NasdaqGS:FITB

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Flawless balance sheet 6 star 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: FITB's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-7.3%

FITB

-1.7%

US Banks

1.9%

US Market


1 Year Return

-34.4%

FITB

-27.6%

US Banks

4.3%

US Market

Return vs Industry: FITB underperformed the US Banks industry which returned -25.9% over the past year.

Return vs Market: FITB underperformed the US Market which returned 3.8% over the past year.


Shareholder returns

FITBIndustryMarket
7 Day-7.3%-1.7%1.9%
30 Day-7.0%-4.3%2.7%
90 Day29.1%11.3%26.4%
1 Year-31.2%-34.4%-25.0%-27.6%6.5%4.3%
3 Year-23.1%-30.6%-18.1%-24.7%35.1%26.2%
5 Year5.1%-9.9%11.4%-2.1%67.0%48.4%

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

Valuation

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

0.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FITB ($18.44) is trading below our estimate of fair value ($18.51)

Significantly Below Fair Value: FITB is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: FITB is good value based on its PE Ratio (8x) compared to the Banks industry average (9.6x).

PE vs Market: FITB is good value based on its PE Ratio (8x) compared to the US market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: FITB is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: FITB is good value based on its PB Ratio (0.7x) compared to the US Banks industry average (0.8x).


Next Steps

Future Growth

How is Fifth Third Bancorp forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

21.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FITB's forecast earnings growth (21.7% per year) is above the savings rate (2.2%).

Earnings vs Market: FITB's earnings (21.7% per year) are forecast to grow slower than the US market (22.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: FITB's revenue (0.3% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: FITB's revenue (0.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FITB's Return on Equity is forecast to be low in 3 years time (7.8%).


Next Steps

Past Performance

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

9.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FITB has high quality earnings.

Growing Profit Margin: FITB's current net profit margins (23.8%) are lower than last year (31%).


Past Earnings Growth Analysis

Earnings Trend: FITB's earnings have grown by 9.8% per year over the past 5 years.

Accelerating Growth: FITB's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: FITB had negative earnings growth (-22.8%) over the past year, making it difficult to compare to the Banks industry average (1.9%).


Return on Equity

High ROE: FITB's Return on Equity (8.2%) 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


Financial Institutions Analysis

Asset Level: FITB's Assets to Equity ratio (8.5x) is low.

Allowance for Bad Loans: FITB has a sufficient allowance for bad loans (362%).

Low Risk Liabilities: 83% of FITB's liabilities are made up of primarily low risk sources of funding.

Loan Level: FITB has an appropriate level of Loans to Assets ratio (62%).

Low Risk Deposits: FITB's Loans to Deposits ratio (86%) is appropriate.

Level of Bad Loans: FITB has an appropriate level of bad loans (0.5%).


Next Steps

Dividend

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

5.86%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FITB's dividend (5.86%) is higher than the bottom 25% of dividend payers in the US market (1.67%).

High Dividend: FITB's dividend (5.86%) is in the top 25% of dividend payers in the US market (4.4%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (42.8%), FITB's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FITB's dividends in 3 years are forecast to be well covered by earnings (49.9% payout ratio).


Next Steps

Management

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

4.0yrs

Average management tenure


CEO

Greg Carmichael (58yo)

4.67yrs

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 ($USD9.00M) is about average for companies of similar size in the US market ($USD11.50M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Gregory Carmichael
Chairman4.67yrsUS$9.00m0.091% $12.0m
Tayfun Tuzun
Executive VP & CFO6.75yrsUS$2.80m0.025% $3.2m
Frank Forrest
Executive VP & Special Advisor to the Chief Executive Officerno dataUS$2.50m0.0071% $933.1k
Lars Anderson
Executive VP & Vice Chairman of Commercial Banking Strategic Growth Initiativesno dataUS$3.31m0.017% $2.2m
Timothy Spence
Executive VP and Head of Consumer Bank4.83yrsUS$2.61m0.023% $3.0m
Rob Schipper
Head of Investment Banking & MDno datano datano data
Jude Schramm
Executive VP & Chief Information Officer2.33yrsno data0.0036% $469.8k
Christopher Doll
Director of Investor Relationsno datano datano data
Susan Zaunbrecher
Executive VP2.17yrsno data0.0025% $322.9k
Matthew Jauchius
Chief Marketing Officer & Executive VP3.33yrsno datano data

4.0yrs

Average Tenure

56.5yo

Average Age

Experienced Management: FITB's management team is considered experienced (4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Gregory Carmichael
Chairman4.67yrsUS$9.00m0.091% $12.0m
Michael McCallister
Independent Director8.67yrsUS$235.00k0.0030% $396.3k
Emerson Brumback
Independent Director10.75yrsUS$255.00k0.0042% $548.6k
Ralph Michael
Chairman of the Cincinnati region2.33yrsno datano data
Mitchell Feiger
Director1.33yrsno data0.082% $10.8m
Marsha Williams
Lead Independent Director2.42yrsUS$300.00k0.0045% $594.5k
Gary Heminger
Independent Director13.58yrsUS$265.00k0.0056% $733.6k
Nicholas Akins
Independent Director6.75yrsUS$230.00kno data
Jewell Hoover
Independent Director10.75yrsUS$265.00k0.0030% $391.1k
Eileen Mallesch
Independent Director3.83yrsUS$220.00kno data

5.3yrs

Average Tenure

66yo

Average Age

Experienced Board: FITB's board of directors are considered experienced (5.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Fifth Third Bancorp
  • Ticker: FITB
  • Exchange: NasdaqGS
  • Founded: 1858
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$13.124b
  • Shares outstanding: 711.91m
  • Website: https://www.53.com

Number of Employees


Location

  • Fifth Third Bancorp
  • Fifth Third Center
  • 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
A1HK3YDB (Deutsche Boerse AG)PERP JR H NT5.1%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% DP SH CL B SRUSUSDAug 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; wealth planning, investment management, banking, insurance, and trust and estate services; and advisory services for institutional clients comprising middle market businesses, non-profits, states, and municipalities. As of April 14, 2020, the company operated 1,149 full-service banking centers and 2,481 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 Analysis2020/07/01 23:50
End of Day Share Price2020/07/01 00:00
Earnings2020/03/31
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.