NYSE:RF.PRC

Stock Analysis Report

Executive Summary

Regions Financial Corporation, a financial holding company, provides banking and bank-related services to individual and corporate customers in the United States.

Snowflake

Fundamentals

Flawless balance sheet established dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-0.3%

RF.PRC

4.1%

US Banks

1.0%

US Market


1 Year Return

n/a

RF.PRC

7.2%

US Banks

8.0%

US Market

Return vs Industry: Insufficient data to determine how RF.PRC performed against the US Banks industry.

Return vs Market: Insufficient data to determine how RF.PRC performed against the US Market.


Shareholder returns

RF.PRCIndustryMarket
7 Day-0.3%4.1%1.0%
30 Day0.7%2.8%-0.07%
90 Day4.0%2.9%-1.0%
1 Yearn/a10.3%7.2%10.4%8.0%
3 Yearn/a53.9%43.3%46.2%36.7%
5 Yearn/a71.9%53.1%64.3%46.2%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

20.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RF.PRC ($27.63) is trading below our estimate of fair value ($34.57)

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


Price To Earnings Ratio

PE vs Industry: RF.PRC is good value based on its PE Ratio (11.2x) compared to the Banks industry average (12.6x).

PE vs Market: RF.PRC is good value based on its PE Ratio (11.2x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

PEG Ratio: RF.PRC is poor value based on its PEG Ratio (10.5x)


Price to Book Ratio

PB vs Industry: RF.PRC 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 Regions Financial forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

1.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RF.PRC's forecast earnings growth (1.1% per year) is below the savings rate (2.7%).

Earnings vs Market: RF.PRC's earnings (1.1% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: RF.PRC's revenue (1.9% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: RF.PRC's revenue (1.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RF.PRC's Return on Equity is forecast to be low in 3 years time (10.3%).


Next Steps

Past Performance

How has Regions Financial performed over the past 5 years?

8.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: RF.PRC's earnings have grown by 8.3% per year over the past 5 years.

Accelerating Growth: RF.PRC's earnings growth over the past year (10%) exceeds its 5-year average (8.3% per year).

Earnings vs Industry: RF.PRC earnings growth over the past year (10%) underperformed the Banks industry 30.1%.


Return on Equity

High ROE: RF.PRC's Return on Equity (9.4%) is considered low.


Return on Assets

ROA vs Industry: RF.PRC has a higher Return on Assets than the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate RF.PRC's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is Regions 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: RF.PRC has a low level of unsold assets or inventory.

Debt Coverage by Assets: RF.PRC's debt is not covered by short term assets (assets are 0.4x debt).


Financial Institutions Analysis

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

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

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

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

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

Level of Bad Loans: RF.PRC has an appropriate level of bad loans (0.65%)


Next Steps

Dividend

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

3.86%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Regions Financial before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company3.9%marketbottom25%1.4%markettop25%3.7%industryaverage3.0%forecastin3Years4.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: RF.PRC's dividend (3.86%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: RF.PRC's dividend (3.86%) is in the top 25% of dividend payers in the US market (3.68%)

Stable Dividend: RF.PRC's dividend payments have been volatile in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (38.9%), RF.PRC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RF.PRC's dividends in 3 years are forecast to be well covered by earnings (41.2% payout ratio).


Next Steps

Management

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

9.2yrs

Average management tenure


CEO

John Turner (57yo)

1.3yrs

Tenure

US$7,397,623

Compensation

Mr. John M. Turner, Jr., has been President of Regions Financial Corporation and Regions Bank since December 13, 2017 and serves as its Chief Executive Officer and Director since July 2, 2018. He was Head  ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether John's total compensation is reasonable compared to companies of similar size in the US market.

Compensation vs Earnings: John's compensation has increased by more than 20% in the past year.


Management Age and Tenure

9.2yrs

Average Tenure

57yo

Average Age

Experienced Management: RF.PRC's management team is seasoned and experienced (9.2 years average tenure).


Board Age and Tenure

8.1yrs

Average Tenure

67.5yo

Average Age

Experienced Board: RF.PRC's board of directors are considered experienced (8.1 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Boots Gale (74yo)

    Senior EVP

    • Tenure: 0yrs
    • Compensation: US$2.85m
  • John Turner (57yo)

    President

    • Tenure: 1.3yrs
    • Compensation: US$7.40m
  • John Owen (58yo)

    COO & Senior EVP

    • Tenure: 1.3yrs
    • Compensation: US$4.62m
  • Brad Kimbrough (55yo)

    Executive VP

    • Tenure: 12.2yrs
  • Tobin Vinson

    Associate Director of Investor Relations

    • Tenure: 0yrs
  • David Turner (55yo)

    Senior EVP & CFO

    • Tenure: 9.7yrs
    • Compensation: US$3.46m
  • Dave Keenan (51yo)

    Senior EVP & Chief Human Resources Officer

    • Tenure: 9.7yrs
  • Matt Lusco (61yo)

    Chief Risk Officer

    • Tenure: 8.7yrs
    • Compensation: US$3.73m
  • Dana Nolan

    EVP & Head of Investor Relations

    • Tenure: 0yrs
  • Amala Duggirala

    Chief Information Officer

    • Tenure: 0yrs

Board Members

  • Eric Fast (70yo)

    Independent Director

    • Tenure: 9.4yrs
    • Compensation: US$241.25k
  • Johnny Johns (67yo)

    Independent Director

    • Tenure: 8yrs
    • Compensation: US$247.50k
  • Charles McCrary (68yo)

    Independent Chairman of the Board

    • Tenure: 0.8yrs
    • Compensation: US$286.25k
  • Don DeFosset (70yo)

    Independent Director

    • Tenure: 12.9yrs
    • Compensation: US$246.25k
  • Lee Styslinger (58yo)

    Independent Director

    • Tenure: 15.3yrs
    • Compensation: US$226.25k
  • Carolyn Byrd (70yo)

    Independent Director

    • Tenure: 9.4yrs
    • Compensation: US$252.75k
  • Sam Di Piazza (68yo)

    Independent Director

    • Tenure: 2.9yrs
    • Compensation: US$231.25k
  • Jim Prokopanko (66yo)

    Independent Director

    • Tenure: 2.9yrs
    • Compensation: US$218.75k
  • John Turner (57yo)

    President

    • Tenure: 1.3yrs
    • Compensation: US$7.40m
  • Ruth Marshall (65yo)

    Independent Director

    • Tenure: 8.2yrs
    • Compensation: US$252.50k

Company Information

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


Key Information

  • Name: Regions Financial Corporation
  • Ticker: RF.PRC
  • Exchange: NYSE
  • Founded: 1852
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$16.034b
  • Shares outstanding: 997.77m
  • Website: https://www.regions.com

Number of Employees


Location

  • Regions Financial Corporation
  • 1900 Fifth Avenue North
  • Birmingham
  • Alabama
  • 35203
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RFNYSE (New York Stock Exchange)YesCommon StockUSUSDJul 2004
RN7DB (Deutsche Boerse AG)YesCommon StockDEEURJul 2004
0KV3LSE (London Stock Exchange)YesCommon StockGBUSDJul 2004
RF.PRANYSE (New York Stock Exchange)DEPSHS1/40PF AUSUSDOct 2012
RF.PRBNYSE (New York Stock Exchange)DEP SHS PFD BUSUSDApr 2014
RF.PRCNYSE (New York Stock Exchange)5.7 DP RP PFD CUSUSDApr 2019

Biography

Regions Financial Corporation, a financial holding company, provides banking and bank-related services to individual and corporate customers in the United States. It operates through three segments: Corpor ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 01:01
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
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.