, and cash management services to middle market companies; and asset-based lending, commercial real estate, and equipment finance, as well as treasury and payment services, which include government and institutional banking. The Community Banking segment offers deposit and fee-based services, residential mortgages, home equity lines/loans, unsecured consumer loans, and credit cards, as well as investment and securities-related services, including brokerage and investment advice through a strategic partnership with LPL Financial. This segment also provides insurance and investment products, including stocks and bonds, mutual funds, annuities, and managed accounts; brokerage and online investing services; and cash flow management products. It serves consumer, and business and professional service firms. The Other segment operates as a bank custodian of health savings accounts; and provides private banking services, such as asset management, trust, loan and deposit products, and financial planning services to high net worth clients, not-for-profit organizations, and business clients. The company provides various banking services through 164 banking offices; 314 ATMs; telephone banking; and mobile banking, as well as through its Internet Website. Webster Financial Corporation was founded in 1935 and is headquartered in Waterbury, Connecticut. |
Publicly traded companies mentioned herein: Cigna Corp (CI), HealthEquity Inc (HQY), JPMorgan Chase & Co (JPM), Webster Financial Corp (WBS)
Highlights
The presenter is long shares of Webster Bank (WBS), and sees upside from its healthcare savings account assets (HSA Bank). The presenter thinks the market is fundamentally misunderstanding the asset, categorizing it as a deposit business and crediting it with almost zero value, when it is actually worth up to 70% of the company’s current market cap by the presenter’s models.
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