TRUIST FINANCIAL CORP (TFC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TFC - US89832Q1094 - Common Stock
49.57 USD
-0.73 (-1.45%)
49.57 USD
0 (0%)
Overall TFC gets a fundamental rating of 3 out of 10. We evaluated TFC against 383 industry peers in the Banks industry. TFC has a bad profitability rating. Also its financial health evaluation is rather negative. 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
- 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 4 of the past 5 years.
1.2 Ratios
- TFC has a Return On Assets of 0.90%. This is comparable to the rest of the industry: TFC outperforms 50.13% of its industry peers.
- TFC has a Return On Equity of 7.47%. This is in the lower half of the industry: TFC underperforms 62.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.9% | ||
| ROE | 7.47% | ||
| ROIC | N/A |
ROA(3y)0.49%
ROA(5y)0.73%
ROE(3y)4.06%
ROE(5y)6.14%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- TFC has a Profit Margin (24.34%) which is comparable to the rest of the 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 3Y-6.21%
PM growth 5Y5.84%
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.
- Compared to 1 year ago, TFC has less shares outstanding
- Compared to 5 years ago, TFC has less shares outstanding
- Compared to 1 year ago, TFC has a worse debt to assets ratio.
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.
- The Debt to FCF ratio of TFC (15.46) is worse than 81.20% of its industry peers.
- A Debt/Equity ratio of 0.93 indicates that TFC is somewhat dependend on debt financing.
- TFC has a Debt to Equity ratio of 0.93. This is amonst the worse of the industry: TFC underperforms 83.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 15.46 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC12.15%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
- TFC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.37%, which is quite good.
- TFC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.88% yearly.
- The Revenue has grown by 53.03% in the past year. This is a very strong growth!
- The Revenue has been decreasing by -2.20% on average over the past years.
EPS 1Y (TTM)9.37%
EPS 3Y-7.21%
EPS 5Y0.88%
EPS Q2Q%23.08%
Revenue 1Y (TTM)53.03%
Revenue growth 3Y0.57%
Revenue growth 5Y-2.2%
Sales Q2Q%2.62%
3.2 Future
- Based on estimates for the next years, TFC will show a small growth in Earnings Per Share. The EPS will grow by 7.41% on average per year.
- Based on estimates for the next years, TFC will show a small growth in Revenue. The Revenue will grow by 3.30% on average per year.
EPS Next Y13.78%
EPS Next 2Y13.89%
EPS Next 3Y6.66%
EPS Next 5Y7.41%
Revenue Next Year4.48%
Revenue Next 2Y4.32%
Revenue Next 3Y3.47%
Revenue Next 5Y3.3%
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 12.49, which indicates a correct valuation of TFC.
- Compared to the rest of the industry, the Price/Earnings ratio of TFC is on the same level as its industry peers.
- The average S&P500 Price/Earnings ratio is at 27.21. TFC is valued rather cheaply when compared to this.
- A Price/Forward Earnings ratio of 10.97 indicates a reasonable valuation of TFC.
- TFC's Price/Forward Earnings is on the same level as the industry average.
- TFC is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.49 | ||
| Fwd PE | 10.97 |
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 66.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.13 | ||
| 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.
PEG (NY)0.91
PEG (5Y)14.2
EPS Next 2Y13.89%
EPS Next 3Y6.66%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.16%, TFC is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 2.84, TFC pays a better dividend. On top of this TFC pays more dividend than 81.46% 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 1.82.
| 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 paid a dividend for at least 10 years, which is 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
- 62.09% 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.
DP62.09%
EPS Next 2Y13.89%
EPS Next 3Y6.66%
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.
What is the valuation status of TRUIST FINANCIAL CORP (TFC) stock?
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 are the PE and PB ratios of TRUIST FINANCIAL CORP (TFC) stock?
The Price/Earnings (PE) ratio for TRUIST FINANCIAL CORP (TFC) is 12.49 and the Price/Book (PB) ratio is 0.97.
What is the expected EPS growth for TRUIST FINANCIAL CORP (TFC) stock?
The Earnings per Share (EPS) of TRUIST FINANCIAL CORP (TFC) is expected to grow by 13.78% in the next year.