Fifth Third Bancorp (FITB) AI Stock Analysis

• Market Cap: $25.96B
• Dividend Yield: 3.75%
• Average Volume (3M): 3.58M
• Price to Earnings (P/E): 12.4
• Beta (1Y): 1.21
• Revenue Growth: 5.75%
• EPS Growth: 0.68%
• Country: US
• Employees: 18,786
• Sector: Financial
• Sector Strength: 83
• Industry: Banks - Regional
• EPS (TTM): 0.71
• Shares Outstanding: 667,492,200
• 10 Day Avg. Volume: 3,594,034
• 30 Day Avg. Volume: 3,581,441
• PEG Ratio: 34.84
• Price to Book (P/B): 1.23
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.34
• Enterprise Value/Market Cap: 1.74
• Enterprise Value/Revenue: 0.98
• Enterprise Value/Gross Profit: 3.71
• Enterprise Value/Ebitda: 4.32
• 1Y Price Target: $44.17
• Price Target Upside: 15.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16

• Rating: 73 Outperform
• Price Target: $43.00 ▲(12.27%Upside)

Fifth Third Bancorp shows strong financial performance with robust revenue growth and strategic positioning, as highlighted in the earnings call. The technical indicators suggest a mixed trend, while the valuation remains reasonable with a commendable dividend yield. Challenges include declining cash flow generation and economic uncertainties impacting certain segments.

Positive Factors

Financial Performance

Fifth Third expects to achieve record net interest income within their 5-6% guidance range even if there are no rate cuts and no further loan growth, and can deliver positive operating leverage even if capital markets don't recover.

Loan Growth

Fifth Third is recognized for its standout loan growth and continued expansion in the Southeast, with confidence in net interest income and credit due to de-regulation benefits.

Negative Factors

Deposit Trends

Weaker deposit trends partly offset the benefit of good loan growth.

Non-Performing Loans

Non-performing loans increased by 17% quarter over quarter.

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 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
8.25B	8.20B	8.29B	7.80B	7.49B
	Gross Profit
8.25B	12.64B	8.29B	7.80B	7.49B
	EBIT
2.88B	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
18.50B	18.91B	18.55B	12.80B	16.16B
	Net Debt
15.48B	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: Positive
• Last Price: 38.30
• 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 Positive. The current price of 38.3 is below the 20-day moving average (MA) of 38.36, above the 50-day MA of 37.00, and below the 200-day MA of 41.24, indicating a neutral trend. The MACD of 0.34 indicates Positive momentum. The RSI at 54.36 is Neutral, neither overbought nor oversold. The STOCH value of 72.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FITB.

Fifth Third Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HBAN	77 Outperform	$23.18B	12.27	10.30%	3.90%	7.55%	17.46%
FCNCA	76 Outperform	$24.31B	10.55	11.46%	0.41%	0.33%	-3.13%
RF	74 Outperform	$19.35B	10.39	11.33%	4.65%	1.05%	12.14%
MTB	74 Outperform	$29.31B	12.23	9.39%	2.96%	1.20%	1.12%
FITB	73 Outperform	$25.96B	12.35	11.71%	3.75%	5.75%	0.68%
CFG	70 Outperform	$17.71B	13.00	6.37%	4.11%	-2.12%	13.92%
Sector *	64 Neutral	$12.80B	9.71	7.59%	16985.66%	12.07%	-7.53%

Fifth Third Bancorp Corporate Events

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.