Fifth Third Bancorp (FITB) AI Stock Analysis

• Market Cap: $22.55B
• Dividend Yield: 4.33%
• Average Volume (3M): 5.25M
• Price to Earnings (P/E): 10.8
• Beta (1Y): 1.33
• Revenue Growth: 11.21%
• EPS Growth: -2.26%
• Country: US
• Employees: 18,616
• Sector: Financial
• Sector Strength: 81
• Industry: Banks - Regional
• EPS (TTM): 3.14
• Shares Outstanding: 668,098,940
• 10 Day Avg. Volume: 4,198,563
• 30 Day Avg. Volume: 5,254,871
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.31
• Price to Cash Flow (P/CF): -65.10
• P/FCF Ratio: 8.30
• 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: $48.07
• Price Target Upside: 41.09% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

Fifth Third Bancorp demonstrates strong financial performance with revenue growth and improved debt metrics. The earnings call highlights robust capital return and positive future outlook, but technical indicators show bearish trends. The stock’s valuation is reasonable with a good dividend yield, although challenges in credit quality and cash flow generation affect its overall score.

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.

Net Interest Income

Net interest income guidance for 2025 surprised positively, with Fifth Third guiding for 5-6% growth year over year.

Negative Factors

Guidance

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

Nonperforming Loans

Nonperforming loans ticked higher but there still doesn’t seem to be signs of broad based deterioration across the portfolio.

Share Performance

A high bar coming into the quarter for deposit repricing drove weak performance in the shares despite the solid overall print and guidance.

Fifth Third Bancorp Business Overview & Revenue Model

Company Description

Fifth Third Bancorp operates as a diversified financial services company in the United States. The company's Commercial Banking segment offers credit intermediation, cash management, and financial services; lending and depository products; and cash management, foreign exchange and international trade finance, derivatives and capital markets services, asset-based lending, real estate finance, public finance, commercial leasing, and syndicated finance for business, government, and professional customers. Its Branch Banking segment provides a range of deposit and loan products to individuals and small businesses. This segment offers checking and savings accounts, home equity loans and lines of credit, credit cards, and loans for automobiles and personal financing needs, as well as cash management services for small businesses. The company's Consumer Lending segment engages in direct lending activities that include origination, retention, and servicing of residential mortgage and home equity loans or lines of credit; and indirect lending activities, including loans to consumers through correspondent lenders and automobile dealers. Fifth Third Bancorp's Wealth & Asset Management segment provides various investment alternatives for individuals, companies, and not-for-profit organizations. It offers retail brokerage services to individual clients; and broker dealer services to the institutional marketplace. This segment also provides wealth planning, investment management, banking, insurance, and trust and estate services; and advisory services for institutional clients comprising middle market businesses, non-profits, states, and municipalities. As of December 31, 2021, the company operated 1,117 full-service banking centers and 2,322 ATMs in Ohio, Kentucky, Indiana, Michigan, Illinois, Florida, Tennessee, West Virginia, Georgia, North Carolina, and South Carolina. Fifth Third Bancorp was founded in 1858 and is headquartered in Cincinnati, Ohio.

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 shows strong revenue growth with improved debt metrics. However, declining net profit margin and reduced cash flow generation present challenges. The balance sheet remains stable with reduced financial leverage, but reliance on liabilities is evident.

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
2.41B	3.99B	5.74B	2.40B	13.00M
	Operating Cash Flow
2.82B	4.51B	6.43B	2.70B	371.00M
	Investing Cash Flow
1.04B	-9.49B	-4.87B	-7.97B	-31.90B
	Financing Cash Flow
-3.99B	4.66B	-1.08B	5.11B	31.40B

Fifth Third Bancorp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 34.07
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 34.07 is below the 20-day moving average (MA) of 38.20, below the 50-day MA of 40.95, and below the 200-day MA of 41.44, indicating a bearish trend. The MACD of -0.69 indicates Negative momentum. The RSI at 43.81 is Neutral, neither overbought nor oversold. The STOCH value of 27.30 is Neutral, 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
FCNCA	73 Outperform	$21.09B	8.30	12.77%	0.46%	18.05%	-75.88%
HBAN	72 Outperform	$18.41B	10.33	9.93%	4.92%	10.13%	-1.25%
RF	71 Outperform	$16.90B	9.66	10.72%	5.30%	2.70%	-8.16%
FITB	67 Neutral	$22.55B	10.76	11.92%	4.33%	11.21%	-2.26%
CFG	65 Neutral	$14.98B	11.33	6.21%	4.90%	1.99%	-2.45%
Sector *	63 Neutral	$12.88B	9.21	9.18%	4.78%	16.30%	-8.66%
MTB	63 Neutral	$25.80B	10.73	9.23%	3.44%	6.07%	-7.10%

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.