NYSE:KEY

Stock Analysis Report

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Executive Summary

KeyCorp operates as the holding company for KeyBank National Association that provides various retail and commercial banking services in the United States.


Snowflake Analysis

Flawless balance sheet 6 star dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: KEY's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.6%

KEY

0.5%

US Banks

-0.7%

US Market


1 Year Return

-33.1%

KEY

-26.2%

US Banks

5.3%

US Market

Return vs Industry: KEY underperformed the US Banks industry which returned -27.6% over the past year.

Return vs Market: KEY underperformed the US Market which returned 6.7% over the past year.


Shareholder returns

KEYIndustryMarket
7 Day-1.6%0.5%-0.7%
30 Day-11.0%-4.4%4.6%
90 Day5.6%2.0%14.0%
1 Year-29.8%-33.1%-23.6%-26.2%7.6%5.3%
3 Year-31.5%-38.6%-15.0%-21.8%34.9%26.1%
5 Year-9.7%-22.6%7.0%-6.0%62.3%44.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

3.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KEY ($11.76) is trading below our estimate of fair value ($12.22)

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


Price To Earnings Ratio

PE vs Industry: KEY is good value based on its PE Ratio (8.6x) compared to the US Banks industry average (9.2x).

PE vs Market: KEY is good value based on its PE Ratio (8.6x) compared to the US market (16.2x).


Price to Earnings Growth Ratio

PEG Ratio: KEY is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: KEY's PB Ratio (0.7x) is in line with the US Banks industry average.


Next Steps

Future Growth

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

28.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KEY's forecast earnings growth (28.2% per year) is above the savings rate (2.2%).

Earnings vs Market: KEY's earnings (28.2% per year) are forecast to grow faster than the US market (22.9% per year).

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

Revenue vs Market: KEY's revenue (3.5% per year) is forecast to grow slower than the US market (9.4% per year).

High Growth Revenue: KEY's revenue (3.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KEY's Return on Equity is forecast to be low in 3 years time (8.6%).


Next Steps

Past Performance

How has KeyCorp performed over the past 5 years?

16.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KEY has high quality earnings.

Growing Profit Margin: KEY's current net profit margins (24.1%) are lower than last year (28.9%).


Past Earnings Growth Analysis

Earnings Trend: KEY's earnings have grown by 16.7% per year over the past 5 years.

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

Earnings vs Industry: KEY had negative earnings growth (-24.4%) over the past year, making it difficult to compare to the Banks industry average (1.7%).


Return on Equity

High ROE: KEY's Return on Equity (8.3%) is considered low.


Next Steps

Financial Health

How is KeyCorp'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: KEY's Assets to Equity ratio (9x) is low.

Allowance for Bad Loans: KEY has a sufficient allowance for bad loans (188%).

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

Loan Level: KEY has an appropriate level of Loans to Assets ratio (65%).

Low Risk Deposits: KEY's Loans to Deposits ratio (88%) is appropriate.

Level of Bad Loans: KEY has an appropriate level of bad loans (0.7%).


Next Steps

Dividend

What is KeyCorp current dividend yield, its reliability and sustainability?

6.29%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: KEY's dividend (6.29%) is higher than the bottom 25% of dividend payers in the US market (1.68%).

High Dividend: KEY's dividend (6.29%) is in the top 25% of dividend payers in the US market (4.6%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (53%), KEY's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: KEY's dividends in 3 years are forecast to be covered by earnings (54.6% payout ratio).


Next Steps

Management

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

7.1yrs

Average management tenure


CEO

Chris Gorman (59yo)

0.17

Tenure

US$4,983,907

Compensation

Mr. Christopher Marrott Gorman, also known as Chris, has been Chairman and Chief Executive Officer at KeyCorp since May 01, 2020 and serves as its Director since September 19, 2019. He served as its Chief  ...


CEO Compensation Analysis

Compensation vs Market: Chris's total compensation ($USD4.98M) is below average for companies of similar size in the US market ($USD11.50M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Christopher Gorman
Chairman0.17yrUS$4.98m0.067% $7.7m
Donald Kimble
CFO & Chief Administrative Officer7.08yrsUS$4.31m0.038% $4.4m
Amy Brady
Chief Information Officer & Executive VP8.17yrsUS$3.00m0.014% $1.6m
Andrew Paine
Executive VP & Head of Institutional Bank3.92yrsUS$3.91m0.020% $2.3m
Douglas Schosser
Chief Accounting Officer & Executive Officer5.17yrsno data0.0047% $543.7k
Vernon Patterson
Executive Vice President of Investor Relations23.5yrsno datano data
Craig Beazer
General Counsel0.50yrno data0.00015% $17.2k
Susan Donlan
Chief Communications Officerno datano datano data
Brian Fishel
Chief Human Resource Officer & Executive VP2.17yrsno data0.0034% $391.2k
Jeffery Weaver
Head of Qualitative Risk - Risk Management & Executive VP15.08yrsno datano data
Amy Carlson
Executive VP & Group Head of Debt Capital Markets Origination Structuring36.5yrsno datano data
Dean Kontul
Executive VP & Chief Procurement Officer13.58yrsno datano data

7.1yrs

Average Tenure

53yo

Average Age

Experienced Management: KEY's management team is seasoned and experienced (7.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Christopher Gorman
Chairman0.17yrUS$4.98m0.067% $7.7m
Richard Hipple
Independent Director8.17yrsUS$230.00k0.0025% $286.8k
Ruth Ann Gillis
Independent Director10.67yrsUS$230.00k0.013% $1.5m
Alexander Cutler
Independent Lead Directorno dataUS$280.00k0.020% $2.3m
Carlton Highsmith
Independent Director3.92yrsUS$230.00k0.0069% $786.9k
Bruce Broussard
Independent Director5.17yrsUS$220.00k0.0025% $289.1k
Gary Crosby
Director3.92yrsUS$220.00k0.055% $6.4m
Kristen Manos
Independent Director11.17yrsUS$230.00k0.012% $1.4m
H. Dallas
Independent Director15.17yrsUS$230.00k0.011% $1.3m
Elizabeth Gile
Independent Director10.33yrsUS$260.00k0.0038% $432.4k
Barbara Snyder
Independent Director10yrsUS$220.00k0.0016% $181.2k
David Wilson
Independent Director6yrsUS$230.00k0.0024% $270.7k

8.2yrs

Average Tenure

65yo

Average Age

Experienced Board: KEY's board of directors are considered experienced (8.2 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: KEY 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

KeyCorp's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: KeyCorp
  • Ticker: KEY
  • Exchange: NYSE
  • Founded: 1849
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$11.471b
  • Shares outstanding: 975.41m
  • Website: https://www.key.com

Number of Employees


Location

  • KeyCorp
  • Key Tower
  • 127 Public Square
  • Cleveland
  • Ohio
  • 44114-1306
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KEYNYSE (New York Stock Exchange)YesCommon SharesUSUSDJan 1980
KEYDB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1980
0JQRLSE (London Stock Exchange)YesCommon SharesGBUSDJan 1980
KEY1 *BMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNJan 1980
KEY.PRINYSE (New York Stock Exchange)DEP SHS 1/40 EUSUSDDec 2016
KEY.PRJNYSE (New York Stock Exchange)DEP SHS PFD FUSUSDJul 2018
KEY.PRKNYSE (New York Stock Exchange)DP SHS PFD GUSUSDApr 2019
K1EY34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COMBRBRLDec 2019

Biography

KeyCorp operates as the holding company for KeyBank National Association that provides various retail and commercial banking services in the United States. It operates in two segments, Consumer Bank and Commercial Bank. The company offers various deposits, investment products and services; and personal finance and financial wellness, student loan refinancing, mortgage and home equity, lending, credit card, treasury, business advisory, wealth management, asset management, cash management, portfolio management, and trust and related services to individuals and small and medium-sized businesses. It also provides a suite of banking and capital market products, such as syndicated finance, debt and equity capital market products, commercial payments, equipment finance, commercial mortgage banking, derivatives, foreign exchange, financial advisory, and public finance, as well as commercial mortgage loans comprising consumer, energy, healthcare, industrial, public sector, real estate, and technology loans for middle market clients. In addition, the company offers community development financing, securities underwriting, brokerage, and investment banking services, as well as purchases retail auto sales contracts through a network of auto dealership. As of December 31, 2019, it operated through 1,098 retail banking branches and 1,420 ATMs in 15 states, as well as additional offices, online and mobile banking capabilities, and a telephone banking call center. The company was founded in 1849 and is headquartered in Cleveland, Ohio. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/13 23:54
End of Day Share Price2020/07/13 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.