Regions Financial Corporation
Regions Financial Corporation Fundamental Analysis
Regions Financial Corporation (RF-PE) shows moderate financial fundamentals with a PE ratio of 12.12, profit margin of 22.44%, and ROE of 11.45%. The company generates $9.8B in annual revenue with weak year-over-year growth of 2.40%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 51.6/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze RF-PE's fundamental strength across five key dimensions:
Efficiency Score
WeakRF-PE struggles to generate sufficient returns from assets.
Valuation Score
ModerateRF-PE shows balanced valuation metrics.
Growth Score
WeakRF-PE faces weak or negative growth trends.
Financial Health Score
ModerateRF-PE shows balanced financial health with some risks.
Profitability Score
ModerateRF-PE maintains healthy but balanced margins.
Key Financial Metrics
Is RF-PE Expensive or Cheap?
P/E Ratio
RF-PE trades at 12.12 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, RF-PE's PEG of 9.21 indicates potential overvaluation.
Price to Book
The market values Regions Financial Corporation at 1.37 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 11.49 times EBITDA. This signals the market has high growth expectations.
How Well Does RF-PE Make Money?
Net Profit Margin
For every $100 in sales, Regions Financial Corporation keeps $22.44 as profit after all expenses.
Operating Margin
Core operations generate 28.55 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.45 in profit for every $100 of shareholder equity.
ROA
Regions Financial Corporation generates $1.35 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Regions Financial Corporation produces operating cash flow of $2.32B, showing steady but balanced cash generation.
Free Cash Flow
Regions Financial Corporation generates strong free cash flow of $2.29B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.56 in free cash annually.
FCF Yield
RF-PE converts 8.53% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
12.12
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
9.21
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.37
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.73
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.26
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.30
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How RF-PE Stacks Against Its Sector Peers
| Metric | RF-PE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 12.12 | 18.86 | Better (Cheaper) |
| ROE | 11.45% | 847.00% | Weak |
| Net Margin | 22.44% | 4202.00% | Weak |
| Debt/Equity | 0.26 | 0.91 | Strong (Low Leverage) |
| Current Ratio | 0.30 | 667.17 | Weak Liquidity |
| ROA | 1.35% | -21543.00% (disorted) | Weak |
RF-PE outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Regions Financial Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
52.05%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
29.98%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
-32.75%
Industry Style: Value, Dividend, Cyclical
Declining