TRUIST FINANCIAL CORP (TFC)

US89832Q1094 - Common Stock

47.615  +0.8 (+1.72%)

Fundamental Rating

3

Overall TFC gets a fundamental rating of 3 out of 10. We evaluated TFC against 404 industry peers in the Banks industry. Both the profitability and financial health of TFC have multiple concerns. TFC is valued correctly, but it does not seem to be growing. TFC also has an excellent dividend rating.



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2

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.
In the past 5 years TFC always reported a positive cash flow from operatings.

1.2 Ratios

TFC has a worse Return On Assets (-0.42%) than 95.76% of its industry peers.
TFC has a worse Return On Equity (-3.41%) than 96.01% of its industry peers.
Industry RankSector Rank
ROA -0.42%
ROE -3.41%
ROIC N/A
ROA(3y)0.64%
ROA(5y)0.67%
ROE(3y)5.35%
ROE(5y)5.3%
ROIC(3y)N/A
ROIC(5y)N/A

1.3 Margins

The Profit Margin and Operating Margin and Gross Margin are not available for TFC so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM N/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A

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1

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 increased compared to 1 year ago.
TFC has more shares outstanding than it did 5 years ago.
TFC has a better debt/assets ratio than last year.

2.2 Solvency

The Debt to FCF ratio of TFC is 8.20, which is on the high side as it means it would take TFC, 8.20 years of fcf income to pay off all of its debts.
TFC's Debt to FCF ratio of 8.20 is on the low side compared to the rest of the industry. TFC is outperformed by 72.32% of its industry peers.
A Debt/Equity ratio of 0.60 indicates that TFC is somewhat dependend on debt financing.
The Debt to Equity ratio of TFC (0.60) is worse than 77.56% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.6
Debt/FCF 8.2
Altman-Z N/A
ROIC/WACCN/A
WACC11.03%

2.3 Liquidity

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

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3

3. Growth

3.1 Past

TFC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -13.16%.
Measured over the past years, TFC shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.62% on average per year.
TFC shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -42.14%.
Measured over the past years, TFC shows a quite strong growth in Revenue. The Revenue has been growing by 15.72% on average per year.
EPS 1Y (TTM)-13.16%
EPS 3Y-0.09%
EPS 5Y-0.62%
EPS Q2Q%15.48%
Revenue 1Y (TTM)-42.14%
Revenue growth 3Y1%
Revenue growth 5Y15.72%
Sales Q2Q%-9.38%

3.2 Future

TFC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.71% yearly.
The Revenue is expected to decrease by -2.58% on average over the next years.
EPS Next Y-1.82%
EPS Next 2Y2.59%
EPS Next 3Y6.61%
EPS Next 5Y7.71%
Revenue Next Year-14.44%
Revenue Next 2Y-6.1%
Revenue Next 3Y-2.58%
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 accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.

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4

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 13.12 indicates a correct valuation of TFC.
Based on the Price/Earnings ratio, TFC is valued a bit cheaper than 63.09% of the companies in the same industry.
When comparing the Price/Earnings ratio of TFC to the average of the S&P500 Index (28.96), we can say TFC is valued rather cheaply.
The Price/Forward Earnings ratio is 11.94, which indicates a very decent valuation of TFC.
TFC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TFC is cheaper than 63.59% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.82, TFC is valued a bit cheaper.
Industry RankSector Rank
PE 13.12
Fwd PE 11.94

4.2 Price Multiples

The rest of the industry has a similar Price/Free Cash Flow ratio as TFC.
Industry RankSector Rank
P/FCF 13.74
EV/EBITDA N/A

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y2.59%
EPS Next 3Y6.61%

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7

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 4.50%, TFC is a good candidate for dividend investing.
TFC's Dividend Yield is rather good when compared to the industry average which is at 3.02. TFC pays more dividend than 88.78% of the companies in the same industry.
TFC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.23.
Industry RankSector Rank
Dividend Yield 4.5%

5.2 History

The dividend of TFC has a limited annual growth rate of 5.70%.
TFC has paid a dividend for at least 10 years, which is a reliable track record.
As TFC did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)5.7%
Div Incr Years9
Div Non Decr Years9

5.3 Sustainability

TFC has negative earnings and hence a negative payout ratio. The dividend may be in danger.
TFC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-144.19%
EPS Next 2Y2.59%
EPS Next 3Y6.61%

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TRUIST FINANCIAL CORP

NYSE:TFC (11/22/2024, 11:08:10 AM)

47.615

+0.8 (+1.72%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap63.71B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 4.5%
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 RankSector Rank
PE 13.12
Fwd PE 11.94
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)N/A
Profitability
Industry RankSector Rank
ROA -0.42%
ROE -3.41%
ROCE
ROIC
ROICexc
ROICexgc
OM N/A
PM (TTM) N/A
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 Turnover0.03
Health
Industry RankSector Rank
Debt/Equity 0.6
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)-13.16%
EPS 3Y-0.09%
EPS 5Y
EPS Q2Q%
EPS Next Y-1.82%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-42.14%
Revenue growth 3Y1%
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