10Y annualized return is
positive but below market average
at 7.6% per year
RF has met or exceeded earnings expectations in
few
recent quarters (3/10)
Low Price-to-Earnings Ratio
Attractive Price-to-Book Ratio
Strong Net Profit Margin
Solid Return on Equity
Strong Liquidity Ratios
Low Debt Levels
🏦 Strong Financial Performance
🌍 Desirable Market Footprint
💼 Diverse Revenue Streams
🚀 Investment in Growth
📱 Technology Upgrades
High Price-to-Cash-Flow Ratio
Low Operating Profit Margin
Low Interest Coverage
📉 Modest Loan Growth Expectations
⚠️ Elevated Charge-Offs
Regions Financial Corporation displays strong business quality with solid financial performance, a desirable market presence, and diverse revenue streams. However, modest loan growth expectations and elevated charge-offs present challenges. Looking ahead, the bank's investments in personnel and technology suggest a commitment to growth despite current market pressures.
Analysis Date: January 17, 2025
Last Updated: March 12, 2025
Past performance does not guarantee future results. The data presented is indicative and may not be updated in real-time.
Regions Financial Corporation is a bank that offers a variety of financial services to both individuals and businesses. It helps people manage their money with services like checking accounts, savings accounts, and loans for buying homes or cars. For businesses, Regions provides loans and financial advice to help them grow. The company has many branches and ATMs mainly in the southern and midwestern United States, making it easy for customers to access their services.
Streams of revenue
Geographic Distribution
Estimations for reference only
Core Products
Business Type
Business to Consumer
Competitive Advantages
Key Business Risks
Latest News
RF's first-quarter 2025 results reflect a rise in NII and non-interest income along with a decline in expenses.
Regions Financial Corporation (NYSE:RF ) Q1 2025 Earnings Conference Call April 17, 2025 10:00 AM ET Corporate Participants Dana Nolan - EVP, Head of ...
RF's first-quarter 2025 results reflect a rise in NII and non-interest income, along with a decline in expenses.
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$79.56
Current Market Price: $18.45
IV/P Ratio: 4.31x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
77.0%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for RF
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (9.03)
P/B ratio ≤ 1.5 (0.96)
Current ratio ≥ 2.0 (0.27x)
Long-term debt < Net current assets (-0.06x)
Margin of safety (77.0%)
RF does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
10.70%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-29)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
107.17%
Higher values indicate better efficiency in production
TTM (as of 2025-04-29)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
23.12%
Higher values indicate better overall profitability
TTM (as of 2025-04-29)
The net profit margin of 23.12% reflects robust profitability, indicating effective cost management and strong earnings relative to sales.
With a return on equity (ROE) of 10.70%, the company demonstrates a good ability to generate profit from its shareholders' investments.
The operating profit margin of 6.06% is relatively low, suggesting potential challenges in controlling operating expenses or generating sales.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
0.36x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q4 2024
Current Ratio
Current assets divided by current liabilities
0.27x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q4 2024
The current ratio of 4.88 and quick ratio of 4.88 indicate excellent short-term liquidity, suggesting the company can easily cover its short-term liabilities.
The debt-to-equity ratio of 0.36 and debt-to-assets ratio of 4.13% signify conservative leverage, reflecting a healthy balance sheet.
The interest coverage ratio of 0.22 suggests potential difficulties in meeting interest obligations, which could indicate financial strain.
Meeting Expectations
Higher values indicate better execution and credibility
Recent Results
EPS
Regions Financial Corporation reported strong full-year earnings of $1.8 billion, with an earnings per share of $1.93 and a return on average tangible common equity of 18%. This indicates a solid profitability and sound management of resources.
Regions operates in some of the fastest-growing markets in the U.S., with expectations of population growth exceeding the national average. This gives the bank a competitive advantage in deposit gathering and customer retention.
The Capital Markets and Wealth Management businesses generated record revenue in 2024, demonstrating the bank's diverse income sources and resilience against market fluctuations.
Regions projects only a 1% growth in average loans for 2025, indicating potential challenges in loan demand and credit utilization from clients who are holding excess liquidity.
Regions plans to hire approximately 140 bankers over the next couple of years to enhance their service capacity and support growth in priority markets. This strategic investment aligns with their focus on generating efficiencies and positive operating leverage.
The bank is investing in new deposit and loan systems, expected to enhance customer service and operational efficiency, creating opportunities for faster product launches and better service delivery.
The company anticipates net charge-offs to be elevated in the first half of the year, which may signal underlying credit quality concerns in certain segments, particularly in commercial real estate.