REGIONS FINANCIAL CORP (RF)
US7591EP1005 - Common Stock
We assign a fundamental rating of 4 out of 10 to RF. RF was compared to 411 industry peers in the Banks industry. RF may be in some trouble as it scores bad on both profitability and health. RF is valued correctly, but it does not seem to be growing. RF also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
RF had positive earnings in the past year.
RF had a positive operating cash flow in the past year.
Each year in the past 5 years RF has been profitable.
In the past 5 years RF always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of RF (1.12%) is better than 73.79% of its industry peers.
Looking at the Return On Equity, with a value of 10.16%, RF is in the better half of the industry, outperforming 61.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.12% | ||
| ROE | 10.16% | ||
| ROIC | N/A |
ROA(3y)1.38%
ROA(5y)1.2%
ROE(3y)12.63%
ROE(5y)10.52%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a Profit Margin value of 23.48%, RF perfoms like the industry average, outperforming 50.49% of the companies in the same industry.
In the last couple of years the Profit Margin of RF has declined.
RF does not have Operating Margin and Gross Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 23.48% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y18.28%
PM growth 5Y-2.22%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
RF does not have a ROIC to compare to the WACC, probably because it is not profitable.
RF has less shares outstanding than it did 1 year ago.
The number of shares outstanding for RF has been reduced compared to 5 years ago.
Compared to 1 year ago, RF has a worse debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of RF is 1.11, which is an excellent value as it means it would take RF, only 1.11 years of fcf income to pay off all of its debts.
RF has a better Debt to FCF ratio (1.11) than 74.76% of its industry peers.
RF has a Debt/Equity ratio of 0.20. This is a healthy value indicating a solid balance between debt and equity.
RF has a Debt to Equity ratio (0.20) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.11 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC13.47%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
RF shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -18.93%.
RF shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.21% yearly.
Looking at the last year, RF shows a decrease in Revenue. The Revenue has decreased by -2.58% in the last year.
RF shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.45% yearly.
EPS 1Y (TTM)-18.93%
EPS 3Y30.3%
EPS 5Y9.21%
EPS growth Q2Q-35.48%
Revenue 1Y (TTM)-2.58%
Revenue growth 3Y6.41%
Revenue growth 5Y5.45%
Revenue growth Q2Q-10.46%
3.2 Future
RF is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.87% yearly.
Based on estimates for the next years, RF will show a small growth in Revenue. The Revenue will grow by 0.66% on average per year.
EPS Next Y-7.83%
EPS Next 2Y1.8%
EPS Next 3Y3.83%
EPS Next 5Y0.87%
Revenue Next Year-6.3%
Revenue Next 2Y-1.02%
Revenue Next 3Y0.66%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 10.24, the valuation of RF can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of RF is on the same level as its industry peers.
RF's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.60.
RF is valuated reasonably with a Price/Forward Earnings ratio of 8.89.
Based on the Price/Forward Earnings ratio, RF is valued a bit cheaper than 67.72% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.15. RF is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.24 | ||
| Fwd PE | 8.89 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RF is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.83 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.11
EPS Next 2Y1.8%
EPS Next 3Y3.83%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.78%, RF is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.65, RF pays a bit more dividend than its industry peers.
RF's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.78% |
5.2 History
On average, the dividend of RF grows each year by 14.80%, which is quite nice.
RF has paid a dividend for at least 10 years, which is a reliable track record.
RF has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)14.8%
Div Incr Years11
Div Non Decr Years13
5.3 Sustainability
RF pays out 53.21% of its income as dividend. This is a bit on the high side, but may be sustainable.
RF's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP53.21%
EPS Next 2Y1.8%
EPS Next 3Y3.83%
REGIONS FINANCIAL CORP
NYSE:RF (5/17/2024, 7:23:15 PM)
After market: 20 -0.18 (-0.89%)20.18
+0.08 (+0.4%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap18.48B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.78% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.24 | ||
| Fwd PE | 8.89 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)1.11
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.12% | ||
| ROE | 10.16% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | 23.48% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-18.93%
EPS 3Y30.3%
EPS 5Y
EPS growth Q2Q
EPS Next Y-7.83%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-2.58%
Revenue growth 3Y6.41%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y