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.

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

1.4%

US Banks

1.0%

US Market


1 Year Return

-10.1%

RF

0.2%

US Banks

6.7%

US Market

Return vs Industry: RF underperformed the US Banks industry which returned 0.2% over the past year.

Return vs Market: RF underperformed the US Market which returned 6.7% over the past year.


Share holder returns

RFIndustryMarket
7 Day0.3%1.4%1.0%
30 Day-5.6%-2.6%-1.8%
90 Day3.3%0.8%-1.8%
1 Year-6.5%-10.1%3.1%0.2%9.1%6.7%
3 Year67.1%54.1%52.0%41.5%46.1%36.6%
5 Year91.8%68.5%69.7%51.2%66.9%48.6%

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 based on future cash flows and its price relative to the stock market?

23%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: RF ($15.43) is trading below our estimate of fair value ($20.09)

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


Price Based on Earnings

PE vs Industry: RF is good value based on its PE Ratio (10.7x) compared to the Banks industry average (12.5x).

PE vs Market: RF is good value based on its PE Ratio (10.7x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: RF is poor value based on its PEG Ratio (10.1x)


Price Based on Value of Assets

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 expected 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 Estimates


Future Annual Growth Analysis

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

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

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

Revenue vs Market: RF's revenue (1.9% per year) is forecast to grow slower than the US market (7.3% per year).

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


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: RF'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's earnings have grown by 8.3% per year over the past 5 years.

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

Earnings vs Industry: RF earnings growth over the past year (10%) underperformed the Banks industry 31.8%.


Return on Equity

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


Return on Assets

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


Return on Capital Employed

ROCE Improving: Insufficient data to calculate RF'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 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 0.4x 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 (0.65%)


Next Steps

Dividend

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

4.25%

Expected Dividend Yield


Dividend Yield vs Market

company4.0%marketbottom25%1.5%markettop25%3.8%industryaverage2.5%forecastin3Years4.3%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: RF's dividend (4.02%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: RF's dividend (4.02%) is in the top 25% of dividend payers in the US market (3.77%)

Stable Dividend: RF's dividend payments have been volatile 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 (38.9%), 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 (46.3% 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: John has recently become CEO, making it difficult to compare their total compensation against 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'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's board of directors are considered experienced (8.1 years average tenure).


Insider Trading

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


Recent Insider Transactions

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$104,93912 Aug 19
Hardie Kimbrough
EntityIndividual
Role
Chief Accounting Officer
Executive VP
Shares7,148
Max PriceUS$14.68
SellUS$585,01612 Aug 19
John Owen
EntityIndividual
Role
Chief Operating Officer
COO & Senior EVP
Shares40,000
Max PriceUS$14.63
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$468,91725 Apr 19
Scott Peters
EntityIndividual
Shares30,877
Max PriceUS$15.19
SellUS$941,51325 Apr 19
John Owen
EntityIndividual
Role
Chief Operating Officer
COO & Senior EVP
Shares61,756
Max PriceUS$15.25

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
  • Exchange: NYSE
  • Founded: 1852
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$15.396b
  • 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 Analysis2019/10/14 01:49
End of Day Share Price2019/10/11 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.

© 2018 SIMPLY WALL STREET PTY LTD, COMMUNITY DESIGN 2845206, US DESIGN PATENT #29/544/281, EUROPEAN DESIGN REGISTRATION #2845206, STANDARD & POOR’S FINANCIAL SERVICES LLC. ALL RIGHTS RESERVED.

Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.

Copyright © 2018, Standard & Poor’s Financial Services LLC. Reproduction of S&P Capital IQ in any form is prohibited except with the prior written permission of S&P. S&P does not guarantee the accuracy, adequacy, completeness or availability of any information and is not responsible for any errors or omissions, regardless of the cause or for the results obtained from the use of such information. S&P DISCLAIMS ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE. In no event shall S&P be liable for any direct, indirect, special or consequential damages, costs, expenses, legal fees, or losses (including lost income or lost profit and opportunity costs) in connection with subscriber’s or others’ use of S&P Capital IQ. (2018)