TRUIST FINANCIAL CORP (TFC)
US89832Q1094 - Common Stock
TFC gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 407 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. Finally TFC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
TFC had positive earnings in the past year.
TFC had a positive operating cash flow in the past year.
TFC had positive earnings in 4 of the past 5 years.
Each year in the past 5 years TFC had a positive operating cash flow.
1.2 Ratios
TFC's Return On Assets of -0.37% is on the low side compared to the rest of the industry. TFC is outperformed by 94.80% of its industry peers.
Looking at the Return On Equity, with a value of -2.91%, TFC is doing worse than 94.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.37% | ||
| ROE | -2.91% | ||
| 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
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 3YN/A
PM growth 5YN/A
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.
TFC has more shares outstanding than it did 1 year ago.
TFC has more shares outstanding than it did 5 years ago.
The debt/assets ratio for TFC has been reduced compared to a year ago.
2.2 Solvency
TFC has a debt to FCF ratio of 11.08. This is a negative value and a sign of low solvency as TFC would need 11.08 years to pay back of all of its debts.
TFC has a worse Debt to FCF ratio (11.08) than 71.29% 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.
The Debt to Equity ratio of TFC (0.64) is worse than 81.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 11.08 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC10.9%
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 strongly by -13.16% in the last year.
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.
Looking at the last year, TFC shows a very negative growth in Revenue. The Revenue has decreased by -42.14% in the last year.
The Revenue has been growing by 15.72% on average over the past years. This is quite good.
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.
Based on estimates for the next years, TFC will show a small growth in Revenue. The Revenue will grow by 1.22% on average per year.
EPS Next Y-1.83%
EPS Next 2Y2.71%
EPS Next 3Y6.69%
EPS Next 5Y7.71%
Revenue Next Year-14.44%
Revenue Next 2Y-6.06%
Revenue Next 3Y-2.57%
Revenue Next 5Y1.22%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
With a Price/Earnings ratio of 11.93, the valuation of TFC can be described as very reasonable.
TFC's Price/Earnings ratio is a bit cheaper when compared to the industry. TFC is cheaper than 64.36% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.20, TFC is valued rather cheaply.
The Price/Forward Earnings ratio is 10.84, which indicates a very decent valuation of TFC.
63.12% of the companies in the same industry are more expensive than TFC, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.73. TFC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.93 | ||
| Fwd PE | 10.84 |
4.2 Price Multiples
The rest of the industry has a similar Price/Free Cash Flow ratio as TFC.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.27 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y2.71%
EPS Next 3Y6.69%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.89%, TFC is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.21, TFC pays a better dividend. On top of this TFC pays more dividend than 89.85% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, TFC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.89% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.7%
Div Incr Years9
Div Non Decr Years10
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-164.26%
EPS Next 2Y2.71%
EPS Next 3Y6.69%
TRUIST FINANCIAL CORP
NYSE:TFC (12/20/2024, 8:04:00 PM)
After market: 43 -0.32 (-0.74%)43.32
+0.77 (+1.81%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners75.97%
Inst Owner Change1.63%
Ins Owners0.17%
Ins Owner Change2.49%
Market Cap57.51B
Analysts73.57
Price Target49.09 (13.32%)
Short Float %1.36%
Short Ratio2.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.89% |
Dividend Growth(5Y)5.7%
DP-164.26%
Div Incr Years9
Div Non Decr Years10
Ex-Date
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)2.28%
PT rev (3m)3.19%
EPS NQ rev (1m)-0.13%
EPS NQ rev (3m)-1.74%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)1.81%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.47%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.93 | ||
| Fwd PE | 10.84 | ||
| P/S | 4.13 | ||
| P/FCF | 15.27 | ||
| P/OCF | 15.27 | ||
| P/B | 0.88 | ||
| P/tB | 1.32 | ||
| EV/EBITDA | N/A |
EPS(TTM)3.63
EY8.38%
EPS(NY)4
Fwd EY9.23%
FCF(TTM)2.84
FCFY6.55%
OCF(TTM)2.84
OCFY6.55%
SpS10.48
BVpS49.49
TBVpS32.72
PEG (NY)N/A
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)0.64%
ROA(5y)0.67%
ROE(3y)5.35%
ROE(5y)5.3%
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 3YN/A
PM growth 5YN/A
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
WACC10.9%
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)-13.16%
EPS 3Y-0.09%
EPS 5Y-0.62%
EPS Q2Q%15.48%
EPS Next Y-1.83%
EPS Next 2Y2.71%
EPS Next 3Y6.69%
EPS Next 5Y7.71%
Revenue 1Y (TTM)-42.14%
Revenue growth 3Y1%
Revenue growth 5Y15.72%
Sales Q2Q%-9.38%
Revenue Next Year-14.44%
Revenue Next 2Y-6.06%
Revenue Next 3Y-2.57%
Revenue Next 5Y1.22%
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-69.2%
FCF growth 3Y9.23%
FCF growth 5Y14.69%
OCF growth 1Y-69.52%
OCF growth 3Y5.09%
OCF growth 5Y14.69%