TRUIST FINANCIAL CORP (TFC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TFC - US89832Q1094 - Common Stock
50.08 USD
+0.14 (+0.28%)
49.9219 USD
-0.16 (-0.32%)
TFC gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 385 industry peers in the Banks industry. Both the profitability and financial health of TFC have multiple concerns. TFC has a decent growth rate and is not valued too expensively. 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.
Of the past 5 years TFC 4 years were profitable.
In the past 5 years TFC always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of TFC (0.90%) is comparable to the rest of the industry.
With a Return On Equity value of 7.47%, TFC is not doing good in the industry: 62.86% of the companies in the same industry are doing better.
| 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
TFC has a Profit Margin (24.34%) which is in line with its industry peers.
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) | 24.34% | ||
| 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.
The number of shares outstanding for TFC has been reduced compared to 1 year ago.
Compared to 5 years ago, TFC has less shares outstanding
The debt/assets ratio for TFC is higher compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of TFC is 15.46, which is on the high side as it means it would take TFC, 15.46 years of fcf income to pay off all of its debts.
TFC has a Debt to FCF ratio of 15.46. This is amonst the worse of the industry: TFC underperforms 81.82% of its industry peers.
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 84.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 15.46 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC12.14%
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!
Measured over the past years, TFC shows a small growth in Revenue. The Revenue has been growing by 1.11% on average per year.
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.
The Revenue is expected to grow by 2.98% on average over the next years.
EPS Next Y10.04%
EPS Next 2Y11.76%
EPS Next 3Y12.29%
EPS Next 5Y7.58%
Revenue Next Year1.47%
Revenue Next 2Y2.99%
Revenue Next 3Y3.38%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 13.32, the valuation of TFC can be described as correct.
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 (26.38), we can say TFC is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 11.05, the valuation of TFC can be described as reasonable.
The rest of the industry has a similar Price/Forward Earnings ratio as TFC.
The average S&P500 Price/Forward Earnings ratio is at 23.83. TFC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.32 | ||
| Fwd PE | 11.05 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TFC indicates a slightly more expensive valuation: TFC is more expensive than 65.45% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.29 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
TFC's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as TFC's earnings are expected to grow with 12.29% in the coming years.
PEG (NY)1.33
PEG (5Y)N/A
EPS Next 2Y11.76%
EPS Next 3Y12.29%
5. Dividend
5.1 Amount
TFC has a Yearly Dividend Yield of 4.16%, which is a nice return.
Compared to an average industry Dividend Yield of 2.70, TFC pays a better dividend. On top of this TFC pays more dividend than 85.45% of the companies listed in the same industry.
TFC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.16% |
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.
TFC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP62.09%
EPS Next 2Y11.76%
EPS Next 3Y12.29%
50.08
+0.14 (+0.28%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners76.04%
Inst Owner Change-0.6%
Ins Owners0.15%
Ins Owner Change-0.41%
Market Cap64.06B
Revenue(TTM)20.13B
Net Income(TTM)4.90B
Analysts74.81
Price Target51.39 (2.62%)
Short Float %2.51%
Short Ratio3.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.16% |
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)-0.28%
PT rev (3m)2.94%
EPS NQ rev (1m)-0.33%
EPS NQ rev (3m)-0.01%
EPS NY rev (1m)0.13%
EPS NY rev (3m)1.69%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.04%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.32 | ||
| Fwd PE | 11.05 | ||
| P/S | 3.18 | ||
| P/FCF | 16.29 | ||
| P/OCF | 16.29 | ||
| P/B | 0.98 | ||
| P/tB | 1.48 | ||
| EV/EBITDA | N/A |
EPS(TTM)3.76
EY7.51%
EPS(NY)4.53
Fwd EY9.05%
FCF(TTM)3.07
FCFY6.14%
OCF(TTM)3.07
OCFY6.14%
SpS15.74
BVpS51.32
TBVpS33.94
PEG (NY)1.33
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
WACC12.14%
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 Y10.04%
EPS Next 2Y11.76%
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 Year1.47%
Revenue Next 2Y2.99%
Revenue Next 3Y3.38%
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 13.32 and the Price/Book (PB) ratio is 0.98.
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%.