Regions Financial (RF) AI Stock Analysis

• Market Cap: $16.91B
• Dividend Yield: 5.3%
• Average Volume (3M): 10.23M
• Price to Earnings (P/E): 9.7
• Beta (1Y): 1.30
• Revenue Growth: 2.70%
• EPS Growth: -8.16%
• Country: US
• Employees: 19,644
• Sector: Financial
• Sector Strength: 82
• Industry: Banks - Regional
• EPS (TTM): 1.93
• Shares Outstanding: 905,465,100
• 10 Day Avg. Volume: 9,935,611
• 30 Day Avg. Volume: 10,228,432
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.98
• Price to Cash Flow (P/CF): -22.30
• P/FCF Ratio: 21.40
• 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: $25.92
• Price Target Upside: 41.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

Regions Financial's overall stock score is 71, reflecting a balance of solid financial health and strategic positioning in the banking sector. The company shows strengths in capital management and revenue growth but faces challenges with margin pressures and cash flow contraction. Technical analysis signals bearish trends, though the stock may be oversold, offering potential for recovery. The valuation is reasonable with a high dividend yield, appealing to income investors. Despite positive earnings highlights, concerns about asset quality and loan growth remain, requiring strategic attention.

Positive Factors

Financial Performance

RF reported core EPS of $0.57 vs. estimate of $0.51 and consensus of $0.53, with the beat owing to higher than expected fee income and net interest income.

Net Interest Income

Net interest income guidance for FY24 was raised to ~$4.8 billion, and fee income guidance was raised to $2.45 - $2.50 billion.

Share Buybacks

RF repurchased $101M of shares during 3Q and plans for more buybacks, which is expected to double starting in 1Q25.

Negative Factors

Deposit Growth

Deposit growth was lower than expected, driven by a decline in noninterest bearing deposits.

Loan Growth

Expect loan growth to remain muted with +1% in '25; C&I is what drives the model (~50% of loans) and robust loan growth is needed to drive up EPS.

Return on Equity

The target price for Regions Financial Corp. has been lowered to $28 from $30 due to a more conservative return on tangible common equity outlook.

Regions Financial Business Overview & Revenue Model

Company Description

Regions Financial Corporation, a financial holding company, provides banking and bank-related services to individual and corporate customers. It operates through three segments: Corporate Bank, Consumer Bank, and Wealth Management. The Corporate Bank segment offers commercial banking services, such as commercial and industrial, commercial real estate, and investor real estate lending; equipment lease financing; deposit products; and securities underwriting and placement, loan syndication and placement, foreign exchange, derivatives, merger and acquisition, and other advisory services. It serves corporate, middle market, and commercial real estate developers and investors. The Consumer Bank segment provides consumer banking products and services related to residential first mortgages, home equity lines and loans, consumer credit cards, and other consumer loans, as well as deposits. The Wealth Management segment offers credit related products, and retirement and savings solutions; and trust and investment management, asset management, and estate planning services to individuals, businesses, governmental institutions, and non-profit entities. The company also provides investment and insurance products; low-income housing tax credit corporate fund syndication services; and other specialty financing services. As of March 01, 2022, it operated through a network of 1,300 banking offices and 2,000 automated teller machines across the South, Midwest, and Texas. Regions Financial Corporation was founded in 1971 and is headquartered in Birmingham, Alabama.

How the Company Makes Money

Regions Financial Corporation generates revenue through a variety of banking and financial services. The primary revenue streams include interest income from loans and leases, such as commercial and residential mortgages, consumer loans, and credit lines. Additionally, the company earns non-interest income through service charges and fees on deposit accounts, wealth management and investment services, and transaction processing. Regions Financial also benefits from its strategic partnerships and community banking presence, which help to enhance its service offerings and customer reach, thus contributing to its overall earnings.

Regions Financial Financial Statement Overview

Summary

Regions Financial demonstrates solid financial health with strong capital management, evidenced by a high equity ratio and no debt burden. The income statement reveals steady revenue growth despite a slight dip in net margins, while cash flow statements suggest proficient cash operations but a reduction in free cash flow, potentially impacting future growth investments. The company is well-positioned in the banking industry, albeit with some caution around margin pressures and cash flow contraction.

Income Statement

The company demonstrated a stable gross profit margin of 100% due to its nature as a financial institution. However, net profit margin decreased to 26.6% in 2024 from 30.1% in 2023, reflecting increased costs or reduced efficiency. Revenue growth rate from 2023 to 2024 was a moderate 3.1%, indicating steady growth despite economic challenges. The EBIT and EBITDA margins were not available for 2024, which limits the analysis of operating efficiency.

Balance Sheet

The company maintains a solid equity base with an equity ratio of 82.5% in 2024, indicating strong financial health. The debt-to-equity ratio is effectively 0 due to no reported debt, showcasing low leverage. Return on Equity (ROE) decreased to 10.6% in 2024 from 11.9% in 2023, which is a decent return but shows a slight decline in profitability on equity.

Cash Flow

Operating cash flow to net income ratio was 0.84 in 2024, showing robust cash generation capabilities. However, free cash flow decreased from $2.15 billion in 2023 to $1.60 billion in 2024, indicating a potential reduction in cash available for expansion or investment. Free cash flow to net income ratio stands at 0.84, reflecting a solid conversion despite the decline.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
7.08B	6.90B	7.17B	6.44B	6.28B
	Gross Profit
7.11B	6.90B	7.17B	6.44B	6.28B
	EBIT
2.45B	3.83B	3.19B	3.21B	1.31B
	EBITDA
2.45B	2.84B	3.23B	3.59B	1.74B
	Net Income Common Stockholders
1.89B	2.07B	2.25B	2.52B	1.09B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
34.16B	34.91B	39.16B	57.89B	45.11B
	Total Assets
157.30B	152.19B	155.22B	162.94B	147.39B
	Total Debt
6.49B	2.33B	2.28B	2.41B	3.57B
	Net Debt
-4.22B	-4.47B	-8.94B	-27.00B	-14.39B
	Total Liabilities
139.39B	134.70B	139.27B	144.61B	129.28B
	Stockholders Equity
17.88B	17.43B	15.95B	18.33B	18.11B
Cash Flow		Free Cash Flow
1.60B	2.15B	2.81B	2.96B	2.27B
	Operating Cash Flow
1.60B	2.31B	3.10B	3.03B	2.32B
	Investing Cash Flow
-262.00M	-1.61B	-12.94B	-2.87B	-4.85B
	Financing Cash Flow
2.58B	-5.13B	-8.35B	11.29B	16.37B

Regions Financial Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 18.34
• 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 RF, the sentiment is Negative. The current price of 18.34 is below the 20-day moving average (MA) of 21.12, below the 50-day MA of 22.52, and below the 200-day MA of 22.68, indicating a bearish trend. The MACD of -0.32 indicates Negative momentum. The RSI at 41.53 is Neutral, neither overbought nor oversold. The STOCH value of 23.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RF.

Regions Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HBAN	72 Outperform	$18.57B	10.42	9.93%	4.88%	10.13%	-1.25%
RF	71 Outperform	$16.91B	9.67	10.72%	5.30%	2.70%	-8.16%
FITB	67 Neutral	$22.76B	10.87	11.92%	4.29%	11.21%	-2.26%
CFG	65 Neutral	$15.23B	11.52	6.21%	4.82%	1.99%	-2.45%
Sector *	64 Neutral	$12.70B	9.08	9.19%	4.89%	16.29%	-8.64%
MTB	63 Neutral	$25.90B	10.77	9.23%	3.42%	6.07%	-7.10%
KEY	54 Neutral	$14.80B	1,663.64	-0.99%	6.07%	-11.11%	-133.79%

Regions Financial Corporate Events

Regions Financial to Present at RBC Conference 2025

Regions Financial Corporation announced that its executives will present the company’s operations and performance to institutional investors at various meetings in February and March 2025. These presentations, including at the RBC Global Financial Institutions Conference, will highlight Regions’ strategic priorities, such as diversified revenue streams and disciplined expense management. The company aims to maintain its strong market position by focusing on credit risk management, capital, and liquidity management, and by investing in high-growth markets. This initiative is part of Regions’ ongoing efforts to sustain long-term performance and enhance stakeholder value.

Regions Financial Reports Strong Earnings for 2024

Regions Financial Corp. announced its earnings for the quarter and year ending December 31, 2024, reporting a net income of $1.8 billion for the full year and $508 million for the fourth quarter. Despite incurring strategic securities repositioning and severance charges, the company achieved record revenue in several business sectors. The results highlight Regions’ strategic execution and commitment to growth, supported by strong market conditions and a dedicated team of associates.