REGIONS FINANCIAL CORP (RF) Stock Fundamental Analysis
NYSE:RF - New York Stock Exchange, Inc. - US7591EP1005 - Common Stock - Currency: USD
Taking everything into account, RF scores 4 out of 10 in our fundamental rating. RF was compared to 405 industry peers in the Banks industry. Both the profitability and financial health of RF have multiple concerns. RF has a valuation in line with the averages, but it does not seem to be growing. Finally RF also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
RF had positive earnings in the past year.
In the past year RF had a positive cash flow from operations.
RF had positive earnings in each of the past 5 years.
Of the past 5 years RF 4 years had a positive operating cash flow.
1.2 Ratios
RF has a Return On Assets of 1.04%. This is in the better half of the industry: RF outperforms 72.11% of its industry peers.
Looking at the Return On Equity, with a value of 8.74%, RF is in line with its industry, outperforming 57.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.04% | ||
| ROE | 8.74% | ||
| ROIC | N/A |
ROA(3y)1.27%
ROA(5y)1.19%
ROE(3y)11.57%
ROE(5y)10.66%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 23.07%, RF is in line with its industry, outperforming 54.27% of the companies in the same industry.
In the last couple of years the Profit Margin of RF has remained more or less at the same level.
RF 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) | 23.07% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-12.42%
PM growth 5Y-0.33%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
RF does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, RF has less shares outstanding
Compared to 5 years ago, RF has less shares outstanding
The debt/assets ratio for RF is higher compared to a year ago.
2.2 Solvency
RF has a debt to FCF ratio of 1.72. This is a very positive value and a sign of high solvency as it would only need 1.72 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 1.72, RF is doing good in the industry, outperforming 63.82% of the companies in the same industry.
A Debt/Equity ratio of 0.30 indicates that RF is not too dependend on debt financing.
RF's Debt to Equity ratio of 0.30 is on the low side compared to the rest of the industry. RF is outperformed by 65.08% of its industry peers.
Even though the debt/equity ratio score it not favorable for RF, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 1.72 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC12.96%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
RF shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.22%.
Measured over the past 5 years, RF shows a small growth in Earnings Per Share. The EPS has been growing by 5.75% on average per year.
The Revenue has decreased by -6.51% in the past year.
The Revenue has been growing slightly by 3.71% on average over the past years.
EPS 1Y (TTM)-8.22%
EPS 3Y-6.76%
EPS 5Y5.75%
EPS Q2Q%14.29%
Revenue 1Y (TTM)-6.51%
Revenue growth 3Y3.23%
Revenue growth 5Y3.71%
Sales Q2Q%0.22%
3.2 Future
The Earnings Per Share is expected to grow by 4.74% on average over the next years.
The Revenue is expected to grow by 3.69% on average over the next years.
EPS Next Y15.94%
EPS Next 2Y13.13%
EPS Next 3Y12.11%
EPS Next 5Y4.74%
Revenue Next Year5.18%
Revenue Next 2Y4.77%
Revenue Next 3Y3.69%
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 stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
RF is valuated correctly with a Price/Earnings ratio of 12.12.
Based on the Price/Earnings ratio, RF is valued a bit cheaper than 64.07% of the companies in the same industry.
RF's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.47.
With a Price/Forward Earnings ratio of 10.45, the valuation of RF can be described as very reasonable.
RF's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. RF is cheaper than 70.60% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of RF to the average of the S&P500 Index (92.74), we can say RF is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.12 | ||
| Fwd PE | 10.45 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, RF is valued a bit cheaper than 74.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.46 | ||
| 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.
RF's earnings are expected to grow with 12.11% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.76
PEG (5Y)2.11
EPS Next 2Y13.13%
EPS Next 3Y12.11%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.04%, RF is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.15, RF pays a bit more dividend than its industry peers.
RF's Dividend Yield is rather good when compared to the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.04% |
5.2 History
On average, the dividend of RF grows each year by 14.80%, which is quite nice.
RF has been paying a dividend for at least 10 years, so it has a reliable track record.
RF has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)14.8%
Div Incr Years12
Div Non Decr Years14
5.3 Sustainability
60.62% of the earnings are spent on dividend by RF. This is not a sustainable payout ratio.
The dividend of RF is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP60.62%
EPS Next 2Y13.13%
EPS Next 3Y12.11%
REGIONS FINANCIAL CORP
NYSE:RF (2/4/2025, 8:04:35 PM)
After market: 24.4 +0.04 (+0.16%)24.36
+0.31 (+1.29%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners81.54%
Inst Owner Change0.05%
Ins Owners0.22%
Ins Owner Change-0.04%
Market Cap22.14B
Analysts76.97
Price Target28.34 (16.34%)
Short Float %3.55%
Short Ratio3.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.04% |
Yearly Dividend0.95
Dividend Growth(5Y)14.8%
DP60.62%
Div Incr Years12
Div Non Decr Years14
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.69%
Min EPS beat(2)-3.75%
Max EPS beat(2)5.13%
EPS beat(4)2
Avg EPS beat(4)-2.45%
Min EPS beat(4)-13.9%
Max EPS beat(4)5.13%
EPS beat(8)2
Avg EPS beat(8)-5.19%
EPS beat(12)4
Avg EPS beat(12)-3.55%
EPS beat(16)8
Avg EPS beat(16)5.56%
Revenue beat(2)0
Avg Revenue beat(2)-4.14%
Min Revenue beat(2)-4.63%
Max Revenue beat(2)-3.66%
Revenue beat(4)0
Avg Revenue beat(4)-3.39%
Min Revenue beat(4)-4.63%
Max Revenue beat(4)-2.32%
Revenue beat(8)0
Avg Revenue beat(8)-3.06%
Revenue beat(12)2
Avg Revenue beat(12)-2.48%
Revenue beat(16)5
Avg Revenue beat(16)-1.56%
PT rev (1m)-1.05%
PT rev (3m)9.32%
EPS NQ rev (1m)-0.36%
EPS NQ rev (3m)-0.04%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)2.17%
Revenue NQ rev (1m)-0.26%
Revenue NQ rev (3m)0.26%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)2.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.12 | ||
| Fwd PE | 10.45 | ||
| P/S | 3.13 | ||
| P/FCF | 9.46 | ||
| P/OCF | 8.28 | ||
| P/B | 1.19 | ||
| P/tB | 1.88 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.01
EY8.25%
EPS(NY)2.33
Fwd EY9.57%
FCF(TTM)2.57
FCFY10.57%
OCF(TTM)2.94
OCFY12.07%
SpS7.79
BVpS20.55
TBVpS12.98
PEG (NY)0.76
PEG (5Y)2.11
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.04% | ||
| ROE | 8.74% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 23.07% | ||
| GM | N/A | ||
| FCFM | 33.06% |
ROA(3y)1.27%
ROA(5y)1.19%
ROE(3y)11.57%
ROE(5y)10.66%
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
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-12.42%
PM growth 5Y-0.33%
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 1.72 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 189.21% | ||
| Cap/Sales | 4.7% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 143.29% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score5
WACC12.96%
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)-8.22%
EPS 3Y-6.76%
EPS 5Y5.75%
EPS Q2Q%14.29%
EPS Next Y15.94%
EPS Next 2Y13.13%
EPS Next 3Y12.11%
EPS Next 5Y4.74%
Revenue 1Y (TTM)-6.51%
Revenue growth 3Y3.23%
Revenue growth 5Y3.71%
Sales Q2Q%0.22%
Revenue Next Year5.18%
Revenue Next 2Y4.77%
Revenue Next 3Y3.69%
Revenue Next 5YN/A
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year19.41%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-3.47%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-2.05%
OCF growth 3YN/A
OCF growth 5YN/A