REGIONS FINANCIAL CORP (RF) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RF - US7591EP1005 - Common Stock
25.45 USD
0 (0%)
25.59 USD
+0.14 (+0.55%)
We assign a fundamental rating of 4 out of 10 to RF. RF was compared to 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
RF had positive earnings in the past year.
In the past year RF had a positive cash flow from operations.
In the past 5 years RF has always been profitable.
Each year in the past 5 years RF had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 1.28%, RF belongs to the best of the industry, outperforming 82.43% of the companies in the same industry.
Looking at the Return On Equity, with a value of 10.79%, RF is in the better half of the industry, outperforming 73.13% of the companies in the same industry.
| 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 better Profit Margin (27.70%) than 70.54% of its industry peers.
In the last couple of years the Profit Margin of RF has remained more or less at the same level.
RF 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) | 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.
RF has less shares outstanding than it did 5 years ago.
RF has a worse debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of RF is 1.66, which is an excellent value as it means it would take RF, only 1.66 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 1.66, RF perfoms like the industry average, outperforming 54.52% 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 63.05% 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
WACC13.87%
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.
The Earnings Per Share has been growing slightly by 5.75% on average over the past years.
RF shows a small growth in Revenue. In the last year, the Revenue has grown by 4.82%.
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
RF is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.99% yearly.
Based on estimates for the next years, RF will show a small growth in Revenue. The Revenue will grow by 4.39% on average per year.
EPS Next Y19%
EPS Next 2Y15.04%
EPS Next 3Y12.75%
EPS Next 5Y4.99%
Revenue Next Year5.06%
Revenue Next 2Y4.54%
Revenue Next 3Y4.39%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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
With a Price/Earnings ratio of 11.21, the valuation of RF can be described as very reasonable.
61.24% of the companies in the same industry are more expensive than RF, based on the Price/Earnings ratio.
RF's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.31.
RF is valuated reasonably with a Price/Forward Earnings ratio of 9.57.
Based on the Price/Forward Earnings ratio, RF is valued a bit cheaper than the industry average as 60.21% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of RF to the average of the S&P500 Index (36.59), we can say RF is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.21 | ||
| Fwd PE | 9.57 |
4.2 Price Multiples
RF's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.31 | ||
| 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.
A more expensive valuation may be justified as RF's earnings are expected to grow with 12.75% in the coming years.
PEG (NY)0.59
PEG (5Y)1.95
EPS Next 2Y15.04%
EPS Next 3Y12.75%
5. Dividend
5.1 Amount
RF has a Yearly Dividend Yield of 4.17%, which is a nice return.
Compared to an average industry Dividend Yield of 3.23, RF pays a better dividend. On top of this RF pays more dividend than 83.72% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, RF pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.17% |
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 48.76% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of RF is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP48.76%
EPS Next 2Y15.04%
EPS Next 3Y12.75%
25.45
0 (0%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners82.66%
Inst Owner Change3.17%
Ins Owners0.24%
Ins Owner Change-0.63%
Market Cap22.32B
Revenue(TTM)7.42B
Net Income(TTM)2.06B
Analysts73.94
Price Target29.13 (14.46%)
Short Float %5.43%
Short Ratio1.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.17% |
Yearly Dividend1.09
Dividend Growth(5Y)10.4%
DP48.76%
Div Incr Years12
Div Non Decr Years14
Ex-Date
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)-1.33%
PT rev (3m)0.77%
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)0.22%
EPS NY rev (1m)0.31%
EPS NY rev (3m)4.55%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)0.6%
Revenue NY rev (1m)0.32%
Revenue NY rev (3m)0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.21 | ||
| Fwd PE | 9.57 | ||
| P/S | 3.01 | ||
| P/FCF | 11.31 | ||
| P/OCF | 9.79 | ||
| P/B | 1.17 | ||
| P/tB | 1.83 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.27
EY8.92%
EPS(NY)2.66
Fwd EY10.45%
FCF(TTM)2.25
FCFY8.85%
OCF(TTM)2.6
OCFY10.22%
SpS8.46
BVpS21.72
TBVpS13.91
PEG (NY)0.59
PEG (5Y)1.95
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
WACC13.87%
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%
EPS Next 2Y15.04%
EPS Next 3Y12.75%
EPS Next 5Y4.99%
Revenue 1Y (TTM)4.82%
Revenue growth 3Y3.23%
Revenue growth 5Y3.71%
Sales Q2Q%7.04%
Revenue Next Year5.06%
Revenue Next 2Y4.54%
Revenue Next 3Y4.39%
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.
Can you provide the valuation status for REGIONS FINANCIAL CORP?
ChartMill assigns a valuation rating of 6 / 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.
How financially healthy is REGIONS FINANCIAL CORP?
The financial health rating of REGIONS FINANCIAL CORP (RF) is 3 / 10.
Can you provide the expected EPS growth for RF stock?
The Earnings per Share (EPS) of REGIONS FINANCIAL CORP (RF) is expected to grow by 19% in the next year.