REGIONS FINANCIAL CORP (RF) Stock Fundamental Analysis
USA - NYSE:RF - US7591EP1005 - Common Stock
27.16 USD
-0.24 (-0.88%)
27.48 USD
+0.32 (+1.18%)
We assign a fundamental rating of 4 out of 10 to RF. RF was compared to 392 industry peers in the Banks industry. There are concerns on the financial health of RF while its profitability can be described as average. RF is not valued too expensively and it also shows a decent growth rate. Finally 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.
Each year in the past 5 years RF has 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 1.23%, RF belongs to the best of the industry, outperforming 81.12% of the companies in the same industry.
RF has a Return On Equity of 10.46%. This is in the better half of the industry: RF outperforms 71.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.23% | ||
| ROE | 10.46% | ||
| 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's Profit Margin of 26.78% is fine compared to the rest of the industry. RF outperforms 68.11% 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) | 26.78% | ||
| 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.
The debt/assets ratio for RF is higher compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of RF is 1.40, which is an excellent value as it means it would take RF, only 1.40 years of fcf income to pay off all of its debts.
RF has a Debt to FCF ratio of 1.40. This is in the better half of the industry: RF outperforms 61.73% of its industry peers.
A Debt/Equity ratio of 0.18 indicates that RF is not too dependend on debt financing.
RF has a Debt to Equity ratio of 0.18. This is comparable to the rest of the industry: RF outperforms 51.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 1.4 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC13.62%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
RF shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.89%, which is quite good.
The Earnings Per Share has been growing slightly by 5.75% on average over the past years.
The Revenue has been growing slightly by 2.07% in the past 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)19.89%
EPS 3Y-6.76%
EPS 5Y5.75%
EPS Q2Q%22.92%
Revenue 1Y (TTM)2.07%
Revenue growth 3Y3.23%
Revenue growth 5Y3.71%
Sales Q2Q%10.05%
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 4.30% on average per year.
EPS Next Y18.06%
EPS Next 2Y13.9%
EPS Next 3Y12.22%
EPS Next 5Y4.99%
Revenue Next Year4.58%
Revenue Next 2Y4.46%
Revenue Next 3Y4.3%
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.
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
Based on the Price/Earnings ratio of 12.18, the valuation of RF can be described as correct.
RF's Price/Earnings is on the same level as the industry average.
RF's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.38.
RF is valuated reasonably with a Price/Forward Earnings ratio of 10.41.
RF's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.86, RF is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.18 | ||
| Fwd PE | 10.41 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, RF is valued a bit cheaper than 68.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.33 | ||
| 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 12.22% in the coming years.
PEG (NY)0.67
PEG (5Y)2.12
EPS Next 2Y13.9%
EPS Next 3Y12.22%
5. Dividend
5.1 Amount
RF has a Yearly Dividend Yield of 3.87%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.47, 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 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.87% |
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 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 51.51% 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.
DP51.51%
EPS Next 2Y13.9%
EPS Next 3Y12.22%
27.16
-0.24 (-0.88%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners82.66%
Inst Owner Change-1.21%
Ins Owners0.24%
Ins Owner Change4.04%
Market Cap24.24B
Analysts75
Price Target29.47 (8.51%)
Short Float %4.52%
Short Ratio2.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.87% |
Yearly Dividend1.09
Dividend Growth(5Y)10.4%
DP51.51%
Div Incr Years12
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.14%
Min EPS beat(2)-2.08%
Max EPS beat(2)2.35%
EPS beat(4)2
Avg EPS beat(4)0.95%
Min EPS beat(4)-2.08%
Max EPS beat(4)5.13%
EPS beat(8)3
Avg EPS beat(8)-3.64%
EPS beat(12)3
Avg EPS beat(12)-4.19%
EPS beat(16)6
Avg EPS beat(16)-1.48%
Revenue beat(2)0
Avg Revenue beat(2)-2.89%
Min Revenue beat(2)-5.31%
Max Revenue beat(2)-0.47%
Revenue beat(4)0
Avg Revenue beat(4)-3.62%
Min Revenue beat(4)-5.31%
Max Revenue beat(4)-0.47%
Revenue beat(8)0
Avg Revenue beat(8)-3.6%
Revenue beat(12)1
Avg Revenue beat(12)-2.91%
Revenue beat(16)3
Avg Revenue beat(16)-2.51%
PT rev (1m)1.96%
PT rev (3m)19.27%
EPS NQ rev (1m)0.19%
EPS NQ rev (3m)3.36%
EPS NY rev (1m)0.05%
EPS NY rev (3m)2.52%
Revenue NQ rev (1m)0.2%
Revenue NQ rev (3m)1.54%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)1.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.18 | ||
| Fwd PE | 10.41 | ||
| P/S | 3.32 | ||
| P/FCF | 10.33 | ||
| P/OCF | 9.04 | ||
| P/B | 1.3 | ||
| P/tB | 2.06 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.23
EY8.21%
EPS(NY)2.61
Fwd EY9.6%
FCF(TTM)2.63
FCFY9.68%
OCF(TTM)3
OCFY11.06%
SpS8.17
BVpS20.92
TBVpS13.22
PEG (NY)0.67
PEG (5Y)2.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.23% | ||
| ROE | 10.46% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 26.78% | ||
| GM | N/A | ||
| FCFM | 32.15% |
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 Turnover0.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 1.4 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 348.96% | ||
| Cap/Sales | 4.59% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 120.07% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score7
WACC13.62%
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)19.89%
EPS 3Y-6.76%
EPS 5Y5.75%
EPS Q2Q%22.92%
EPS Next Y18.06%
EPS Next 2Y13.9%
EPS Next 3Y12.22%
EPS Next 5Y4.99%
Revenue 1Y (TTM)2.07%
Revenue growth 3Y3.23%
Revenue growth 5Y3.71%
Sales Q2Q%10.05%
Revenue Next Year4.58%
Revenue Next 2Y4.46%
Revenue Next 3Y4.3%
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 1Y18.67%
FCF growth 3Y-23.61%
FCF growth 5Y-11.69%
OCF growth 1Y22.37%
OCF growth 3Y-19.21%
OCF growth 5Y-9.14%