FIFTH THIRD BANCORP (1FTHB.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1FTHB - US3167731005 - Common Stock
35.04 EUR
+35.04 (+Infinity%)
We assign a fundamental rating of 4 out of 10 to 1FTHB. 1FTHB was compared to 114 industry peers in the Banks industry. 1FTHB may be in some trouble as it scores bad on both profitability and health. 1FTHB is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- 1FTHB had positive earnings in the past year.
- In the past year 1FTHB had a positive cash flow from operations.
- Each year in the past 5 years 1FTHB has been profitable.
- 1FTHB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- 1FTHB's Return On Assets of 1.01% is fine compared to the rest of the industry. 1FTHB outperforms 70.65% of its industry peers.
- 1FTHB has a Return On Equity (10.55%) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.01% | ||
| ROE | 10.55% | ||
| ROIC | N/A |
ROA(3y)1.06%
ROA(5y)1.01%
ROE(3y)11.98%
ROE(5y)10.72%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- 1FTHB's Profit Margin of 25.29% is fine compared to the rest of the industry. 1FTHB outperforms 69.57% of its industry peers.
- 1FTHB's Profit Margin has declined in the last couple of years.
- The Operating Margin and Gross Margin are not available for 1FTHB so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 25.29% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-8.98%
PM growth 5Y-2.45%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
- 1FTHB does not have a ROIC to compare to the WACC, probably because it is not profitable.
- Compared to 1 year ago, 1FTHB has less shares outstanding
- The number of shares outstanding for 1FTHB has been reduced compared to 5 years ago.
- The debt/assets ratio for 1FTHB is higher compared to a year ago.
2.2 Solvency
- 1FTHB has a debt to FCF ratio of 4.72. This is a neutral value as 1FTHB would need 4.72 years to pay back of all of its debts.
- 1FTHB has a Debt to FCF ratio of 4.72. This is amongst the best in the industry. 1FTHB outperforms 93.48% of its industry peers.
- 1FTHB has a Debt/Equity ratio of 0.74. This is a neutral value indicating 1FTHB is somewhat dependend on debt financing.
- The Debt to Equity ratio of 1FTHB (0.74) is better than 81.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 4.72 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC14.03%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
- The earnings per share for 1FTHB have decreased by -6.12% in the last year.
- The Earnings Per Share has been growing slightly by 3.25% on average over the past years.
- The Revenue has decreased by -0.88% in the past year.
- 1FTHB shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.35% yearly.
EPS 1Y (TTM)-6.12%
EPS 3Y-3.88%
EPS 5Y3.25%
EPS Q2Q%-4.05%
Revenue 1Y (TTM)-0.88%
Revenue growth 3Y2.44%
Revenue growth 5Y0.35%
Sales Q2Q%2.01%
3.2 Future
- 1FTHB is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.13% yearly.
- 1FTHB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.75% yearly.
EPS Next Y10.57%
EPS Next 2Y12.13%
EPS Next 3Y12.06%
EPS Next 5Y4.13%
Revenue Next Year4.69%
Revenue Next 2Y4.86%
Revenue Next 3Y4.75%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- 1FTHB is valuated correctly with a Price/Earnings ratio of 12.34.
- Based on the Price/Earnings ratio, 1FTHB is valued a bit more expensive than 77.17% of the companies in the same industry.
- 1FTHB's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.60.
- A Price/Forward Earnings ratio of 9.72 indicates a reasonable valuation of 1FTHB.
- The rest of the industry has a similar Price/Forward Earnings ratio as 1FTHB.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.83, 1FTHB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.34 | ||
| Fwd PE | 9.72 |
4.2 Price Multiples
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1FTHB indicates a rather cheap valuation: 1FTHB is cheaper than 81.52% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.27 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- A more expensive valuation may be justified as 1FTHB's earnings are expected to grow with 12.06% in the coming years.
PEG (NY)1.17
PEG (5Y)3.8
EPS Next 2Y12.13%
EPS Next 3Y12.06%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.86%, 1FTHB has a reasonable but not impressive dividend return.
- 1FTHB's Dividend Yield is slightly below the industry average, which is at 3.93.
- Compared to an average S&P500 Dividend Yield of 1.82, 1FTHB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.86% |
5.2 History
- On average, the dividend of 1FTHB grows each year by 9.40%, which is quite nice.
Dividend Growth(5Y)9.4%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 55.09% of the earnings are spent on dividend by 1FTHB. This is a bit on the high side, but may be sustainable.
- The dividend of 1FTHB is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP55.09%
EPS Next 2Y12.13%
EPS Next 3Y12.06%
FIFTH THIRD BANCORP / 1FTHB.MI FAQ
What is the fundamental rating for 1FTHB stock?
ChartMill assigns a fundamental rating of 4 / 10 to 1FTHB.MI.
What is the valuation status for 1FTHB stock?
ChartMill assigns a valuation rating of 5 / 10 to FIFTH THIRD BANCORP (1FTHB.MI). This can be considered as Fairly Valued.
What is the profitability of 1FTHB stock?
FIFTH THIRD BANCORP (1FTHB.MI) has a profitability rating of 3 / 10.
Can you provide the financial health for 1FTHB stock?
The financial health rating of FIFTH THIRD BANCORP (1FTHB.MI) is 3 / 10.
What is the expected EPS growth for FIFTH THIRD BANCORP (1FTHB.MI) stock?
The Earnings per Share (EPS) of FIFTH THIRD BANCORP (1FTHB.MI) is expected to grow by 10.57% in the next year.