Washington Federal, Inc. (NASDAQ:WAFD) Strengthens Income Profile While Momentum Extends

Washington Federal shows extended positive price momentum alongside a reinforced cash-return program, while fundamentals present a mixed growth picture supporting a cautious near-term bias.

Recent News

On May 12, 2026 the company announced a regular cash dividend of $0.27 per share, with record date May 22, 2026 and payment on June 5, 2026; the dividend was reported as paid on June 5, 2026. The company also made its annual meeting playback accessible on April 16, 2026.

Technical Analysis

ADX at 41.89 signals a very strong directional environment without indicating direction; such strength supports the view that recent price moves carry conviction relevant to short-term valuation gaps.

DI+ stands at 33.32 with a peak-and-reversal pattern, which reads as a bearish shift in directional bias; DI- at 12.56 and decreasing provides a bullish offset, producing a net directional tension that favors mean reversion toward moving-average support unless DI+ resumes strength.

MACD sits at 0.55, above the signal line at 0.46, and the MACD trend is increasing; the MACD crossing above its signal line represents a bullish momentum confirmation that aligns with the introduction’s momentum tone.

MRO reads 28.49 with a peak-and-reversal pattern; because MRO is positive, price sits above target and shows an elevated probability of downward pressure, creating a counterweight to MACD’s bullish signal for near-term oscillation risk.

RSI at 59.71 and increasing indicates building buying momentum without reaching overbought levels; this supports the immediate-price extension while leaving room for further upside before classical overbought thresholds.

Price at $36.96 trades above the 20-day average ($35.92), the 50-day average ($34.85) and the 200-day average ($31.92), and sits slightly above the 1x upper Bollinger band ($36.75); the position above short- and long-term averages confirms upward bias, while proximity to the upper band suggests limited near-term upside without a consolidation or pullback to support near $35.24 (SuperTrend lower).

 


Fundamental Analysis

Reported EPS came in at $0.82 versus an estimate of $0.75, an EPS surprise of 9.33%, and forward EPS of $0.8581. Trailing PE stands at 38.96 with forward PE at 37.62; those multiples reflect slower earnings scale relative to current price but do not alone negate the valuation determination below.

Return on equity equals 2.45% and return on assets equals 0.239%; ROE rose 18.747% year-over-year while ROA rose 17.734% year-over-year, indicating improving profitability on equity and assets QoY despite low absolute returns.

Revenue growth shows a quarter-over-quarter gain of 152.98% and a year-over-year decline of -55.52%; earnings growth rose 123.97% QoQ but fell -54.18% YoY, highlighting substantial sequential recovery alongside weaker year-ago comparatives.

Book value rests at $36.30 per share while price-to-book equals 0.88, below the industry peer mean of 1.14883 and below the industry peer median of 1.32816, implying a valuation discount to peer averages on P/B terms. WMDST values the stock as under-valued.

Balance-sheet and cash metrics: total assets $27,568,785,000, total equity $2,681,283,000, and cash $669,799,000. Debt-to-equity equals 1.1616 and debt-to-assets equals 0.11297; dividend payout ratio stands at 36.33% with dividend coverage ratio 2.75, supporting the company’s ability to continue quarterly distributions while retaining earnings for capital.

Free cash flow equals $67,968,000 with a free-cash-flow yield of 2.88% and free-cash-growth QoQ at 268.432% but negative YoY growth of -34.732%, underlining strong sequential cash conversion but weaker year-over-year cash trends.

Valuation summary: P/E and P/S carry elevated multiples versus some peer measures, while price-to-book trades below peer mean and median; improving QoQ operating and cash metrics combine with weakened YoY comparatives to create a constructive but cautious fundamental backdrop.

MOST-RECENT QUARTERLY REPORT
REPORT PERIOD ENDING: 2026-03-31
REPORT DATE: 2026-04-16
NEXT REPORT DATE: 2026-07-16
CASH FLOW  Begin Period Cash Flow 734.9 M
 Operating Cash Flow 79.4 M
 Capital Expenditures -11.41 M
 Change In Working Capital -2.15 M
 Dividends Paid -23.81 M
 Cash Flow Delta -65.12 M
 End Period Cash Flow 669.8 M
 
INCOME STATEMENT REVENUE
 Total Revenue 197.7 M
 Forward Revenue 47.8 M
COSTS
 Cost Of Revenue
 Depreciation 8.6 M
 Depreciation and Amortization 8.6 M
 Research and Development
 Total Operating Expenses
PROFITABILITY
 Gross Profit
 EBITDA
 EBIT
 Operating Income
 Interest Income 324.7 M
 Interest Expense 147.2 M
 Net Interest Income 177.6 M
 Income Before Tax 83.8 M
 Tax Provision 18.3 M
 Tax Rate 21.79 %
 Net Income 65.5 M
 Net Income From Continuing Operations 65.5 M
EARNINGS
 EPS Estimate 0.75
 EPS Actual 0.82
 EPS Difference 0.07
 EPS Surprise 9.333 %
 Forward EPS 0.86
 
BALANCE SHEET ASSETS
 Total Assets 27.6 B
 Intangible Assets 445.5 M
 Net Tangible Assets 2.5 B
 Total Current Assets
 Cash and Short-Term Investments
 Cash 669.8 M
 Net Receivables 98.9 M
 Inventory
 Long-Term Investments
LIABILITIES
 Accounts Payable
 Short-Term Debt
 Total Current Liabilities
 Net Debt 2.4 B
 Total Debt 3.1 B
 Total Liabilities 24.6 B
EQUITY
 Total Equity 2.7 B
 Retained Earnings 2.2 B
VALUATION & PER-SHARE METRICS EQUITY & PER-SHARE METRICS
 Book Value Per-Share 36.30
 Shares Outstanding 73.856 M
 Revenue Per-Share 2.68
VALUATION
 Market Capitalization 2.4 B
 Enterprise Value 5.5 B
 Enterprise Multiple
Enterprise Multiple QoQ
Enterprise Multiple YoY
Enterprise Multiple IPRWA
 EV/R 27.695
CAPITAL STRUCTURE
 Asset To Equity 10.282
 Asset To Liability 1.121
 Debt To Capital 0.537
 Debt To Assets 0.113
Debt To Assets QoQ 23.871 %
Debt To Assets YoY 10.94 %
Debt To Assets IPRWA high: 0.242
median: 0.159
mean: 0.15
WAFD: 0.113
low: -0.0
 Debt To Equity 1.162
Debt To Equity QoQ 27.409 %
Debt To Equity YoY 12.763 %
Debt To Equity IPRWA high: 3.268
median: 2.341
mean: 1.908
WAFD: 1.162
low: -0.315
PRICE-BASED VALUATION
 Price To Book (P/B) 0.88
Price To Book QoQ -1.36 %
Price To Book YoY 2.674 %
Price To Book IPRWA high: 2.34
median: 1.328
mean: 1.149
WAFD: 0.88
low: 0.001
 Price To Earnings (P/E) 38.964
Price To Earnings QoQ -8.26 %
Price To Earnings YoY -12.677 %
Price To Earnings IPRWA high: 85.229
median: 53.875
mean: 52.924
WAFD: 38.964
low: 8.686
 PE/G Ratio 4.175
 Price To Sales (P/S) 11.938
Price To Sales QoQ -6.109 %
Price To Sales YoY -8.465 %
Price To Sales IPRWA high: 28.872
WAFD: 11.938
median: 8.597
mean: 8.445
low: 0.006
FORWARD MULTIPLES
Forward P/E 37.621
Forward PE/G 4.031
Forward P/S 49.388
EFFICIENCY OPERATIONAL
 Operating Leverage
ASSET & SALES
 Asset Turnover Ratio 0.007
Asset Turnover Ratio QoQ 1.549 %
Asset Turnover Ratio YoY 11.094 %
Asset Turnover Ratio IPRWA high: 0.017
median: 0.011
mean: 0.01
WAFD: 0.007
low: 0.001
 Receivables Turnover 2.012
Receivables Turnover Ratio QoQ 3.066 %
Receivables Turnover Ratio YoY 14.778 %
Receivables Turnover Ratio IPRWA high: 4.927
WAFD: 2.012
median: 2.0
mean: 1.589
low: 0.184
 Inventory Turnover
Inventory Turnover Ratio QoQ
Inventory Turnover Ratio YoY
Inventory Turnover Ratio IPRWA
 Days Sales Outstanding (DSO) 45.358
CASH CYCLE
 Cash Conversion Cycle Days (CCC)
Cash Conversion Cycle Days QoQ
Cash Conversion Cycle Days YoY
Cash Conversion Cycle Days IPRWA
CAPITAL DEPLOYMENT
 Cash Conversion Ratio
 CapEx To Revenue -0.058
 CapEx To Depreciation -1.329
 
CAPITAL, LIQUIDITY & COVERAGE CAPITAL STRUCTURE
 Total Capital 6.1 B
 Net Invested Capital 5.8 B
 Invested Capital 5.8 B
 Net Tangible Assets 2.5 B
 Net Working Capital
LIQUIDITY
 Cash Ratio
 Current Ratio
Current Ratio QoQ
Current Ratio YoY
Current Ratio IPRWA
 Quick Ratio
Quick Ratio QoQ
Quick Ratio YoY
Quick Ratio IPRWA
COVERAGE & LEVERAGE
 Debt To EBITDA
 Cost Of Debt 5.485 %
 Interest Coverage Ratio
Interest Coverage Ratio QoQ
Interest Coverage Ratio YoY
Interest Coverage Ratio IPRWA
 Operating Cash Flow Ratio
TIMING / LIQUIDITY
 Days Payables Outstanding (DPO)
DIVIDENDS
 Dividend Coverage Ratio 2.752
 Dividend Payout Ratio 0.363
 Dividend Rate 0.32
 Dividend Yield 0.01
PERFORMANCE GROWTH
 Asset Growth Rate 1.037 %
 Revenue Growth 2.082 %
Revenue Growth QoQ 152.977 %
Revenue Growth YoY -55.522 %
Revenue Growth IPRWA high: 29.228 %
WAFD: 2.082 %
mean: 1.703 %
median: -1.365 %
low: -18.912 %
 Earnings Growth 9.333 %
Earnings Growth QoQ 123.974 %
Earnings Growth YoY -54.183 %
Earnings Growth IPRWA high: 50.0 %
WAFD: 9.333 %
mean: 5.705 %
median: 3.333 %
low: -50.199 %
MARGINS
 Gross Margin
Gross Margin QoQ
Gross Margin YoY
Gross Margin IPRWA
 EBIT Margin
EBIT Margin QoQ
EBIT Margin YoY
EBIT Margin IPRWA
 Return On Sales (ROS)
Return On Sales QoQ
Return On Sales YoY
Return On Sales IPRWA
CASH FLOW
 Free Cash Flow (FCF) 68.0 M
 Free Cash Flow Yield 2.88 %
Free Cash Flow Yield QoQ 40.146 %
Free Cash Flow Yield YoY 1.301 %
Free Cash Flow Yield IPRWA high: 11.885 %
WAFD: 2.88 %
median: 1.458 %
mean: -0.316 %
low: -8.05 %
 Free Cash Growth 35.83 %
Free Cash Growth QoQ 268.432 %
Free Cash Growth YoY -34.732 %
Free Cash Growth IPRWA high: 406.72 %
WAFD: 35.83 %
median: -120.96 %
mean: -150.194 %
low: -445.587 %
 Free Cash To Net Income 1.037
 Cash Flow Margin 36.894 %
 Cash Flow To Earnings 1.113
VALUE & RETURNS
 Economic Value Added 0.04
 Return On Assets (ROA) 0.239 %
Return On Assets QoQ 0.42 %
Return On Assets YoY 17.734 %
Return On Assets IPRWA high: 0.624 %
median: 0.396 %
mean: 0.356 %
WAFD: 0.239 %
low: -0.155 %
 Return On Capital Employed (ROCE)
 Return On Equity (ROE) 0.024
Return On Equity QoQ 3.954 %
Return On Equity YoY 18.747 %
Return On Equity IPRWA high: 0.069
median: 0.049
mean: 0.046
WAFD: 0.024
low: -0.016
 DuPont ROE 2.424 %
 Return On Invested Capital (ROIC)
Return On Invested Capital QoQ
Return On Invested Capital YoY
Return On Invested Capital IPRWA

Six-Week Outlook

Momentum indicators and moving-average positioning favor continued upside pressure in the coming six weeks, but MRO’s positive reading with peak reversal and DI+ peak-and-reversal introduce a meaningful pullback risk window. Expect price to oscillate between support near $35.24 (SuperTrend lower) and resistance near the recent upper Bollinger band and the 52-week high region; watching MACD continuation above its signal line and any renewed decline in DI+ will clarify whether momentum extends or a short consolidation begins. Fundamentals and dividend stability provide a defensive underpinning that may limit downside if market volatility reappears.

About Washington Federal, Inc.

Washington Federal, Inc. (NASDAQ:WAFD) functions as the bank holding company for Washington Federal Bank, delivering a wide range of financial services across the United States. The company develops deposit products, including business and personal checking accounts, money market accounts, and certificates of deposit. It also provides a variety of loan products, such as those for single-family homes, construction projects, land acquisition and development, multi-family residential properties, and commercial real estate. Additionally, Washington Federal offers home equity, business, and consumer loans, along with commercial and industrial lending solutions. Beyond traditional banking, the company extends insurance brokerage services, offering both individual and business policies. It manages and markets real estate properties and provides debit and credit card services. Washington Federal serves a diverse clientele, including consumers, mid-sized and large businesses, as well as commercial real estate developers and owners. Established in 1917, the company maintains its headquarters in Seattle, Washington, and continues to build on its long-standing history in the financial sector.



© 2026 WMDST — The World’s Most Dangerous Swing Trader. All rights reserved.