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. More Details


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


Market Performance


7 Day Return

-4.3%

KEY

0.3%

US Banks

-1.4%

US Market


1 Year Return

-31.7%

KEY

-28.7%

US Banks

17.8%

US Market

Return vs Industry: KEY underperformed the US Banks industry which returned -28.5% over the past year.

Return vs Market: KEY underperformed the US Market which returned 18.5% over the past year.


Shareholder returns

KEYIndustryMarket
7 Day-4.3%0.3%-1.4%
30 Day5.8%5.8%4.7%
90 Day1.4%-0.5%8.2%
1 Year-28.1%-31.7%-26.1%-28.7%20.5%17.8%
3 Year-24.6%-32.9%-19.3%-26.0%42.2%32.7%
5 Year9.4%-7.2%14.8%0.6%83.4%62.7%

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?

24.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KEY ($12.42) is trading below our estimate of fair value ($16.46)

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


Price To Earnings Ratio

PE vs Industry: KEY is poor value based on its PE Ratio (11x) compared to the US Banks industry average (10x).

PE vs Market: KEY is good value based on its PE Ratio (11x) compared to the US market (19x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: KEY's PB Ratio (0.8x) 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 12 analysts?

21.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KEY's forecast earnings growth (21.6% per year) is above the savings rate (2.2%).

Earnings vs Market: KEY's earnings (21.6% per year) are forecast to grow slower 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: KEY's revenue (4.2% per year) is forecast to grow slower than the US market (10.1% per year).

High Growth Revenue: KEY's revenue (4.2% 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 (9.6%).


Next Steps

Past Performance

How has KeyCorp performed over the past 5 years?

15.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KEY has high quality earnings.

Growing Profit Margin: KEY's current net profit margins (20.9%) are lower than last year (28.1%).


Past Earnings Growth Analysis

Earnings Trend: KEY's earnings have grown by 15.2% 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 (-35.9%) over the past year, making it difficult to compare to the Banks industry average (-3%).


Return on Equity

High ROE: KEY's Return on Equity (6.9%) 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 (9.8x) is low.

Allowance for Bad Loans: KEY has a sufficient allowance for bad loans (205%).

Low Risk Liabilities: 88% 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 (61%).

Low Risk Deposits: KEY's Loans to Deposits ratio (77%) is appropriate.

Level of Bad Loans: KEY has an appropriate level of bad loans (0.8%).


Next Steps

Dividend

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

5.96%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: KEY's dividend (5.96%) is higher than the bottom 25% of dividend payers in the US market (1.64%).

High Dividend: KEY's dividend (5.96%) is in the top 25% of dividend payers in the US market (4.68%)


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 (65.6%), 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 well covered by earnings (47.4% payout ratio).


Next Steps

Management

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

7.3yrs

Average management tenure


CEO

Chris Gorman (59 yo)

0.42

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 ($USD4.98M) is below average for companies of similar size in the US market ($USD11.20M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Christopher Gorman
Chairman0.42yrUS$4.98m0.067%
$ 8.1m
Donald Kimble
CFO & Chief Administrative Officer7.33yrsUS$4.31m0.038%
$ 4.6m
Amy Brady
Chief Information Officer & Executive VP8.42yrsUS$3.00m0.014%
$ 1.7m
Andrew Paine
Executive VP & Head of Institutional Bank4.17yrsUS$3.91m0.020%
$ 2.4m
Douglas Schosser
Chief Accounting Officer & Executive Officer5.42yrsno data0.0047%
$ 574.6k
Vernon Patterson
Executive Vice President of Investor Relations23.75yrsno datano data
Craig Beazer
General Counsel0.75yrno data0.0011%
$ 130.9k
Susan Donlan
Chief Communications Officerno datano datano data
Brian Fishel
Chief Human Resource Officer & Executive VP2.42yrsno data0.0034%
$ 413.4k
Jeffery Weaver
Head of Qualitative Risk - Risk Management & Executive VP15.33yrsno datano data
Amy Carlson
Executive VP & Group Head of Debt Capital Markets Origination Structuring36.75yrsno datano data
Dean Kontul
Executive VP & Chief Procurement Officer13.83yrsno datano data

7.3yrs

Average Tenure

53yo

Average Age

Experienced Management: KEY's management team is seasoned and experienced (7.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Christopher Gorman
Chairman0.42yrUS$4.98m0.067%
$ 8.1m
Richard Hipple
Independent Director8.42yrsUS$230.00k0.0037%
$ 446.1k
Ruth Ann Gillis
Independent Director10.92yrsUS$230.00k0.014%
$ 1.7m
Alexander Cutler
Independent Lead Directorno dataUS$280.00k0.021%
$ 2.6m
Carlton Highsmith
Independent Director4.17yrsUS$230.00k0.0069%
$ 830.4k
Bruce Broussard
Independent Director5.42yrsUS$220.00k0.0025%
$ 305.5k
Gary Crosby
Director4.17yrsUS$220.00k0.055%
$ 6.7m
Kristen Manos
Independent Director11.42yrsUS$230.00k0.014%
$ 1.6m
H. Dallas
Independent Director15.42yrsUS$230.00k0.011%
$ 1.3m
Elizabeth Gile
Independent Director10.58yrsUS$260.00k0.0038%
$ 457.0k
Barbara Snyder
Independent Director10.25yrsUS$220.00k0.0016%
$ 191.5k
David Wilson
Independent Director6.25yrsUS$230.00k0.0024%
$ 286.1k

8.4yrs

Average Tenure

65yo

Average Age

Experienced Board: KEY's board of directors are considered experienced (8.4 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

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$12.122b
  • Shares outstanding: 976.00m
  • 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 Co ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/22 00:08
End of Day Share Price2020/10/21 00:00
Earnings2020/09/30
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.