NYSE:STI

Stock Analysis Report

Executive Summary

SunTrust Banks, Inc. operates as the holding company for SunTrust Bank that provides various financial services for consumers, businesses, corporations, institutions, and not-for-profit entities in the United States.


Snowflake Analysis

Flawless balance sheet average dividend payer.


Similar Companies

Share Price & News

How has SunTrust Banks's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: STI has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.4%

STI

-1.2%

US Banks

-1.1%

US Market


1 Year Return

26.2%

STI

10.3%

US Banks

17.9%

US Market

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

Return vs Market: STI exceeded the US Market which returned 24.7% over the past year.


Shareholder returns

STIIndustryMarket
7 Day-0.4%-1.2%-1.1%
30 Day-1.3%-0.3%1.4%
90 Day6.0%-0.9%6.9%
1 Year30.4%26.2%13.5%10.3%20.3%17.9%
3 Year40.8%29.6%24.0%15.1%47.8%38.3%
5 Year99.3%75.3%73.8%54.1%71.9%53.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is SunTrust Banks undervalued compared to its fair value and its price relative to the market?

14.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: STI ($70.13) is trading below our estimate of fair value ($81.9)

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


Price To Earnings Ratio

PE vs Industry: STI is good value based on its PE Ratio (12.8x) compared to the Banks industry average (12.8x).

PE vs Market: STI is good value based on its PE Ratio (12.8x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: STI's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: STI is overvalued based on its PB Ratio (1.3x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is SunTrust Banks forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

-1.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: STI's earnings are forecast to decline over the next 3 years (-1.9% per year).

Earnings vs Market: STI's earnings are forecast to decline over the next 3 years (-1.9% per year).

High Growth Earnings: STI's earnings are forecast to decline over the next 3 years.

Revenue vs Market: STI's revenue (1.3% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: STI's revenue (1.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: STI's Return on Equity is forecast to be low in 3 years time (9.4%).


Next Steps

Past Performance

How has SunTrust Banks performed over the past 5 years?

9.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: STI has high quality earnings.

Growing Profit Margin: STI's current net profit margins (27.5%) are lower than last year (31.2%).


Past Earnings Growth Analysis

Earnings Trend: STI's earnings have grown by 9.9% per year over the past 5 years.

Accelerating Growth: STI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: STI had negative earnings growth (-11%) over the past year, making it difficult to compare to the Banks industry average (27.1%).


Return on Equity

High ROE: STI's Return on Equity (9.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is SunTrust Banks'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: STI has a low level of unsold assets or inventory.

Debt Coverage by Assets: STI's debt is not covered by short term assets (assets are 0.7x debt).


Financial Institutions Analysis

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

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

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

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

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

Level of Bad Loans: STI has an appropriate level of bad loans (0.38%)


Next Steps

Dividend

What is SunTrust Banks's current dividend yield, its reliability and sustainability?

3.19%

Current Dividend Yield


Dividend Yield vs Market

company3.2%marketbottom25%1.4%markettop25%3.7%industryaverage2.9%forecastin3Years3.2%

Current dividend yield vs market & industry

Notable Dividend: STI's dividend (3.19%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: STI's dividend (3.19%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (37.5%), STI's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: STI's dividends in 3 years are forecast to be well covered by earnings (41.9% payout ratio).


Next Steps

Management

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

1.9yrs

Average management tenure


CEO

Bill Rogers (61yo)

8.5yrs

Tenure

US$8,815,914

Compensation

Mr. William Henry Rogers, Jr., also known as Bill, serves as Chairman of SunTrust Banks, Inc. since January 1, 2012 and has been its Chief Executive Officer since June 2011. Mr. Rogers has been President a ...


CEO Compensation Analysis

Compensation vs Market: Bill's total compensation ($USD8.82M) is about average for companies of similar size in the US market ($USD10.76M).

Compensation vs Earnings: Bill's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
William Rogers
Chairman & CEO8.5yrsUS$8.82m0.15% $47.3m
Laura Dukes
Corporate Executive VP & CFO1.8yrsUS$2.64m0.0099% $3.1m
Mark Chancy
Vice Chairman and Co-COO1.8yrsUS$5.25m0.044% $13.8m
Hugh Cummins
Co-COO & Wholesale Segment Executive1.8yrsUS$4.82m0.016% $5.0m
Scott Case
Corporate Executive VP & Chief Information Officer1.8yrsUS$2.78m0.00021% $65.4k
Ernest Dawal
Chief Investment Officer8.4yrsno datano data
Ankur Vyas
Director of Investor Relations & Assistant Treasurer0yrsno datano data
Poranee Reams
Compliance Officer0yrsno datano data
Ellen Fitzsimmons
General Counsel1.9yrsno data0.00028% $87.2k
Sue Mallino
Chief Communications Officer & Senior VP6.6yrsno datano data

1.9yrs

Average Tenure

55yo

Average Age

Experienced Management: STI's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
William Rogers
Chairman & CEO8.5yrsUS$8.82m0.15% $47.3m
David Fuller
Chairman of SunTrust Bank Central Florida div7.8yrsno datano data
David Stevens
Chairman and CEO of Central Carolina Division0yrsno datano data
Gary Peacock
Chairman0yrsno datano data
Manny Perdomo
Chairman of South Florida div3.3yrsno datano data
David Ratcliffe
Lead Director0.9yrsUS$281.50k0.0048% $1.5m
Dallas Clement
Independent Director4yrsUS$232.00kno data
Frank Scruggs
Independent Director6.7yrsUS$236.50k0.0019% $594.8k
Paul Garcia
Independent Director5.3yrsUS$233.50k0.0020% $613.5k
Donna Morea
Independent Director7.7yrsUS$264.00k0.0063% $2.0m

6.0yrs

Average Tenure

64yo

Average Age

Experienced Board: STI'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: STI insiders have only sold shares 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

SunTrust Banks, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: SunTrust Banks, Inc.
  • Ticker: STI
  • Exchange: NYSE
  • Founded: 1891
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$31.140b
  • Shares outstanding: 444.04m
  • Website: https://www.suntrust.com

Number of Employees


Location

  • SunTrust Banks, Inc.
  • 303 Peachtree Street, N.E.
  • Atlanta
  • Georgia
  • 30308
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
STINYSE (New York Stock Exchange)YesCommon StockUSUSDJul 1985
SUUDB (Deutsche Boerse AG)YesCommon StockDEEURJul 1985
0LATLSE (London Stock Exchange)YesCommon StockGBUSDJul 1985
STI *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJul 1985
STI.PRANYSE (New York Stock Exchange)PFD 1/4000 AUSUSDSep 2006
A1ZR91DB (Deutsche Boerse AG)5.625%-FRN PERP USD 'F'DEUSDNov 2014

Biography

SunTrust Banks, Inc. operates as the holding company for SunTrust Bank that provides various financial services for consumers, businesses, corporations, institutions, and not-for-profit entities in the United States. It operates in two segments, Consumer and Wholesale. The Consumer segment provides deposits and payments; home equity and personal credit lines; auto, student, and other lending products; credit cards; discount/online and full-service brokerage products; professional investment advisory products and services; and trust services, as well as family office solutions. This segment also offers residential mortgage products in the secondary market. The Wholesale segment provides capital markets solutions, including advisory, capital raising, and financial risk management; asset-based financing solutions, such as securitizations, asset-based lending, equipment financing, and structured real estate arrangements; cash management services and auto dealer financing solutions; investment banking solutions; and credit and deposit, fee-based product offering, multi-family agency lending, advisory, commercial mortgage brokerage, and tailored financing and equity investment solutions. This segment also offers treasury and payment solutions, such as operating various electronic and paper payment types, which comprise card, wire transfer, automated clearing house, check, and cash; and provides services clients to manage their accounts online. The company offers its products and services through a network of traditional and in-store branches, automated teller machines, Internet, mobile, and telephone banking channels. As of December 31, 2018, it operated 1,218 full-service banking offices located in Florida, Georgia, Virginia, North Carolina, Tennessee, Maryland, South Carolina, and the District of Columbia. SunTrust Banks, Inc. was founded in 1891 and is headquartered in Atlanta, Georgia. As of December 6, 2019, SunTrust Banks, Inc. operates as a subsidiary of BB&T Corporation. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/09 23:42
End of Day Share Price2019/12/06 00:00
Earnings2019/09/30
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.