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KeyCorp (KEY)
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KeyCorp (KEY) AI Stock Analysis

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KEY

KeyCorp

(NYSE:KEY)

Rating:70Outperform
Price Target:
$20.50
â–²(15.10% Upside)
KeyCorp's overall score reflects strong technical momentum and a positive earnings outlook, despite valuation concerns and profitability challenges. The company's strategic initiatives and stable financials provide a moderate investment outlook.
Positive Factors
Financial Performance
Revenue growth tops expectations, guidance raised.
Growth Strategy
A combination of targeted C&I lending complemented by a well-positioned middle markets investment bank should allow KEY to capitalize on rebounding US growth.
Valuation
KeyCorp shares offer among the most compelling risk/reward in the super-regional bank space.
Negative Factors
Credit Risk
KEY screens weaker than regional peers on loan exposure to non-depository financial institutions, which could pose some modest credit risk at Keycorp.
Investment Banking
KEY talked down near-term IB expectations, which could reverberate throughout the remainder of 2H25.
Valuation Concerns
The recommendation was downgraded to Neutral due to full valuation concerns.

KeyCorp (KEY) vs. SPDR S&P 500 ETF (SPY)

KeyCorp Business Overview & Revenue Model

Company DescriptionKeyCorp operates as the holding company for KeyBank National Association that provides various retail and commercial banking products and services in the United States. It operates in two segments, Consumer Bank and Commercial Bank. The company offers various deposits, investment products and services; and personal finance and financial wellness, student loan refinancing, mortgage and home equity, lending, credit card, treasury, business advisory, wealth management, asset management, investment, cash management, portfolio management, and trust and related services to individuals and small and medium-sized businesses. It also provides a suite of banking and capital market products, such as syndicated finance, debt and equity capital market products, commercial payments, equipment finance, commercial mortgage banking, derivatives, foreign exchange, financial advisory, and public finance, as well as commercial mortgage loans comprising consumer, energy, healthcare, industrial, public sector, real estate, and technology loans for middle market clients. In addition, the company offers community development financing, securities underwriting, brokerage, and investment banking services. As of December 31, 2021, it operated through a network of approximately 999 branches and 1,317 ATMs in 15 states, as well as additional offices, online and mobile banking capabilities, and a telephone banking call center. KeyCorp was founded in 1849 and is headquartered in Cleveland, Ohio.
How the Company Makes MoneyKeyCorp generates revenue through several key streams. The primary source is interest income from loans and advances made to personal and commercial customers, which include mortgages, personal loans, credit cards, and business loans. The company also earns substantial non-interest income through fees and commissions from services such as asset management, investment banking, transaction processing, and treasury management. Additionally, KeyCorp benefits from income through its capital markets operations, which provide advisory services, securities underwriting, and trading. The financial health and profitability of KeyCorp are significantly influenced by macroeconomic conditions, interest rate fluctuations, and regulatory changes, alongside strategic partnerships that enhance its service offerings and market reach.

KeyCorp Earnings Call Summary

Earnings Call Date:Jul 22, 2025
(Q2-2025)
|
% Change Since: -2.57%|
Next Earnings Date:Oct 16, 2025
Earnings Call Sentiment Positive
The earnings call presented a positive outlook with strong revenue growth, improved credit metrics, and successful execution of strategic goals such as commercial loan growth and asset management. However, challenges remain with increased operating expenses and uncertainties leading to higher loan loss reserves. Overall, the call illustrated a confident stance towards achieving full-year targets and capitalizing on growth opportunities.
Q2-2025 Updates
Positive Updates
Strong Revenue Growth
Revenues increased by 21% year-over-year, marking significant growth in a challenging macro environment.
Pre-Provision Net Revenue Increase
Pre-provision net revenue increased by $44 million sequentially, marking the fifth consecutive quarter of growth.
Commercial Loan Growth
Achieved full-year plan of $3 billion growth in commercial loans by June 30, 2025, with strong backlogs continuing.
Record Assets Under Management
Assets under management reached a record $64 billion.
Improvement in Credit Metrics
Credit metrics improved with declines in net charge-offs and criticized loans, and stable non-performing assets.
Increased Earnings Guidance
Net interest income growth guidance increased to 20%-22%, reflecting strong performance and client activity.
Successful Hiring and Retention
On track to increase frontline bankers and client advisers by 10% in 2025, with strong retention rates.
Negative Updates
Loan Loss Reserve Build
Added $36 million to loan loss reserves due to macroeconomic uncertainty and loan growth.
Higher Operating Expenses
Expenses increased by 7% year-over-year, influenced by personnel costs and technology investments.
Market Uncertainty and Deposit Management
Carried $4-$5 billion more in cash and short-term liquidity due to macroeconomic uncertainty, impacting net interest margin.
Company Guidance
In the second quarter of 2025, KeyCorp reported robust financial results amidst a dynamic macroeconomic environment. The company achieved an earnings per share of $0.35, bolstered by a 21% year-over-year increase in revenues, despite a 6% rise in expenses excluding a charitable contribution. Key metrics included a $36 million addition to loan loss reserves, a 60% growth in pre-provision net revenue since Q1 2024, and a commercial loan growth of approximately $3 billion, meeting the full-year target by June 30. The company also managed to keep deposit costs below 2%, with a mid-50% cumulative down beta aligning with their terminal beta from the rising rate cycle. KeyCorp's fee-based businesses saw a 10% increase from the previous year, with investment banking raising over $30 billion in capital and assets under management hitting a record $64 billion. Credit metrics improved, with declines in net charge-offs, criticized loans, and delinquencies. Based on these strong results, KeyCorp raised its net interest income and loan growth guidance, projecting a 20-22% increase in net interest income for the year. The company also plans to invest significantly in technology and frontline bankers, with a 10% increase in hiring projected for 2025.

KeyCorp Financial Statement Overview

Summary
KeyCorp's financial health is stable with a strong Balance Sheet and positive cash flow metrics, despite some historical volatility in profits and equity levels. Revenue growth is modest, and profitability is recovering, but challenges remain with negative EBIT and EBITDA margins.
Income Statement
62
Positive
The Income Statement shows mixed results. There is a slight revenue growth of 0.66% from 2024 to TTM (Trailing-Twelve-Months), but revenue has declined from its peak in 2023. Gross Profit Margin stands at 47% in the TTM, indicating efficiency in generating profit from sales. However, the company is facing challenges with profitability as seen in the negative EBIT and EBITDA margins, though net income has improved from a loss in 2024 to a small profit in TTM.
Balance Sheet
72
Positive
The Balance Sheet is relatively strong with a Debt-to-Equity ratio of 0.78, suggesting moderate leverage. The Equity Ratio is 10.08%, indicating a decent portion of assets are financed by equity. Return on Equity (ROE) has improved to 0.13% in the TTM, showing a recovery in profitability. However, the overall equity base has fluctuated, which could pose a risk if not stabilized.
Cash Flow
68
Positive
Cash Flow metrics show some positive trends. The Operating Cash Flow to Net Income Ratio is 6.6 in the TTM, indicating strong cash generation relative to profits. Free Cash Flow has decreased compared to 2024, but remains positive. The Free Cash Flow to Net Income Ratio is 4.08, signifying good cash flow management despite lower earnings.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue9.05B10.23B7.91B7.33B7.14B
Gross Profit4.06B5.73B6.52B7.46B5.47B
EBITDA-233.00M1.31B2.50B3.29B1.67B
Net Income-161.00M967.00M1.92B2.63B1.34B
Balance Sheet
Total Assets187.17B188.28B189.81B186.35B170.34B
Cash, Cash Equivalents and Short-Term Investments22.51B48.94B42.44B57.29B44.84B
Total Debt14.25B22.64B28.77B12.80B14.69B
Total Liabilities168.99B173.64B176.36B168.92B152.35B
Stockholders Equity18.18B14.64B13.45B17.42B17.98B
Cash Flow
Free Cash Flow599.00M2.76B4.36B1.09B1.61B
Operating Cash Flow664.00M2.90B4.47B1.15B1.67B
Investing Cash Flow2.50B1.42B-10.93B-15.07B-24.72B
Financing Cash Flow-2.36B-4.27B6.44B13.74B23.41B

KeyCorp Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price17.81
Price Trends
50DMA
17.23
Positive
100DMA
16.16
Positive
200DMA
16.70
Positive
Market Momentum
MACD
0.16
Positive
RSI
48.07
Neutral
STOCH
34.61
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KEY, the sentiment is Neutral. The current price of 17.81 is below the 20-day moving average (MA) of 18.27, above the 50-day MA of 17.23, and above the 200-day MA of 16.70, indicating a neutral trend. The MACD of 0.16 indicates Positive momentum. The RSI at 48.07 is Neutral, neither overbought nor oversold. The STOCH value of 34.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for KEY.

KeyCorp Risk Analysis

KeyCorp disclosed 38 risk factors in its most recent earnings report. KeyCorp reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

KeyCorp Peers Comparison

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$27.59B12.8711.58%3.62%2.08%2.87%
77
Outperform
$22.64B11.7411.59%3.97%2.83%20.85%
77
Outperform
$20.40B14.426.48%3.59%-4.07%25.31%
77
Outperform
$29.39B12.189.47%2.92%0.62%14.75%
73
Outperform
$23.75B12.0610.43%3.87%5.28%28.03%
70
Outperform
$19.52B1,663.641.02%4.60%-12.21%-108.48%
58
Neutral
HK$95.83B5.46-3.98%4.95%3.41%-44.65%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
KEY
KeyCorp
17.81
3.96
28.59%
FITB
Fifth Third Bancorp
41.34
3.08
8.05%
HBAN
Huntington Bancshares
16.20
3.24
25.00%
MTB
M&T Bank
188.04
30.43
19.31%
RF
Regions Financial
25.18
5.21
26.09%
CFG
Citizens Financial
47.30
9.04
23.63%

KeyCorp Corporate Events

Business Operations and Strategy
KeyCorp to Present at Morgan Stanley Conference
Positive
Jun 10, 2025

KeyCorp announced its participation in the Morgan Stanley U.S. Financials Conference on June 11, 2025, where it will review its performance, strategy, and outlook. The company has been expanding its commercial banking operations, emphasizing growth in commercial payments and middle-market services, which are supported by a robust fintech ecosystem. This strategic focus is expected to enhance KeyCorp’s market positioning and provide significant growth opportunities.

The most recent analyst rating on (KEY) stock is a Buy with a $16.50 price target. To see the full list of analyst forecasts on KeyCorp stock, see the KEY Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 24, 2025