Truist Financial Corporation
Truist Financial Corporation Fundamental Analysis
Truist Financial Corporation (TFC-PR) shows moderate financial fundamentals with a PE ratio of 12.44, profit margin of 17.44%, and ROE of 8.15%. The company generates $30.9B in annual revenue with weak year-over-year growth of -19.02%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 19.6/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze TFC-PR's fundamental strength across five key dimensions:
Efficiency Score
WeakTFC-PR struggles to generate sufficient returns from assets.
Valuation Score
ModerateTFC-PR shows balanced valuation metrics.
Growth Score
WeakTFC-PR faces weak or negative growth trends.
Financial Health Score
WeakTFC-PR carries high financial risk with limited liquidity.
Profitability Score
ModerateTFC-PR maintains healthy but balanced margins.
Key Financial Metrics
Is TFC-PR Expensive or Cheap?
P/E Ratio
TFC-PR trades at 12.44 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, TFC-PR's PEG of 4.68 indicates potential overvaluation.
Price to Book
The market values Truist Financial Corporation at 1.01 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.71 times EBITDA. This is generally considered low.
How Well Does TFC-PR Make Money?
Net Profit Margin
For every $100 in sales, Truist Financial Corporation keeps $17.44 as profit after all expenses.
Operating Margin
Core operations generate 20.86 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.15 in profit for every $100 of shareholder equity.
ROA
Truist Financial Corporation generates $0.97 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Truist Financial Corporation produces operating cash flow of $3.21B, showing steady but balanced cash generation.
Free Cash Flow
Truist Financial Corporation generates strong free cash flow of $3.21B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.49 in free cash annually.
FCF Yield
TFC-PR converts 4.72% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
12.44
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
4.68
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.01
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.19
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.07
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.87
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.010
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How TFC-PR Stacks Against Its Sector Peers
| Metric | TFC-PR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 12.44 | 18.86 | Better (Cheaper) |
| ROE | 8.15% | 847.00% | Weak |
| Net Margin | 17.44% | 4202.00% | Weak |
| Debt/Equity | 1.07 | 0.91 | Neutral |
| Current Ratio | 0.87 | 667.17 | Weak Liquidity |
| ROA | 0.97% | -21543.00% (disorted) | Weak |
TFC-PR outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Truist Financial Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
0.04%
Industry Style: Value, Dividend, Cyclical
GrowingEPS CAGR
-9.61%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
-13.89%
Industry Style: Value, Dividend, Cyclical
Declining