Truist Financial
Market Cap
US$73.7b
Last Updated
2020/02/18 23:52 UTC
Data Sources
Company Financials +
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.
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet with high growth potential.
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
-1.5%
TFC
-1.5%
US Banks
0.06%
US Market
1 Year Return
5.7%
TFC
9.7%
US Banks
19.4%
US Market
Return vs Industry: TFC underperformed the US Banks industry which returned 12.1% over the past year.
Return vs Market: TFC underperformed the US Market which returned 20.1% over the past year.
Shareholder returns
| TFC | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.5% | -1.5% | 0.06% |
| 30 Day | -4.1% | -2.8% | 1.1% |
| 90 Day | -0.7% | 0.3% | 8.9% |
| 1 Year | 9.4%5.7% | 12.9%9.7% | 21.9%19.4% |
| 3 Year | 23.5%12.5% | 22.5%13.7% | 48.9%39.3% |
| 5 Year | 64.6%41.3% | 72.4%52.8% | 71.9%53.1% |
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
1 week ago | Simply Wall St
Truist Financial Corporation (NYSE:TFC) Looks Interesting, And It's About To Pay A Dividend1 week ago | Simply Wall St
Truist Financial (NYSE:TFC) Shareholders Have Enjoyed A 42% Share Price Gain3 weeks ago | Simply Wall St
What Type Of Shareholder Owns Truist Financial Corporation's (NYSE:TFC)?Valuation
Is Truist Financial undervalued compared to its fair value and its price relative to the market?
24.8%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: TFC ($54.94) is trading below our estimate of fair value ($71.85)
Significantly Below Fair Value: TFC is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: TFC is poor value based on its PE Ratio (14.6x) compared to the Banks industry average (12.6x).
PE vs Market: TFC is good value based on its PE Ratio (14.6x) compared to the US market (18.4x).
Price to Earnings Growth Ratio
PEG Ratio: TFC is good value based on its PEG Ratio (0.6x)
Price to Book Ratio
PB vs Industry: TFC is overvalued based on its PB Ratio (1.2x) compared to the US Banks industry average (1.2x).
Next Steps
Future Growth
How is Truist Financial forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?
25.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: TFC's forecast earnings growth (25% per year) is above the savings rate (1.7%).
Earnings vs Market: TFC's earnings (25% per year) are forecast to grow faster than the US market (14.6% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: TFC's revenue (22.6% per year) is forecast to grow faster than the US market (7.6% per year).
High Growth Revenue: TFC's revenue (22.6% per year) is forecast to grow faster than 20% 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?
11.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: TFC has high quality earnings.
Growing Profit Margin: TFC's current net profit margins (25.3%) are lower than last year (27.9%).
Past Earnings Growth Analysis
Earnings Trend: TFC's earnings have grown by 11.3% per year over the past 5 years.
Accelerating Growth: TFC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: TFC had negative earnings growth (-1.1%) over the past year, making it difficult to compare to the Banks industry average (12.2%).
Return on Equity
High ROE: TFC's Return on Equity (4.9%) is considered low.
Return on Assets
Return on Capital Employed
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
Inventory Level: TFC has a low level of unsold assets or inventory.
Debt Coverage by Assets: TFC's debt is not covered by short term assets (assets are 0.6x debt).
Financial Institutions Analysis
Asset Level: TFC's level of assets compared to its equity is low.
Allowance for Bad Loans: TFC has a sufficient allowance for bad loans.
Low Risk Liabilities: TFC's liabilities are made up of primarily low risk sources of funding.
Loan Level: TFC has an acceptable proportion of non-loan assets held.
Low Risk Deposits: TFC's loans are broadly funded by customer deposits.
Level of Bad Loans: TFC has an appropriate level of bad loans (0.19%)
Next Steps
Dividend
What is Truist Financial's current dividend yield, its reliability and sustainability?
3.33%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: TFC's dividend (3.28%) is higher than the bottom 25% of dividend payers in the US market (1.44%).
High Dividend: TFC's dividend (3.28%) is low compared to the top 25% of dividend payers in the US market (3.69%).
Stability and Growth of Payments
Stable Dividend: TFC's dividend payments have been volatile in the past 10 years.
Growing Dividend: TFC's dividend payments have fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (45.5%), TFC's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: TFC's dividends in 3 years are forecast to be well covered by earnings (43.1% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.5yrs
Average management tenure
CEO
Kelly King (71yo)
11.1yrs
Tenure
US$8,584,676
Compensation
Mr. Kelly Stuart King has been Chief Executive Officer of Truist Financial Corporation since January, 2009. Mr. King serves as Chairman of the Board and Chief Executive Officer of Truist Bank. He served as ...
CEO Compensation Analysis
Compensation vs Market: Kelly's total compensation ($USD8.58M) is about average for companies of similar size in the US market ($USD10.78M).
Compensation vs Earnings: Kelly's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 11.1yrs | US$8.58m | 0.045% $33.0m | |
| Chief Financial Officer | 11.1yrs | US$3.21m | 0.013% $9.8m | |
| Head of Banking & Insurance | 15.7yrs | US$4.07m | 0.018% $13.4m | |
| Chief Risk Officer | 20.1yrs | US$3.14m | 0.012% $9.2m | |
| President | 0yrs | no data | 0.068% $50.0m | |
| Chief Information Officer | 0.2yrs | no data | 0.00060% $442.4k | |
| Executive Vice President of Investor Relations | 1.1yrs | no data | no data | |
| Chief Legal Officer and Head of Enterprise Diversity & Human Resources | 0.2yrs | no data | 0.00064% $471.9k | |
| Senior Vice President of Corporate Communications | 0yrs | no data | no data | |
| Chief Digital & Client Experience Officer | 3.5yrs | no data | 0.0014% $1.0m |
3.5yrs
Average Tenure
58yo
Average Age
Experienced Management: TFC's management team is considered experienced (3.5 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 11.1yrs | US$8.58m | 0.045% $33.0m | |
| President | 0yrs | no data | 0.068% $50.0m | |
| Chairman & CEO of BB&T Insurance Holdings | 0yrs | no data | no data | |
| Lead Director | 0.2yrs | no data | 0.0021% $1.5m | |
| Independent Director | 10.7yrs | US$262.69k | 0.0020% $1.5m | |
| Director | 0yrs | no data | no data | |
| Director | 29.8yrs | US$224.69k | 0.0039% $2.9m | |
| Independent Director | 15.3yrs | US$244.69k | 0.0027% $2.0m | |
| Independent Director | 16.8yrs | US$267.19k | 0.0017% $1.2m | |
| Independent Director | 7.1yrs | US$270.19k | 0.0051% $3.7m |
10.7yrs
Average Tenure
62.5yo
Average Age
Experienced Board: TFC's board of directors are seasoned and experienced ( 10.7 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: TFC insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.2%.
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$73.739b
- Shares outstanding: 1.34b
- Website: https://www.truist.com
Number of Employees
Location
- Truist Financial Corporation
- 214 North Tryon Street
- Charlotte
- North Carolina
- 28202
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| TFC | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Dec 1972 |
| SUU | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Dec 1972 |
| BBT * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Dec 1972 |
| 0HKH | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Dec 1972 |
| TFC.PRF | NYSE (New York Stock Exchange) | DEP SHS RP PFD F | US | USD | Oct 2012 | |
| TFC.PRG | NYSE (New York Stock Exchange) | DEP SHS RP PFD G | US | USD | Apr 2013 | |
| TFC.PRH | NYSE (New York Stock Exchange) | DEP SHS RP PFD H | US | USD | Mar 2016 | |
| TFC.PRI | NYSE (New York Stock Exchange) | DEP SHS PFD I | US | USD | Dec 2019 | |
| B1BT34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH REPR 1 COM USD5 | BR | BRL | Dec 2019 |
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 and Mid-Atlantic United States. The company operates through four segments: Community Banking Retail and Consumer Finance, Community Banking Commercial, Insurance Holdings, and Financial Services and Commercial Finance. Its deposit products include noninterest-bearing checking, interest-bearing checking, savings, and money market deposit accounts, as well as certificates of deposit and individual retirement accounts. The company also provides funding; asset management; automobile lending; bankcard lending; consumer finance; home equity and mortgage lending; insurance, such as property and casualty, life, health, employee benefits, commercial general liability, surety, title and other insurance products; investment brokerage; mobile/online banking; and payment, lease financing, small business lending, and wealth management/private banking services. In addition, it offers association, capital market, institutional trust, insurance premium and commercial finance, international banking, leasing, merchant, commercial deposit and treasury, commercial middle market lending, floor plan lending, commercial mortgage lending, mortgage warehouse lending, private equity investment, real estate lending, and supply chain financing services. Further, the company provides retail brokerage, equity and debt underwriting, investment advice, and corporate finance, as well as facilitates the origination, trading, and distribution of fixed-income securities and equity products. As of December 31, 2018, the company operated through approximately 1,879 financial centers. The company was formerly known as BB&T Corporation and changed its name to Truist Financial Corporation in December 2019. The company was founded in 1872 and is based in Charlotte, North Carolina.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/18 23:52 |
| End of Day Share Price | 2020/02/18 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.