NYSE:RF

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.

Rewards

Trading at 30.1% below its fair value

Pays a high and reliable dividend of 3.8%

Risk Analysis

No risks detected for RF from our risk checks.


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


Market Performance


7 Day Return

-0.6%

RF

-0.7%

US Banks

1.2%

US Market


1 Year Return

5.1%

RF

15.6%

US Banks

24.2%

US Market

Return vs Industry: RF underperformed the US Banks industry which returned 21.7% over the past year.

Return vs Market: RF underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

RFIndustryMarket
7 Day-0.6%-0.7%1.2%
30 Day-5.0%-1.6%3.5%
90 Day0.7%6.8%11.7%
1 Year9.3%5.1%19.0%15.6%26.9%24.2%
3 Year25.4%15.1%34.9%25.4%53.0%43.2%
5 Year109.0%82.7%85.1%64.3%75.3%56.0%

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

Valuation

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

38.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RF ($16.49) is trading below our estimate of fair value ($23.59)

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 (10.9x) compared to the Banks industry average (12.8x).

PE vs Market: RF is good value based on its PE Ratio (10.9x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: RF is poor value based on its PEG Ratio (29.7x)


Price to Book Ratio

PB vs Industry: RF is good value based on its PB Ratio (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 14 analysts?

1.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RF's forecast earnings growth (0.4% per year) is below the savings rate (1.7%).

Earnings vs Market: RF's earnings (0.4% per year) are forecast to grow slower than the US market (14.3% per year).

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

Revenue vs Market: RF's revenue (2.1% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: RF's revenue (2.1% 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 (27.9%) are higher than last year (25%).


Past Earnings Growth Analysis

Earnings Trend: RF's earnings have grown by 9.3% 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 (26.1%).


Return on Equity

High ROE: RF's Return on Equity (9.6%) is considered low.


Return on Assets


Return on Capital Employed


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 0.5x 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 (0.57%)


Next Steps

Dividend

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

3.78%

Current Dividend Yield


Dividend Yield vs Market

company3.8%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years4.2%

Current dividend yield vs market & industry

Notable Dividend: RF's dividend (3.76%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: RF's dividend (3.76%) is in the top 25% of dividend payers in the US market (3.66%)


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 (38.1%), 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 (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?

9.4yrs

Average management tenure


CEO

Regions Financial has no CEO, or we have no data on them.


Management Age and Tenure

9.4yrs

Average Tenure

57yo

Average Age

Experienced Management: RF's management team is seasoned and experienced (9.4 years average tenure).


Board Age and Tenure

8.3yrs

Average Tenure

67.5yo

Average Age

Experienced Board: RF's board of directors are considered experienced (8.3 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$299,51125 Oct 19
Hardie Kimbrough
EntityIndividual
Role
Chief Accounting Officer
Executive VP
Shares18,409
Max PriceUS$16.27
SellUS$328,52216 Sep 19
C. Lusco
EntityIndividual
Role
Senior Key Executive
Chief Risk Officer
Shares20,000
Max PriceUS$16.43
SellUS$1,005,05003 Sep 19
C. Herron
EntityIndividual
Shares69,288
Max PriceUS$14.51
SellUS$585,01612 Aug 19
John Owen
EntityIndividual
Role
Chief Operating Officer
COO & Senior EVP
Shares40,000
Max PriceUS$14.63
SellUS$104,93912 Aug 19
Hardie Kimbrough
EntityIndividual
Role
Chief Accounting Officer
Executive VP
Shares7,148
Max PriceUS$14.68
SellUS$1,476,74503 May 19
Fournier Gale
EntityIndividual
Role
Chief Legal Officer
Senior EVP
Shares95,905
Max PriceUS$15.40
SellUS$478,67730 Apr 19
Joo Mi Kim
EntityIndividual
Shares30,877
Max PriceUS$15.50
SellUS$941,51325 Apr 19
John Owen
EntityIndividual
Role
Chief Operating Officer
COO & Senior EVP
Shares61,756
Max PriceUS$15.25
SellUS$468,91725 Apr 19
Scott Peters
EntityIndividual
Shares30,877
Max PriceUS$15.19

Ownership Breakdown

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


Management Team

  • Boots Gale (74yo)

    Senior EVP

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

    President

    • Tenure: 1.5yrs
    • Compensation: US$7.40m
  • John Owen (58yo)

    COO & Senior EVP

    • Tenure: 1.5yrs
    • Compensation: US$4.62m
  • Brad Kimbrough (55yo)

    Executive VP

    • Tenure: 12.4yrs
  • Tobin Vinson

    Associate Director of Investor Relations

    • David Turner (55yo)

      Senior EVP & CFO

      • Tenure: 9.9yrs
      • Compensation: US$3.46m
    • Dave Keenan (51yo)

      Senior EVP & Chief Human Resources Officer

      • Tenure: 9.9yrs
    • Matt Lusco (61yo)

      Chief Risk Officer

      • Tenure: 8.9yrs
      • Compensation: US$3.73m
    • Dana Nolan

      EVP & Head of Investor Relations

      • Amala Duggirala

        Chief Information Officer


        Board Members

        • Eric Fast (70yo)

          Independent Director

          • Tenure: 9.7yrs
          • Compensation: US$241.25k
        • Johnny Johns (67yo)

          Independent Director

          • Tenure: 8.3yrs
          • Compensation: US$247.50k
        • Charles McCrary (68yo)

          Independent Chairman of the Board

          • Tenure: 1yrs
          • Compensation: US$286.25k
        • Don DeFosset (70yo)

          Independent Director

          • Tenure: 13.2yrs
          • Compensation: US$246.25k
        • Lee Styslinger (58yo)

          Independent Director

          • Tenure: 15.5yrs
          • Compensation: US$226.25k
        • Carolyn Byrd (70yo)

          Independent Director

          • Tenure: 9.7yrs
          • Compensation: US$252.75k
        • Sam Di Piazza (68yo)

          Independent Director

          • Tenure: 3.2yrs
          • Compensation: US$231.25k
        • Jim Prokopanko (66yo)

          Independent Director

          • Tenure: 3.2yrs
          • Compensation: US$218.75k
        • John Turner (57yo)

          President

          • Tenure: 1.5yrs
          • Compensation: US$7.40m
        • Ruth Marshall (65yo)

          Independent Director

          • Tenure: 8.4yrs
          • 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
        • Exchange: NYSE
        • Founded: 1852
        • Industry: Regional Banks
        • Sector: Banks
        • Market Cap: US$15.685b
        • Shares outstanding: 957.00m
        • 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
        R1FC34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COMBRBRLDec 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: 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 services; corresponding 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 the corresponding deposit relationships. 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 February 21, 2019, it operated 1,500 banking offices and 2,000 automated teller machines across the South, Midwest, and Texas. Regions Financial Corporation was founded in 1852 and is headquartered in Birmingham, Alabama. 


        Company Analysis and Financial Data Status

        All financial data provided by Standard & Poor's Capital IQ.
        DataLast Updated (UTC time)
        Company Analysis2020/01/21 00:08
        End of Day Share Price2020/01/17 00:00
        Earnings2019/12/31
        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.