NYSE:KEY

Stock Analysis Report

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

Fundamentals

Flawless balance sheet established 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

-2.2%

KEY

-1.5%

US Banks

0.2%

US Market


1 Year Return

2.2%

KEY

8.3%

US Banks

12.2%

US Market

Return vs Industry: KEY underperformed the US Banks industry which returned 8.3% over the past year.

Return vs Market: KEY underperformed the US Market which returned 12.2% over the past year.


Shareholder returns

KEYIndustryMarket
7 Day-2.2%-1.5%0.2%
30 Day6.1%6.4%3.5%
90 Day14.9%16.1%6.3%
1 Year6.5%2.2%11.6%8.3%14.7%12.2%
3 Year21.0%11.0%39.0%29.3%47.8%38.3%
5 Year61.4%41.3%72.1%53.1%62.1%44.1%

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?

21.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KEY ($18.87) is trading below our estimate of fair value ($23.91)

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 (11.6x) compared to the Banks industry average (12.6x).

PE vs Market: KEY is good value based on its PE Ratio (11.6x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: KEY is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

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


Next Steps

Future Growth

How is KeyCorp forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

5.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KEY's forecast earnings growth (5% per year) is above the savings rate (2.7%).

Earnings vs Market: KEY's earnings (5% per year) are forecast to grow slower than the US market (14.3% per year).

High Growth Earnings: KEY's earnings are forecast to grow, but not significantly.

Revenue vs Market: KEY's revenue (2.5% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: KEY's revenue (2.5% 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 (11.5%).


Next Steps

Past Performance

How has KeyCorp performed over the past 5 years?

17.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KEY has high quality earnings.

Growing Profit Margin: KEY's current net profit margins (27.2%) are higher than last year (24.7%).


Past Earnings Growth Analysis

Earnings Trend: KEY's earnings have grown by 17.3% per year over the past 5 years.

Accelerating Growth: KEY's earnings growth over the past year (7.7%) is below its 5-year average (17.3% per year).

Earnings vs Industry: KEY earnings growth over the past year (7.7%) underperformed the Banks industry 27.4%.


Return on Equity

High ROE: KEY's Return on Equity (10.1%) is considered low.


Return on Assets


Return on Capital Employed


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

Inventory Level: KEY has a low level of unsold assets or inventory.

Debt Coverage by Assets: KEY's debt is not covered by short term assets (assets are 0.5x debt).


Financial Institutions Analysis

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

Allowance for Bad Loans: KEY has a sufficient allowance for bad loans.

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

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

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

Level of Bad Loans: KEY has an appropriate level of bad loans (0.71%)


Next Steps

Dividend

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

3.92%

Current Dividend Yield


Dividend Yield vs Market

company3.9%marketbottom25%1.4%markettop25%3.6%industryaverage2.8%forecastin3Years4.1%

Current dividend yield vs market & industry

Notable Dividend: KEY's dividend (3.92%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: KEY's dividend (3.92%) is in the top 25% of dividend payers in the US market (3.65%)


Stability and Growth of Payments

Stable Dividend: KEY's dividend payments have been volatile 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 reasonably low payout ratio (42.8%), KEY's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: KEY's dividends in 3 years are forecast to be well covered by earnings (42.7% payout ratio).


Next Steps

Management

What is the CEO of KeyCorp's salary, the management and board of directors tenure and is there insider trading?

5.5yrs

Average management tenure


CEO

Beth Mooney (64yo)

8.5yrs

Tenure

US$9,064,470

Compensation

Ms. Beth E. Mooney serves as Director at Ford Motor Company since July 10, 2019. Ms. Mooney has been the Chairman and Chief Executive Officer of KeyCorp since May 1, 2011 and serves as its President. Ms. M ...


CEO Compensation Analysis

Compensation vs Market: Beth's total compensation ($USD9.06M) is about average for companies of similar size in the US market ($USD11.01M).

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


Management Age and Tenure

5.5yrs

Average Tenure

57yo

Average Age

Experienced Management: KEY's management team is seasoned and experienced (5.5 years average tenure).


Board Age and Tenure

9.3yrs

Average Tenure

63.5yo

Average Age

Experienced Board: KEY's board of directors are considered experienced (9.3 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$303,61813 Nov 19
Amy Brady
EntityIndividual
Role
Chief Information Officer
Chief Information Officer & Executive VP
Shares15,756
Max PriceUS$19.27
SellUS$3,214,87531 Oct 19
Paul Harris
EntityIndividual
Role
Chief Legal Officer
Secretary & General Counsel
Shares173,777
Max PriceUS$18.50
SellUS$152,05630 Oct 19
Katrina Evans
EntityIndividual
Shares8,300
Max PriceUS$18.32
SellUS$194,72412 Sep 19
Amy Brady
EntityIndividual
Role
Chief Information Officer
Chief Information Officer & Executive VP
Shares10,806
Max PriceUS$18.02
SellUS$1,825,98229 Jul 19
Andrew Paine
EntityIndividual
Role
Senior Key Executive
Executive VP & President of Key Institutional Bank
Shares99,999
Max PriceUS$18.26
SellUS$225,04612 Jun 19
Amy Brady
EntityIndividual
Role
Chief Information Officer
Chief Information Officer & Executive VP
Shares13,238
Max PriceUS$17.00

Ownership Breakdown

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


Management Team

  • Chris Gorman (58yo)

    President of Banking

    • Tenure: 0.2yrs
    • Compensation: US$5.06m
  • Beth Mooney (64yo)

    Chairman

    • Tenure: 8.5yrs
    • Compensation: US$9.06m
  • Doug Schosser (49yo)

    Chief Accounting Officer & Executive Officer

    • Tenure: 4.5yrs
  • Randy Paine (49yo)

    Executive VP & President of Key Institutional Bank

    • Tenure: 3.3yrs
    • Compensation: US$3.97m
  • Paul Harris (60yo)

    Secretary & General Counsel

    • Tenure: 16.8yrs
  • Vern Patterson

    Executive Vice President of Investor Relations

    • Tenure: 22.8yrs
  • Don Kimble (59yo)

    Vice Chairman & CFO

    • Tenure: 6.4yrs
    • Compensation: US$3.47m
  • Mark Midkiff (57yo)

    Chief Risk Officer & Executive Officer

    • Tenure: 1.8yrs
    • Compensation: US$3.32m
  • Amy Brady (52yo)

    Chief Information Officer & Executive VP

    • Tenure: 7.5yrs
    • Compensation: US$3.33m
  • Brian Fishel (53yo)

    Chief Human Resource Officer & Executive VP

    • Tenure: 1.5yrs

Board Members

  • Chris Gorman (58yo)

    President of Banking

    • Tenure: 0.2yrs
    • Compensation: US$5.06m
  • Beth Mooney (64yo)

    Chairman

    • Tenure: 8.5yrs
    • Compensation: US$9.06m
  • Ruth Ann Gillis (64yo)

    Independent Director

    • Tenure: 10yrs
    • Compensation: US$210.00k
  • Sandy Cutler (68yo)

    Independent Lead Director

    • Tenure: 0yrs
    • Compensation: US$250.00k
  • Charlie Cooley (63yo)

    Independent Director

    • Tenure: 8yrs
    • Compensation: US$230.00k
  • Bill Gisel (66yo)

    Independent Director

    • Tenure: 8yrs
    • Compensation: US$215.00k
  • Kris Manos (59yo)

    Independent Director

    • Tenure: 10.5yrs
    • Compensation: US$210.00k
  • H. Dallas (60yo)

    Independent Director

    • Tenure: 14.5yrs
    • Compensation: US$210.00k
  • Betsy Gile (63yo)

    Independent Director

    • Tenure: 9.7yrs
    • Compensation: US$230.00k
  • Barbara Snyder (64yo)

    Independent Director

    • Tenure: 9.3yrs
    • Compensation: US$200.00k

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$18.596b
  • Shares outstanding: 984.96m
  • Website: https://www.key.com

Number of Employees


Location

  • KeyCorp
  • 127 Public Square
  • Cleveland
  • Ohio
  • 44114
  • 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

Biography

KeyCorp operates as the holding company for KeyBank National Association that provides various retail and commercial banking services in the United States. The company's Key Community Bank segment offers v ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/14 23:38
End of Day Share Price2019/11/14 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.