REGIONS FINANCIAL CORP (RF) Stock Fundamental Analysis
NYSE:RF - New York Stock Exchange, Inc. - US7591EP1005 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to RF. RF was compared to 398 industry peers in the Banks industry. RF has a medium profitability rating, but doesn't score so well on its financial health evaluation. RF has a valuation in line with the averages, but on the other hand it scores bad on growth. Finally 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
RF's Return On Assets of 1.13% is fine compared to the rest of the industry. RF outperforms 74.62% of its industry peers.
Looking at the Return On Equity, with a value of 9.92%, RF is in the better half of the industry, outperforming 66.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.13% | ||
| ROE | 9.92% | ||
| 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 25.05%. This is comparable to the rest of the industry: RF outperforms 59.05% of its industry peers.
RF's Profit Margin has been stable in the last couple of years.
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) | 25.05% | ||
| 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.
RF has less shares outstanding than it did 1 year ago.
RF has less shares outstanding than it did 5 years ago.
RF has a worse debt/assets ratio than last year.
2.2 Solvency
RF has a debt to FCF ratio of 3.12. This is a good value and a sign of high solvency as RF would need 3.12 years to pay back of all of its debts.
RF has a Debt to FCF ratio (3.12) which is in line with its industry peers.
A Debt/Equity ratio of 0.25 indicates that RF is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.25, RF is not doing good in the industry: 60.30% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 3.12 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC15.33%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
RF shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.61%.
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.
RF shows a decrease in Revenue. In the last year, the revenue decreased by -6.51%.
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)7.61%
EPS 3Y-6.76%
EPS 5Y5.75%
EPS Q2Q%27.5%
Revenue 1Y (TTM)-6.51%
Revenue growth 3Y3.23%
Revenue growth 5Y3.71%
Sales Q2Q%2.12%
3.2 Future
RF is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.25% yearly.
Based on estimates for the next years, RF will show a small growth in Revenue. The Revenue will grow by 3.71% on average per year.
EPS Next Y14.17%
EPS Next 2Y11.86%
EPS Next 3Y10.01%
EPS Next 5Y3.25%
Revenue Next Year3.92%
Revenue Next 2Y4.12%
Revenue Next 3Y3.71%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
RF is valuated reasonably with a Price/Earnings ratio of 9.00.
RF's Price/Earnings ratio is a bit cheaper when compared to the industry. RF is cheaper than 79.65% of the companies in the same industry.
When comparing the Price/Earnings ratio of RF to the average of the S&P500 Index (28.29), we can say RF is valued rather cheaply.
RF is valuated cheaply with a Price/Forward Earnings ratio of 7.59.
Based on the Price/Forward Earnings ratio, RF is valued cheaper than 83.92% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.32. RF is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9 | ||
| Fwd PE | 7.59 |
4.2 Price Multiples
The rest of the industry has a similar Price/Free Cash Flow ratio as RF.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.53 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.64
PEG (5Y)1.57
EPS Next 2Y11.86%
EPS Next 3Y10.01%
5. Dividend
5.1 Amount
RF has a Yearly Dividend Yield of 5.18%, which is a nice return.
The stock price of RF dropped by -21.99% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 3.66, RF pays a better dividend. On top of this RF pays more dividend than 84.67% of the companies listed in the same industry.
RF's Dividend Yield is rather good when compared to the S&P500 average which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.18% |
5.2 History
The dividend of RF is nicely growing with an annual growth rate of 10.40%!
RF has been paying a dividend for at least 10 years, so it has a reliable track record.
RF has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)10.4%
Div Incr Years12
Div Non Decr Years14
5.3 Sustainability
RF pays out 56.03% 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.
DP56.03%
EPS Next 2Y11.86%
EPS Next 3Y10.01%
19.09
-0.22 (-1.14%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners82.54%
Inst Owner Change-0.1%
Ins Owners0.22%
Ins Owner Change4.76%
Market Cap17.29B
Analysts76.13
Price Target27.22 (42.59%)
Short Float %5.08%
Short Ratio5.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.18% |
Yearly Dividend1.09
Dividend Growth(5Y)10.4%
DP56.03%
Div Incr Years12
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.76%
Min EPS beat(2)-1.6%
Max EPS beat(2)5.13%
EPS beat(4)1
Avg EPS beat(4)-3.53%
Min EPS beat(4)-13.9%
Max EPS beat(4)5.13%
EPS beat(8)2
Avg EPS beat(8)-5.12%
EPS beat(12)4
Avg EPS beat(12)-2.49%
EPS beat(16)7
Avg EPS beat(16)2.93%
Revenue beat(2)0
Avg Revenue beat(2)-4.34%
Min Revenue beat(2)-5.02%
Max Revenue beat(2)-3.66%
Revenue beat(4)0
Avg Revenue beat(4)-4.06%
Min Revenue beat(4)-5.02%
Max Revenue beat(4)-2.94%
Revenue beat(8)0
Avg Revenue beat(8)-3.67%
Revenue beat(12)2
Avg Revenue beat(12)-2.69%
Revenue beat(16)4
Avg Revenue beat(16)-2.18%
PT rev (1m)-4.13%
PT rev (3m)-4.97%
EPS NQ rev (1m)-0.49%
EPS NQ rev (3m)0.73%
EPS NY rev (1m)-1.46%
EPS NY rev (3m)-1.57%
Revenue NQ rev (1m)-0.37%
Revenue NQ rev (3m)-0.84%
Revenue NY rev (1m)-0.76%
Revenue NY rev (3m)-1.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9 | ||
| Fwd PE | 7.59 | ||
| P/S | 2.44 | ||
| P/FCF | 13.53 | ||
| P/OCF | 10.82 | ||
| P/B | 0.97 | ||
| P/tB | 1.58 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.12
EY11.11%
EPS(NY)2.52
Fwd EY13.17%
FCF(TTM)1.41
FCFY7.39%
OCF(TTM)1.76
OCFY9.24%
SpS7.82
BVpS19.75
TBVpS12.12
PEG (NY)0.64
PEG (5Y)1.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.13% | ||
| ROE | 9.92% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 25.05% | ||
| GM | N/A | ||
| FCFM | 18.04% |
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
ROICexcg growth 3YN/A
ROICexcg 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-Score3
Asset Turnover0.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 3.12 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 222.22% | ||
| Cap/Sales | 4.52% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 72.04% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score3
WACC15.33%
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)7.61%
EPS 3Y-6.76%
EPS 5Y5.75%
EPS Q2Q%27.5%
EPS Next Y14.17%
EPS Next 2Y11.86%
EPS Next 3Y10.01%
EPS Next 5Y3.25%
Revenue 1Y (TTM)-6.51%
Revenue growth 3Y3.23%
Revenue growth 5Y3.71%
Sales Q2Q%2.12%
Revenue Next Year3.92%
Revenue Next 2Y4.12%
Revenue Next 3Y3.71%
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-34.96%
FCF growth 3Y-23.61%
FCF growth 5Y-11.69%
OCF growth 1Y-30.76%
OCF growth 3Y-19.21%
OCF growth 5Y-9.14%