Washington Trust Price To Book vs. Current Valuation

WASH Stock  USD 36.87  0.40  1.10%   
Based on Washington Trust's profitability indicators, Washington Trust Bancorp may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess Washington Trust's ability to earn profits and add value for shareholders. As of now, Washington Trust's Days Sales Outstanding is decreasing as compared to previous years. The Washington Trust's current Operating Cash Flow Sales Ratio is estimated to increase to 0.33, while Price To Sales Ratio is projected to decrease to 2.78. As of now, Washington Trust's Net Income From Continuing Ops is increasing as compared to previous years. The Washington Trust's current Net Interest Income is estimated to increase to about 140.2 M, while Accumulated Other Comprehensive Income is forecasted to increase to (134.1 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin1.041.72
Way Down
Very volatile
Net Profit Margin0.180.2535
Way Down
Pretty Stable
Operating Profit Margin0.360.3823
Notably Down
Slightly volatile
Pretax Profit Margin0.260.2972
Fairly Down
Very volatile
Return On Assets0.00810.0067
Fairly Up
Slightly volatile
Return On Equity0.0960.1019
Notably Down
Pretty Stable
For Washington Trust profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Washington Trust to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Washington Trust Bancorp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Washington Trust's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Washington Trust Bancorp over time as well as its relative position and ranking within its peers.
  

Washington Trust'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 Washington Trust. If investors know Washington 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 Washington Trust 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
(0.01)
Dividend Share
2.24
Earnings Share
2.67
Revenue Per Share
11.087
Quarterly Revenue Growth
(0)
The market value of Washington Trust Bancorp is measured differently than its book value, which is the value of Washington that is recorded on the company's balance sheet. Investors also form their own opinion of Washington Trust's value that differs from its market value or its book value, called intrinsic value, which is Washington Trust'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 Washington Trust's market value can be influenced by many factors that don't directly affect Washington Trust'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 Washington Trust's value and its price as these two are different measures arrived at by different means. Investors typically determine if Washington Trust is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Washington Trust'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.

Washington Trust Bancorp Current Valuation vs. Price To Book Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Washington Trust's current stock value. Our valuation model uses many indicators to compare Washington Trust value to that of its competitors to determine the firm's financial worth.
Washington Trust Bancorp is rated below average in price to book category among its peers. It is rated fifth in current valuation category among its peers reporting about  1,425,135,804  of Current Valuation per Price To Book. 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 Washington Trust's earnings, one of the primary drivers of an investment's value.

Washington Current Valuation vs. Price To Book

Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.

Washington Trust

P/B

 = 

MV Per Share

BV Per Share

 = 
1.24 X
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

Washington Trust

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
1.77 B
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.

Washington Current Valuation vs Competition

Washington Trust Bancorp is rated fifth in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Financials industry is at this time estimated at about 28.76 Billion. Washington Trust holds roughly 1.77 Billion in current valuation claiming about 6% of equities under Financials industry.

Washington Trust Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Washington Trust, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Washington Trust will eventually generate negative long term returns. The profitability progress is the general direction of Washington Trust's change in net profit over the period of time. It can combine multiple indicators of Washington Trust, 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-141.2 M-134.1 M
Operating Income72.7 M77.1 M
Net Income48.1 M30.4 M
Income Tax Expense8.3 M11.2 M
Income Before Tax56.5 M42.1 M
Total Other Income Expense Net-16.2 M-17 M
Net Income Applicable To Common Shares82.4 M86.6 M
Net Income From Continuing Ops48.2 M60.4 M
Net Interest Income133.8 M140.2 M
Interest Income305.3 M195.5 M
Change To Netincome35.3 M37 M
Net Income Per Share 2.83  2.97 
Income Quality 0.66  0.62 
Net Income Per E B T 0.85  0.84 

Washington Profitability Driver Comparison

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

Use Washington Trust 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 Washington Trust 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 Washington Trust will appreciate offsetting losses from the drop in the long position's value.

Washington Trust Pair Trading

Washington Trust Bancorp Pair Trading Analysis

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

In addition to having Washington Trust 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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Aircraft
Aircraft Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Aircraft theme has 45 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 Aircraft Theme or any other thematic opportunities.
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When determining whether Washington Trust Bancorp offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Washington Trust's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Washington Trust Bancorp Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Washington Trust Bancorp Stock:
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You can also try the Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
To fully project Washington Trust's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Washington Trust Bancorp 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 Washington Trust's income statement, its balance sheet, and the statement of cash flows.
Potential Washington Trust investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Washington Trust investors may work on each financial statement separately, they are all related. The changes in Washington Trust's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Washington Trust'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.