Western Alliance Return On Equity vs. Number Of Shares Shorted

WAL Stock  USD 84.75  0.07  0.08%   
Based on the measurements of profitability obtained from Western Alliance's financial statements, Western Alliance's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Western Alliance's ability to earn profits and add value for shareholders.
 
Return On Equity  
First Reported
2010-12-31
Previous Quarter
0.11885489
Current Value
0.065
Quarterly Volatility
0.04101666
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, Western Alliance's EV To Sales is quite stable compared to the past year. Sales General And Administrative To Revenue is expected to rise to 0.46 this year, although the value of Price To Sales Ratio will most likely fall to 2.65. At this time, Western Alliance's Net Income Applicable To Common Shares is quite stable compared to the past year. Interest Income is expected to rise to about 3.9 B this year, although the value of Net Income From Continuing Ops will most likely fall to about 493.6 M.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.770.9
Fairly Down
Slightly volatile
Net Profit Margin0.360.2825
Significantly Up
Pretty Stable
Operating Profit Margin0.670.3384
Way Up
Pretty Stable
Pretax Profit Margin0.510.3651
Significantly Up
Slightly volatile
Return On Assets0.00580.0102
Way Down
Pretty Stable
Return On Equity0.0650.1189
Way Down
Pretty Stable
For Western Alliance profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Western Alliance to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Western Alliance Bancorporation utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Western Alliance's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Western Alliance Bancorporation over time as well as its relative position and ranking within its peers.
  

Western Alliance's Revenue Breakdown by Earning Segment

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Is Regional Banks space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Western Alliance. If investors know Western will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Western Alliance listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.09)
Dividend Share
1.48
Earnings Share
6.47
Revenue Per Share
26.821
Quarterly Revenue Growth
0.121
The market value of Western Alliance Ban is measured differently than its book value, which is the value of Western that is recorded on the company's balance sheet. Investors also form their own opinion of Western Alliance's value that differs from its market value or its book value, called intrinsic value, which is Western Alliance's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Western Alliance's market value can be influenced by many factors that don't directly affect Western Alliance's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Western Alliance's value and its price as these two are different measures arrived at by different means. Investors typically determine if Western Alliance is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Western Alliance's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Western Alliance Ban Number Of Shares Shorted vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Western Alliance's current stock value. Our valuation model uses many indicators to compare Western Alliance value to that of its competitors to determine the firm's financial worth.
Western Alliance Bancorporation is rated third in return on equity category among its peers. It is rated below average in number of shares shorted category among its peers making about  55,987,684  of Number Of Shares Shorted per Return On Equity. At this time, Western Alliance's Return On Equity is quite stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Western Alliance by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Western Number Of Shares Shorted 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.

Western Alliance

Return On Equity

 = 

Net Income

Total Equity

 = 
0.12
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.
Number of Shares Shorted is the total amount of shares that are currently sold short by investors. When a stock is sold short, the short seller assumes the responsibility of repurchasing the stock at a lower price. The speculator will make money if the stock goes down in price or will experience a loss if the stock price goes up.

Western Alliance

Shares Shorted

 = 

Shorted by Public

+

by Institutions

 = 
6.48 M
If a large number of investors decide to short sell an equity instrument within a small period of time, their combined action can significantly affect the price of the stock.

Western Number Of Shares Shorted Comparison

Western Alliance is currently under evaluation in number of shares shorted category among its peers.

Western Alliance Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Western Alliance, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Western Alliance will eventually generate negative long term returns. The profitability progress is the general direction of Western Alliance's change in net profit over the period of time. It can combine multiple indicators of Western Alliance, 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.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-513 M-487.4 M
Income Before Tax933.6 M980.3 M
Net Income722.4 M758.5 M
Income Tax Expense211.2 M221.8 M
Operating Income865.2 M908.5 M
Total Other Income Expense Net68.4 M71.8 M
Net Income Applicable To Common Shares1.2 B1.3 B
Net Income From Continuing Ops867.5 M493.6 M
Net Interest Income2.3 B1.3 B
Interest Income3.7 B3.9 B
Non Operating Income Net Other5.3 M4.7 M
Change To Netincome45.2 M55.2 M
Net Income Per Share 6.67  7.00 
Income Quality(0.45)(0.43)
Net Income Per E B T 0.77  0.58 

Western Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Western Alliance. 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 Western Alliance 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 Western Alliance's important profitability drivers and their relationship over time.

Use Western Alliance 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 Western Alliance 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 Western Alliance will appreciate offsetting losses from the drop in the long position's value.

Western Alliance Pair Trading

Western Alliance Bancorporation Pair Trading Analysis

The ability to find closely correlated positions to Western Alliance could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Western Alliance 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 Western Alliance - 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 Western Alliance Bancorporation to buy it.
The correlation of Western Alliance 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 Western Alliance moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Western Alliance Ban 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 Western Alliance 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.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Western Alliance position

In addition to having Western Alliance 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.

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Transportation
Transportation Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Transportation theme has 61 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 Transportation Theme or any other thematic opportunities.
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When determining whether Western Alliance Ban is a strong investment it is important to analyze Western Alliance'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 Western Alliance's future performance. For an informed investment choice regarding Western Stock, refer to the following important reports:
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You can also try the Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
To fully project Western Alliance's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Western Alliance Ban 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 Western Alliance's income statement, its balance sheet, and the statement of cash flows.
Potential Western Alliance investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Western Alliance investors may work on each financial statement separately, they are all related. The changes in Western Alliance's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Western Alliance's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.