Truist Financial Corporation
Exchange: NYSESector: Financial ServicesIndustry: Banks - Regional
Truist Financial Corporation is a purpose-driven financial services company committed to inspiring and building better lives and communities. As a leading U.S. commercial bank, Truist has leading market share in many of the high-growth markets across the country. Truist offers a wide range of products and services through our wholesale and consumer businesses, including consumer and small business banking, commercial banking, corporate and investment banking, insurance, wealth management, payments, and specialized lending businesses. Headquartered in Charlotte, North Carolina, Truist is a top-10 commercial bank with total assets of $535B as of December 31, 2023. Truist Bank, Member FDIC.
Did you know?
Free cash flow has been growing at 28.1% annually.
Current Price
$47.16
+0.96%GoodMoat Value
$70.41
49.3% undervaluedProfile
Valuation (TTM)
Market Cap$60.33B
P/E12.13
EV$90.81B
P/B0.93
Shares Out1.28B
P/Sales3.27
Revenue$18.43B
EV/EBITDA13.05
Truist Financial Corporation (TFC) Stock Analysis
GoodMoat Analysis
Truist Financial is a large regional bank trading at a significant discount to its estimated intrinsic value, with a GoodMoat target of $70.41. While its moat score is likely moderate, its valuation and financial health metrics present a compelling case for a value investor to investigate further.
Read full analysis
Truist Financial Corporation is a major U.S. regional bank formed from the merger of BB&T and SunTrust. Applying the GoodMoat framework, its competitive advantages (Section 1) likely stem from a combination of scale privilege in its regional footprint, regulatory barriers inherent to banking, and a strong brand presence in its core markets. While a precise moat score requires deeper analysis, these factors suggest a score that could meet the 5+ threshold for a durable advantage, qualifying it for further valuation review under the Decision Framework (Section 6).
The valuation case is the most striking aspect. The stock trades at $45.39, which is 35.5% below the GoodMoat target price of $70.41. This implies a margin of safety well within the 'Favourable' (20-40%) band of the framework. Supporting this, the P/E of 11.7x and a Free Cash Flow Yield of 9.9% appear attractive for a profitable bank with an ROE of 8.1% and a solid 4.6% dividend yield. The primary risks to investigate are the moderate revenue growth of 3.2% YoY and the Debt/Equity ratio of 1.07, which, while not extreme, warrants scrutiny in the current interest rate environment. For a value investor, the combination of a likely passable moat, a strong margin of safety, and healthy cash generation makes Truist a company worth deeper due diligence.
Analysis based on data as of 2024-05-15.
Market Cap$60.33B
Current Price$47.16
P/E Ratio12.13
Forward P/E—
PEG Ratio1.12
EPS$3.82
Book Value$50.96
P/B Ratio0.93
TFC Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 28.1% FCF growth (CAGR)
Cash vs Debt
Net Debt: 33.4B
Revenue
12.0B
FY19
20.4B
FY20
23.1B
FY21
19.2B
FY22
17.9B
FY23
11.4B
FY24
18.4B
FY25
Net Income
3.2B
FY19
4.5B
FY20
6.4B
FY21
6.3B
FY22
—
FY23
4.8B
FY24
5.3B
FY25
TFC 52-Week Range
$33.33
$55.26
50-Day MA: $48.94200-Day MA: $45.82
Did you know?
Net income compounded at 8.7% annually over 6 years.
Truist Financial Corporation (TFC) Financial Summary
Truist Financial Corporation (TFC) is a Financial Services company in the Banks - Regional industry, listed on NYSE. The stock currently trades at $47.16 with a market capitalization of $60.33B.
Key valuation metrics include a P/E ratio of 12.13, price-to-book ratio of 0.93, and EPS of $3.82. The company reports a profit margin of 28.8% and return on equity of 8.1%.
TFC Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $60.33B |
| P/E Ratio | 12.13 |
| EPS | $3.82 |
| P/B Ratio | 0.93 |
| P/S Ratio | 3.27 |
| EV/EBITDA | 13.05 |
| Dividend Yield | 4.43% |
| Profit Margin | 28.8% |
| Return on Equity | 8.1% |
| Debt/Equity | 1.07 |
TFC Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $11.95B | $3.22B |
| FY20 | $20.37B | $4.48B |
| FY21 | $23.11B | $6.44B |
| FY22 | $19.20B | $6.26B |
| FY23 | $17.91B | $-1.09B |
| FY24 | $11.41B | $4.82B |
| FY25 | $18.43B | $5.31B |
Truist Financial Corporation (TFC) Valuation
Based on GoodMoat's DCF model, Truist Financial Corporation has a fair value estimate of $70.41. At the current price of $47.16, the stock appears 33.0% undervalued relative to our intrinsic value estimate.
TFC Quality Indicators
Truist Financial Corporation maintains a profit margin of 28.8% and an operating margin of 34.5%. Return on equity stands at 8.1%. Debt-to-equity ratio is 1.07.
About Truist Financial Corporation
Truist Financial Corporation is a purpose-driven financial services company committed to inspiring and building better lives and communities. As a leading U.S. commercial bank, Truist has leading market share in many of the high-growth markets across the country. Truist offers a wide range of products and services through our wholesale and consumer businesses, including consumer and small business banking, commercial banking, corporate and investment banking, insurance, wealth management, payments, and specialized lending businesses. Headquartered in Charlotte, North Carolina, Truist is a top-10 commercial bank with total assets of $535B as of December 31, 2023. Truist Bank, Member FDIC.
TFC Free Cash Flow
Truist Financial Corporation generated $5.74B in trailing twelve-month free cash flow, representing an FCF yield of 9.51%. This strong FCF yield suggests the company generates substantial cash relative to its market value.
TFC Shares Outstanding
Truist Financial Corporation has 1.28 billion shares outstanding at a share price of $47.16, giving it a market capitalization of $60.33B.
TFC Recent Insider Trades
Recent insider transactions at Truist Financial Corporation include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Powell Cynthia B (Corp. Controller & CAO) | SELL | 3,500 | $183715.00 |
| Maguire Michael Baron (Chief Financial Officer) | SELL | 13,000 | $651664.00 |