REGIONS FINANCIAL CORP (RF)

US7591EP1005 - Common Stock

23.525  +0 (+0.02%)

Fundamental Rating

4

Taking everything into account, RF scores 4 out of 10 in our fundamental rating. RF was compared to 404 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. Finally RF also has an excellent dividend rating.



3

1. Profitability

1.1 Basic Checks

RF had positive earnings in the past year.
RF had a positive operating cash flow in the past year.
In the past 5 years RF has always been profitable.
RF had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

The Return On Assets of RF (1.04%) is better than 72.36% of its industry peers.
RF has a Return On Equity of 8.74%. This is comparable to the rest of the industry: RF outperforms 57.54% of its industry peers.
Industry RankSector 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

RF's Profit Margin of 23.07% is in line compared to the rest of the industry. RF outperforms 54.27% of its industry peers.
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 RankSector 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

3

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.
The debt/assets ratio for RF is higher compared to a year ago.

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.
With a decent Debt to FCF ratio value of 1.72, RF is doing good in the industry, outperforming 63.32% 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 Debt to Equity ratio of 0.30. This is in the lower half of the industry: RF underperforms 65.08% 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 RankSector Rank
Debt/Equity 0.3
Debt/FCF 1.72
Altman-Z N/A
ROIC/WACCN/A
WACC13.12%

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A

3

3. Growth

3.1 Past

The earnings per share for RF have decreased strongly by -17.80% in the last year.
RF shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.21% yearly.
Looking at the last year, RF shows a decrease in Revenue. The Revenue has decreased by -8.85% in the last year.
The Revenue has been growing slightly by 5.45% on average over the past years.
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

RF is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.11% yearly.
The Revenue is expected to grow by 1.86% on average over the next years.
EPS Next Y-9.03%
EPS Next 2Y3.18%
EPS Next 3Y5.56%
EPS Next 5Y2.11%
Revenue Next Year-5.14%
Revenue Next 2Y-0.03%
Revenue Next 3Y1.38%
Revenue Next 5Y1.86%

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.

5

4. Valuation

4.1 Price/Earnings Ratio

RF is valuated correctly with a Price/Earnings ratio of 12.13.
RF's Price/Earnings ratio is a bit cheaper when compared to the industry. RF is cheaper than 61.56% of the companies in the same industry.
RF is valuated cheaply when we compare the Price/Earnings ratio to 27.17, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 10.09, which indicates a very decent valuation of RF.
RF's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. RF is cheaper than 72.36% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.59. RF is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 12.13
Fwd PE 10.09

4.2 Price Multiples

Compared to the rest of the industry, the Price/Free Cash Flow ratio of RF indicates a somewhat cheap valuation: RF is cheaper than 75.13% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 9.14
EV/EBITDA N/A

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)1.32
EPS Next 2Y3.18%
EPS Next 3Y5.56%

8

5. Dividend

5.1 Amount

RF has a Yearly Dividend Yield of 4.17%, which is a nice return.
Compared to an average industry Dividend Yield of 3.16, RF pays a better dividend. On top of this RF pays more dividend than 80.90% of the companies listed in the same industry.
RF's Dividend Yield is rather good when compared to the S&P500 average which is at 2.30.
Industry RankSector Rank
Dividend Yield 4.17%

5.2 History

The dividend of RF is nicely growing with an annual growth rate of 14.80%!
RF has paid a dividend for at least 10 years, which is 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 Years12
Div Non Decr Years14

5.3 Sustainability

RF pays out 60.62% of its income as dividend. 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 2Y3.18%
EPS Next 3Y5.56%

REGIONS FINANCIAL CORP

NYSE:RF (1/2/2025, 10:35:05 AM)

23.525

+0 (+0.02%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)10-18 2024-10-18/bmo
Earnings (Next)01-17 2025-01-17/amc
Inst Owners81.54%
Inst Owner Change-1.74%
Ins Owners0.22%
Ins Owner Change0.23%
Market Cap21.38B
Analysts76.36
Price Target28.64 (21.74%)
Short Float %3.66%
Short Ratio4.18
Dividend
Industry RankSector Rank
Dividend Yield 4.17%
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)7.43%
PT rev (3m)17.21%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.93%
EPS NY rev (1m)0.06%
EPS NY rev (3m)-0.95%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.29%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.97%
Valuation
Industry RankSector Rank
PE 12.13
Fwd PE 10.09
P/S 3.02
P/FCF 9.14
P/OCF 8
P/B 1.14
P/tB 1.81
EV/EBITDA N/A
EPS(TTM)1.94
EY8.25%
EPS(NY)2.33
Fwd EY9.91%
FCF(TTM)2.57
FCFY10.94%
OCF(TTM)2.94
OCFY12.5%
SpS7.79
BVpS20.55
TBVpS12.98
PEG (NY)N/A
PEG (5Y)1.32
Profitability
Industry RankSector 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)1.38%
ROA(5y)1.2%
ROE(3y)12.63%
ROE(5y)10.52%
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 3Y18.28%
PM growth 5Y-2.22%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.04
Health
Industry RankSector 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-Score6
WACC13.12%
ROIC/WACCN/A
Cap/Depr(3y)98.79%
Cap/Depr(5y)77.92%
Cap/Sales(3y)4.1%
Cap/Sales(5y)3.76%
Profit Quality(3y)115.28%
Profit Quality(5y)143.83%
High Growth Momentum
Growth
EPS 1Y (TTM)-17.8%
EPS 3Y30.3%
EPS 5Y9.21%
EPS Q2Q%16.33%
EPS Next Y-9.03%
EPS Next 2Y3.18%
EPS Next 3Y5.56%
EPS Next 5Y2.11%
Revenue 1Y (TTM)-8.85%
Revenue growth 3Y6.41%
Revenue growth 5Y5.45%
Sales Q2Q%-3.61%
Revenue Next Year-5.14%
Revenue Next 2Y-0.03%
Revenue Next 3Y1.38%
Revenue Next 5Y1.86%
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year-3.03%
EBIT Next 3Y1.57%
EBIT Next 5YN/A
FCF growth 1Y5.79%
FCF growth 3Y-2.67%
FCF growth 5Y-0.87%
OCF growth 1Y3.32%
OCF growth 3Y-0.23%
OCF growth 5Y0.29%