Wesbanco Inc (NASDAQ: WSBC)

Sector: Financial Services Industry: Banks - Regional CIK: 0000203596
Market Cap 2.90 Bn
P/B 0.71
P/E 16.93
P/S 3.61
ROIC (Qtr) 3.08
Div Yield % 5.55
Rev 1y % (Qtr) 77.79
Total Debt (Qtr) 1.75 Bn
Debt/Equity (Qtr) 0.42

About

Price action

Investment thesis

Bull case

  • Operating cash flow of 262.93M provides strong 34.97x coverage of stock compensation 7.52M, indicating sustainable incentive practices.
  • Strong tangible asset base of 25.78B provides 14.76x coverage of total debt 1.75B, indicating robust asset backing and low credit risk.
  • Robust free cash flow of 245.26M exceeds capital expenditure of 17.67M by 13.88x, indicating strong organic growth funding capability.
  • Cash reserves of 1.01B provide ample 5.03x coverage of acquisition spending 200.45M, enabling strategic growth opportunities.
  • Strong tangible asset base of 25.78B provides 128.62x coverage of acquisition spending 200.45M, enabling strategic growth.

Bear case

  • Operating cash flow of 262.93M barely covers its investment activities of (122.81M), with a coverage ratio of -2.14, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 262.93M provides thin coverage of dividend payments of (118.77M) with a -2.21 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Free cash flow of 245.26M represents just -0.57x of debt issuance (430.83M), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Retained earnings of 1.21B provide limited buffer against comprehensive income items of (148.67M), which is -8.14x, indicating elevated exposure to market risks.
  • R&D investment of 0 represents just 0x of SG&A expenses of 404.51M, indicating potential underinvestment in innovation relative to administrative overhead.

Peer comparison

Companies in the Banks - Regional
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 USB Us Bancorp \De\ 84.44 Bn 12.40 3.25 77.98 Bn
2 PNC Pnc Financial Services Group, Inc. 84.36 Bn 13.61 3.73 62.34 Bn
3 NU Nu Holdings Ltd. 81.47 Bn 32.21 5.79 4.49 Bn
4 NWG NatWest Group plc 66.53 Bn 9.88 3.05 169.04 Bn
5 TFC Truist Financial Corp 64.60 Bn 13.18 3.53 71.11 Bn
6 MTB M&T Bank Corp 32.73 Bn 12.47 3.60 14.99 Bn
7 FITB Fifth Third Bancorp 31.96 Bn 14.15 3.93 18.94 Bn
8 FCNCA First Citizens Bancshares Inc /De/ 28.98 Bn 12.78 3.26 40.00 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.14 0.14
EV to Cash from Ops. EV/CFO 15.05 7.21
EV to Debt EV to Debt 2.27 5.20
EV to EBIT EV/EBIT 17.47 14.98
EV to EBITDA EV/EBITDA 16.37 8.92
EV to Free Cash Flow [EV/FCF] EV/FCF 16.14 8.87
EV to Market Cap EV to Market Cap 1.36 1.04
EV to Revenue EV/Rev 4.92 -3.76
Price to Book Value [P/B] P/B 0.71 1.17
Price to Earnings [P/E] P/E 16.93 15.63
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 1.33 271.44
Dividend Payout Ratio % Div Payout % (Qtr) 74.70 35.28
Dividend per Basic Share Div per Share (Qtr) 1.48 0.89
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 57.93 34.52
Interest Coverage Interest Coverage 0.00 -0.05
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -104.08 -73.15
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 62.38 15.78
Dividend Growth (1y) % Div 1y % (Qtr) 2.78 5.32
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 32.72 110.93
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 33.51 38.80
EBIT Growth (1y) % EBIT 1y % (Qtr) 35.90 61.46
EBT Growth (1y) % EBT 1y % (Qtr) 35.90 61.37
EPS Growth (1y) % EPS 1y % (Qtr) -5.26 76.34
FCF Growth (1y) % FCF 1y % (Qtr) 34.55 161.72
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 41.87 14.15
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.03 0.04
Cash Payout Ratio Cash Payout (Qtr) 0.44 0.26
Cash Ratio Cash Ratio 0.00 0.00
Current Ratio Current Ratio 0.00 0.01
Debt to Equity Ratio Debt/Equity (Qtr) 0.42 0.53
Interest Cover Ratio Interest Cover Ratio 0.00 -0.05
Times Interest Earned Times Interest Earned 0.00 -0.05
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 30.10 147.97
EBIT Margin % EBIT Margin % (Qtr) 28.17 155.41
EBT Margin % EBT Margin % (Qtr) 28.17 154.66
Gross Margin % Gross Margin % (Qtr) 100.00 97.82
Net Profit Margin % Net Margin % (Qtr) 21.30 115.63