NYSE:RF

Stock Analysis Report

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Executive Summary

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


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

-0.8%

RF

1.3%

US Banks

1.8%

US Market


1 Year Return

-29.9%

RF

-28.7%

US Banks

3.7%

US Market

Return vs Industry: RF underperformed the US Banks industry which returned -28.7% over the past year.

Return vs Market: RF underperformed the US Market which returned 3.7% over the past year.


Shareholder returns

RFIndustryMarket
7 Day-0.8%1.3%1.8%
30 Day1.6%-0.2%5.6%
90 Day-32.7%-33.9%-7.4%
1 Year-27.0%-29.9%-26.3%-28.7%6.1%3.7%
3 Year-22.8%-29.6%-16.8%-23.3%28.3%19.8%
5 Year14.7%-0.3%5.7%-6.9%52.4%35.1%

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?

6.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RF ($9.95) is trading below our estimate of fair value ($10.61)

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


Price To Earnings Ratio

PE vs Industry: RF is good value based on its PE Ratio (7.7x) compared to the Banks industry average (9.3x).

PE vs Market: RF is good value based on its PE Ratio (7.7x) compared to the US market (15x).


Price to Earnings Growth Ratio

PEG Ratio: RF is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: RF is good value based on its PB Ratio (0.6x) 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?

31.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RF's forecast earnings growth (31.9% per year) is above the savings rate (2.2%).

Earnings vs Market: RF's earnings (31.9% per year) are forecast to grow faster than the US market (21.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: RF's revenue (2.9% per year) is forecast to grow slower than the US market (8.9% per year).

High Growth Revenue: RF's revenue (2.9% 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 (9.5%).


Next Steps

Past Performance

How has Regions Financial performed over the past 5 years?

9.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RF has high quality earnings.

Growing Profit Margin: RF's current net profit margins (24.3%) are lower than last year (27%).


Past Earnings Growth Analysis

Earnings Trend: RF's earnings have grown by 9.7% 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 (-14.8%) over the past year, making it difficult to compare to the Banks industry average (2.9%).


Return on Equity

High ROE: RF's Return on Equity (7.8%) 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


Financial Institutions Analysis

Asset Level: RF's Assets to Equity ratio (7.7x) is low.

Allowance for Bad Loans: RF has a sufficient allowance for bad loans (243%).

Low Risk Liabilities: 86% of RF's liabilities are made up of primarily low risk sources of funding.

Loan Level: RF has an appropriate level of Loans to Assets ratio (65%).

Low Risk Deposits: RF's Loans to Deposits ratio (87%) is appropriate.

Level of Bad Loans: RF has an appropriate level of bad loans (0.7%).


Next Steps

Dividend

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

6.23%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: RF's dividend (6.23%) is higher than the bottom 25% of dividend payers in the US market (1.75%).

High Dividend: RF's dividend (6.23%) is in the top 25% of dividend payers in the US market (4.73%)


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 (46.9%), 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 (47.7% payout ratio).


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

John Turner (57yo)

1.83yrs

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 ($USD13.12M) is above average for companies of similar size in the US market ($USD7.43M).

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

NamePositionTenureCompensationOwnership
John Turner
President1.83yrsUS$13.12m0.035% $3.4m
David Turner
Senior EVP & CFO10.25yrsUS$4.54m0.026% $2.5m
John Owen
COO & Senior EVP1.83yrsUS$6.45m0.015% $1.4m
C. Lusco
Senior EVP & Chief Risk Officer9.25yrsUS$3.94m0.024% $2.2m
Fournier Gale
Senior Advisor0.17yrUS$2.65m0.0062% $593.9k
Hardie Kimbrough
Executive VP12.75yrsno data0.0026% $250.2k
Amala Duggirala
Chief Information Officerno datano datano data
Tobin Vinson
Associate Director of Investor Relationsno datano datano data
Dana Nolan
EVP & Head of Investor Relationsno datano datano data
Tara Plimpton
Senior Executive VP & General Counsel0.083yrno datano data

1.8yrs

Average Tenure

57yo

Average Age

Experienced Management: RF's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
John Turner
President1.83yrsUS$13.12m0.035% $3.4m
John Johns
Independent Director8.58yrsUS$250.00k0.0070% $669.4k
Charles McCrary
Independent Chairman of the Board1.33yrsUS$280.00k0.015% $1.4m
Donald DeFosset
Independent Director15.33yrsUS$250.00k0.013% $1.2m
José Suquet
Independent Director3.33yrsUS$232.50k0.0054% $512.8k
Lee Styslinger
Independent Director17.33yrsUS$230.00k0.012% $1.1m
Carolyn Byrd
Independent Director10yrsUS$255.00k0.0087% $828.8k
Samuel Di Piazza
Independent Director3.5yrsUS$233.50k0.0019% $186.2k
James Prokopanko
Independent Director3.5yrsUS$220.00k0.0019% $186.2k
Ruth Marshall
Independent Director8.75yrsUS$255.00k0.0095% $908.1k

6.0yrs

Average Tenure

66.5yo

Average Age

Experienced Board: RF's board of directors are considered experienced (6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: RF 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$9.549b
  • Shares outstanding: 959.68m
  • 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. 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/25 02:57
End of Day Share Price2020/05/22 00:00
Earnings2020/03/31
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.