Washington Story

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WAFD -- USA Stock  

USD 28.31  0.10  0.35%

The company chance of financial distress is now about 46.0 percent. What is Washington Federal Target Price Odds to finish over Current Price? Pertaining to normal probability distribution, the odds of Washington Federal to move above current price in 30 days from now is about 52.66%. The Washington Federal probability density function shows the probability of Washington Federal Stock to fall within a particular range of prices over 30 days . Given the investment horizon of 30 days, Washington Federal has beta of -0.1339 . This means as returns on benchmark increase, returns on holding Washington Federal are expected to decrease at a much smaller rate. During bear market, however, Washington Federal is likely to outperform the market. Additionally, the company has an alpha of 0.0639 implying that it can potentially generate 0.0639% excess return over Russell 2000 after adjusting for the inherited market risk (beta).
Published over a year ago
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Should I hold on to my Washington Federal position?
The entity has beta of 1.12. Washington Federal returns are very sensitive to returns on the market. As market goes up or down, Washington Federal is expected to follow. This firm dividends can provide a clue to current valuation of the stock. Washington Federal one year expected dividend income is about $0.37 per share. Earning per share calculations of the firm is based on official Zacks consensus of 2 analysts regarding Washington Federal future annual earnings. Given the historical accuracy of 94.54%, the future earnings per share of the company is estimated to be 2.605 with lowest and highest values of 2.59 and 2.62 respectively. Please note that this consensus of annual earnings estimates for the entity is an estimate of EPS before non-recurring items and including employee stock options expenses.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Washington Federal. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for Washington Federal

Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Washington Federal's stock price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Washington Federal in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Washington Federal. Your research has to be compared to or analyzed against Washington Federal's peers to derive any actionable benefits. When done correctly, Washington Federal's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Washington Federal.

How important is Washington Federal's Liquidity

Washington Federal financial leverage refers to using borrowed capital as a funding source to finance Washington Federal ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Washington Federal financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Washington Federal's total debt and its cash.

How Washington utilizes its cash?

To perform a cash flow analysis of Washington Federal, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Washington Federal is receiving and how much cash it distributes out in a given period. The Washington Federal cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Washington Federal Net Cash Flow from Operations is projected to increase significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 191.59 Million

Breaking down the case for Washington Federal

Washington Federal reported previous year revenue of 545.03 M. Net Income was 210.26 M with profit before overhead, payroll, taxes, and interest of 545.03 M. The current investor indifference towards the small price fluctuations of Washington Federal may raise some interest from investors as it closed today at a share price of 36.48 on 254547.000 in trading volume. The company executives did not add any value to Washington Federal investors in November. However, most investors can still diversify their portfolios with Washington Federal to hedge your portfolio against high-volatility market scenarios. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 1.0215. The below-average Stock volatility is a good sign for a longer term investment options and for buy-and-hold investors. Washington Federal preserves 441.15 m of cash and equivalents. Washington Federal is selling at 36.69. That is 0.41 percent increase. Day Low was 36.48. Washington Federal Price to Sales Ratio is rather stable at the moment. Further, Washington Federal Earnings per Diluted Share is rather stable at the moment.

 2015 2016 2017 2018 2019 (projected)
PPandE Turnover 2.09  2.20  2.48  2.71  3.15 
Calculated Tax Rate 33.89  32.27  20.76  19.99  22.70 

To summarize, we see that Washington Federal Follows market closely. The firm is fairly valued with close to average probability of bankruptcy within the next 24 months. Our current buy-hold-sell recommendation on the firm is Cautious Hold.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Washington Federal. Please refer to our Terms of Use for any information regarding our disclosure principles.

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