NasdaqGS:FITB

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.6%

FITB

-0.7%

US Banks

1.3%

US Market


1 Year Return

-29.6%

FITB

-23.5%

US Banks

14.9%

US Market

Return vs Industry: FITB underperformed the US Banks industry which returned -25.2% over the past year.

Return vs Market: FITB underperformed the US Market which returned 12.5% over the past year.


Shareholder returns

FITBIndustryMarket
7 Day1.6%-0.7%1.3%
30 Day6.9%2.6%4.7%
90 Day12.6%4.8%17.1%
1 Year-26.2%-29.6%-20.8%-23.5%17.3%14.9%
3 Year-19.0%-26.9%-15.5%-22.2%38.9%29.9%
5 Year9.6%-6.1%8.5%-4.7%71.3%52.8%

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

Valuation

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

7.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FITB ($19.86) is trading below our estimate of fair value ($21.51)

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 poor value based on its PE Ratio (10.1x) compared to the US Banks industry average (9.6x).

PE vs Market: FITB is good value based on its PE Ratio (10.1x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: FITB is good value based on its PEG Ratio (0.5x)


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 16 analysts?

22.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FITB's forecast earnings growth (22.3% per year) is above the savings rate (2.2%).

Earnings vs Market: FITB's earnings (22.3% per year) are forecast to grow faster than the US market (22.2% per year).

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

Revenue vs Market: FITB's revenue (2.7% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: FITB's revenue (2.7% 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 (9.5%).


Next Steps

Past Performance

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

7.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FITB has high quality earnings.

Growing Profit Margin: FITB's current net profit margins (21.4%) are lower than last year (28.9%).


Past Earnings Growth Analysis

Earnings Trend: FITB's earnings have grown by 7.3% 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 (-30.1%) over the past year, making it difficult to compare to the Banks industry average (-2.9%).


Return on Equity

High ROE: FITB's Return on Equity (6.8%) 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


Financial Institutions Analysis

Asset Level: FITB's Assets to Equity ratio (9.1x) is low.

Allowance for Bad Loans: FITB has a sufficient allowance for bad loans (384%).

Low Risk Liabilities: 87% 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 (55%).

Low Risk Deposits: FITB's Loans to Deposits ratio (72%) is appropriate.

Level of Bad Loans: FITB has an appropriate level of bad loans (0.6%).


Next Steps

Dividend

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

5.44%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FITB's dividend (5.44%) is higher than the bottom 25% of dividend payers in the US market (1.66%).

High Dividend: FITB's dividend (5.44%) is in the top 25% of dividend payers in the US market (4.51%)


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 reasonable payout ratio (51.8%), FITB's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FITB's dividends in 3 years are forecast to be well covered by earnings (38.3% payout ratio).


Next Steps

Management

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

4.1yrs

Average management tenure


CEO

Greg Carmichael (58 yo)

4.75yrs

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 ($USD9.00M) is about average for companies of similar size in the US market ($USD11.35M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Gregory Carmichael
Chairman4.75yrsUS$9.00m0.091%
$ 12.9m
Tayfun Tuzun
Executive VP & CFO6.83yrsUS$2.80m0.025%
$ 3.5m
Frank Forrest
Executive VP & Special Advisor to the Chief Executive Officerno dataUS$2.50m0.0071%
$ 1.0m
Lars Anderson
Executive VP & Vice Chairman of Commercial Banking Strategic Growth Initiativesno dataUS$3.31m0.017%
$ 2.4m
Timothy Spence
Executive VP and Head of Consumer Bank4.92yrsUS$2.61m0.023%
$ 3.2m
Rob Schipper
Head of Investment Banking & MDno datano datano data
Jude Schramm
Executive VP & Chief Information Officer2.42yrsno data0.0036%
$ 506.4k
Christopher Doll
Director of Investor Relationsno datano datano data
Susan Zaunbrecher
Executive VP2.25yrsno data0.0025%
$ 348.0k
Matthew Jauchius
Chief Marketing Officer & Executive VP3.42yrsno datano data
Robert Shaffer
Executive VP & Chief Human Resources Officer3.5yrsno data0.0086%
$ 1.2m
Robert LaClair
Regional President15.33yrsno datano data

4.1yrs

Average Tenure

55yo

Average Age

Experienced Management: FITB's management team is considered experienced (4.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Gregory Carmichael
Chairman4.75yrsUS$9.00m0.091%
$ 12.9m
Michael McCallister
Independent Director8.75yrsUS$235.00k0.0030%
$ 427.2k
Emerson Brumback
Independent Director10.83yrsUS$255.00k0.0042%
$ 589.8k
Ralph Michael
Chairman of the Cincinnati region2.42yrsno datano data
Mitchell Feiger
Director1.42yrsno data0.082%
$ 11.6m
Marsha Williams
Lead Independent Director2.5yrsUS$300.00k0.0045%
$ 640.7k
B. Bayh
Independent Director9.17yrsUS$220.00k0.0027%
$ 384.7k
Gary Heminger
Independent Director13.67yrsUS$265.00k0.0056%
$ 789.3k
Nicholas Akins
Independent Director6.83yrsUS$230.00kno data
Jewell Hoover
Independent Director10.83yrsUS$265.00k0.0030%
$ 421.5k
Eileen Mallesch
Independent Director3.92yrsUS$220.00kno data
Katherine Blackburn
Independent Director5.67yrsUS$220.00k0.011%
$ 1.6m

6.3yrs

Average Tenure

65yo

Average Age

Experienced Board: FITB's board of directors are considered experienced (6.3 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$14.144b
  • Shares outstanding: 712.20m
  • 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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/02 23:37
End of Day Share Price2020/07/31 00:00
Earnings2020/06/30
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.