WEBSTER FINANCIAL CORP

WBSdata completeness 100%18 fiscal years on file

Data notes: no data for concept 'netInvestmentIncome'

The thesis, from the filings

WEBSTER FINANCIAL CORP earns about 20% on invested capital, but has diluted owners by 83% over 5 years — worth asking whether the growth reaches owners. The cash-flow models don't apply cleanly here — the ledger says why below.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own

Figure	FY 2021	FY 2022	FY 2023	FY 2024	FY 2025
Revenue	$212.4M¹	$268.7M²	$233.4M³	$245.7M³	$238M³
Net income	$408.9M⁴	$644.3M⁵	$867.8M⁶	$768.7M⁶	$1B⁶
Operating cash flow	$688.6M⁷	$1.34B⁸	$978.6M⁹	$1.4B⁹	$1.06B⁹
Capital expenditure	$16.6M¹⁰	$28.8M¹¹	$40.3M¹²	$35.8M¹²	$49.6M¹²
Free cash flow (derived)	$672M⁷	$1.31B⁸	$938.3M⁹	$1.37B⁹	$1.01B⁹
Total debt	$562.9M¹³	$1.07B¹⁴	$1.05B¹⁵	$909.2M¹⁶	$739.5M¹⁶
Cash & equivalents	$461.6M¹⁷	$839.9M¹⁸	$1.72B¹⁸	$2.07B¹⁸	$2.45B¹⁸
Diluted shares	90.2M	167.5M	171.9M	170.2M	165.2M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal

If you owned

Net assets behind them

$574.57

your share of equity

Profit it earned you last year

$60.7

Free cash flow it threw off

$61.05

Debt you’d be carrying

$44.76

10 shares is a claim on $574.57 of net worth that earned you $60.7 and generated $61.05 of cash last year, against $44.76 of debt.

iii. Is this a good business?

Moat signal · return on invested capital

20% avg · 5y

FY21 12%FY22 10%FY23 24%FY24 25%FY25 28%

It earned an average 20% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →

Management signal · capital allocation

+83% shares · 5y

Share count is up 83% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has risen 31% over the same window.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth —

Different models answer different questions — which to trust when →

Sources — the receipts

10-K · period ending 2021-12-31 · accession 0000801337-24-000007 (RevenueFromContractWithCustomerExcludingAssessedTax)
10-K · period ending 2022-12-31 · accession 0000801337-25-000004 (RevenueFromContractWithCustomerExcludingAssessedTax)
10-K · period ending 2023-12-31 · accession 0000801337-26-000008 (RevenueFromContractWithCustomerExcludingAssessedTax)
10-K · period ending 2021-12-31 · accession 0000801337-24-000007 (NetIncomeLoss)
10-K · period ending 2022-12-31 · accession 0000801337-25-000004 (NetIncomeLoss)
10-K · period ending 2023-12-31 · accession 0000801337-26-000008 (NetIncomeLoss)
10-K · period ending 2021-12-31 · accession 0000801337-24-000007 (NetCashProvidedByUsedInOperatingActivities)
10-K · period ending 2022-12-31 · accession 0000801337-25-000004 (NetCashProvidedByUsedInOperatingActivities)
10-K · period ending 2023-12-31 · accession 0000801337-26-000008 (NetCashProvidedByUsedInOperatingActivities)
10-K · period ending 2021-12-31 · accession 0000801337-24-000007 (PaymentsToAcquirePropertyPlantAndEquipment)
10-K · period ending 2022-12-31 · accession 0000801337-25-000004 (PaymentsToAcquirePropertyPlantAndEquipment)
10-K · period ending 2023-12-31 · accession 0000801337-26-000008 (PaymentsToAcquirePropertyPlantAndEquipment)
10-K · period ending 2021-12-31 · accession 0000801337-23-000013 (LongTermDebt)
10-K · period ending 2022-12-31 · accession 0000801337-24-000007 (LongTermDebt)
10-K · period ending 2023-12-31 · accession 0000801337-25-000004 (LongTermDebt)
10-K · period ending 2024-12-31 · accession 0000801337-26-000008 (LongTermDebt)
10-K · period ending 2021-12-31 · accession 0000801337-25-000004 (CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents)
10-K · period ending 2022-12-31 · accession 0000801337-26-000008 (CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents)