REGIONS FINANCIAL CORP (RF) Stock Fundamental Analysis
NYSE:RF - New York Stock Exchange, Inc. - US7591EP1005 - Common Stock - Currency: USD
Overall RF gets a fundamental rating of 4 out of 10. We evaluated RF against 396 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 has a valuation in line with the averages, but on the other hand it scores bad on growth. RF also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year RF was profitable.
In the past year RF had a positive cash flow from operations.
In the past 5 years RF has always been profitable.
In the past 5 years RF always reported a positive cash flow from operatings.
1.2 Ratios
RF's Return On Assets of 1.19% is fine compared to the rest of the industry. RF outperforms 78.79% of its industry peers.
RF has a Return On Equity of 10.23%. This is in the better half of the industry: RF outperforms 69.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.19% | ||
| ROE | 10.23% | ||
| 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
The Profit Margin of RF (26.63%) is better than 69.95% 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) | 26.63% | ||
| 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.
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 2.04, which is a good value as it means it would take RF, 2.04 years of fcf income to pay off all of its debts.
RF has a Debt to FCF ratio (2.04) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.22 indicates that RF is not too dependend on debt financing.
RF's Debt to Equity ratio of 0.22 is in line compared to the rest of the industry. RF outperforms 41.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 2.04 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC14.98%
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 been growing slightly by 7.61% over the past year.
The Earnings Per Share has been growing slightly by 5.75% on average over the past years.
RF shows a decrease in Revenue. In the last year, the revenue decreased by -3.42%.
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)-3.42%
Revenue growth 3Y3.23%
Revenue growth 5Y3.71%
Sales Q2Q%2.12%
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 3.25% on average per year.
RF is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.90% yearly.
EPS Next Y15.16%
EPS Next 2Y12.56%
EPS Next 3Y11.54%
EPS Next 5Y3.25%
Revenue Next Year3.41%
Revenue Next 2Y3.84%
Revenue Next 3Y3.9%
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.
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 10.02, the valuation of RF can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of RF indicates a somewhat cheap valuation: RF is cheaper than 74.49% of the companies listed in the same industry.
RF is valuated cheaply when we compare the Price/Earnings ratio to 25.82, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 8.34, the valuation of RF can be described as very reasonable.
70.96% of the companies in the same industry are more expensive than RF, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of RF to the average of the S&P500 Index (21.76), we can say RF is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.02 | ||
| Fwd PE | 8.34 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, RF is valued a bit cheaper than 61.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.7 | ||
| 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.
PEG (NY)0.66
PEG (5Y)1.74
EPS Next 2Y12.56%
EPS Next 3Y11.54%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.45%, RF is a good candidate for dividend investing.
RF's Dividend Yield is rather good when compared to the industry average which is at 3.42. RF pays more dividend than 82.58% of the companies in the same industry.
RF's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.45% |
5.2 History
On average, the dividend of RF grows each year by 10.40%, 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)10.4%
Div Incr Years12
Div Non Decr Years14
5.3 Sustainability
52.69% 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.
DP52.69%
EPS Next 2Y12.56%
EPS Next 3Y11.54%
21.24
-0.13 (-0.61%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners82.54%
Inst Owner Change-0.72%
Ins Owners0.22%
Ins Owner Change4.6%
Market Cap19.09B
Analysts75.33
Price Target24.36 (14.69%)
Short Float %5.71%
Short Ratio5.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.45% |
Yearly Dividend1.09
Dividend Growth(5Y)10.4%
DP52.69%
Div Incr Years12
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.84%
Min EPS beat(2)-2.08%
Max EPS beat(2)-1.6%
EPS beat(4)1
Avg EPS beat(4)-0.58%
Min EPS beat(4)-3.75%
Max EPS beat(4)5.13%
EPS beat(8)2
Avg EPS beat(8)-4.33%
EPS beat(12)3
Avg EPS beat(12)-3.73%
EPS beat(16)6
Avg EPS beat(16)0.99%
Revenue beat(2)0
Avg Revenue beat(2)-5.17%
Min Revenue beat(2)-5.31%
Max Revenue beat(2)-5.02%
Revenue beat(4)0
Avg Revenue beat(4)-4.65%
Min Revenue beat(4)-5.31%
Max Revenue beat(4)-3.66%
Revenue beat(8)0
Avg Revenue beat(8)-3.85%
Revenue beat(12)2
Avg Revenue beat(12)-2.82%
Revenue beat(16)3
Avg Revenue beat(16)-2.56%
PT rev (1m)-10.51%
PT rev (3m)-14.06%
EPS NQ rev (1m)-1.36%
EPS NQ rev (3m)-1.79%
EPS NY rev (1m)0.86%
EPS NY rev (3m)-0.61%
Revenue NQ rev (1m)-0.57%
Revenue NQ rev (3m)-0.73%
Revenue NY rev (1m)-0.49%
Revenue NY rev (3m)-1.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.02 | ||
| Fwd PE | 8.34 | ||
| P/S | 2.68 | ||
| P/FCF | 9.7 | ||
| P/OCF | 8.42 | ||
| P/B | 1.03 | ||
| P/tB | 1.64 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.12
EY9.98%
EPS(NY)2.55
Fwd EY11.99%
FCF(TTM)2.19
FCFY10.31%
OCF(TTM)2.52
OCFY11.88%
SpS7.92
BVpS20.61
TBVpS12.97
PEG (NY)0.66
PEG (5Y)1.74
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.19% | ||
| ROE | 10.23% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 26.63% | ||
| GM | N/A | ||
| FCFM | 27.65% |
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-Score7
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 2.04 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 253.39% | ||
| Cap/Sales | 4.2% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 103.85% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score7
WACC14.98%
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 Y15.16%
EPS Next 2Y12.56%
EPS Next 3Y11.54%
EPS Next 5Y3.25%
Revenue 1Y (TTM)-3.42%
Revenue growth 3Y3.23%
Revenue growth 5Y3.71%
Sales Q2Q%2.12%
Revenue Next Year3.41%
Revenue Next 2Y3.84%
Revenue Next 3Y3.9%
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-17.48%
FCF growth 3Y-23.61%
FCF growth 5Y-11.69%
OCF growth 1Y-16.43%
OCF growth 3Y-19.21%
OCF growth 5Y-9.14%