TRUIST FINANCIAL CORP(NYSE:TFC) stock Fundamental Analysis

Fundamental Rating

We assign a fundamental rating of 3 out of 10 to TFC. TFC was compared to 404 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. TFC also has an excellent dividend rating.

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1. Profitability

1.1 Basic Checks

In the past year TFC was profitable.

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 worse Return On Assets (-0.37%) than 94.97% of its industry peers.

Looking at the Return On Equity, with a value of -2.91%, TFC is doing worse than 94.22% of the companies in the same industry.

		Industry Rank	Sector Rank
ROA	-0.37%
ROE	-2.91%
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

In the last couple of years the Profit Margin of TFC has grown nicely.

TFC does not have Profit Margin and Operating Margin and Gross Margin available, so we won't be analyzing them here.

		Industry Rank	Sector Rank
OM	N/A
PM (TTM)	N/A
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

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ROA

ROE

ROIC

Operating and Profit Margin

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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

The number of shares outstanding for TFC has been reduced compared to 5 years ago.

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

2.2 Solvency

The Debt to FCF ratio of TFC is 11.08, which is on the high side as it means it would take TFC, 11.08 years of fcf income to pay off all of its debts.

TFC has a Debt to FCF ratio of 11.08. This is in the lower half of the industry: TFC underperforms 72.11% of its industry peers.

TFC has a Debt/Equity ratio of 0.64. This is a neutral value indicating TFC is somewhat dependend on debt financing.

TFC's Debt to Equity ratio of 0.64 is on the low side compared to the rest of the industry. TFC is outperformed by 81.41% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.64
Debt/FCF	11.08
Altman-Z	N/A

ROIC/WACCN/A

WACC10.93%

2.3 Liquidity

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

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The earnings per share for TFC have decreased by -4.22% in the last year.

TFC shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.17% yearly.

TFC shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -43.23%.

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)-4.22%

EPS 3Y-13.09%

EPS 5Y-2.17%

EPS Q2Q%0%

Revenue 1Y (TTM)-43.23%

Revenue growth 3Y-15.87%

Revenue growth 5Y1.11%

Sales Q2Q%-10.28%

3.2 Future

The Earnings Per Share is expected to grow by 8.72% on average over the next years. This is quite good.

The Revenue is expected to grow by 4.34% on average over the next years.

EPS Next Y13.05%

EPS Next 2Y13.77%

EPS Next 3Y11.78%

EPS Next 5Y8.72%

Revenue Next Year2.71%

Revenue Next 2Y3.72%

Revenue Next 3Y2.94%

Revenue Next 5Y4.34%

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 accelerating.

The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 12.58, which indicates a correct valuation of TFC.

TFC's Price/Earnings ratio is in line with the industry average.

Compared to an average S&P500 Price/Earnings ratio of 29.63, TFC is valued rather cheaply.

With a Price/Forward Earnings ratio of 11.13, the valuation of TFC can be described as very reasonable.

TFC's Price/Forward Earnings ratio is in line with the industry average.

The average S&P500 Price/Forward Earnings ratio is at 22.68. TFC is valued rather cheaply when compared to this.

		Industry Rank	Sector Rank
PE	12.58
Fwd PE	11.13

4.2 Price Multiples

TFC's Price/Free Cash Flow ratio is in line with the industry average.

		Industry Rank	Sector Rank
P/FCF	15.96
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)0.96

PEG (5Y)N/A

EPS Next 2Y13.77%

EPS Next 3Y11.78%

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5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 4.48%, TFC is a good candidate for dividend investing.

Compared to an average industry Dividend Yield of 3.15, TFC pays a better dividend. On top of this TFC pays more dividend than 87.94% of the companies listed in the same industry.

Compared to an average S&P500 Dividend Yield of 2.29, TFC pays a better dividend.

		Industry Rank	Sector Rank
Dividend Yield	4.48%

5.2 History

The dividend of TFC has a limited annual growth rate of 5.70%.

TFC has been paying a dividend for at least 10 years, so it has a reliable track record.

TFC has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.

Dividend Growth(5Y)5.7%

Div Incr Years9

Div Non Decr Years10

5.3 Sustainability

The earnings of TFC are negative and hence is the payout ratio. TFC will probably not be able to sustain this dividend level.

TFC's earnings are growing more than its dividend. This makes the dividend growth sustainable.

DP-164.26%

EPS Next 2Y13.77%

EPS Next 3Y11.78%

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TRUIST FINANCIAL CORP

NYSE:TFC (2/21/2025, 8:04:00 PM)

After market: 45.55 -0.11 (-0.24%)

45.66

-0.99 (-2.12%)

Chartmill FA Rating

GICS SectorFinancials

GICS IndustryGroupBanks

GICS IndustryBanks

Earnings (Last)01-17 2025-01-17/bmo

Earnings (Next)04-17 2025-04-17/bmo

Inst Owners75.97%

Inst Owner Change-2.06%

Ins Owners0.17%

Ins Owner Change1.82%

Market Cap60.09B

Analysts73.08

Price Target52.62 (15.24%)

Short Float %1.42%

Short Ratio2.56

Dividend

		Industry Rank	Sector Rank
Dividend Yield	4.48%

Yearly Dividend2.35

Dividend Growth(5Y)5.7%

DP-164.26%

Div Incr Years9

Div Non Decr Years10

Ex-Date02-14 2025-02-14 (0.52)

Surprises & Revisions

EPS beat(2)2

Avg EPS beat(2)7.62%

Min EPS beat(2)5.73%

Max EPS beat(2)9.5%

EPS beat(4)4

Avg EPS beat(4)5.2%

Min EPS beat(4)0.89%

Max EPS beat(4)9.5%

EPS beat(8)6

Avg EPS beat(8)1.18%

EPS beat(12)9

Avg EPS beat(12)2.56%

EPS beat(16)13

Avg EPS beat(16)6.35%

Revenue beat(2)1

Avg Revenue beat(2)1.64%

Min Revenue beat(2)-0.12%

Max Revenue beat(2)3.4%

Revenue beat(4)1

Avg Revenue beat(4)-3.23%

Min Revenue beat(4)-15.38%

Max Revenue beat(4)3.4%

Revenue beat(8)2

Avg Revenue beat(8)-1.9%

Revenue beat(12)2

Avg Revenue beat(12)-2.23%

Revenue beat(16)4

Avg Revenue beat(16)-1.55%

PT rev (1m)3.06%

PT rev (3m)9.64%

EPS NQ rev (1m)0.13%

EPS NQ rev (3m)-0.01%

EPS NY rev (1m)2.65%

EPS NY rev (3m)2.89%

Revenue NQ rev (1m)0.02%

Revenue NQ rev (3m)0.02%

Revenue NY rev (1m)0.2%

Revenue NY rev (3m)0.37%

Valuation

		Industry Rank	Sector Rank
PE	12.58
Fwd PE	11.13
P/S	4.32
P/FCF	15.96
P/OCF	15.96
P/B	0.91
P/tB	1.38
EV/EBITDA	N/A

EPS(TTM)3.63

EY7.95%

EPS(NY)4.1

Fwd EY8.99%

FCF(TTM)2.86

FCFY6.27%

OCF(TTM)2.86

OCFY6.27%

SpS10.57

BVpS49.92

TBVpS33.01

PEG (NY)0.96

PEG (5Y)N/A

Profitability

		Industry Rank	Sector Rank
ROA	-0.37%
ROE	-2.91%
ROCE	N/A
ROIC	N/A
ROICexc	N/A
ROICexgc	N/A
OM	N/A
PM (TTM)	N/A
GM	N/A
FCFM	27.06%

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

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 3Y7.55%

PM growth 5Y6.91%

GM growth 3YN/A

GM growth 5YN/A

F-Score5

Asset Turnover0.03

Health

		Industry Rank	Sector Rank
Debt/Equity	0.64
Debt/FCF	11.08
Debt/EBITDA	N/A
Cap/Depr	N/A
Cap/Sales	N/A
Interest Coverage	N/A
Cash Conversion	N/A
Profit Quality	N/A
Current Ratio	N/A
Quick Ratio	N/A
Altman-Z	N/A

F-Score5

WACC10.93%

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)-4.22%

EPS 3Y-13.09%

EPS 5Y-2.17%

EPS Q2Q%0%

EPS Next Y13.05%

EPS Next 2Y13.77%

EPS Next 3Y11.78%

EPS Next 5Y8.72%

Revenue 1Y (TTM)-43.23%

Revenue growth 3Y-15.87%

Revenue growth 5Y1.11%

Sales Q2Q%-10.28%

Revenue Next Year2.71%

Revenue Next 2Y3.72%

Revenue Next 3Y2.94%

Revenue Next 5Y4.34%

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-59.19%

FCF growth 3YN/A

FCF growth 5YN/A

OCF growth 1Y-61.54%

OCF growth 3YN/A

OCF growth 5YN/A

TRUIST FINANCIAL CORP (TFC) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

More info and screens

5. Dividend

5.1 Amount

5.2 History

5.3 Sustainability

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