REGIONS FINANCIAL CORP (RF)
US7591EP1005 - Common Stock
RF gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 405 industry peers in the Banks industry. RF may be in some trouble as it scores bad on both profitability and health. RF has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year RF was profitable.
In the past year RF had a positive cash flow from operations.
RF had positive earnings in each of the past 5 years.
Each year in the past 5 years RF 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 72.77% of its industry peers.
Looking at the Return On Equity, with a value of 8.74%, RF is in line with its industry, outperforming 56.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.04% | ||
| ROE | 8.74% | ||
| ROIC | N/A |
ROA(3y)1.38%
ROA(5y)1.2%
ROE(3y)12.63%
ROE(5y)10.52%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of RF (23.07%) is comparable to the rest of the industry.
RF's Profit Margin has declined in the last couple of years.
The Operating Margin and Gross Margin are not available for RF so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 23.07% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y18.28%
PM growth 5Y-2.22%
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.
The number of shares outstanding for RF has been reduced compared to 1 year ago.
The number of shares outstanding for RF has been reduced compared to 5 years ago.
RF has a worse debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of RF is 1.72, which is an excellent value as it means it would take RF, only 1.72 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.72, RF is in the better half of the industry, outperforming 62.87% 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 has a worse Debt to Equity ratio (0.30) than 64.11% of its industry peers.
Although RF does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 1.72 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC12.47%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The earnings per share for RF have decreased strongly by -17.80% in the last year.
Measured over the past years, RF shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.21% on average per year.
RF shows a decrease in Revenue. In the last year, the revenue decreased by -8.85%.
RF shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.45% yearly.
EPS 1Y (TTM)-17.8%
EPS 3Y30.3%
EPS 5Y9.21%
EPS Q2Q%16.33%
Revenue 1Y (TTM)-8.85%
Revenue growth 3Y6.41%
Revenue growth 5Y5.45%
Sales Q2Q%-3.61%
3.2 Future
Based on estimates for the next years, RF will show a small growth in Earnings Per Share. The EPS will grow by 0.87% on average per year.
The Revenue is expected to grow by 1.33% on average over the next years.
EPS Next Y-9.23%
EPS Next 2Y3.02%
EPS Next 3Y5.3%
EPS Next 5Y0.87%
Revenue Next Year-5.16%
Revenue Next 2Y-0.03%
Revenue Next 3Y1.33%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
A Price/Earnings ratio of 14.06 indicates a correct valuation of RF.
The rest of the industry has a similar Price/Earnings ratio as RF.
The average S&P500 Price/Earnings ratio is at 29.29. RF is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 11.74, the valuation of RF can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RF indicates a somewhat cheap valuation: RF is cheaper than 66.34% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.01. RF is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.06 | ||
| Fwd PE | 11.74 |
4.2 Price Multiples
RF's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. RF is cheaper than 71.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.6 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.53
EPS Next 2Y3.02%
EPS Next 3Y5.3%
5. Dividend
5.1 Amount
RF has a Yearly Dividend Yield of 3.74%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.02, 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 2.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.74% |
5.2 History
The dividend of RF is nicely growing with an annual growth rate of 14.80%!
RF has been paying a dividend for at least 10 years, so it has a reliable track record.
RF has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)14.8%
Div Incr Years11
Div Non Decr Years13
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 2Y3.02%
EPS Next 3Y5.3%
REGIONS FINANCIAL CORP
NYSE:RF (11/22/2024, 8:04:00 PM)
After market: 27.34 +0.06 (+0.22%)27.28
+0.54 (+2.02%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap24.79B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.74% |
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 | 14.06 | ||
| Fwd PE | 11.74 | ||
| 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)1.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.04% | ||
| ROE | 8.74% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | 23.07% | ||
| 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 | 0.3 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)-17.8%
EPS 3Y30.3%
EPS 5Y
EPS Q2Q%
EPS Next Y-9.23%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-8.85%
Revenue growth 3Y6.41%
Revenue growth 5Y
Sales 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