Regions Financial (RF) AI Stock Analysis

• Market Cap: $24.12B
• Dividend Yield: 3.74%
• Average Volume (3M): 14.12M
• Price to Earnings (P/E): 12.1
• Beta (1Y): 1.07
• Revenue Growth: 4.00%
• EPS Growth: 28.54%
• Country: US
• Employees: 19,644
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.63
• Shares Outstanding: 876,876,500
• 10 Day Avg. Volume: 11,237,393
• 30 Day Avg. Volume: 14,119,159
• PEG Ratio: -1.41
• Price to Book (P/B): 1.21
• Price to Sales (P/S): 2.30
• P/FCF Ratio: 14.84
• Enterprise Value/Market Cap: 0.79
• Enterprise Value/Revenue: 1.98
• Enterprise Value/Gross Profit: 2.73
• Enterprise Value/Ebitda: 6.84
• 1Y Price Target: $29.00
• Price Target Upside: 5.42% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15
• EPS Forecast (FY): 2.36
• Revenue Forecast (FY): $7.58B

• Rating: 79 Outperform
• Price Target: $30.00 ▲(9.05% Upside)

Regions Financial's strong financial performance and strategic positioning in the regional banking sector are key strengths, supported by robust revenue growth and profitability. The stock's valuation is attractive, with a reasonable P/E ratio and a solid dividend yield. Technical indicators suggest bullish momentum, though caution is advised due to potential overbought conditions. The company's strategic initiatives and positive earnings call sentiment further enhance its outlook.

Positive Factors

Revenue Growth

Sustained revenue growth indicates effective market penetration and product demand, supporting long-term business expansion.

Capital Management

Strong capital management ensures financial stability and flexibility, enabling strategic investments and shareholder value enhancement.

Market Position

Strong market position with competitive deposit growth enhances customer base and revenue potential, solidifying long-term competitiveness.

Negative Factors

Loan Growth Challenges

Stagnant loan growth can limit revenue expansion and indicate potential issues in loan demand or portfolio management.

Net Interest Margin Decline

A declining net interest margin may pressure profitability, affecting the bank's ability to generate income from its core lending activities.

Elevated Charge-offs

Rising charge-offs indicate deteriorating asset quality, which can impact financial stability and necessitate increased provisioning.

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 generates revenue through various streams primarily focused on net interest income and non-interest income. Net interest income is derived from the interest earned on loans and investments minus the interest paid on deposits and borrowings. Key revenue streams include interest from commercial loans, residential mortgages, and consumer loans. Additionally, Regions earns non-interest income from service charges on deposit accounts, fees from investment management services, and other financial services such as wealth management. The company also benefits from strategic partnerships with businesses and technology firms that enhance its service offerings and customer base, contributing to its overall earnings.

Regions Financial Financial Statement Overview

Summary

Regions Financial shows strong financial health with robust revenue growth and profitability metrics. The balance sheet is solid with low leverage, and cash flow generation is generally strong despite recent declines in free cash flow growth. The company is well-positioned in the regional banking sector, though it should monitor cost pressures and cash flow trends closely.

Income Statement

Regions Financial has demonstrated strong revenue growth with a 6.58% increase in TTM, supported by solid gross and net profit margins of 69.45% and 21.96%, respectively. The EBIT and EBITDA margins are healthy at 27.55% and 28.76%, indicating efficient operational management. However, the slight decline in gross profit margin over the years suggests potential cost pressures.

Balance Sheet

The company's balance sheet is robust with a low debt-to-equity ratio of 0.32, reflecting prudent financial leverage. Return on equity is strong at 12.03%, indicating effective use of shareholder funds. The equity ratio stands at 11.91%, suggesting a stable capital structure, though there is room for improvement in asset utilization.

Cash Flow

Operating cash flow is strong, with a coverage ratio of 2.06, indicating good cash generation relative to net income. However, the free cash flow growth rate has declined by 14.73% in the TTM, which could signal potential cash flow management challenges. The free cash flow to net income ratio remains high at 98.54%, showing efficient cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.59B	9.37B	9.15B	7.48B	6.60B	6.64B
Gross Profit	6.95B	6.60B	7.02B	6.89B	6.96B	4.95B
EBITDA	2.77B	2.50B	2.84B	3.23B	3.59B	1.74B
Net Income	2.16B	1.89B	2.07B	2.25B	2.52B	1.09B
Balance Sheet
Total Assets	159.94B	157.30B	152.19B	155.22B	162.94B	147.39B
Cash, Cash Equivalents and Short-Term Investments	12.10B	34.16B	34.91B	39.16B	57.89B	45.11B
Total Debt	6.08B	6.49B	2.33B	2.28B	2.41B	3.57B
Total Liabilities	140.84B	139.39B	134.70B	139.27B	144.61B	129.28B
Stockholders Equity	19.05B	17.88B	17.43B	15.95B	18.33B	18.11B
Cash Flow
Free Cash Flow	2.25B	1.45B	2.15B	2.81B	2.96B	2.27B
Operating Cash Flow	2.28B	1.60B	2.31B	3.10B	3.03B	2.32B
Investing Cash Flow	-1.14B	-262.00M	-1.61B	-12.94B	-2.87B	-4.85B
Financing Cash Flow	436.00M	2.58B	-5.13B	-8.35B	11.29B	16.37B

Regions Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 27.51
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RF, the sentiment is Positive. The current price of 27.51 is above the 20-day moving average (MA) of 26.01, above the 50-day MA of 24.94, and above the 200-day MA of 23.43, indicating a bullish trend. The MACD of 0.79 indicates Negative momentum. The RSI at 72.92 is Negative, neither overbought nor oversold. The STOCH value of 76.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RF.

Regions Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HBAN	80 Outperform	$27.76B	12.39	10.37%	3.49%	5.73%	38.39%
RF	79 Outperform	$24.12B	12.11	11.43%	3.74%	4.00%	28.54%
CFG	75 Outperform	$24.97B	16.31	6.71%	2.93%	-3.93%	40.62%
FCNCA	73 Outperform	$25.68B	12.37	10.38%	0.38%	-3.18%	-3.10%
FITB	71 Outperform	$31.46B	14.23	11.52%	3.14%	0.15%	11.62%
KEY	69 Neutral	$22.49B	25.40	5.82%	3.94%	3.86%	5473.29%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Regions Financial Corporate Events

Regions Financial Highlights Strategic Priorities to Investors

In November and December 2025, Regions Financial executives plan to present the company’s operations and performance to institutional investors. The presentations will highlight Regions’ strategic priorities, including its robust capital management, effective risk management, and strong shareholder returns. The company’s proactive interest rate hedging and capital resiliency position it well for various economic conditions, while its consistent profitability and growth metrics support a higher valuation.

Regions Financial Reports Strong Q3 2025 Earnings

On October 17, 2025, Regions Financial Corp. reported its third-quarter earnings for 2025, showcasing a solid performance with $548 million in earnings and a 7% year-over-year revenue growth to $1.9 billion. The company achieved new records in wealth and capital markets performance, with adjusted earnings rising by 8% and adjusted EPS increasing by 11%. Regions also maintained robust capital levels and a low-cost deposit base, supporting its strategic initiatives and positioning it for continued success in the financial sector.