TRUIST FINANCIAL CORP (TFC)
US89832Q1094 - Common Stock
Overall TFC gets a fundamental rating of 2 out of 10. We evaluated TFC against 412 industry peers in the Banks industry. TFC may be in some trouble as it scores bad on both profitability and health. TFC has a valuation in line with the averages, but on the other hand it scores bad on growth. Finally TFC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
TFC had positive earnings in the past year.
In the past year TFC had a positive cash flow from operations.
TFC had positive earnings in 4 of the past 5 years.
Each year in the past 5 years TFC had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -0.27%, TFC is doing worse than 95.39% of the companies in the same industry.
TFC has a worse Return On Equity (-2.46%) than 95.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.27% | ||
| ROE | -2.46% | ||
| ROIC | N/A |
ROA(3y)0.64%
ROA(5y)0.67%
ROE(3y)5.35%
ROE(5y)5.3%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin and 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) | N/A | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
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.
The number of shares outstanding for TFC has been increased compared to 1 year ago.
TFC has more shares outstanding than it did 5 years ago.
TFC has a worse debt/assets ratio than last year.
2.2 Solvency
TFC has a debt to FCF ratio of 7.39. This is a slightly negative value and a sign of low solvency as TFC would need 7.39 years to pay back of all of its debts.
TFC has a Debt to FCF ratio of 7.39. This is in the lower half of the industry: TFC underperforms 75.49% of its industry peers.
A Debt/Equity ratio of 1.08 is on the high side and indicates that TFC has dependencies on debt financing.
With a Debt to Equity ratio value of 1.08, TFC is not doing good in the industry: 84.71% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.08 | ||
| Debt/FCF | 7.39 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC12.28%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
TFC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -23.74%.
Measured over the past years, TFC shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.62% on average per year.
The Revenue has been growing slightly by 1.54% in the past year.
The Revenue has been growing by 15.72% on average over the past years. This is quite good.
EPS 1Y (TTM)-23.74%
EPS 3Y-0.09%
EPS 5Y-0.62%
EPS growth Q2Q-30%
Revenue 1Y (TTM)1.54%
Revenue growth 3Y1%
Revenue growth 5Y15.72%
Revenue growth Q2Q-10.38%
3.2 Future
The Earnings Per Share is expected to grow by 8.76% on average over the next years. This is quite good.
TFC is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.28% yearly.
EPS Next Y-10.53%
EPS Next 2Y1.17%
EPS Next 3Y8.73%
EPS Next 5Y8.76%
Revenue Next Year-8.73%
Revenue Next 2Y-6.21%
Revenue Next 3Y-2.28%
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 accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 9.91, the valuation of TFC can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of TFC is on the same level as its industry peers.
When comparing the Price/Earnings ratio of TFC to the average of the S&P500 Index (24.67), we can say TFC is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 11.07, the valuation of TFC can be described as reasonable.
TFC's Price/Forward Earnings is on the same level as the industry average.
TFC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.02, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.91 | ||
| Fwd PE | 11.07 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, TFC is valued cheaper than 81.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.81 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y1.17%
EPS Next 3Y8.73%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.45%, TFC is a good candidate for dividend investing.
TFC's Dividend Yield is rather good when compared to the industry average which is at 3.83. TFC pays more dividend than 86.17% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, TFC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.45% |
5.2 History
The dividend of TFC has a limited annual growth rate of 5.70%.
TFC has paid a dividend for at least 10 years, which is a reliable track record.
TFC has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)5.7%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
The earnings of TFC are negative and hence is the payout ratio. TFC will probably not be able to sustain this dividend level.
TFC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-215.63%
EPS Next 2Y1.17%
EPS Next 3Y8.73%
TRUIST FINANCIAL CORP
NYSE:TFC (4/30/2024, 6:00:00 PM)
After market: 37.5 -0.05 (-0.13%)37.55
-0.76 (-1.98%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap50.11B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.45% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.91 | ||
| Fwd PE | 11.07 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.27% | ||
| ROE | -2.46% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.08 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-23.74%
EPS 3Y-0.09%
EPS 5Y
EPS growth Q2Q
EPS Next Y-10.53%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.54%
Revenue growth 3Y1%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y