Regions Financial
Market Cap
US$7.7b
Last Updated
2020/04/03 23:57 UTC
Data Sources
Company Financials +
Executive Summary
Regions Financial Corporation, a financial holding company, provides banking and bank-related services to individual and corporate customers.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -1% per year for the next 3 years
Snowflake Analysis
Flawless balance sheet 6 star 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
Stable Share Price: RF's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
-16.5%
RF
-7.1%
US Banks
-2.0%
US Market
1 Year Return
-46.7%
RF
-32.9%
US Banks
-15.1%
US Market
Return vs Industry: RF underperformed the US Banks industry which returned -33.7% over the past year.
Return vs Market: RF underperformed the US Market which returned -14.9% over the past year.
Shareholder returns
| RF | Industry | Market | |
|---|---|---|---|
| 7 Day | -16.5% | -7.1% | -2.0% |
| 30 Day | -44.5% | -30.6% | -19.7% |
| 90 Day | -51.9% | -42.5% | -23.2% |
| 1 Year | -44.5%-46.7% | -30.9%-32.9% | -13.4%-15.1% |
| 3 Year | -38.7%-44.1% | -21.7%-27.5% | 10.9%3.7% |
| 5 Year | -3.2%-15.9% | 3.5%-8.4% | 28.4%14.4% |
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
1 week ago | Simply Wall St
What Is Regions Financial's (NYSE:RF) P/E Ratio After Its Share Price Tanked?3 weeks ago | Simply Wall St
What Is Regions Financial's (NYSE:RF) P/E Ratio After Its Share Price Tanked?1 month ago | Simply Wall St
Regions Financial Corporation (NYSE:RF) Looks Interesting, And It's About To Pay A DividendValuation
Is Regions Financial undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: RF ($8.39) is trading below our estimate of fair value ($24.33)
Significantly Below Fair Value: RF is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: RF is good value based on its PE Ratio (5.6x) compared to the Banks industry average (8.6x).
PE vs Market: RF is good value based on its PE Ratio (5.6x) compared to the US market (12.5x).
Price to Earnings Growth Ratio
PEG Ratio: RF's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: RF is good value based on its PB Ratio (0.5x) compared to the US Banks industry average (0.8x).
Next Steps
Future Growth
How is Regions Financial forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?
-1.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: RF's earnings are forecast to decline over the next 3 years (-1% per year).
Earnings vs Market: RF's earnings are forecast to decline over the next 3 years (-1% per year).
High Growth Earnings: RF's earnings are forecast to decline over the next 3 years.
Revenue vs Market: RF's revenue (4.2% per year) is forecast to grow slower than the US market (7.1% per year).
High Growth Revenue: RF'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: RF's Return on Equity is forecast to be low in 3 years time (9.9%).
Next Steps
Past Performance
How has Regions Financial performed over the past 5 years?
10.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: RF has high quality earnings.
Growing Profit Margin: RF's current net profit margins (27.2%) are higher than last year (27.2%).
Past Earnings Growth Analysis
Earnings Trend: RF's earnings have grown by 10.1% per year over the past 5 years.
Accelerating Growth: RF's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: RF had negative earnings growth (-0.07%) over the past year, making it difficult to compare to the Banks industry average (10.9%).
Return on Equity
High ROE: RF's Return on Equity (9.7%) is considered low.
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 has a low level of unsold assets or inventory.
Debt Coverage by Assets: RF's debt is not covered by short term assets (assets are 0.6x debt).
Financial Institutions Analysis
Asset Level: RF's level of assets compared to its equity is low.
Allowance for Bad Loans: RF has a sufficient allowance for bad loans.
Low Risk Liabilities: RF's liabilities are made up of primarily low risk sources of funding.
Loan Level: RF has an acceptable proportion of non-loan assets held.
Low Risk Deposits: RF's loans are broadly funded by customer deposits.
Level of Bad Loans: RF has an appropriate level of bad loans (0.63%)
Next Steps
Dividend
What is Regions Financial's current dividend yield, its reliability and sustainability?
7.68%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: RF's dividend (7.39%) is higher than the bottom 25% of dividend payers in the US market (2.04%).
High Dividend: RF's dividend (7.39%) is in the top 25% of dividend payers in the US market (5.7%)
Stability and Growth of Payments
Stable Dividend: RF's dividends per share have been stable in the past 10 years.
Growing Dividend: RF's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (39.1%), RF's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: RF's dividends in 3 years are forecast to be well covered by earnings (40.2% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
9.2yrs
Average management tenure
CEO
John Turner (57yo)
1.75s
Tenure
US$13,115,267
Compensation
Mr. John M. Turner, Jr., has been President of Regions Financial Corporation and Regions Bank since December 13, 2017 and serves as its Chief Executive Officer and Director since July 2, 2018. He was Head ...
CEO Compensation Analysis
Compensation vs Market: John's total compensation ($USD13.12M) is above average for companies of similar size in the US market ($USD7.63M).
Compensation vs Earnings: John's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 1.75yrs | US$13.12m | 0.042% $3.2m | |
| Senior EVP & CFO | 10.17yrs | US$4.54m | 0.020% $1.6m | |
| COO & Senior EVP | 1.75yrs | US$6.45m | 0.0091% $703.1k | |
| Senior EVP & Chief Risk Officer | 9.17yrs | US$3.94m | 0.018% $1.4m | |
| Senior Advisor | 0.083yr | US$2.65m | 0.0062% $482.1k | |
| Executive VP | 12.67yrs | no data | 0.0016% $125.2k | |
| Chief Information Officer | no data | no data | no data | |
| Associate Director of Investor Relations | no data | no data | no data | |
| EVP & Head of Investor Relations | no data | no data | no data | |
| Senior EVP & Chief Human Resources Officer | 10.17yrs | no data | no data |
9.2yrs
Average Tenure
57yo
Average Age
Experienced Management: RF's management team is seasoned and experienced (9.2 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 1.75yrs | US$13.12m | 0.042% $3.2m | |
| Independent Director | 9.92yrs | US$245.00k | 0.010% $791.2k | |
| Independent Director | 8.5yrs | US$250.00k | 0.0070% $543.1k | |
| Independent Chairman of the Board | 1.25yrs | US$280.00k | 0.013% $1.0m | |
| Independent Director | 15.25yrs | US$250.00k | 0.012% $904.7k | |
| Independent Director | 17.25yrs | US$230.00k | 0.012% $930.2k | |
| Independent Director | 9.92yrs | US$255.00k | 0.0088% $677.6k | |
| Independent Director | 3.42yrs | US$233.50k | 0.0020% $151.4k | |
| Independent Director | 3.42yrs | US$220.00k | 0.0020% $151.4k | |
| Independent Director | 8.67yrs | US$255.00k | 0.0096% $743.3k |
8.6yrs
Average Tenure
67.5yo
Average Age
Experienced Board: RF's board of directors are considered experienced (8.6 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
Regions Financial Corporation's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Regions Financial Corporation
- Ticker: RF
- Exchange: NYSE
- Founded: 1970
- Industry: Regional Banks
- Sector: Banks
- Market Cap: US$7.726b
- Shares outstanding: 957.39m
- Website: https://www.regions.com
Number of Employees
Location
- Regions Financial Corporation
- 1900 Fifth Avenue North
- Birmingham
- Alabama
- 35203
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| RF | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Jul 2004 |
| RN7 | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jul 2004 |
| 0KV3 | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Jul 2004 |
| RN7 | BRSE (Berne Stock Exchange) | Yes | Common Stock | CH | CHF | Jul 2004 |
| RF.PRA | NYSE (New York Stock Exchange) | DEPSHS1/40PF A | US | USD | Oct 2012 | |
| RF.PRB | NYSE (New York Stock Exchange) | DEP SHS PFD B | US | USD | Apr 2014 | |
| RF.PRC | NYSE (New York Stock Exchange) | 5.7 DP RP PFD C | US | USD | Apr 2019 | |
| R1FC34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH REPR 1 COM | BR | BRL | Dec 2019 |
Biography
Regions Financial Corporation, a financial holding company, provides banking and bank-related services to individual and corporate customers. It operates through three segments: Corporate Bank, Consumer Bank, and Wealth Management. The Corporate Bank segment offers commercial banking services, such as commercial and industrial, commercial real estate, and investor real estate lending; equipment lease financing; deposit products; and securities underwriting and placement, loan syndication and placement, foreign exchange, derivatives, merger and acquisition, and other advisory services. It serves corporate, middle market, and commercial real estate developers and investors. The Consumer Bank segment provides consumer banking products and services related to residential first mortgages, home equity lines and loans, branch small business and indirect loans, consumer credit cards, and other consumer loans, as well as deposits. The Wealth Management segment offers credit related products, and retirement and savings solutions; and trust and investment management, asset management, and estate planning services to individuals, businesses, governmental institutions, and non-profit entities. The company also provides investment and insurance products; low income housing tax credit corporate fund syndication services; and other specialty financing services. As of March 18, 2020, it operated 1,400 banking offices and 2,000 automated teller machines across the South, Midwest and Texas. Regions Financial Corporation was founded in 1970 and is headquartered in Birmingham, Alabama.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/03 23:57 |
| End of Day Share Price | 2020/04/03 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.