REGIONS FINANCIAL CORP (RF) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RF - US7591EP1005 - Common Stock
28.39 USD
-0.32 (-1.11%)
Taking everything into account, RF scores 4 out of 10 in our fundamental rating. 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 has a decent growth rate and is not valued too expensively. RF also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
RF had positive earnings in the past year.
RF had a positive operating cash flow in the past year.
In the past 5 years RF has always been profitable.
RF had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
RF's Return On Assets of 1.28% is amongst the best of the industry. RF outperforms 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 better Profit Margin (27.70%) than 68.99% of its industry peers.
RF's Profit Margin has been stable in the last couple of years.
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.
Compared to 1 year ago, RF has less shares outstanding
RF has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, RF has a worse debt to assets ratio.
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.
RF has a Debt to FCF ratio of 1.66. This is comparable to the rest of the industry: RF outperforms 53.49% of its industry peers.
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
WACC13.5%
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 17.01%, which is quite good.
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.
The Revenue has been growing slightly by 3.71% on average over the past years.
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.
The Revenue is expected to grow by 4.40% on average over the next years.
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
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
The Price/Earnings ratio is 12.51, which indicates a correct valuation of RF.
Compared to the rest of the industry, the Price/Earnings ratio of RF is on the same level as its industry peers.
RF is valuated cheaply when we compare the Price/Earnings ratio to 27.17, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 10.55, the valuation of RF can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RF is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of RF to the average of the S&P500 Index (23.79), we can say RF is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.51 | ||
| Fwd PE | 10.55 |
4.2 Price Multiples
RF's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.61 | ||
| 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.
A more expensive valuation may be justified as RF's earnings are expected to grow with 13.27% in the coming years.
PEG (NY)0.63
PEG (5Y)2.18
EPS Next 2Y15.68%
EPS Next 3Y13.27%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.91%, RF has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.78, RF pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.94, RF pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.91% |
5.2 History
The dividend of RF is nicely growing with an annual growth rate of 10.40%!
RF has paid a dividend for at least 10 years, which is 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.
The dividend of RF is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP48.76%
EPS Next 2Y15.68%
EPS Next 3Y13.27%
NYSE:RF (1/7/2026, 10:07:09 AM)
28.39
-0.32 (-1.11%)
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 Cap24.89B
Revenue(TTM)7.42B
Net Income(TTM)2.06B
Analysts73.94
Price Target29.84 (5.11%)
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 | 12.51 | ||
| Fwd PE | 10.55 | ||
| P/S | 3.36 | ||
| P/FCF | 12.61 | ||
| P/OCF | 10.92 | ||
| P/B | 1.31 | ||
| P/tB | 2.04 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.27
EY8%
EPS(NY)2.69
Fwd EY9.47%
FCF(TTM)2.25
FCFY7.93%
OCF(TTM)2.6
OCFY9.16%
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
WACC13.5%
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 12.51 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%.