Regions Financial Corp
Exchange: NYSESector: Financial ServicesIndustry: Banks - Regional
Regions Financial Corporation, with $160 billion in assets, is a member of the S&P 500 Index and is one of the nation’s largest full-service providers of consumer and commercial banking, wealth management, and mortgage products and services. Regions serves customers across the South, Midwest and Texas, and through its subsidiary, Regions Bank, operates approximately 1,250 banking offices and more than 2,000 ATMs. Regions Bank is an Equal Housing Lender and Member FDIC.
Did you know?
Pays a 3.73% dividend yield.
Current Price
$27.85
+0.36%GoodMoat Value
$47.64
71.1% undervaluedProfile
Valuation (TTM)
Market Cap$24.42B
P/E11.85
EV$16.30B
P/B1.28
Shares Out876.88M
P/Sales3.46
Revenue$7.06B
EV/EBITDA6.73
Regions Financial Corp (RF) Stock Analysis
GoodMoat Analysis
Regions Financial Corp is a regional bank with a modest moat score of 3, primarily from its scale and regulatory advantages, but it fails the initial quality gate for a deep value analysis. Its valuation appears favourable, trading at a P/E of 11x and a free cash flow yield of 9.0%, with a GoodMoat target price suggesting significant upside. However, the low moat score requires a value investor to proceed with caution, focusing on its financial stability and dividend yield of 4.04%.
Read full analysis
Regions Financial Corp operates as a regional bank in the U.S. Southeast, providing commercial and consumer banking services. Applying the GoodMoat Investment Framework, the company's moat is limited. It scores an estimated 3 out of 14 on the Moat Identification checklist. Its primary advantages stem from regulatory barriers inherent to the banking industry and a degree of scale privilege in its regional footprint. However, it lacks the strong network effects, high switching costs, or proprietary technology that characterize a wide and durable moat.
Financially, the company shows solid operational metrics with a 29.2% profit margin and a 15.6% YoY revenue growth. Its return on equity of 10.8% is below the high-quality threshold of 15-20%, and the debt-to-equity ratio of 0.26 indicates a conservative balance sheet. The valuation is the most compelling aspect: trading at a P/E of 10.96x and offering a 9.0% free cash flow yield and a 4.04% dividend yield. The GoodMoat target price of $47.64 implies a substantial margin of safety relative to the current $25.60 price.
Following the Decision Framework, Regions Financial fails the initial 'Moat & Quality Gate' due to its low moat score (<5), which precludes it from a straightforward favourable rating. For a value investor, this means the stock does not qualify as a high-quality business with a durable competitive advantage under this specific framework. However, its attractive valuation metrics and stable financials may warrant investigation from a pure asset or income perspective, albeit with the understanding that its competitive position is more vulnerable than a business with a stronger moat.
Analysis based on data as of 2024-05-15.
Market Cap$24.42B
Current Price$27.85
P/E Ratio11.85
Forward P/E—
PEG Ratio2.21
EPS$2.30
Book Value$21.72
P/B Ratio1.28
RF Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use -2.8% FCF growth (CAGR)
Cash vs Debt
Net Cash: 6.0B
Revenue
5.5B
FY19
5.0B
FY20
7.0B
FY21
6.9B
FY22
7.0B
FY23
6.6B
FY24
7.1B
FY25
Net Income
1.5B
FY19
991M
FY20
2.4B
FY21
2.1B
FY22
2.0B
FY23
1.8B
FY24
2.1B
FY25
RF 52-Week Range
$18.32
$30.66
50-Day MA: $27.57200-Day MA: $26.08
Did you know?
Price sits at 77% of its 52-week range.
Regions Financial Corp (RF) Financial Summary
Regions Financial Corp (RF) is a Financial Services company in the Banks - Regional industry, listed on NYSE. The stock currently trades at $27.85 with a market capitalization of $24.42B.
Key valuation metrics include a P/E ratio of 11.85, price-to-book ratio of 1.28, and EPS of $2.30. The company reports a profit margin of 29.2% and return on equity of 10.8%.
RF Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $24.42B |
| P/E Ratio | 11.85 |
| EPS | $2.30 |
| P/B Ratio | 1.28 |
| P/S Ratio | 3.46 |
| EV/EBITDA | 6.73 |
| Dividend Yield | 3.73% |
| Profit Margin | 29.2% |
| Return on Equity | 10.8% |
| Debt/Equity | 0.26 |
RF Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $5.47B | $1.50B |
| FY20 | $4.96B | $991.00M |
| FY21 | $6.96B | $2.40B |
| FY22 | $6.94B | $2.15B |
| FY23 | $7.02B | $1.98B |
| FY24 | $6.60B | $1.77B |
| FY25 | $7.06B | $2.06B |
Regions Financial Corp (RF) Valuation
Based on GoodMoat's DCF model, Regions Financial Corp has a fair value estimate of $47.64. At the current price of $27.85, the stock appears 41.5% undervalued relative to our intrinsic value estimate.
RF Quality Indicators
Regions Financial Corp maintains a profit margin of 29.2% and an operating margin of 38.9%. Return on equity stands at 10.8%. Debt-to-equity ratio is 0.26.
About Regions Financial Corp
Regions Financial Corporation, with $160 billion in assets, is a member of the S&P 500 Index and is one of the nation’s largest full-service providers of consumer and commercial banking, wealth management, and mortgage products and services. Regions serves customers across the South, Midwest and Texas, and through its subsidiary, Regions Bank, operates approximately 1,250 banking offices and more than 2,000 ATMs. Regions Bank is an Equal Housing Lender and Member FDIC.
RF Free Cash Flow
Regions Financial Corp generated $2.03B in trailing twelve-month free cash flow, representing an FCF yield of 8.30%. This strong FCF yield suggests the company generates substantial cash relative to its market value.
RF Shares Outstanding
Regions Financial Corp has 0.88 billion shares outstanding at a share price of $27.85, giving it a market capitalization of $24.42B.
RF Recent Insider Trades
Recent insider transactions at Regions Financial Corp include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Ritter William D. (SEVP) | SELL | 36,000 | $1.04M |