TRUIST FINANCIAL CORP (TFC) Stock Fundamental Analysis
USA - NYSE:TFC - US89832Q1094 - Common Stock
44.19 USD
+0.58 (+1.33%)
44.19 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to TFC. TFC was compared to 391 industry peers in the Banks industry. TFC may be in some trouble as it scores bad on both profitability and health. TFC is not valued too expensively and it also shows a decent growth rate. TFC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year TFC was profitable.
TFC had a positive operating cash flow in the past year.
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 0.90%, TFC is in line with its industry, outperforming 52.94% of the companies in the same industry.
TFC has a Return On Equity (7.54%) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.9% | ||
| ROE | 7.54% | ||
| 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
TFC has a Profit Margin (24.41%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of TFC has grown nicely.
TFC 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) | 24.41% | ||
| 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.
The number of shares outstanding for TFC has been reduced compared to 1 year ago.
The number of shares outstanding for TFC has been reduced compared to 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 15.38. This is a negative value and a sign of low solvency as TFC would need 15.38 years to pay back of all of its debts.
With a Debt to FCF ratio value of 15.38, TFC is not doing good in the industry: 82.10% of the companies in the same industry are doing better.
TFC has a Debt/Equity ratio of 0.94. This is a neutral value indicating TFC is somewhat dependend on debt financing.
The Debt to Equity ratio of TFC (0.94) is worse than 83.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 15.38 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC12.41%
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.
TFC shows a strong growth in Revenue. In the last year, the Revenue has grown by 53.69%.
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 quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.66% yearly.
TFC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.98% yearly.
EPS Next Y9.06%
EPS Next 2Y11.45%
EPS Next 3Y11.98%
EPS Next 5Y9.66%
Revenue Next Year1.42%
Revenue Next 2Y2.99%
Revenue Next 3Y3.4%
Revenue Next 5Y2.98%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 11.75 indicates a reasonable valuation of TFC.
TFC's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.91, TFC is valued rather cheaply.
A Price/Forward Earnings ratio of 9.80 indicates a reasonable valuation of TFC.
The rest of the industry has a similar Price/Forward Earnings ratio as TFC.
The average S&P500 Price/Forward Earnings ratio is at 22.92. TFC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.75 | ||
| Fwd PE | 9.8 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TFC is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.24 | ||
| 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.
PEG (NY)1.3
PEG (5Y)N/A
EPS Next 2Y11.45%
EPS Next 3Y11.98%
5. Dividend
5.1 Amount
TFC has a Yearly Dividend Yield of 4.77%, which is a nice return.
TFC's Dividend Yield is rather good when compared to the industry average which is at 3.53. TFC pays more dividend than 84.65% of the companies in the same industry.
TFC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.77% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)11.29%
Div Incr Years0
Div Non Decr Years10
5.3 Sustainability
62.90% of the earnings are spent on dividend by TFC. This is not a sustainable payout ratio.
TFC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP62.9%
EPS Next 2Y11.45%
EPS Next 3Y11.98%
44.19
+0.58 (+1.33%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners75.53%
Inst Owner Change-0.24%
Ins Owners0.15%
Ins Owner Change-0.05%
Market Cap56.53B
Revenue(TTM)20.13B
Net Income(TTM)4.89B
Analysts74.07
Price Target49.98 (13.1%)
Short Float %2.35%
Short Ratio3.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.77% |
Yearly Dividend2.37
Dividend Growth(5Y)11.29%
DP62.9%
Div Incr Years0
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.73%
Min EPS beat(2)-2.5%
Max EPS beat(2)-0.96%
EPS beat(4)2
Avg EPS beat(4)1.15%
Min EPS beat(4)-2.5%
Max EPS beat(4)5.73%
EPS beat(8)6
Avg EPS beat(8)2.58%
EPS beat(12)7
Avg EPS beat(12)0.64%
EPS beat(16)11
Avg EPS beat(16)2.88%
Revenue beat(2)0
Avg Revenue beat(2)-0.71%
Min Revenue beat(2)-0.78%
Max Revenue beat(2)-0.63%
Revenue beat(4)1
Avg Revenue beat(4)-0.32%
Min Revenue beat(4)-0.78%
Max Revenue beat(4)0.25%
Revenue beat(8)2
Avg Revenue beat(8)-1.95%
Revenue beat(12)2
Avg Revenue beat(12)-6.69%
Revenue beat(16)2
Avg Revenue beat(16)-5.57%
PT rev (1m)0.11%
PT rev (3m)2.89%
EPS NQ rev (1m)0.32%
EPS NQ rev (3m)-0.25%
EPS NY rev (1m)0.02%
EPS NY rev (3m)0.04%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.75 | ||
| Fwd PE | 9.8 | ||
| P/S | 2.82 | ||
| P/FCF | 14.24 | ||
| P/OCF | 14.24 | ||
| P/B | 0.87 | ||
| P/tB | 1.32 | ||
| EV/EBITDA | N/A |
EPS(TTM)3.76
EY8.51%
EPS(NY)4.51
Fwd EY10.2%
FCF(TTM)3.1
FCFY7.02%
OCF(TTM)3.1
OCFY7.02%
SpS15.66
BVpS50.69
TBVpS33.38
PEG (NY)1.3
PEG (5Y)N/A
Graham Number65.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.9% | ||
| ROE | 7.54% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 24.41% | ||
| GM | N/A | ||
| FCFM | 19.81% |
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-Score5
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 15.38 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 81.18% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score5
WACC12.41%
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 Y9.06%
EPS Next 2Y11.45%
EPS Next 3Y11.98%
EPS Next 5Y9.66%
Revenue 1Y (TTM)53.69%
Revenue growth 3Y-15.87%
Revenue growth 5Y1.11%
Sales Q2Q%1.91%
Revenue Next Year1.42%
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-62.51%
FCF growth 3Y-33.77%
FCF growth 5Y7.32%
OCF growth 1Y-64.41%
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 11.75 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 62.9%.