NasdaqGS:TCF

Stock Analysis Report

Executive Summary

TCF Financial Corporation operates as the bank holding company for TCF National Bank that provides various financial products and services in the United States and Canada.


Snowflake Analysis

Undervalued with excellent balance sheet and pays a dividend.


Similar Companies

Share Price & News

How has TCF Financial's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TCF has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.5%

TCF

-1.2%

US Banks

-1.0%

US Market


1 Year Return

-8.8%

TCF

10.3%

US Banks

18.0%

US Market

Return vs Industry: TCF underperformed the US Banks industry which returned 10.3% over the past year.

Return vs Market: TCF underperformed the US Market which returned 18% over the past year.


Shareholder returns

TCFIndustryMarket
7 Day-2.5%-1.2%-1.0%
30 Day-6.6%-1.3%0.6%
90 Day1.9%-0.3%7.9%
1 Year-5.8%-8.8%13.6%10.3%20.4%18.0%
3 Year32.6%22.6%24.1%15.2%48.0%38.5%
5 Year53.8%36.8%74.1%54.3%72.2%53.3%

Price Volatility Vs. Market

How volatile is TCF Financial's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is TCF Financial undervalued compared to its fair value and its price relative to the market?

30.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TCF ($42.24) is trading below our estimate of fair value ($60.49)

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


Price To Earnings Ratio

PE vs Industry: TCF is poor value based on its PE Ratio (16.5x) compared to the Banks industry average (12.6x).

PE vs Market: TCF is good value based on its PE Ratio (16.5x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

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


Next Steps

Future Growth

How is TCF Financial forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

40.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TCF's forecast earnings growth (40.6% per year) is above the savings rate (1.7%).

Earnings vs Market: TCF's earnings (40.6% per year) are forecast to grow faster than the US market (14.2% per year).

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

Revenue vs Market: TCF's revenue (13.3% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: TCF's revenue (13.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TCF's Return on Equity is forecast to be low in 3 years time (12.6%).


Next Steps

Past Performance

How has TCF Financial performed over the past 5 years?

15.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TCF has a large one-off loss of $185.2M impacting its December 31 2019 financial results.

Growing Profit Margin: TCF's current net profit margins (16.9%) are lower than last year (20.4%).


Past Earnings Growth Analysis

Earnings Trend: TCF's earnings have grown by 15.4% per year over the past 5 years.

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

Earnings vs Industry: TCF had negative earnings growth (-1.3%) over the past year, making it difficult to compare to the Banks industry average (12.1%).


Return on Equity

High ROE: TCF's Return on Equity (5.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is TCF Financial'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: TCF has a low level of unsold assets or inventory.

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


Financial Institutions Analysis

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

Allowance for Bad Loans: TCF has a low allowance for bad loans.

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

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

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

Level of Bad Loans: TCF has an appropriate level of bad loans (0.49%)


Next Steps

Dividend

What is TCF Financial's current dividend yield, its reliability and sustainability?

3.31%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TCF's dividend (3.31%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: TCF's dividend (3.31%) is low compared to the top 25% of dividend payers in the US market (3.73%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (50.8%), TCF's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TCF's dividends in 3 years are forecast to be well covered by earnings (35.5% payout ratio).


Next Steps

Management

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

0.5yrs

Average management tenure


CEO

Craig Dahl (64yo)

0.5yrs

Tenure

US$6,258,631

Compensation

Mr. Craig R. Dahl has been Chief Executive Officer, President and Director of TCF Financial Corporation since August 01, 2019. Mr. Dahl served the Chief Executive Officer at TCF Financial Corporation since ...


CEO Compensation Analysis

Compensation vs Market: Craig's total compensation ($USD6.26M) is about average for companies of similar size in the US market ($USD6.35M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Craig Dahl
CEO, President & Director0.5yrsUS$6.26m0.26% $16.6m
William Henak
Executive Vice President of National Banking0.5yrsUS$2.78m0.13% $8.5m
Michael Jones
Executive Vice President of Consumer & Business Banking0.5yrsUS$3.00m0.086% $5.6m
Brian Maass
Executive VP0.5yrsUS$2.59m0.085% $5.5m
Gary Torgow
Executive Chairman of the Board3.5yrsno data0.069% $4.4m
David Provost
Executive Vice Chair0.5yrsno data0.069% $4.4m
Dennis Klaeser
Executive VP & CFO3.5yrsno data0.056% $3.6m
Thomas Shafer
Chief Operating Officer0.5yrsno data0.11% $6.9m
Kathleen Wendt
Executive VP & Chief Accounting Officer0yrsno data0.000090% $5.8k
Thomas Butterfield
Chief Information Officer0.5yrsUS$1.05m0.066% $4.3m

0.5yrs

Average Tenure

61yo

Average Age

Experienced Management: TCF's management team is not considered experienced ( 0.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Craig Dahl
CEO, President & Director0.5yrsUS$6.26m0.26% $16.6m
Gary Torgow
Executive Chairman of the Board3.5yrsno data0.069% $4.4m
David Provost
Executive Vice Chair0.5yrsno data0.069% $4.4m
Ronald Klein
Independent Director0.5yrsno data0.017% $1.1m
Arthur Weiss
Independent Director0.5yrsno data0.021% $1.4m
Vance Opperman
Lead Independent Director0.5yrsUS$188.75k0.017% $1.1m
Julie Sullivan
Independent Director0.5yrsUS$160.00kno data
Barbara McQuade
Independent Director0.5yrsno data0.0049% $319.2k
Karen Grandstrand
Independent Director0.5yrsUS$181.85kno data
Jeffrey Tate
Independent Director0.5yrsno data0.0066% $425.2k

0.5yrs

Average Tenure

63yo

Average Age

Experienced Board: TCF's board of directors are not considered experienced ( 0.5 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: TCF insiders have only sold shares 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 32.6%.


Top Shareholders

Company Information

TCF Financial Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: TCF Financial Corporation
  • Ticker: TCF
  • Exchange: NasdaqGS
  • Founded: 1987
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$6.461b
  • Shares outstanding: 152.97m
  • Website: https://ir.tcfbank.com

Number of Employees


Location

  • TCF Financial Corporation
  • 333 West Fort Street
  • Suite 1800
  • Detroit
  • Michigan
  • 48226
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TCFNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJun 1986
1BADB (Deutsche Boerse AG)YesCommon StockDEEURJun 1986
TCFC.PNasdaqGS (Nasdaq Global Select)5.7 DEP SHS RP CUSUSDAug 2019

Biography

TCF Financial Corporation operates as the bank holding company for TCF National Bank that provides various financial products and services in the United States and Canada. The company offers checking, savings, and money market accounts; certificates of deposit; and individual retirement accounts. It also provides consumer loans; loans secured by personal property, as well as unsecured personal loans; lease and equipment financing products; inventory financing products; commercial real estate loans; and residential, consumer, and small business lending products. In addition, the company offers treasury services, such as investment and borrowing portfolios, as well as manages capital, debt, and market risks. Further, it provides credit and debit cards; and check cashing and remittance services. It has approximately 500 branches primarily located in Michigan, Illinois, and Minnesota with additional locations in Arizona, Colorado, Indiana, Ohio, South Dakota, and Wisconsin. TCF Financial Corporation was founded in 1987 and is based in Detroit, Michigan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/22 03:26
End of Day Share Price2020/02/21 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.