Fifth Third Bancorp (FITB) AI Stock Analysis

• Market Cap: $27.02B
• Dividend Yield: 3.61%
• Average Volume (3M): 4.28M
• Price to Earnings (P/E): 12.9
• Beta (1Y): 1.35
• Revenue Growth: 11.21%
• EPS Growth: -2.26%
• Country: US
• Employees: 18,724
• Sector: Financial
• Sector Strength: 93
• Industry: Banking
• EPS (TTM): 3.14
• Shares Outstanding: 668,098,940
• 10 Day Avg. Volume: 5,019,194
• 30 Day Avg. Volume: 4,277,525
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.39
• Price to Cash Flow (P/CF): -66.60
• P/FCF Ratio: 8.50
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $51.27
• Price Target Upside: 27.98% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

Fifth Third Bancorp's overall stock score is bolstered by strong financial performance, evidenced by revenue growth and improved debt metrics. Despite challenges in net profit margin and cash flow generation, the company maintains a stable balance sheet. The technical analysis suggests a bearish trend, but valuation metrics indicate the stock is fairly priced. The earnings call highlights a positive outlook with strong capital return and growth, although credit quality and deposit cost pressures remain concerns.

Positive Factors

Earnings Performance

Fifth Third Bancorp reported a solid quarter with higher fee income driving an Operating EPS that beat consensus expectations.

Loan Growth

Fifth Third's CFO reiterated a positive outlook including loan growth driven by both commercial and consumer, expansion into new markets with a goal of being top 5 in each, and capital and expenses that are on target.

Negative Factors

Guidance

4Q Guidance Incrementally Softer than expected, with revenue and NII growth below prior estimates.

Fifth Third Bancorp Business Overview & Revenue Model

Company Description

Fifth Third Bancorp is a diversified financial services company headquartered in Cincinnati, Ohio, operating principally through its banking subsidiary, Fifth Third Bank. The company provides a broad range of services including commercial banking, branch banking, consumer lending, and investment advisory services. It serves customers through a network of branches and ATMs across several states in the U.S., focusing on delivering personalized financial solutions to individuals, small businesses, and large corporations.

How the Company Makes Money

Fifth Third Bancorp generates revenue primarily through interest income from lending activities, including commercial and consumer loans, mortgages, and credit cards. The bank earns interest on the loans it provides to individuals and businesses, which forms a significant portion of its revenue. Additionally, the company earns non-interest income through service charges on deposit accounts, transaction fees, and wealth management services. Fifth Third also benefits from investment banking services, which include underwriting and advisory fees. Partnerships with financial technology firms and strategic acquisitions also contribute to expanding its revenue base and enhancing its service offerings.

Fifth Third Bancorp Financial Statement Overview

Summary

Fifth Third Bancorp demonstrates strong revenue growth and solid financial health with improved debt metrics. However, declining net profit margin and reduced cash flow generation present challenges. The balance sheet remains stable, yet reliance on liabilities is evident. Continued focus on cash flow improvement and maintaining profitability will be crucial.

Income Statement

Fifth Third Bancorp shows strong revenue growth with a notable increase in total revenue from $8195M to $10426M year-over-year. The gross profit margin remains robust at 100%, indicating effective cost management. However, the net profit margin slightly decreased from 28.67% to 22.19%, reflecting a drop in net income relative to the revenue growth. Positive EBIT margin indicates efficient core operations.

Balance Sheet

The company has a healthy equity position with a debt-to-equity ratio improving significantly from 0.99 to 0.23, which suggests reduced financial leverage. Return on equity decreased from 12.25% to 11.78%, indicating slightly lower profitability relative to shareholders' equity. The equity ratio of 9.23% suggests a reliance on liabilities for asset financing, which is typical in banking.

Cash Flow

Operating cash flow decreased from $4509M to $1328M, indicating challenges in cash generation from operations. Free cash flow decreased from $4018M to $1328M, reflecting less cash available for expansion or debt repayment. The operating cash flow to net income ratio is robust, suggesting earnings quality, but the decline in free cash flow growth rate poses a concern.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
10.43B	8.20B	8.29B	7.80B	7.49B
	Gross Profit
10.43B	12.64B	8.29B	7.80B	7.49B
	EBIT
0.00	4.43B	4.07B	3.52B	1.80B
	EBITDA
0.00	3.47B	3.53B	3.87B	2.29B
	Net Income Common Stockholders
2.31B	2.35B	2.45B	2.77B	1.43B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
42.56B	3.14B	62.45B	75.68B	74.06B
	Total Assets
212.93B	214.57B	207.45B	211.12B	204.68B
	Total Debt
4.45B	18.91B	18.55B	12.80B	16.16B
	Net Debt
1.44B	15.77B	15.09B	9.81B	13.02B
	Total Liabilities
193.28B	195.40B	190.13B	188.91B	181.57B
	Stockholders Equity
19.64B	19.17B	17.33B	22.21B	23.11B
Cash Flow		Free Cash Flow
1.33B	4.02B	5.96B	2.40B	13.00M
	Operating Cash Flow
1.33B	4.51B	6.43B	2.70B	371.00M
	Investing Cash Flow
1.89B	-9.49B	-4.87B	-7.97B	-31.90B
	Financing Cash Flow
-2.37B	4.66B	-1.08B	5.11B	31.40B

Fifth Third Bancorp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 40.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FITB, the sentiment is Negative. The current price of 40.06 is below the 20-day moving average (MA) of 42.90, below the 50-day MA of 43.17, and below the 200-day MA of 41.51, indicating a bearish trend. The MACD of -0.82 indicates Positive momentum. The RSI at 29.25 is Positive, neither overbought nor oversold. The STOCH value of 15.63 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FITB.

Fifth Third Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HBAN	74 Outperform	$22.36B	12.61	9.93%	4.10%	10.13%	-1.25%
FITB	72 Outperform	$27.02B	12.90	11.92%	3.61%	11.21%	-2.26%
PNC	71 Outperform	$71.42B	13.13	11.10%	3.55%	7.24%	7.51%
RF	71 Outperform	$20.00B	11.43	10.72%	4.46%	2.70%	-8.16%
Sector *	64 Neutral	$14.34B	10.61	9.28%	4.07%	18.04%	-9.54%
CMA	63 Neutral	$7.80B	11.86	10.72%	4.78%	-6.54%	-21.90%
KEY	54 Neutral	$17.97B	1,663.64	-0.99%	5.15%	-11.11%	-133.79%

Fifth Third Bancorp Corporate Events

Fifth Third Bancorp to Present at RBC Conference

On March 5, 2025, Fifth Third Bancorp will participate in the RBC Capital Markets Financial Institutions Conference, where they will present their financial outlook and strategic initiatives. The presentation will address various forward-looking statements concerning the company’s financial condition and future performance, highlighting potential risks and uncertainties that could impact their operations and market positioning.

Fifth Third Bancorp Highlights Operations at Roadshow

During a non-deal roadshow in February 2025, Fifth Third Bancorp executives planned to present their operations and performance to institutional investors. The focus of these presentations was to highlight the company’s market positioning and financial results, although specific forward-looking statements were not detailed due to inherent uncertainties in financial forecasting. The roadshow and its presentations may influence investor perceptions and potentially impact future business strategies or stakeholder engagements.

Fifth Third Bancorp Reports Strong Q4 2024 Earnings Growth

Fifth Third Bancorp reported its fourth-quarter 2024 earnings, showcasing a diluted earnings per share of $0.85. The company experienced strong returns driven by growth in loans and fees, along with an improvement in net interest margin. Strategic investments led to significant growth in fee performance, including double-digit revenue increases in wealth and asset management and capital markets compared to the previous year. The company’s robust performance is evident in its expansion of consumer households and the opening of new branches in high-growth markets, further solidifying its market position.

Fifth Third Bancorp to Present at Goldman Sachs Conference

Fifth Third Bancorp is set to present at the 2024 Goldman Sachs Financial Services Conference, showcasing its strategic focus on stability, profitability, and growth through disciplined management. The company emphasizes its defensive balance sheet, diverse revenue streams, and investments in technology and infrastructure, aiming to sustain its competitive positioning in the financial services sector. This presentation highlights Fifth Third’s proactive approach to maintaining its market share and enhancing its operational efficiency, which could have positive implications for stakeholders and reinforce its standing as a leading regional bank.