LSE:0IM1

Stock Analysis Report

Fifth Third Bancorp

Executive Summary

Fifth Third Bancorp operates as a diversified financial services company in the United States.


Snowflake Analysis

Flawless balance sheet established dividend payer.


Similar Companies

Share Price & News

How has Fifth Third Bancorp's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 0IM1's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

0IM1

0.03%

GB Banks

10.0%

GB Market


1 Year Return

-47.3%

0IM1

-35.7%

GB Banks

-23.0%

GB Market

Return vs Industry: 0IM1 underperformed the UK Banks industry which returned -35.7% over the past year.

Return vs Market: 0IM1 underperformed the UK Market which returned -23% over the past year.


Shareholder returns

0IM1IndustryMarket
7 Day0%0.03%10.0%
30 Day-50.8%-23.3%-17.6%
90 Day-57.0%-35.2%-27.3%
1 Year-44.9%-47.3%-31.2%-35.7%-18.9%-23.0%
3 Yearn/a-32.6%-41.8%-12.9%-24.2%
5 Yearn/a-30.8%-44.7%1.6%-21.8%

Price Volatility Vs. Market

How volatile is Fifth Third Bancorp's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Fifth Third Bancorp undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 0IM1 ($13.32) is trading below our estimate of fair value ($36.04)

Significantly Below Fair Value: 0IM1 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 0IM1 is poor value based on its PE Ratio (4.7x) compared to the Banks industry average (4.5x).

PE vs Market: 0IM1 is good value based on its PE Ratio (4.7x) compared to the UK market (12.4x).


Price to Earnings Growth Ratio

PEG Ratio: 0IM1's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: 0IM1 is overvalued based on its PB Ratio (0.6x) compared to the GB Banks industry average (0.5x).


Next Steps

Future Growth

How is Fifth Third Bancorp forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

-11.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 0IM1's earnings are forecast to decline over the next 3 years (-11.4% per year).

Earnings vs Market: 0IM1's earnings are forecast to decline over the next 3 years (-11.4% per year).

High Growth Earnings: 0IM1's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 0IM1's revenue (0.03% per year) is forecast to grow slower than the UK market (2.3% per year).

High Growth Revenue: 0IM1's revenue (0.03% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 0IM1's Return on Equity is forecast to be low in 3 years time (11.9%).


Next Steps

Past Performance

How has Fifth Third Bancorp performed over the past 5 years?

11.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 0IM1 has high quality earnings.

Growing Profit Margin: 0IM1's current net profit margins (30.4%) are lower than last year (30.9%).


Past Earnings Growth Analysis

Earnings Trend: 0IM1's earnings have grown by 11.7% per year over the past 5 years.

Accelerating Growth: 0IM1's earnings growth over the past year (14.5%) exceeds its 5-year average (11.7% per year).

Earnings vs Industry: 0IM1 earnings growth over the past year (14.5%) underperformed the Banks industry 29.6%.


Return on Equity

High ROE: 0IM1's Return on Equity (11.8%) is considered low.


Next Steps

Financial Health

How is Fifth Third Bancorp's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: 0IM1 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 0IM1's debt is not covered by short term assets (assets are 0.6x debt).


Financial Institutions Analysis

Asset Level: 0IM1's level of assets compared to its equity is low.

Allowance for Bad Loans: 0IM1 has a sufficient allowance for bad loans.

Low Risk Liabilities: 0IM1's liabilities are made up of primarily low risk sources of funding.

Loan Level: 0IM1 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 0IM1's loans are broadly funded by customer deposits.

Level of Bad Loans: 0IM1 has an appropriate level of bad loans (0.57%)


Next Steps

Dividend

What is Fifth Third Bancorp's current dividend yield, its reliability and sustainability?

6.81%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 0IM1's dividend (6.81%) is higher than the bottom 25% of dividend payers in the UK market (2.69%).

High Dividend: 0IM1's dividend (6.81%) is low compared to the top 25% of dividend payers in the UK market (7.48%).


Stability and Growth of Payments

Stable Dividend: 0IM1's dividends per share have been stable in the past 10 years.

Growing Dividend: 0IM1's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (27.8%), 0IM1's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 0IM1's dividends in 3 years are forecast to be well covered by earnings (33.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.7yrs

Average management tenure


CEO

Greg Carmichael (57yo)

4.33s

Tenure

US$8,999,237

Compensation

Mr. Gregory D. Carmichael, is also known as Greg, has been the Chief Executive Officer of Fifth Third Bancorp and Fifth Third Bank, National Association ("Bank") since November 01, 2015. Mr. Carmichael ser ...


CEO Compensation Analysis

Compensation vs Market: Greg's total compensation ($USD9.00M) is above average for companies of similar size in the UK market ($USD5.40M).

Compensation vs Earnings: Greg's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Gregory Carmichael
Chairman4.33yrsUS$9.00m0.091% $10.3m
Tayfun Tuzun
Executive VP & CFO6.42yrsUS$2.80m0.025% $2.8m
Timothy Spence
Executive VP and Head of Consumer Bank4.5yrsUS$2.61m0.023% $2.6m
Rob Schipper
Head of Investment Banking & MDno datano datano data
Jude Schramm
Executive VP & Chief Information Officer2yrsno data0.0037% $420.8k
Christopher Doll
Director of Investor Relationsno datano datano data
Susan Zaunbrecher
Executive VP1.83yrsno data0.0025% $278.7k
Matthew Jauchius
Chief Marketing Officer & Executive VP3yrsno datano data
Robert Shaffer
Executive VP & Chief Human Resources Officer3yrsno data0.0073% $821.3k
Robert LaClair
Regional President14.92yrsno datano data

3.7yrs

Average Tenure

49yo

Average Age

Experienced Management: 0IM1's management team is considered experienced (3.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Gregory Carmichael
Chairman4.33yrsUS$9.00m0.091% $10.3m
Mitchell Feiger
Regional President1yrno datano data
Michael McCallister
Independent Director8.33yrsUS$235.00k0.0023% $262.9k
Emerson Brumback
Independent Director10.42yrsUS$255.00k0.0038% $425.3k
Ralph Michael
Chairman of the Cincinnati region2yrsno datano data
Marsha Williams
Lead Independent Director2yrsUS$300.00k0.0031% $350.9k
B. Bayh
Independent Director8.75yrsUS$220.00k0.0034% $380.2k
Gary Heminger
Independent Director13.25yrsUS$265.00k0.0052% $586.7k
Nicholas Akins
Independent Director6.42yrsUS$230.00kno data
Jewell Hoover
Independent Director10.42yrsUS$265.00k0.0030% $337.3k

7.4yrs

Average Tenure

65yo

Average Age

Experienced Board: 0IM1's board of directors are considered experienced (7.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 0IM1 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.5%.


Top Shareholders

Company Information

Fifth Third Bancorp's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Fifth Third Bancorp
  • Ticker: 0IM1
  • Exchange: LSE
  • Founded: 1858
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$11.282b
  • Shares outstanding: 711.13m
  • Website: https://www.53.com

Number of Employees


Location

  • Fifth Third Bancorp
  • 38 Fountain Square Plaza
  • Cincinnati
  • Ohio
  • 45263
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FITBNasdaqGS (Nasdaq Global Select)YesCommon SharesUSUSDJan 1980
FFHDB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1980
0IM1LSE (London Stock Exchange)YesCommon SharesGBUSDJan 1980
FFHBRSE (Berne Stock Exchange)YesCommon SharesCHCHFJan 1980
FFHETLX (Eurotlx)YesCommon SharesITEURJan 1980
A1HK3YDB (Deutsche Boerse AG)5.1%-FRN JNR PERP USD 'H'DEUSDMay 2013
FITB.INasdaqGS (Nasdaq Global Select)DEP 1/1000 PFDUSUSDDec 2013
FFTD34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REP 1 COM NPVBRBRLMay 2019
FITB.PNasdaqGS (Nasdaq Global Select)6 DEP PFD B SR AUSUSDAug 2019
FITB.ONasdaqGS (Nasdaq Global Select)4.95 SHS PDF KUSUSDSep 2019

Biography

Fifth Third Bancorp operates as a diversified financial services company in the United States. The company’s Commercial Banking segment offers credit intermediation, cash management, and financial services; lending and depository products; and cash management, foreign exchange and international trade finance, derivatives and capital markets services, asset-based lending, real estate finance, public finance, commercial leasing, and syndicated finance for business, government, and professional customers. Its Branch Banking segment provides a range of deposit and loan products to individuals and small businesses. This segment offers checking and savings accounts, home equity loans and lines of credit, credit cards, and loans for automobiles and personal financing needs, as well as cash management services for small businesses. The company’s Consumer Lending segment engages in direct lending activities that include origination, retention, and servicing of residential mortgage and home equity loans or lines of credit; and indirect lending activities, including loans to consumers through correspondent lenders and automobile dealers. Fifth Third Bancorp’s Wealth & Asset Management segment provides various investment alternatives for individuals, companies, and not-for-profit organizations. It offers retail brokerage services to individual clients; and broker dealer services to the institutional marketplace. This segment also provides asset management services; holistic strategies to affluent clients in wealth planning, investing, insurance, and wealth protection; and advisory services for institutional clients comprising states and municipalities. As of June 30, 2019, the company operated 1,207 full-service banking centers and 2,551 ATMs in Ohio, Kentucky, Indiana, Michigan, Illinois, Florida, Tennessee, West Virginia, Georgia, and North Carolina. Fifth Third Bancorp was founded in 1858 and is headquartered in Cincinnati, Ohio. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 23:39
End of Day Share Price2020/03/20 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.