Fifth Third Bancorp (FITB) AI Stock Analysis

• Market Cap: $25.35B
• Dividend Yield: 3.9%
• Average Volume (3M): 3.62M
• Price to Earnings (P/E): 12.1
• Beta (1Y): 1.22
• Revenue Growth: 5.75%
• EPS Growth: 0.68%
• Country: US
• Employees: 18,786
• Sector: Financial
• Sector Strength: 73
• Industry: Banks - Regional
• EPS (TTM): 0.71
• Shares Outstanding: 667,492,200
• 10 Day Avg. Volume: 3,910,645
• 30 Day Avg. Volume: 3,618,009
• PEG Ratio: 2.36
• Price to Book (P/B): 1.03
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.37
• Enterprise Value/Market Cap: 1.36
• Enterprise Value/Revenue: 0.66
• Enterprise Value/Gross Profit: 4.46
• Enterprise Value/Ebitda: 2.56
• 1Y Price Target: $44.77
• Price Target Upside: 17.88% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16

• Rating: 74 Outperform
• Price Target: $43.00 ▲(13.22%Upside)

The overall stock score is primarily supported by strong earnings call performance and solid financial health, despite cash flow concerns and mixed technical indicators. The valuation remains reasonable, making it a potentially attractive investment.

Positive Factors

Branch Expansion

Superior branch expansion in new and existing markets has led to an increased price target for FITB.

Loan Growth

FITB is highlighted as a loan growth standout that continues its SE expansion while reiterating confidence in NII and credit with de-regulation tailwinds.

Management Strategy

Analyst's recommendation is upgraded to Buy with an increased price target, reflecting confidence in Fifth Third's premium valuation and management's ability to drive growth.

Negative Factors

Credit Trends

Despite the positive outlook, credit trends have been concerning with non-performing loans increasing for three consecutive quarters.

Fee Income

Given the weaker macro environment, the company reduced its fee income growth guidance for 2025 as expected from 'up 3-6%' to 'up 1-3%' given weaker markets related fee income across wealth management and capital markets.

Volatile Environments

Management remains optimistic but acknowledges the risk of being too cautious in volatile environments, which could lead to missed opportunities.

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 its lending activities, fees for banking services, and investment management services. The bank earns interest income by providing loans to individuals and businesses, including mortgages, personal loans, and commercial loans. Additionally, it earns non-interest income through service charges on deposit accounts, fees from card services, and commissions from investment advisory services. Significant partnerships with various financial technology firms and collaborations with other financial institutions also contribute to its earnings by broadening its range of services and customer reach.

Fifth Third Bancorp Financial Statement Overview

Summary

Fifth Third Bancorp shows strong revenue growth and a robust gross profit margin at 100%. Despite an improved debt-to-equity ratio, challenges are noted with a declining net profit margin and decreased cash flow generation. The company demonstrates solid financial health but needs to address cash flow concerns.

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
13.05B	8.20B	9.08B	7.95B	8.03B
	Gross Profit
7.72B	7.91B	7.54B	7.88B	6.15B
	EBIT
2.92B	2.99B	3.09B	3.52B	1.80B
	EBITDA
3.41B	3.45B	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
60.13B	75.82B	62.86B	75.67B	74.58B
	Total Assets
212.93B	214.57B	207.45B	211.12B	204.68B
	Total Debt
18.97B	19.43B	18.61B	12.65B	15.99B
	Net Debt
15.96B	16.29B	15.14B	9.65B	12.84B
	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: 37.98
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 37.98 is below the 20-day moving average (MA) of 38.58, above the 50-day MA of 36.96, and below the 200-day MA of 41.20, indicating a neutral trend. The MACD of 0.37 indicates Positive momentum. The RSI at 47.21 is Neutral, neither overbought nor oversold. The STOCH value of 45.19 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	77 Outperform	$23.95B	10.42	11.46%	0.43%	0.34%	-3.13%
HBAN	77 Outperform	$22.60B	11.96	10.30%	4.00%	7.55%	17.46%
RF	75 Outperform	$19.34B	10.38	11.33%	4.65%	1.05%	12.14%
FITB	74 Outperform	$25.35B	12.06	11.71%	3.90%	5.75%	0.68%
MTB	74 Outperform	$28.58B	11.93	9.39%	3.03%	1.20%	1.12%
CFG	71 Outperform	$17.49B	12.84	6.37%	4.17%	-2.37%	13.92%
Sector *	64 Neutral	$12.77B	9.71	7.85%	78.06%	12.07%	-7.97%

Fifth Third Bancorp Corporate Events

Fifth Third Bancorp to Present at Financials Conference

On June 10, 2025, Fifth Third Bancorp is scheduled to present at the Morgan Stanley U.S. Financials Conference. The presentation will likely cover the company’s financial condition, results of operations, and future performance plans. The bank emphasizes its disciplined management approach, focusing on stability, profitability, and growth, with a resilient balance sheet and strong credit profile. The announcement reflects Fifth Third’s strategic focus on maintaining a leading market position and expanding its reach in key markets, which could have implications for stakeholders and the financial services industry.

The most recent analyst rating on (FITB) stock is a Hold with a $41.00 price target. To see the full list of analyst forecasts on Fifth Third Bancorp stock, see the FITB Stock Forecast page.

Fifth Third Bancorp Reports Q1 2025 Earnings

Fifth Third Bancorp reported a diluted earnings per share of $0.71 for the first quarter of 2025, driven by loan growth, net interest margin expansion, and disciplined expense management. The company achieved positive operating leverage and a stable net charge-off ratio, with a 3% increase in average loans and a 7% rise in wealth and asset management revenue year-over-year. Despite a challenging economic environment, Fifth Third Bancorp’s diversified business mix and proactive credit risk management have reinforced its position in the industry.

Fifth Third Bancorp Highlights 2024 Financial Success

During the 2025 Annual Meeting of Shareholders held on April 15, Fifth Third Bancorp highlighted its strong financial performance in 2024, including a 12.47% return on average common equity and a 25% increase in middle market relationship managers in high-growth areas. The company also emphasized its commitment to community development, having delivered over $42 billion towards its sustainability and stewardship target and provided significant charitable donations and community development investments.