TRUIST FINANCIAL CORP (TFC) Stock Fundamental Analysis
NYSE:TFC - New York Stock Exchange, Inc. - US89832Q1094 - Common Stock
Taking everything into account, TFC scores 3 out of 10 in our fundamental rating. TFC was compared to 405 industry peers in the Banks industry. Both the profitability and financial health of TFC have multiple concerns. TFC is not valued too expensively and it also shows a decent growth rate. Finally TFC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year TFC was profitable.
In the past year TFC had a positive cash flow from operations.
Of the past 5 years TFC 4 years were profitable.
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.
TFC's Return On Equity of -2.91% is on the low side compared to the rest of the industry. TFC is outperformed by 94.47% of its industry peers.
| 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
2. Health
2.1 Basic Checks
TFC does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for TFC has been reduced compared to 1 year ago.
The number of shares outstanding for TFC has been reduced compared to 5 years ago.
TFC has a worse debt/assets ratio than last year.
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 worse Debt to FCF ratio (11.08) than 72.61% 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.
Looking at the Debt to Equity ratio, with a value of 0.64, TFC is doing worse than 81.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 11.08 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC11.12%
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 TFC have decreased by -4.22% in the last year.
The Earnings Per Share has been decreasing by -2.17% on average over the past years.
TFC shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -43.23%.
TFC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.11% yearly.
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%-11.2%
3.2 Future
TFC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.72% yearly.
TFC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.34% yearly.
EPS Next Y10.13%
EPS Next 2Y12.6%
EPS Next 3Y12.19%
EPS Next 5Y8.72%
Revenue Next Year2.64%
Revenue Next 2Y3.9%
Revenue Next 3Y3.92%
Revenue Next 5Y4.34%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 13.19, TFC is valued correctly.
TFC's Price/Earnings is on the same level as the industry average.
TFC is valuated cheaply when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 11.98, the valuation of TFC can be described as reasonable.
TFC's Price/Forward Earnings is on the same level as the industry average.
TFC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.19 | ||
| Fwd PE | 11.98 |
4.2 Price Multiples
62.31% of the companies in the same industry are cheaper than TFC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.89 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as TFC's earnings are expected to grow with 12.19% in the coming years.
PEG (NY)1.3
PEG (5Y)N/A
EPS Next 2Y12.6%
EPS Next 3Y12.19%
5. Dividend
5.1 Amount
TFC has a Yearly Dividend Yield of 4.37%, which is a nice return.
Compared to an average industry Dividend Yield of 3.22, TFC pays a better dividend. On top of this TFC pays more dividend than 83.17% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.28, TFC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.37% |
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 2Y12.6%
EPS Next 3Y12.19%
TRUIST FINANCIAL CORP
NYSE:TFC (1/21/2025, 8:04:00 PM)
After market: 47.89 0 (0%)47.89
+0.24 (+0.5%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners75.97%
Inst Owner Change-0.39%
Ins Owners0.17%
Ins Owner Change2.49%
Market Cap63.57B
Analysts73.57
Price Target51.06 (6.62%)
Short Float %1.22%
Short Ratio2.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.37% |
Yearly Dividend2.35
Dividend Growth(5Y)5.7%
DP-164.26%
Div Incr Years9
Div Non Decr Years10
Ex-DateN/A
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)4.02%
PT rev (3m)7.34%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.74%
EPS NY rev (1m)0%
EPS NY rev (3m)1.81%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.47%
Revenue NY rev (1m)0.7%
Revenue NY rev (3m)0.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.19 | ||
| Fwd PE | 11.98 | ||
| P/S | 4.57 | ||
| P/FCF | 16.89 | ||
| P/OCF | 16.89 | ||
| P/B | 0.97 | ||
| P/tB | 1.46 | ||
| EV/EBITDA | N/A |
EPS(TTM)3.63
EY7.58%
EPS(NY)4
Fwd EY8.35%
FCF(TTM)2.84
FCFY5.92%
OCF(TTM)2.84
OCFY5.92%
SpS10.48
BVpS49.49
TBVpS32.72
PEG (NY)1.3
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
WACC11.12%
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 Y10.13%
EPS Next 2Y12.6%
EPS Next 3Y12.19%
EPS Next 5Y8.72%
Revenue 1Y (TTM)-43.23%
Revenue growth 3Y-15.87%
Revenue growth 5Y1.11%
Sales Q2Q%-11.2%
Revenue Next Year2.64%
Revenue Next 2Y3.9%
Revenue Next 3Y3.92%
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