NasdaqGS:FITB

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Flawless balance sheet, undervalued and pays a dividend.


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

-1.0%

FITB

-0.08%

US Banks

2.0%

US Market


1 Year Return

9.1%

FITB

15.5%

US Banks

23.6%

US Market

Return vs Industry: FITB underperformed the US Banks industry which returned 21.7% over the past year.

Return vs Market: FITB underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

FITBIndustryMarket
7 Day-1.0%-0.08%2.0%
30 Day-5.0%-1.6%3.9%
90 Day7.8%9.2%12.0%
1 Year12.9%9.1%18.9%15.5%26.2%23.6%
3 Year21.8%12.0%34.6%25.1%53.2%43.3%
5 Year91.1%66.7%86.1%65.2%75.7%56.3%

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?

23.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FITB ($29.74) is trading below our estimate of fair value ($39.16)

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


Price To Earnings Ratio

PE vs Industry: FITB is good value based on its PE Ratio (9.7x) compared to the Banks industry average (12.8x).

PE vs Market: FITB is good value based on its PE Ratio (9.7x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

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 (1.1x) 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?

-4.3%

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 (-4.3% per year).

Earnings vs Market: FITB's earnings are forecast to decline over the next 3 years (-4.3% per year).

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

Revenue vs Market: FITB's revenue (1.2% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: FITB's revenue (1.2% 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 (10.7%).


Next Steps

Past Performance

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

11.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FITB has high quality earnings.

Growing Profit Margin: FITB's current net profit margins (29.1%) are lower than last year (31.4%).


Past Earnings Growth Analysis

Earnings Trend: FITB's earnings have grown by 11.5% 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 (-0.2%) over the past year, making it difficult to compare to the Banks industry average (27.1%).


Return on Equity

High ROE: FITB's Return on Equity (10.4%) is considered low.


Return on Assets


Return on Capital Employed


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 (0.45%)


Next Steps

Dividend

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

3.26%

Current Dividend Yield


Dividend Yield vs Market

company3.3%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years3.8%

Current dividend yield vs market & industry

Notable Dividend: FITB's dividend (3.23%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: FITB's dividend (3.23%) is low compared to the top 25% of dividend payers in the US market (3.66%).


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 (30%), 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 (37.4% 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?

4.3yrs

Average management tenure


CEO

Greg Carmichael (57yo)

4.2yrs

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, National Association ("Bank") since November 01, 2015. Mr. Carmichael ser ...


CEO Compensation Analysis

Compensation vs Market: Greg's total compensation ($USD11.17M) is about average for companies of similar size in the US market ($USD10.76M).

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

4.3yrs

Average Tenure

55.5yo

Average Age

Experienced Management: FITB's management team is considered experienced (4.3 years average tenure).


Board Age and Tenure

7.2yrs

Average Tenure

65yo

Average Age

Experienced Board: FITB's board of directors are considered experienced (7.2 years average tenure).


Insider Trading

Insider Buying: FITB insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$228,99012 Dec 19
Frank Forrest
EntityIndividual
Role
Senior Key Executive
Executive VP & Chief Risk Officer
Shares7,500
Max PriceUS$30.53
SellUS$1,100,71106 Nov 19
Philip McHugh
EntityIndividual
Shares36,382
Max PriceUS$30.28
BuyUS$103,72005 Sep 19
B. Bayh
EntityIndividual
Role
Member of the Board of Directors
Independent Director
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

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


Management Team

  • Greg Carmichael (57yo)

    Chairman

    • Tenure: 4.2yrs
    • Compensation: US$11.17m
  • Tayfun Tuzun (54yo)

    Executive VP & CFO

    • Tenure: 6.3yrs
    • Compensation: US$3.02m
  • Lars Anderson (58yo)

    Executive VP & COO

    • Tenure: 4.4yrs
    • Compensation: US$3.90m
  • Susan Zaunbrecher (59yo)

    Executive VP

    • Tenure: 1.7yrs
  • Matt Jauchius (49yo)

    Chief Marketing Officer & Executive VP

    • Tenure: 2.8yrs
  • Frank Forrest (64yo)

    Executive VP & Chief Risk Officer

    • Tenure: 6.3yrs
    • Compensation: US$2.89m
  • Tim Spence (40yo)

    Executive VP and Head of Consumer Bank

    • Tenure: 4.3yrs
    • Compensation: US$3.04m
  • Jude Schramm (46yo)

    Executive VP & Chief Information Officer

    • Tenure: 1.8yrs
  • Rob Schipper

    Head of Investment Banking & MD

    • Chris Doll

      Director of Investor Relations


      Board Members

      • Mike McCallister (67yo)

        Independent Director

        • Tenure: 8.2yrs
        • Compensation: US$235.00k
      • Emerson Brumback (67yo)

        Independent Director

        • Tenure: 10.3yrs
        • Compensation: US$255.00k
      • Mike Michael (64yo)

        Chairman of the Cincinnati region

        • Tenure: 1.8yrs
      • Mitch Feiger (60yo)

        Chairman & CEO of Chicago Region

        • Tenure: 0.8yrs
      • Marsha Williams (68yo)

        Lead Director

        • Tenure: 1.9yrs
        • Compensation: US$316.67k
      • Evan Bayh (64yo)

        Independent Director

        • Tenure: 8.6yrs
        • Compensation: US$220.00k
      • Gary Heminger (66yo)

        Independent Director

        • Tenure: 13.1yrs
        • Compensation: US$265.00k
      • Greg Carmichael (57yo)

        Chairman

        • Tenure: 4.2yrs
        • Compensation: US$11.17m
      • Nick Akins (59yo)

        Independent Director

        • Tenure: 6.3yrs
        • Compensation: US$230.00k
      • Jewell Hoover (70yo)

        Independent Director

        • Tenure: 10.3yrs
        • Compensation: US$265.00k

      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$20.900b
      • Shares outstanding: 709.67m
      • 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
      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 Analysis2020/01/18 23:37
      End of Day Share Price2020/01/17 00:00
      Earnings2019/09/30
      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.