Webster Financial Return On Equity vs. Total Debt
| WED Stock | EUR 56.50 0.50 0.89% |
For Webster Financial profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Webster Financial to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Webster Financial utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Webster Financial's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Webster Financial over time as well as its relative position and ranking within its peers.
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Webster Financial Total Debt vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Webster Financial's current stock value. Our valuation model uses many indicators to compare Webster Financial value to that of its competitors to determine the firm's financial worth. Webster Financial is rated first in return on equity category among its peers. It is rated first in total debt category among its peers making up about 58,284,388,938 of Total Debt per Return On Equity. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Webster Financial's earnings, one of the primary drivers of an investment's value.Webster Total Debt vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
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| = | 0.11 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Total Debt refers to the amount of long term interest-bearing liabilities that a company carries on its balance sheet. That may include bonds sold to the public, notes written to banks or capital leases. Typically, debt can help a company magnify its earnings, but the burden of interest and principal payments will eventually prevent the firm from borrow excessively.
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| = | 6.53 B |
In most industries, total debt may also include the current portion of long-term debt. Since debt terms vary widely from one company to another, simply comparing outstanding debt obligations between different companies may not be adequate. It is usually meant to compare total debt amounts between companies that operate within the same sector.
Webster Total Debt vs Competition
Webster Financial is rated first in total debt category among its peers. Total debt of Banks - Regional - US industry is at this time estimated at about 145.65 Billion. Webster Financial holds roughly 6.53 Billion in total debt claiming about 4% of stocks in Banks - Regional - US industry.
Webster Financial Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Webster Financial, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Webster Financial will eventually generate negative long term returns. The profitability progress is the general direction of Webster Financial's change in net profit over the period of time. It can combine multiple indicators of Webster Financial, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Webster Financial Corporation operates as the holding company for Webster Bank, National Association that provides a range of banking, investment, and financial services to individuals, families, and businesses in the United States. Webster Financial Corporation was founded in 1935 and is headquartered in Waterbury, Connecticut. Webster Financial operates under Banks - Regional - US classification in Germany and is traded on Frankfurt Stock Exchange. It employs 3265 people.
Webster Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Webster Financial. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Webster Financial position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Webster Financial's important profitability drivers and their relationship over time.
Use Webster Financial in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Webster Financial position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Webster Financial will appreciate offsetting losses from the drop in the long position's value.Webster Financial Pair Trading
Webster Financial Pair Trading Analysis
The ability to find closely correlated positions to Webster Financial could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Webster Financial when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Webster Financial - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Webster Financial to buy it.
The correlation of Webster Financial is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Webster Financial moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Webster Financial moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Webster Financial can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Webster Financial position
In addition to having Webster Financial in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Impulse Thematic Idea Now
Impulse
Large corporations operating in retail, broadcasting, energy, airlines and telecom sectors. The Impulse theme has 49 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Impulse Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in Webster Stock
When determining whether Webster Financial is a strong investment it is important to analyze Webster Financial's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Webster Financial's future performance. For an informed investment choice regarding Webster Stock, refer to the following important reports:Check out Your Current Watchlist. For more detail on how to invest in Webster Stock please use our How to Invest in Webster Financial guide.You can also try the Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
To fully project Webster Financial's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Webster Financial at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Webster Financial's income statement, its balance sheet, and the statement of cash flows.