NasdaqGS:FITB

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

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


Market Performance


7 Day Return

1.8%

FITB

2.7%

US Banks

0.4%

US Market


1 Year Return

3.8%

FITB

2.7%

US Banks

6.9%

US Market

Return vs Industry: FITB exceeded the US Banks industry which returned 2.7% over the past year.

Return vs Market: FITB underperformed the US Market which returned 6.9% over the past year.


Shareholder returns

FITBIndustryMarket
7 Day1.8%2.7%0.4%
30 Day-2.2%0.7%-1.1%
90 Day-2.2%3.0%-0.5%
1 Year7.6%3.8%5.7%2.7%9.3%6.9%
3 Year39.7%28.9%52.1%41.6%45.8%36.4%
5 Year63.6%42.9%69.2%50.7%62.9%45.1%

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?

34.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: FITB ($27.33) is trading below our estimate of fair value ($41.85)

Significantly Undervalued: 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 (9.2x) compared to the Banks industry average (12.6x).

PE vs Market: FITB is good value based on its PE Ratio (9.2x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: FITB is good value based on its PB Ratio (1x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Fifth Third Bancorp forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

-4.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FITB's earnings are forecast to decline over the next 3 years (-4.8% per year).

Earnings vs Market: FITB's earnings are forecast to decline over the next 3 years (-4.8% per year).

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

Revenue vs Market: FITB's revenue (2.2% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: FITB's revenue (2.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: FITB's Return on Equity is forecast to be low in 3 years time (11.7%).


Next Steps

Past Performance

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

11.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: FITB's earnings have grown by 11.4% 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 (-25.3%) over the past year, making it difficult to compare to the Banks industry average (29.6%).


Return on Equity

High ROE: FITB's Return on Equity (10.2%) is considered low.


Return on Assets

ROA vs Industry: FITB has a higher Return on Assets than the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate FITB's Return on Capital Employed to determine if it has improved over the past 3 years.


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: FITB has a low level of unsold assets or inventory.

Debt Coverage by Assets: FITB's debt is not covered by short term assets (assets are 0.3x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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

3.51%

Current Dividend Yield


Dividend Yield vs Market

company3.5%marketbottom25%1.4%markettop25%3.7%industryaverage3.0%forecastin3Years3.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: FITB's dividend (3.51%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: FITB's dividend (3.51%) is low compared to the top 25% of dividend payers in the US market (3.73%).

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 (28.9%), 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 (37.2% payout ratio).


Next Steps

Management

What is the CEO of Fifth Third Bancorp's salary, the management and board of directors tenure and is there insider trading?

4.0yrs

Average management tenure


CEO

Greg Carmichael (57yo)

3.9yrs

Tenure

US$11,173,652

Compensation

Mr. Gregory D. Carmichael, is also known as Greg, has been the Chief Executive Officer of Fifth Third Bancorp and Fifth Third Bank since November 01, 2015. He is a President of Fifth Third Bancorp since Se ...


CEO Compensation Analysis

Compensation vs. Market: Greg's total compensation ($USD11.17M) is about average for companies of similar size in the US market ($USD11.18M).

Compensation vs Earnings: Greg's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

4.0yrs

Average Tenure

55.5yo

Average Age

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


Board Age and Tenure

6.5yrs

Average Tenure

66yo

Average Age

Experienced Board: FITB's board of directors are considered experienced (6.5 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUS$103,72005 Sep 19
B. Bayh
EntityIndividual
Shares4,000
Max PriceUS$25.93
SellUS$99,10605 Jun 19
Jewell Hoover
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,739
Max PriceUS$26.51
SellUS$6,05007 May 19
Robert Shaffer
EntityIndividual
Shares208.76
Max PriceUS$28.98
SellUS$83,89802 May 19
Teresa Tanner
EntityIndividual
Shares2,918.21
Max PriceUS$28.75
SellUS$685,62012 Mar 19
Frank Forrest
EntityIndividual
Role
Senior Key Executive
Executive VP & Chief Risk Officer
Shares26,000
Max PriceUS$26.37

Ownership Breakdown


Management Team

  • Greg Carmichael (57yo)

    Chairman

    • Tenure: 3.9yrs
    • Compensation: US$11.17m
  • Tayfun Tuzun (54yo)

    Executive VP & CFO

    • Tenure: 6yrs
    • Compensation: US$3.02m
  • Lars Anderson (58yo)

    Executive VP & COO

    • Tenure: 4.2yrs
    • Compensation: US$3.90m
  • Susan Zaunbrecher (59yo)

    Executive VP

    • Tenure: 1.4yrs
  • Matt Jauchius (49yo)

    Chief Marketing Officer & Executive VP

    • Tenure: 2.6yrs
  • Frank Forrest (64yo)

    Executive VP & Chief Risk Officer

    • Tenure: 6.1yrs
    • Compensation: US$2.89m
  • Tim Spence (40yo)

    Executive VP and Head of Consumer Bank

    • Tenure: 4.1yrs
    • Compensation: US$3.04m
  • Jude Schramm (46yo)

    Executive VP & Chief Information Officer

    • Tenure: 1.6yrs
  • Rob Schipper

    Head of Investment Banking & MD

    • Tenure: 0yrs
  • Chris Doll

    Director of Investor Relations

    • Tenure: 0yrs

Board Members

  • Mike McCallister (67yo)

    Independent Director

    • Tenure: 7.9yrs
    • Compensation: US$235.00k
  • Emerson Brumback (67yo)

    Independent Director

    • Tenure: 10yrs
    • Compensation: US$255.00k
  • Mike Michael (64yo)

    Chairman of the Cincinnati region

    • Tenure: 1.6yrs
  • Mitch Feiger (60yo)

    Chairman & CEO of Chicago Region

    • Tenure: 0.6yrs
  • Marsha Williams (68yo)

    Lead Director

    • Tenure: 1.7yrs
    • Compensation: US$316.67k
  • Gary Heminger (66yo)

    Independent Director

    • Tenure: 12.8yrs
    • Compensation: US$265.00k
  • Greg Carmichael (57yo)

    Chairman

    • Tenure: 3.9yrs
    • Compensation: US$11.17m
  • Nick Akins (59yo)

    Independent Director

    • Tenure: 6yrs
    • Compensation: US$230.00k
  • Jewell Hoover (70yo)

    Independent Director

    • Tenure: 10yrs
    • Compensation: US$265.00k
  • Tom Heiks

    Executive VP & Head of Middle-Market Banking

    • Tenure: 7yrs

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$19.644b
  • Shares outstanding: 718.76m
  • 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
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 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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 23:33
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.