Investment Thesis
Wintrust demonstrates resilient earnings growth (+16.1% net income YoY, +10.6% EPS YoY) and strong cash generation ($860.4M FCF), supported by conservative leverage (0.11x debt/equity). However, critical financial distress signals including interest coverage of only 0.7x—indicating inability to cover interest from operating income—combined with an unexplained 92.9% revenue collapse and unrealistic profitability margins, necessitate immediate investigation before investment.
Strengths
- Strong free cash flow generation of $860.4M with positive operating cash flow of $910.3M
- Growing profitability with net income up 16.1% YoY and diluted EPS up 10.6% YoY
- Conservative capital structure with debt-to-equity ratio of only 0.11x and manageable long-term debt of $764.3M
Risks
- Critical interest coverage ratio of 0.7x indicates company cannot cover interest obligations from operating income—major financial distress signal requiring immediate clarification
- Revenue collapsed 92.9% year-over-year, suggesting either severe business deterioration, significant accounting changes, or data quality errors
- Reported operating margin (421%) and net margin (310%) are mathematically unrealistic and indicate potential data anomalies or accounting irregularities
Key Metrics to Watch
- Interest coverage ratio—must improve above 2.5x minimum threshold to indicate financial stability
- Revenue stabilization and quarterly trend—investigate causes of 92.9% YoY decline
- Operating margin normalization and validation of reported profitability metrics
Financial Metrics
Revenue
265.6M
Net Income
823.8M
EPS (Diluted)
$11.40
Free Cash Flow
860.4M
Total Assets
71.1B
Cash
467.9M
Profitability Ratios
Gross Margin
N/A
Operating Margin
421.0%
Net Margin
310.1%
ROE
11.3%
ROA
1.2%
FCF Margin
323.9%
Balance Sheet & Liquidity
Current Ratio
N/A
Quick Ratio
N/A
Debt/Equity
0.11x
Debt/Assets
89.8%
Interest Coverage
0.74x
Long-term Debt
764.3M
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: 2026-04-19T10:45:28.704264 |
Data as of: 2025-12-31 |
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