TRUIST FINANCIAL CORP (TFC) Stock Fundamental Analysis
USA - NYSE:TFC - US89832Q1094 - Common Stock
44.4 USD
-0.25 (-0.56%)
44.4 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to TFC. TFC was compared to 388 industry peers in the Banks industry. TFC has a bad profitability rating. Also its financial health evaluation is rather negative. TFC has a correct valuation and a medium growth rate. TFC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
TFC had positive earnings in the past year.
TFC had a positive operating cash flow in the past year.
TFC had positive earnings in 4 of the past 5 years.
TFC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TFC has a Return On Assets (0.90%) which is in line with its industry peers.
The Return On Equity of TFC (7.47%) is worse than 60.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.9% | ||
| ROE | 7.47% | ||
| ROIC | N/A |
ROA(3y)0.55%
ROA(5y)0.71%
ROE(3y)4.79%
ROE(5y)5.79%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a Profit Margin value of 24.34%, TFC perfoms like the industry average, outperforming 52.32% of the companies in the same industry.
In the last couple of years the Profit Margin of TFC has grown nicely.
The Operating Margin and Gross Margin are not available for TFC so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 24.34% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y7.55%
PM growth 5Y6.91%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
TFC does not have a ROIC to compare to the WACC, probably because it is not profitable.
TFC has less shares outstanding than it did 1 year ago.
TFC has less shares outstanding than it did 5 years ago.
The debt/assets ratio for TFC is higher compared to a year ago.
2.2 Solvency
TFC has a debt to FCF ratio of 15.46. This is a negative value and a sign of low solvency as TFC would need 15.46 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 15.46, TFC is doing worse than 81.44% of the companies in the same industry.
A Debt/Equity ratio of 0.93 indicates that TFC is somewhat dependend on debt financing.
TFC's Debt to Equity ratio of 0.93 is on the low side compared to the rest of the industry. TFC is outperformed by 84.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 15.46 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC12.32%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
TFC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.58%.
TFC shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.17% yearly.
The Revenue has grown by 53.69% in the past year. This is a very strong growth!
The Revenue has been growing slightly by 1.11% on average over the past years.
EPS 1Y (TTM)3.58%
EPS 3Y-13.09%
EPS 5Y-2.17%
EPS Q2Q%10.31%
Revenue 1Y (TTM)53.69%
Revenue growth 3Y-15.87%
Revenue growth 5Y1.11%
Sales Q2Q%1.91%
3.2 Future
TFC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.58% yearly.
Based on estimates for the next years, TFC will show a small growth in Revenue. The Revenue will grow by 2.98% on average per year.
EPS Next Y9.9%
EPS Next 2Y11.68%
EPS Next 3Y12.29%
EPS Next 5Y7.58%
Revenue Next Year1.48%
Revenue Next 2Y2.99%
Revenue Next 3Y3.4%
Revenue Next 5Y2.98%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 11.81, which indicates a very decent valuation of TFC.
TFC's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of TFC to the average of the S&P500 Index (25.07), we can say TFC is valued rather cheaply.
TFC is valuated reasonably with a Price/Forward Earnings ratio of 9.81.
TFC's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.08, TFC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.81 | ||
| Fwd PE | 9.81 |
4.2 Price Multiples
TFC's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. TFC is more expensive than 62.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.45 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
TFC's earnings are expected to grow with 12.29% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.19
PEG (5Y)N/A
EPS Next 2Y11.68%
EPS Next 3Y12.29%
5. Dividend
5.1 Amount
TFC has a Yearly Dividend Yield of 5.97%, which is a nice return.
TFC's Dividend Yield is rather good when compared to the industry average which is at 3.39. TFC pays more dividend than 91.24% of the companies in the same industry.
TFC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.97% |
5.2 History
The dividend of TFC is nicely growing with an annual growth rate of 11.29%!
TFC has been paying a dividend for at least 10 years, so it has a reliable track record.
TFC has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)11.29%
Div Incr Years0
Div Non Decr Years10
5.3 Sustainability
TFC pays out 62.09% of its income as dividend. This is not a sustainable payout ratio.
The dividend of TFC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP62.09%
EPS Next 2Y11.68%
EPS Next 3Y12.29%
44.4
-0.25 (-0.56%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners75.53%
Inst Owner Change-0.83%
Ins Owners0.15%
Ins Owner Change-0.32%
Market Cap56.80B
Revenue(TTM)20.13B
Net Income(TTM)4.90B
Analysts74.81
Price Target51.53 (16.06%)
Short Float %2.48%
Short Ratio3.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.97% |
Yearly Dividend2.37
Dividend Growth(5Y)11.29%
DP62.09%
Div Incr Years0
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.78%
Min EPS beat(2)-2.5%
Max EPS beat(2)6.06%
EPS beat(4)2
Avg EPS beat(4)1.23%
Min EPS beat(4)-2.5%
Max EPS beat(4)6.06%
EPS beat(8)6
Avg EPS beat(8)3.22%
EPS beat(12)8
Avg EPS beat(12)1.2%
EPS beat(16)11
Avg EPS beat(16)2.23%
Revenue beat(2)0
Avg Revenue beat(2)-0.43%
Min Revenue beat(2)-0.63%
Max Revenue beat(2)-0.23%
Revenue beat(4)1
Avg Revenue beat(4)-0.35%
Min Revenue beat(4)-0.78%
Max Revenue beat(4)0.25%
Revenue beat(8)2
Avg Revenue beat(8)-1.79%
Revenue beat(12)2
Avg Revenue beat(12)-6.44%
Revenue beat(16)2
Avg Revenue beat(16)-5.55%
PT rev (1m)3.12%
PT rev (3m)3.67%
EPS NQ rev (1m)0.21%
EPS NQ rev (3m)0.62%
EPS NY rev (1m)1.54%
EPS NY rev (3m)1.58%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-0.04%
Revenue NY rev (1m)0.2%
Revenue NY rev (3m)0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.81 | ||
| Fwd PE | 9.81 | ||
| P/S | 2.82 | ||
| P/FCF | 14.45 | ||
| P/OCF | 14.45 | ||
| P/B | 0.87 | ||
| P/tB | 1.31 | ||
| EV/EBITDA | N/A |
EPS(TTM)3.76
EY8.47%
EPS(NY)4.53
Fwd EY10.2%
FCF(TTM)3.07
FCFY6.92%
OCF(TTM)3.07
OCFY6.92%
SpS15.74
BVpS51.32
TBVpS33.94
PEG (NY)1.19
PEG (5Y)N/A
Graham Number65.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.9% | ||
| ROE | 7.47% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 24.34% | ||
| GM | N/A | ||
| FCFM | 19.53% |
ROA(3y)0.55%
ROA(5y)0.71%
ROE(3y)4.79%
ROE(5y)5.79%
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 3Y7.55%
PM growth 5Y6.91%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 15.46 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 80.23% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score7
WACC12.32%
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)3.58%
EPS 3Y-13.09%
EPS 5Y-2.17%
EPS Q2Q%10.31%
EPS Next Y9.9%
EPS Next 2Y11.68%
EPS Next 3Y12.29%
EPS Next 5Y7.58%
Revenue 1Y (TTM)53.69%
Revenue growth 3Y-15.87%
Revenue growth 5Y1.11%
Sales Q2Q%1.91%
Revenue Next Year1.48%
Revenue Next 2Y2.99%
Revenue Next 3Y3.4%
Revenue Next 5Y2.98%
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-57.38%
FCF growth 3Y-33.77%
FCF growth 5Y7.32%
OCF growth 1Y-59.83%
OCF growth 3Y-35.03%
OCF growth 5Y7.32%
TRUIST FINANCIAL CORP / TFC FAQ
Can you provide the ChartMill fundamental rating for TRUIST FINANCIAL CORP?
ChartMill assigns a fundamental rating of 3 / 10 to TFC.
Can you provide the valuation status for TRUIST FINANCIAL CORP?
ChartMill assigns a valuation rating of 4 / 10 to TRUIST FINANCIAL CORP (TFC). This can be considered as Fairly Valued.
What is the profitability of TFC stock?
TRUIST FINANCIAL CORP (TFC) has a profitability rating of 3 / 10.
What is the valuation of TRUIST FINANCIAL CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for TRUIST FINANCIAL CORP (TFC) is 11.81 and the Price/Book (PB) ratio is 0.87.
Is the dividend of TRUIST FINANCIAL CORP sustainable?
The dividend rating of TRUIST FINANCIAL CORP (TFC) is 8 / 10 and the dividend payout ratio is 62.09%.