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

Fundamentals

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


Market Performance


7 Day Return

1.1%

STI

2.9%

US Banks

0.07%

US Market


1 Year Return

13.6%

STI

8.6%

US Banks

8.9%

US Market

Return vs Industry: STI exceeded the US Banks industry which returned 8.6% over the past year.

Return vs Market: STI exceeded the US Market which returned 8.9% over the past year.


Shareholder returns

STIIndustryMarket
7 Day1.1%2.9%0.07%
30 Day2.0%3.4%-0.3%
90 Day3.7%2.1%-1.6%
1 Year17.4%13.6%11.8%8.6%11.3%8.9%
3 Year64.9%52.3%54.8%44.1%46.3%36.8%
5 Year103.0%79.1%70.2%51.6%62.1%44.3%

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?

12.52x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: STI ($68.81) is trading above our estimate of fair value ($54.41)

Significantly Below Fair Value: STI is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: STI is good value based on its PE Ratio (12.5x) compared to the Banks industry average (12.6x).

PE vs Market: STI is good value based on its PE Ratio (12.5x) compared to the US market (17.8x).


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 (1.2x) 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 13 analysts?

-1.6%

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 (-1.6% per year).

Earnings vs Market: STI's earnings are forecast to decline over the next 3 years (-1.6% per year).

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

Revenue vs Market: STI's revenue (1.2% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: STI's revenue (1.2% 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 (9.6%).


Next Steps

Past Performance

How has SunTrust Banks performed over the past 5 years?

9.9%

Historical annual earnings growth


Earnings and Revenue History


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 (29.7%).


Return on Equity

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


Return on Assets

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


Return on Capital Employed

ROCE Improving: Insufficient data to calculate STI's Return on Capital Employed to determine if it has improved over the past 3 years.


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?

3.26%

Current Dividend Yield


Dividend Yield vs Market

company3.3%marketbottom25%1.4%markettop25%3.7%industryaverage2.9%forecastin3Years3.2%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: STI's dividend (3.26%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: STI's dividend (3.26%) is low compared to the top 25% of dividend payers in the US market (3.68%).

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 (42.8% payout ratio).


Next Steps

Management

What is the CEO of SunTrust Banks's salary, the management and board of directors tenure and is there insider trading?

1.7yrs

Average management tenure


CEO

Bill Rogers (61yo)

8.3yrs

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. He is the Chairman & Chief Exec ...


CEO Compensation Analysis

Compensation vs. Market: Bill's total compensation ($USD8.82M) is about average for companies of similar size in the US market ($USD11.18M).

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


Management Age and Tenure

1.7yrs

Average Tenure

56yo

Average Age

Experienced Management: STI's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Age and Tenure

4.5yrs

Average Tenure

64yo

Average Age

Experienced Board: STI's board of directors are considered experienced (4.5 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$243,36014 Aug 19
Ellen Koebler
EntityIndividual
Shares4,000
Max PriceUS$60.84
SellUS$61,07524 Jul 19
Frank Scruggs
EntityIndividual
Shares1,000
Max PriceUS$61.08
SellUS$115,39828 May 19
Robert Richards
EntityIndividual
Shares1,844
Max PriceUS$62.58
SellUS$419,22824 Apr 19
Jorge Arrieta
EntityIndividual
Shares6,606
Max PriceUS$63.47
SellUS$653,80027 Feb 19
Mark Chancy
EntityIndividual
Role
Co-Chief Operating Officer
Vice Chairman and Co-COO
Shares10,000
Max PriceUS$65.38
SellUS$265,01627 Feb 19
Jorge Arrieta
EntityIndividual
Shares4,000
Max PriceUS$66.25

Ownership Breakdown


Management Team

  • Steve Voorhees (65yo)

    Director

    • Tenure: 1.8yrs
    • Compensation: US$229.00k
  • Ellen Fitzsimmons (58yo)

    General Counsel

    • Tenure: 1.8yrs
  • Bill Rogers (61yo)

    Chairman & CEO

    • Tenure: 8.3yrs
    • Compensation: US$8.82m
  • Mark Chancy (54yo)

    Vice Chairman and Co-COO

    • Tenure: 1.7yrs
    • Compensation: US$5.25m
  • Beau Cummins (56yo)

    Co-COO & Wholesale Segment Executive

    • Tenure: 1.7yrs
    • Compensation: US$4.82m
  • Ann Reams

    Compliance Officer

    • Tenure: 0yrs
  • Ankur Vyas

    Director of Investor Relations & Assistant Treasurer

    • Tenure: 0yrs
  • Laura Dukes (44yo)

    Corporate Executive VP & CFO

    • Tenure: 1.6yrs
    • Compensation: US$2.64m
  • Ernie Dawal

    Chief Investment Officer

    • Tenure: 8.3yrs
  • Scott Case (48yo)

    Corporate Executive VP & Chief Information Officer

    • Tenure: 1.7yrs
    • Compensation: US$2.78m

Board Members

  • David Ratcliffe (70yo)

    Lead Director

    • Tenure: 0.8yrs
    • Compensation: US$281.50k
  • Dallas Clement (54yo)

    Director

    • Tenure: 3.8yrs
    • Compensation: US$232.00k
  • Steve Voorhees (65yo)

    Director

    • Tenure: 1.8yrs
    • Compensation: US$229.00k
  • Paul Garcia (67yo)

    Independent Director

    • Tenure: 5.2yrs
    • Compensation: US$233.50k
  • Donna Morea (64yo)

    Director

    • Tenure: 7.5yrs
    • Compensation: US$264.00k
  • Bill Rogers (61yo)

    Chairman & CEO

    • Tenure: 8.3yrs
    • Compensation: US$8.82m
  • David Fuller

    Chairman of SunTrust Bank Central Florida div

    • Tenure: 7.6yrs
  • David Stevens (62yo)

    Chairman and CEO of Central Carolina Division

    • Tenure: 0yrs
  • Gary Peacock

    Chairman

    • Tenure: 0yrs
  • Manny Perdomo

    Chairman of South Florida div

    • Tenure: 3.2yrs

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$30.554b
  • Shares outstanding: 444.03m
  • 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 Uni ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 23:43
End of Day Share Price2019/10/22 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.