NYSE:TFC

Stock Analysis Report

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Executive Summary

Truist Financial Corporation, a holding company, provides banking and trust services for small and mid-size businesses, public agencies, local governments, corporations, and individuals in the Southeastern and Mid-Atlantic United States. More Details


Snowflake Analysis

Flawless balance sheet established dividend payer.


Similar Companies

Share Price & News

How has Truist Financial's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

4.3%

TFC

0.3%

US Banks

-1.4%

US Market


1 Year Return

-18.9%

TFC

-28.7%

US Banks

17.8%

US Market

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

Return vs Market: TFC underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

TFCIndustryMarket
7 Day4.3%0.3%-1.4%
30 Day22.6%5.8%4.7%
90 Day15.1%-0.5%8.2%
1 Year-15.4%-18.9%-26.1%-28.7%20.5%17.8%
3 Year-1.0%-10.9%-19.3%-26.0%42.2%32.7%
5 Year37.9%17.0%14.8%0.6%83.4%62.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

19.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TFC ($43.45) is trading below our estimate of fair value ($53.98)

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


Price To Earnings Ratio

PE vs Industry: TFC is poor value based on its PE Ratio (14.7x) compared to the US Banks industry average (10.1x).

PE vs Market: TFC is good value based on its PE Ratio (14.7x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: TFC is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: TFC is overvalued based on its PB Ratio (0.9x) compared to the US Banks industry average (0.8x).


Next Steps

Future Growth

How is Truist Financial forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

14.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TFC's forecast earnings growth (14% per year) is above the savings rate (2.2%).

Earnings vs Market: TFC's earnings (14% per year) are forecast to grow slower than the US market (22% per year).

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

Revenue vs Market: TFC's revenue is expected to decline over the next 3 years (-1.2% per year).

High Growth Revenue: TFC's revenue is forecast to decline over the next 3 years (-1.2% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TFC's Return on Equity is forecast to be low in 3 years time (10.3%).


Next Steps

Past Performance

How has Truist Financial performed over the past 5 years?

12.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TFC has high quality earnings.

Growing Profit Margin: TFC's current net profit margins (19.9%) are lower than last year (27.3%).


Past Earnings Growth Analysis

Earnings Trend: TFC's earnings have grown by 12.8% per year over the past 5 years.

Accelerating Growth: TFC's earnings growth over the past year (18.8%) exceeds its 5-year average (12.8% per year).

Earnings vs Industry: TFC earnings growth over the past year (18.8%) exceeded the Banks industry -3.2%.


Return on Equity

High ROE: TFC's Return on Equity (5.6%) is considered low.


Next Steps

Financial Health

How is Truist 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: TFC's Assets to Equity ratio (7.1x) is low.

Allowance for Bad Loans: TFC has a sufficient allowance for bad loans (468%).

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

Loan Level: TFC has an appropriate level of Loans to Assets ratio (60%).

Low Risk Deposits: TFC's Loans to Deposits ratio (81%) is appropriate.

Level of Bad Loans: TFC has an appropriate level of bad loans (0.4%).


Next Steps

Dividend

What is Truist Financial current dividend yield, its reliability and sustainability?

4.14%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TFC's dividend (4.14%) is higher than the bottom 25% of dividend payers in the US market (1.65%).

High Dividend: TFC's dividend (4.14%) is low compared to the top 25% of dividend payers in the US market (4.67%).


Stability and Growth of Payments

Stable Dividend: TFC's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (61.1%), TFC's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TFC's dividends in 3 years are forecast to be well covered by earnings (41.1% payout ratio).


Next Steps

Management

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

3.0yrs

Average management tenure


CEO

Kelly King (72 yo)

11.75yrs

Tenure

US$11,491,109

Compensation

Mr. Kelly Stuart King has been Chief Executive Officer of Truist Financial Corporation since January, 2009. Mr. King serves as Chairman of the Board and Chief Executive Officer of Truist Bank since 2009. H ...


CEO Compensation Analysis

Compensation vs Market: Kelly's total compensation ($USD11.49M) is about average for companies of similar size in the US market ($USD11.20M).

Compensation vs Earnings: Kelly's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Kelly King
Chairman & CEO11.75yrsUS$11.49m0.043%
$ 25.3m
William Rogers
Presidentno dataUS$4.23m0.073%
$ 42.7m
Daryl Bible
Senior EVP & CFO11.75yrsUS$4.95m0.012%
$ 7.2m
Christopher Henson
Senior EVP and Head of Banking & Insurance16.33yrsUS$8.31m0.017%
$ 10.0m
Clarke Starnes
Senior EVP & Chief Risk Officer20.75yrsUS$6.05m0.012%
$ 6.8m
Scott Case
Chief Information Officer & Senior EVP0.83yrno data0.00069%
$ 404.2k
Richard Baytosh
Executive Vice President of Investor Relations1.75yrsno datano data
Ellen Fitzsimmons
Chief Legal Officer0.83yrno data0.00076%
$ 445.2k
Brian Davis
Senior Vice President of Corporate Communicationsno datano datano data
Vinoo Vijay
Chief Marketing Officerno datano datano data
Kimberly Moore-Wright
Chief Human Resources Officer1.75yrsno data0.00026%
$ 152.3k
Dontá Wilson
Senior EVP and Chief Digital & Client Experience Officer4.17yrsno data0.0011%
$ 656.0k

3.0yrs

Average Tenure

59yo

Average Age

Experienced Management: TFC's management team is considered experienced (3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kelly King
Chairman & CEO11.75yrsUS$11.49m0.043%
$ 25.3m
William Rogers
Presidentno dataUS$4.23m0.073%
$ 42.7m
John Howard
Chairman & CEO at Truist Insurance Holdingsno datano datano data
David Ratcliffe
Independent Lead Director0.83yrUS$10.50k0.0020%
$ 1.2m
Thomas Skains
Independent Director11.33yrsUS$286.32k0.0022%
$ 1.3m
Dallas Clement
Independent Director0.83yrUS$10.50kno data
Nido Qubein
Independent Director30.5yrsUS$256.82k0.0055%
$ 3.2m
Anna Cablik
Independent Director15.92yrsUS$289.32k0.0030%
$ 1.7m
K. Boyer
Independent Director11yrsUS$247.82k0.00075%
$ 439.3k
Jennifer Banner
Independent Director17.5yrsUS$289.32k0.0019%
$ 1.1m
Thomas Thompson
Independent Director12.75yrsUS$286.32k0.042%
$ 24.6m
Charles Patton
Independent Director7.75yrsUS$299.82k0.0053%
$ 3.1m

11.2yrs

Average Tenure

65.5yo

Average Age

Experienced Board: TFC's board of directors are seasoned and experienced ( 11.2 years average tenure).


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 75.9%.


Top Shareholders

Company Information

Truist Financial Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Truist Financial Corporation
  • Ticker: TFC
  • Exchange: NYSE
  • Founded: 1872
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$58.576b
  • Shares outstanding: 1.35b
  • Website: https://www.truist.com

Number of Employees


Location

  • Truist Financial Corporation
  • 214 North Tryon Street
  • Charlotte
  • North Carolina
  • 28202
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TFCNYSE (New York Stock Exchange)YesCommon StockUSUSDDec 1972
BBKDB (Deutsche Boerse AG)YesCommon StockDEEURDec 1972
TFC *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNDec 1972
BBK-UETLX (Eurotlx)YesCommon StockITEURDec 1972
TFC.PRFNYSE (New York Stock Exchange)DEP1/1000 PFD FUSUSDOct 2012
TFC.PRGNYSE (New York Stock Exchange)DP SHS RP PF GUSUSDApr 2013
TFC.PRHNYSE (New York Stock Exchange)DEP PFD SER HUSUSDMar 2016
TFC.PRINYSE (New York Stock Exchange)DEP PFD 1/4000 IUSUSDDec 2019
B1BT34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COM USD5BRBRLDec 2019
TFC.PRRNYSE (New York Stock Exchange)US$0 mil callable Non-Cumulative Perpetual ser RUSUSDJul 2020

Biography

Truist Financial Corporation, a holding company, provides banking and trust services for small and mid-size businesses, public agencies, local governments, corporations, and individuals in the Southeastern ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/23 00:11
End of Day Share Price2020/10/22 00:00
Earnings2020/09/30
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.