Regions Financial (RF) AI Stock Analysis

• Market Cap: $26.08B
• Dividend Yield: 3.74%
• Average Volume (3M): 15.02M
• Price to Earnings (P/E): 12.9
• Beta (1Y): 1.09
• Revenue Growth: 4.00%
• EPS Growth: 28.54%
• Country: US
• Employees: 19,644
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.57
• Shares Outstanding: 876,876,500
• 10 Day Avg. Volume: 14,112,281
• 30 Day Avg. Volume: 15,021,834
• 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: 0.77
• Enterprise Value/Revenue: 2.11
• Enterprise Value/Gross Profit: 2.91
• Enterprise Value/Ebitda: 7.28
• 1Y Price Target: $30.97
• Price Target Upside: 4.14% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 18
• EPS Forecast (FY): 2.6
• Revenue Forecast (FY): $7.89B

• Rating: 81 Outperform
• Price Target: $34.00 ▲(14.32% Upside)

The score is driven primarily by strong financial performance (profitability and prudent leverage) and supportive technical strength (price above key moving averages with positive MACD). Valuation is also favorable with a moderate P/E and solid dividend yield, while earnings call guidance was constructive but includes manageable near-term expense and credit-related headwinds.

Positive Factors

Strong profitability and margins

Consistently healthy revenue growth and high operating margins indicate durable core profitability. Sustained margins provide capacity to absorb credit cycles and fund strategic investments, supporting long-term earnings stability and shareholder returns across 2–6 months and beyond.

Conservative capital and balance-sheet strength

A conservative leverage profile and healthy CET1 support resilience to stress and capacity for measured loan growth and buybacks. Strong capital and liquidity underpin regulatory flexibility and durable ability to finance operations and returns over the medium term.

Diversified, recurring fee businesses

Growing fee businesses (wealth, treasury, capital markets) reduce reliance on interest spreads and smooth revenue volatility. Diversification into high-margin, recurring services supports longer-term revenue resilience and helps offset cyclical loan and NII pressures.

Negative Factors

Elevated net charge-offs

Higher trailing charge-offs signal lingering credit stress that can persist into future quarters. Even if expected to improve, elevated losses erode earnings power and require higher provisioning, constraining capital deployment and margin recovery over the medium term.

Higher near-term tech spend

Sustained elevated tech investment raises operating expense near term, pressuring reported efficiency ratios and free cash flow. While modernization should yield long-term benefits, the temporary step-up limits distributable cash and compresses operating leverage for several quarters.

Deposit repricing and CD maturities

Large near-term CD rolloffs and deposit mix shifts force active pricing management and raise interest-bearing deposit beta risk. Higher funding costs or faster beta transmission would squeeze NIM and margin stability until deposit rebalancing completes over coming quarters.

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

Strong income statement (revenue up 6.58% TTM; solid net margin 21.96% and EBIT/EBITDA margins 27.55%/28.76%) and a conservative balance sheet (debt-to-equity 0.32; ROE 12.03%). Cash flow is a modest drag due to a 14.73% TTM decline in free cash flow growth despite strong cash conversion (FCF to net income 98.54%).

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	2.24B	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: 29.74
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• 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 29.74 is above the 20-day moving average (MA) of 29.26, above the 50-day MA of 28.30, and above the 200-day MA of 25.14, indicating a bullish trend. The MACD of 0.66 indicates Positive momentum. The RSI at 56.84 is Neutral, neither overbought nor oversold. The STOCH value of 30.67 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
RF	81 Outperform	$26.08B	12.93	11.68%	3.74%	4.00%	28.54%
KEY	75 Outperform	$23.56B	14.28	9.48%	3.90%	3.86%	5473.29%
FITB	74 Outperform	$34.94B	14.96	12.20%	3.14%	0.15%	11.62%
FCNCA	69 Neutral	$24.01B	12.14	9.92%	0.37%	-3.18%	-3.10%
HBAN	69 Neutral	$35.16B	12.45	10.03%	3.50%	5.73%	38.39%
CFG	69 Neutral	$27.67B	16.85	7.24%	2.89%	-3.93%	40.62%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Regions Financial Corporate Events

Regions Financial Expands Stockholder Rights With Bylaw Changes

On February 4, 2026, Regions Financial Corporation’s board of directors approved amendments to the company’s Amended and Restated By-Laws that expand stockholder rights and update governance provisions. The revisions allow one or more stockholders owning at least 25% of the company’s stock to request a special meeting, subject to specific informational and timing requirements, adjust advance notice rules for director nominations and other business at annual and special meetings, refine which executives qualify as officers for indemnification and advancement purposes, and update various provisions to align with changes in Delaware law, signaling a continued focus on shareholder engagement and governance clarity.

The most recent analyst rating on (RF) stock is a Buy with a $29.00 price target. To see the full list of analyst forecasts on Regions Financial stock, see the RF Stock Forecast page.

Regions Financial Reports Strong Fourth-Quarter and 2025 Results

On January 16, 2026, Regions Financial reported that fourth-quarter 2025 earnings reached $514 million, or $0.58 per diluted share, while full-year 2025 earnings totaled $2.1 billion, or $2.30 per diluted share, with adjusted earnings up 7 percent year-over-year and adjusted EPS rising 9 percent. The bank cited $1.9 billion in total revenue for 2025, a 6 percent annual increase, and highlighted record annual income in its wealth management and treasury management businesses, supported by peer-leading low interest-bearing deposit costs, robust capital levels, improved credit quality metrics, and a top-quartile net interest margin, factors that underpin its strong profitability metrics and reinforce its competitive positioning against regional banking peers.

The most recent analyst rating on (RF) stock is a Buy with a $33.00 price target. To see the full list of analyst forecasts on Regions Financial stock, see the RF Stock Forecast page.

Regions Financial Announces CFO Retirement and Succession Plan

On January 12, 2026, Regions Financial announced that longtime Chief Financial Officer David J. Turner Jr. will retire effective March 31, 2026, after a nearly 40-year career in finance and auditing, including two decades at the bank, and that veteran executive Anil D. Chadha, currently Controller and head of Corporate Finance, will assume the CFO role upon Turner’s retirement. Turner, who has served as CFO since 2010, was credited with steering Regions through a turbulent period for the banking sector, strengthening its capital and risk profile, and helping deliver strong shareholder returns, including net income of more than $1.7 billion in 2024 and a stock price gain of about 320% since 2010, while Chadha’s appointment reflects an internally cultivated succession plan aimed at preserving strategic continuity in finance, risk management and capital allocation as the company seeks to maintain its peer-leading profitability and balance sheet strength; both executives are expected to work together through March to ensure a smooth transition, and no special arrangements or related-party relationships were disclosed regarding Chadha’s promotion, with compensation changes to be detailed once approved.

The most recent analyst rating on (RF) stock is a Sell with a $30.00 price target. To see the full list of analyst forecasts on Regions Financial stock, see the RF Stock Forecast page.

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.

The most recent analyst rating on (RF) stock is a Sell with a $27.00 price target. To see the full list of analyst forecasts on Regions Financial stock, see the RF Stock Forecast page.