REGIONS FINANCIAL CORP (RF) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RF - US7591EP1005 - Common Stock
28.46 USD
-0.25 (-0.87%)
28.6985 USD
+0.24 (+0.84%)
Overall RF gets a fundamental rating of 4 out of 10. We evaluated RF against 387 industry peers in the Banks industry. While RF is still in line with the averages on profitability rating, there are concerns on its financial health. RF is not valued too expensively and it also shows a decent growth rate. RF also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year RF was profitable.
RF had a positive operating cash flow in the past year.
RF had positive earnings in each of the past 5 years.
Each year in the past 5 years RF had a positive operating cash flow.
1.2 Ratios
The Return On Assets of RF (1.28%) is better than 81.65% of its industry peers.
RF's Return On Equity of 10.79% is fine compared to the rest of the industry. RF outperforms 72.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.28% | ||
| ROE | 10.79% | ||
| ROIC | N/A |
ROA(3y)1.27%
ROA(5y)1.19%
ROE(3y)11.57%
ROE(5y)10.66%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
RF has a Profit Margin of 27.70%. This is in the better half of the industry: RF outperforms 68.99% of its industry peers.
In the last couple of years the Profit Margin of RF has remained more or less at the same level.
The Operating Margin and Gross Margin are not available for RF so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 27.7% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-12.42%
PM growth 5Y-0.33%
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.
The number of shares outstanding for RF has been reduced compared to 1 year ago.
The number of shares outstanding for RF has been reduced compared to 5 years ago.
The debt/assets ratio for RF is higher compared to a year ago.
2.2 Solvency
RF has a debt to FCF ratio of 1.66. This is a very positive value and a sign of high solvency as it would only need 1.66 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.66, RF is in line with its industry, outperforming 53.49% of the companies in the same industry.
RF has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of RF (0.24) is worse than 62.79% of its industry peers.
Although RF does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.66 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC13.54%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.01% over the past year.
Measured over the past 5 years, RF shows a small growth in Earnings Per Share. The EPS has been growing by 5.75% on average per year.
Looking at the last year, RF shows a small growth in Revenue. The Revenue has grown by 4.82% in the last year.
Measured over the past years, RF shows a small growth in Revenue. The Revenue has been growing by 3.71% on average per year.
EPS 1Y (TTM)17.01%
EPS 3Y-6.76%
EPS 5Y5.75%
EPS Q2Q%7.02%
Revenue 1Y (TTM)4.82%
Revenue growth 3Y3.23%
Revenue growth 5Y3.71%
Sales Q2Q%7.04%
3.2 Future
Based on estimates for the next years, RF will show a small growth in Earnings Per Share. The EPS will grow by 4.99% on average per year.
Based on estimates for the next years, RF will show a small growth in Revenue. The Revenue will grow by 4.40% on average per year.
EPS Next Y19.86%
EPS Next 2Y15.68%
EPS Next 3Y13.27%
EPS Next 5Y4.99%
Revenue Next Year5.07%
Revenue Next 2Y4.71%
Revenue Next 3Y4.4%
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 stable.
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
The Price/Earnings ratio is 12.54, which indicates a correct valuation of RF.
RF's Price/Earnings ratio is in line with the industry average.
RF's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.17.
RF is valuated reasonably with a Price/Forward Earnings ratio of 10.58.
The rest of the industry has a similar Price/Forward Earnings ratio as RF.
The average S&P500 Price/Forward Earnings ratio is at 23.79. RF is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.54 | ||
| Fwd PE | 10.58 |
4.2 Price Multiples
RF's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.64 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
RF's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
RF's earnings are expected to grow with 13.27% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.63
PEG (5Y)2.18
EPS Next 2Y15.68%
EPS Next 3Y13.27%
5. Dividend
5.1 Amount
RF has a Yearly Dividend Yield of 3.91%.
Compared to an average industry Dividend Yield of 2.78, 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 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.91% |
5.2 History
On average, the dividend of RF grows each year by 10.40%, which is quite nice.
RF has been paying a dividend for at least 10 years, so it has a reliable track record.
RF has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)10.4%
Div Incr Years12
Div Non Decr Years14
5.3 Sustainability
48.76% of the earnings are spent on dividend by RF. 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.
DP48.76%
EPS Next 2Y15.68%
EPS Next 3Y13.27%
28.46
-0.25 (-0.87%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners87.12%
Inst Owner Change0%
Ins Owners0.24%
Ins Owner Change-0.94%
Market Cap24.96B
Revenue(TTM)7.42B
Net Income(TTM)2.06B
Analysts73.94
Price Target29.84 (4.85%)
Short Float %7.16%
Short Ratio2.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.91% |
Yearly Dividend1.09
Dividend Growth(5Y)10.4%
DP48.76%
Div Incr Years12
Div Non Decr Years14
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.75%
Min EPS beat(2)-0.86%
Max EPS beat(2)2.35%
EPS beat(4)1
Avg EPS beat(4)-0.55%
Min EPS beat(4)-2.08%
Max EPS beat(4)2.35%
EPS beat(8)3
Avg EPS beat(8)-1.5%
EPS beat(12)3
Avg EPS beat(12)-3.64%
EPS beat(16)5
Avg EPS beat(16)-2.8%
Revenue beat(2)0
Avg Revenue beat(2)-1.83%
Min Revenue beat(2)-3.18%
Max Revenue beat(2)-0.47%
Revenue beat(4)0
Avg Revenue beat(4)-3.5%
Min Revenue beat(4)-5.31%
Max Revenue beat(4)-0.47%
Revenue beat(8)0
Avg Revenue beat(8)-3.44%
Revenue beat(12)0
Avg Revenue beat(12)-3.2%
Revenue beat(16)2
Avg Revenue beat(16)-2.74%
PT rev (1m)2.43%
PT rev (3m)1.24%
EPS NQ rev (1m)0.02%
EPS NQ rev (3m)-0.04%
EPS NY rev (1m)0.56%
EPS NY rev (3m)1.52%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)0.2%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.54 | ||
| Fwd PE | 10.58 | ||
| P/S | 3.36 | ||
| P/FCF | 12.64 | ||
| P/OCF | 10.95 | ||
| P/B | 1.31 | ||
| P/tB | 2.05 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.27
EY7.98%
EPS(NY)2.69
Fwd EY9.45%
FCF(TTM)2.25
FCFY7.91%
OCF(TTM)2.6
OCFY9.14%
SpS8.46
BVpS21.72
TBVpS13.91
PEG (NY)0.63
PEG (5Y)2.18
Graham Number33.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.28% | ||
| ROE | 10.79% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 27.7% | ||
| GM | N/A | ||
| FCFM | 26.6% |
ROA(3y)1.27%
ROA(5y)1.19%
ROE(3y)11.57%
ROE(5y)10.66%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-12.42%
PM growth 5Y-0.33%
GM growth 3YN/A
GM growth 5YN/A
F-Score9
Asset Turnover0.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.66 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 368.68% | ||
| Cap/Sales | 4.12% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 96.06% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score9
WACC13.54%
ROIC/WACCN/A
Cap/Depr(3y)158.21%
Cap/Depr(5y)112.88%
Cap/Sales(3y)4.76%
Cap/Sales(5y)3.98%
Profit Quality(3y)99.47%
Profit Quality(5y)126.58%
High Growth Momentum
Growth
EPS 1Y (TTM)17.01%
EPS 3Y-6.76%
EPS 5Y5.75%
EPS Q2Q%7.02%
EPS Next Y19.86%
EPS Next 2Y15.68%
EPS Next 3Y13.27%
EPS Next 5Y4.99%
Revenue 1Y (TTM)4.82%
Revenue growth 3Y3.23%
Revenue growth 5Y3.71%
Sales Q2Q%7.04%
Revenue Next Year5.07%
Revenue Next 2Y4.71%
Revenue Next 3Y4.4%
Revenue Next 5YN/A
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year19.41%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-18.56%
FCF growth 3Y-23.61%
FCF growth 5Y-11.69%
OCF growth 1Y-16.45%
OCF growth 3Y-19.21%
OCF growth 5Y-9.14%
REGIONS FINANCIAL CORP / RF FAQ
What is the fundamental rating for RF stock?
ChartMill assigns a fundamental rating of 4 / 10 to RF.
What is the valuation status of REGIONS FINANCIAL CORP (RF) stock?
ChartMill assigns a valuation rating of 5 / 10 to REGIONS FINANCIAL CORP (RF). This can be considered as Fairly Valued.
What is the profitability of RF stock?
REGIONS FINANCIAL CORP (RF) has a profitability rating of 4 / 10.
What are the PE and PB ratios of REGIONS FINANCIAL CORP (RF) stock?
The Price/Earnings (PE) ratio for REGIONS FINANCIAL CORP (RF) is 12.54 and the Price/Book (PB) ratio is 1.31.
Is the dividend of REGIONS FINANCIAL CORP sustainable?
The dividend rating of REGIONS FINANCIAL CORP (RF) is 7 / 10 and the dividend payout ratio is 48.76%.