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Keycorp (KEY)
NYSE:KEY
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KeyCorp
(NYSE:KEY)
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Rating:69Neutral
Price Target:
$21.00
▲(2.04% Upside)
KeyCorp's overall stock score of 69 reflects a strong recovery in financial performance, with improved revenue growth and profitability. The earnings call highlighted strategic growth and a robust capital position, although challenges in expense management and consumer loan growth remain. Technical analysis suggests bullish momentum, but the stock appears overbought. Valuation concerns persist due to a high P/E ratio, though the dividend yield offers some compensation.
KeyCorp (KEY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$22.49B
Dividend Yield3.98%
Average Volume (3M)18.44M
Price to Earnings (P/E)25.4
Beta (1Y)1.27
Revenue Growth3.86%
EPS Growth5473.29%
CountryUS
Employees16,989
SectorN/A
Sector StrengthN/A
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.41
Shares Outstanding1,092,919,600
10 Day Avg. Volume20,726,592
30 Day Avg. Volume18,435,542
Financial Highlights & Ratios
PEG Ratio0.74
Price to Book (P/B)0.90
Price to Sales (P/S)1.80
P/FCF Ratio27.17
Enterprise Value/Market Cap1.49
Enterprise Value/Revenue3.29
Enterprise Value/Gross Profit5.76
Enterprise Value/Ebitda26.68
Forecast
1Y Price Target
$21.54Price Target Upside4.66% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering15
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 multiple key streams, primarily from net interest income and non-interest income. Net interest income is derived from the interest earned on loans and securities, minus the interest paid on deposits and borrowings. This constitutes a significant portion of its overall revenue. Additionally, KeyCorp earns non-interest income through fees charged for services such as wealth management, investment banking, and trust services, as well as transaction fees from payment processing. The company also benefits from partnerships with various financial institutions and technology companies, enhancing its service offerings and operational efficiency. Factors such as the economic environment, interest rate fluctuations, and regulatory changes can also impact its earnings.
KeyCorp Earnings Call Summary
Earnings Call Date:Oct 16, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Jan 20, 2026
Earnings Call Sentiment Positive
The earnings call reflected strong financial performance and strategic growth, particularly in revenue, fee income, and asset quality metrics. The capital position remains robust, providing flexibility for future initiatives. However, there were challenges related to expense management and slower growth in certain segments such as consumer loans and middle market M&A activity.Q3-2025 Updates
Positive Updates
Record Revenues and Growth in Fee Income
Revenues, adjusting for last year's securities portfolio repositioning, grew 17%. Fee income increased in the high single digits compared to 2024, both for the quarter and on a year-to-date basis.
Net Interest Margin and Asset Quality Improvements
Achieved a 2.75% Net Interest Margin (NIM) for the quarter, reaching the year-end target ahead of schedule. Asset quality metrics improved, with NPAs and criticized loans declining.
Strong Capital Position
Reported CET1 capital ratio approached 12% at quarter-end, providing flexibility and optionality for the future.
Wealth Management and Commercial Growth
Assets under management reached a record $68 billion. Relationship households and commercial clients grew by about 2% this year.
Investment Banking Success
Raised $50 billion in capital for clients in the third quarter, retaining 15% on the balance sheet. The M&A pipeline is significantly up, contributing to a strong outlook for the investment banking division.
Negative Updates
Moderate Expense Growth
Non-interest expenses increased by 7% year over year, driven by higher personnel expenses and technology investments.
Consumer Loan Runoff
Planned runoff of about $600 million in low-yielding consumer loans, impacting the overall loan growth.
Decline in Middle Market M&A Activity
Middle market M&A volumes remain tepid, although there is an encouraging pickup in strategic dialogue.
Company Guidance
During the KeyCorp Third Quarter 2025 Earnings Conference Call, the company reported several key metrics and provided guidance for the coming periods. They announced an earnings per share of 41¢ and a return on assets exceeding 1%. Pre-provision net revenue increased by $33 million or 5% quarter over quarter, marking the sixth consecutive quarter of improvement. Adjusted revenues grew by 17% from the previous year, and fee income rose in the high single digits compared to 2024. The net interest margin (NIM) reached 2.75%, meeting the year-end target ahead of schedule. KeyCorp plans to repurchase approximately $100 million of common stock in the fourth quarter. They aim for a return on tangible common equity of 15% or better by 2027, with a target NIM of 3.25% or greater. The bank also reported a robust 11.8% CET1 ratio, with commercial pipelines nearly doubling since the previous year. Additionally, they expect full-year net interest income growth of about 22% and fee growth between 5-6%.KeyCorp Financial Statement Overview
Summary
Income Statement
75
Positive
Balance Sheet
65
Positive
Cash Flow
70
Positive
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KeyCorp Technical Analysis
Positive
20.58
Price Trends
18.00
Positive
18.14
Positive
16.89
Positive
Market Momentum
0.79
Negative
77.74
Negative
87.64
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KEY, the sentiment is Positive. The current price of 20.58 is above the 20-day moving average (MA) of 18.86, above the 50-day MA of 18.00, and above the 200-day MA of 16.89, indicating a bullish trend. The MACD of 0.79 indicates Negative momentum. The RSI at 77.74 is Negative, neither overbought nor oversold. The STOCH value of 87.64 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KEY.
KeyCorp Peers Comparison
UnderperformOutperform
Sector (―)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ― | ― | ― | ― | ― | ― | ― | |
80 Outperform | $27.76B | 12.39 | 10.37% | 3.49% | 5.73% | 38.39% | |
79 Outperform | $24.12B | 12.11 | 11.43% | 3.74% | 4.00% | 28.54% | |
78 Outperform | $9.45B | 12.97 | 11.69% | 1.42% | 3.58% | 13.93% | |
75 Outperform | $24.97B | 16.31 | 6.71% | 2.93% | -3.93% | 40.62% | |
71 Outperform | $31.46B | 14.23 | 11.52% | 3.14% | 0.15% | 11.62% | |
69 Neutral | $22.49B | 25.40 | 5.82% | 3.98% | 3.86% | 5473.29% |
* Sector Average
KEY
KeyCorp
20.58
4.40
27.19%
FITB
Fifth Third Bancorp
47.59
6.51
15.85%
HBAN
Huntington Bancshares
17.75
2.30
14.89%
RF
Regions Financial
27.57
5.25
23.52%
WTFC
Wintrust Financial
141.17
18.51
15.09%
CFG
Citizens Financial
58.61
17.53
42.67%
KeyCorp Corporate Events
Business Operations and StrategyFinancial Disclosures
KeyCorp Highlights Strong 2025 Performance at Conference
Positive
Dec 9, 2025
On December 9, 2025, KeyCorp released an investor presentation in conjunction with the Goldman Sachs Financial Services Conference. The presentation highlighted KeyCorp’s strong financial performance, including a record revenue year in 2025, significant growth in net interest income, and a robust capital return strategy, positioning the company favorably for future growth.
Private Placements and FinancingBusiness Operations and Strategy
KeyCorp Subsidiary to Redeem Senior Bank Notes
Neutral
Nov 25, 2025
On November 25, 2025, KeyCorp announced that its subsidiary, KeyBank National Association, issued a redemption notice to redeem all outstanding 4.700% Fixed Rate Senior Bank Notes due January 26, 2026, on December 29, 2025. This strategic move involves redeeming the notes at a price equal to 100% of the outstanding principal amount plus accrued interest, potentially impacting the company’s financial positioning and stakeholder interests.
Business Operations and StrategyFinancial Disclosures
KeyCorp to Present at Boston Conference on Nov 6
Positive
Nov 5, 2025
KeyCorp announced its participation in the BancAnalysts Association of Boston Conference on November 6, 2025, where it will review its performance, strategy, and outlook. The company highlights its robust consumer banking foundation, with significant growth in relationship households and assets under management, emphasizing a relationship-driven strategy that has led to improved client satisfaction and financial performance.
Business Operations and StrategyFinancial Disclosures
KeyCorp Highlights Strategic Initiatives in Investor Presentation
Positive
Sep 26, 2025
On September 26, 2025, KeyCorp released an investor presentation highlighting its strategic initiatives and financial performance. The company emphasized its strong foundation, including a sticky deposit base and leading capital positions, as well as its focus on growth through targeted scale and investments in technology and talent. KeyCorp reported significant achievements, such as a record year for investment banking fees in 2021 and a credit ratings upgrade from Fitch. The company is positioned for future growth with a disciplined balance sheet strategy and a focus on high-quality, low-cost deposits.
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.