Investment Thesis
WAFD exhibits severe fundamental distress with catastrophic 97.8% YoY revenue collapse and critically low returns on capital (ROE 2.1%, ROA 0.2%), indicating the bank is destroying shareholder value. Interest coverage of 0.3x signals inability to adequately service debt obligations, compounded by financial data anomalies (1047% operating margins with $7.9M revenue) suggesting either major non-recurring charges or reporting irregularities masking underlying operational deterioration.
Strengths
- Large $27.3B asset base provides operational foundation
- Positive net income growth of 6.9% YoY despite revenue collapse
- Minimal leverage with 0.00x debt-to-equity ratio
Risks
- Catastrophic 97.8% YoY revenue decline indicates severe business disruption
- Interest coverage ratio of 0.3x shows inability to cover interest expenses; potential solvency risk
- ROE of 2.1% and ROA of 0.2% far below banking industry standards; severe capital inefficiency
- Data anomalies and implausible margin ratios suggest non-recurring charges or reporting irregularities masking true operational health
Key Metrics to Watch
- Quarterly revenue trends and causes of 97.8% decline
- Interest coverage ratio movement above 1.0x threshold
- Return on equity recovery toward minimum 8-10% banking industry baseline
Financial Metrics
Revenue
7.9M
Net Income
64.2M
EPS (Diluted)
$0.79
Free Cash Flow
50.0M
Total Assets
27.3B
Cash
734.9M
Profitability Ratios
Gross Margin
N/A
Operating Margin
1,047.4%
Net Margin
817.0%
ROE
2.1%
ROA
0.2%
FCF Margin
636.8%
Balance Sheet & Liquidity
Current Ratio
N/A
Quick Ratio
N/A
Debt/Equity
0.00x
Debt/Assets
88.9%
Interest Coverage
0.28x
Long-term Debt
N/A
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-04-19T00:03:20.078613 |
Data as of: 2025-12-31 |
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