KEYCORP (KEY) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KEY - US4932671088 - Common Stock
21.349 USD
-0.11 (-0.52%)
We assign a fundamental rating of 3 out of 10 to KEY. KEY was compared to 383 industry peers in the Banks industry. Both the profitability and financial health of KEY have multiple concerns. KEY has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year KEY was profitable.
- KEY had a positive operating cash flow in the past year.
- KEY had positive earnings in 4 of the past 5 years.
- KEY had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- KEY has a worse Return On Assets (0.50%) than 78.07% of its industry peers.
- Looking at the Return On Equity, with a value of 4.64%, KEY is doing worse than 79.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.5% | ||
| ROE | 4.64% | ||
| ROIC | N/A |
ROA(3y)0.4%
ROA(5y)0.7%
ROE(3y)4.08%
ROE(5y)8.01%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- With a Profit Margin value of 14.71%, KEY is not doing good in the industry: 77.81% of the companies in the same industry are doing better.
- In the last couple of years the Profit Margin of KEY has grown nicely.
- KEY 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) | 14.71% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-3.17%
PM growth 5Y4.03%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
- KEY does not have a ROIC to compare to the WACC, probably because it is not profitable.
- Compared to 1 year ago, KEY has less shares outstanding
- Compared to 5 years ago, KEY has more shares outstanding
- The debt/assets ratio for KEY has been reduced compared to a year ago.
2.2 Solvency
- The Debt to FCF ratio of KEY is 3.92, which is a good value as it means it would take KEY, 3.92 years of fcf income to pay off all of its debts.
- KEY has a Debt to FCF ratio of 3.92. This is in the lower half of the industry: KEY underperforms 66.58% of its industry peers.
- KEY has a Debt/Equity ratio of 0.61. This is a neutral value indicating KEY is somewhat dependend on debt financing.
- KEY has a Debt to Equity ratio of 0.61. This is in the lower half of the industry: KEY underperforms 79.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 3.92 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC13.71%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
- KEY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 30.43%, which is quite impressive.
- The Earnings Per Share has been growing slightly by 3.38% on average over the past years.
- Looking at the last year, KEY shows a very strong growth in Revenue. The Revenue has grown by 63.49%.
- The Revenue has been growing slightly by 2.26% on average over the past years.
EPS 1Y (TTM)30.43%
EPS 3Y-7.9%
EPS 5Y3.38%
EPS Q2Q%7.89%
Revenue 1Y (TTM)63.49%
Revenue growth 3Y1.06%
Revenue growth 5Y2.26%
Sales Q2Q%12.45%
3.2 Future
- Based on estimates for the next years, KEY will show a small growth in Earnings Per Share. The EPS will grow by 7.17% on average per year.
- KEY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.41% yearly.
EPS Next Y21.14%
EPS Next 2Y19.36%
EPS Next 3Y9.87%
EPS Next 5Y7.17%
Revenue Next Year7.13%
Revenue Next 2Y5.34%
Revenue Next 3Y4.91%
Revenue Next 5Y2.41%
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 accelerating.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 14.23, KEY is valued correctly.
- KEY's Price/Earnings ratio is a bit more expensive when compared to the industry. KEY is more expensive than 63.71% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.82. KEY is valued rather cheaply when compared to this.
- With a Price/Forward Earnings ratio of 11.75, the valuation of KEY can be described as very reasonable.
- KEY's Price/Forward Earnings is on the same level as the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 25.95. KEY is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.23 | ||
| Fwd PE | 11.75 |
4.2 Price Multiples
- Based on the Price/Free Cash Flow ratio, KEY is valued cheaply inside the industry as 84.07% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.45 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- KEY's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.67
PEG (5Y)4.2
EPS Next 2Y19.36%
EPS Next 3Y9.87%
5. Dividend
5.1 Amount
- KEY has a Yearly Dividend Yield of 3.85%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 2.60, KEY pays a better dividend. On top of this KEY pays more dividend than 84.33% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, KEY pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.85% |
5.2 History
- The dividend of KEY has a limited annual growth rate of 2.41%.
- KEY has been paying a dividend for at least 10 years, so it has a reliable track record.
- KEY has decreased its dividend recently.
Dividend Growth(5Y)2.41%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
- 110.52% of the earnings are spent on dividend by KEY. This is not a sustainable payout ratio.
- KEY's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP110.52%
EPS Next 2Y19.36%
EPS Next 3Y9.87%
KEYCORP / KEY FAQ
Can you provide the ChartMill fundamental rating for KEYCORP?
ChartMill assigns a fundamental rating of 3 / 10 to KEY.
What is the valuation status of KEYCORP (KEY) stock?
ChartMill assigns a valuation rating of 5 / 10 to KEYCORP (KEY). This can be considered as Fairly Valued.
What is the profitability of KEY stock?
KEYCORP (KEY) has a profitability rating of 2 / 10.
Can you provide the PE and PB ratios for KEY stock?
The Price/Earnings (PE) ratio for KEYCORP (KEY) is 14.23 and the Price/Book (PB) ratio is 1.16.
What is the expected EPS growth for KEYCORP (KEY) stock?
The Earnings per Share (EPS) of KEYCORP (KEY) is expected to grow by 21.14% in the next year.