Regions Financial (RF) AI Stock Analysis

• Market Cap: $23.70B
• Dividend Yield: 3.8%
• Average Volume (3M): 11.18M
• Price to Earnings (P/E): 12.3
• Beta (1Y): 1.22
• Revenue Growth: 2.83%
• EPS Growth: 20.85%
• Country: US
• Employees: 19,644
• Sector: Financial
• Sector Strength: 72
• Industry: Banks - Regional
• EPS (TTM): 0.60
• Shares Outstanding: 898,930,200
• 10 Day Avg. Volume: 13,696,551
• 30 Day Avg. Volume: 11,178,859
• PEG Ratio: 1.51
• Price to Book (P/B): 1.18
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.72
• Enterprise Value/Market Cap: 0.56
• Enterprise Value/Revenue: 0.36
• Enterprise Value/Gross Profit: 2.00
• Enterprise Value/Ebitda: 1.35
• 1Y Price Target: $27.63
• Price Target Upside: 5.06% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17

• Rating: 77 Outperform
• Price Target: $30.00 ▲(14.07%Upside)

Regions Financial is performing well primarily due to its robust financial growth and strong technical indicators. The company's strategic focus, as discussed in the earnings call, further supports its positive outlook. Valuation metrics are favorable, but caution is advised due to potential overbought technical signals.

Positive Factors

Capital Management

The bank's strong capital position and recent stock pullback might lead to better than expected buybacks, estimated at approximately $150 million per quarter in 2025.

Cloud Technology

The full conversion to a new cloud-based deposit system is expected to enable better segmentation, faster service, and tailored market offerings.

Financial Performance

Stock increased by 6% due to outperforming net interest margin and an upward revision of 2025 net interest income guidance.

Negative Factors

Loan Growth

Management expects FY25 loan growth to be relatively stable, slightly worse than prior guidance.

Net Interest Income

Regions Financial Corp has lowered FY25 net interest income guidance by 100 basis points.

Price Target

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 (RF) is a prominent financial services company headquartered in Birmingham, Alabama. It operates primarily in the Southern and Midwestern United States, offering a comprehensive range of banking and financial services. The company's core products include retail and commercial banking, wealth management, and mortgage services. Regions Financial is known for its commitment to customer service and community engagement, providing a wide array of financial solutions to individuals, small businesses, and corporate clients.

How the Company Makes Money

Regions Financial makes money primarily through its various banking operations. The company's revenue model is driven by interest income generated from loans and leases, which include commercial and industrial loans, residential mortgages, and consumer loans. Additionally, Regions earns non-interest income through service charges, wealth management fees, and mortgage banking activities. The company also benefits from strategic partnerships and investments that enhance its financial offerings and contribute to its earnings. Key revenue streams include net interest income from lending activities and fees from customer transactions and advisory services. Regions Financial's profitability is influenced by factors such as interest rate environments, economic conditions, and regulatory changes that affect banking operations.

Regions Financial Financial Statement Overview

Summary

Regions Financial exhibits strong revenue growth and effective cost management with a robust gross profit margin over 70%. The balance sheet is solid with a low debt-to-equity ratio, though increasing liabilities need monitoring. Cash flow is positive with a strong cash conversion ratio. Net profit margin pressures slightly affect overall profitability.

Income Statement

Regions Financial has demonstrated strong revenue growth, with a notable increase in total revenue from $6.898 billion in 2023 to $9.401 billion TTM (Trailing-Twelve-Months) in 2025. The gross profit margin remains robust, consistently exceeding 70%, indicating effective cost management. However, the net profit margin has slightly decreased over the periods, suggesting some pressure on bottom-line profitability. EBIT and EBITDA margins remain strong, reflecting healthy operational efficiency.

Balance Sheet

The balance sheet of Regions Financial shows a solid equity base with stockholders' equity increasing to $18.53 billion TTM. The debt-to-equity ratio remains low, indicating prudent financial leverage. However, the total liabilities have increased over the periods, which could pose a risk if not managed effectively. The equity ratio has remained stable, showcasing a balanced financial structure.

Cash Flow

The cash flow statement indicates a positive trajectory in operating cash flow, aligning well with net income trends. Free cash flow has also shown consistent growth, supporting the company's capacity for reinvestment and dividend payments. The operating cash flow to net income ratio is strong, suggesting efficient cash conversion from earnings.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.37B	9.15B	7.48B	6.60B	6.64B
Gross Profit	6.60B	7.02B	6.89B	6.96B	4.95B
EBITDA	2.50B	2.84B	3.23B	3.59B	1.74B
Net Income	1.89B	2.07B	2.25B	2.52B	1.09B
Balance Sheet
Total Assets	157.30B	152.19B	155.22B	162.94B	147.39B
Cash, Cash Equivalents and Short-Term Investments	34.16B	34.91B	39.16B	57.89B	45.11B
Total Debt	6.49B	2.33B	2.28B	2.41B	3.57B
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	1.45B	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: Positive
• Last Price: 26.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 26.3 is above the 20-day moving average (MA) of 24.77, above the 50-day MA of 23.00, and above the 200-day MA of 22.85, indicating a bullish trend. The MACD of 0.94 indicates Negative momentum. The RSI at 76.43 is Negative, neither overbought nor oversold. The STOCH value of 91.95 is Negative, 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
FITB	78 Outperform	$28.53B	13.29	11.58%	3.47%	2.08%	2.87%
RF	77 Outperform	$23.70B	12.31	11.59%	3.80%	2.83%	20.85%
CFG	77 Outperform	$21.63B	15.21	6.48%	3.41%	-4.07%	25.31%
HBAN	77 Outperform	$24.66B	12.56	10.43%	3.73%	5.82%	28.04%
MTB	76 Outperform	$31.59B	12.75	9.48%	3.45%	0.62%	14.75%
KEY	70 Outperform	$20.60B	1,663.64	1.02%	4.43%	-12.21%	-108.48%
Sector *	68 Neutral	$17.10B	11.44	9.70%	3.58%	11.11%	-4.78%

Regions Financial Corporate Events

Regions Financial Reports Strong Q2 2025 Earnings Growth

On July 18, 2025, Regions Financial Corp. reported its second quarter 2025 earnings, highlighting a net income of $534 million and adjusted earnings of $538 million, reflecting a 12% and 10% increase, respectively, compared to the same period in 2024. The company’s total revenue reached $1.9 billion, marking a 10% year-over-year growth, driven by solid deposit growth, disciplined loan production, and strong performance in fee-based businesses, positioning Regions for continued expansion and long-term shareholder value.

The most recent analyst rating on (RF) stock is a Hold with a $26.00 price target. To see the full list of analyst forecasts on Regions Financial stock, see the RF Stock Forecast page.

Regions Financial Redeems Series D Preferred Stock

On June 17, 2025, Regions Financial Corporation filed a Certificate of Elimination to remove the Certificate of Designations for its Non-Cumulative Perpetual Preferred Stock, Series D, as all shares were redeemed by June 16, 2025. This action returns the previously authorized shares to an undesignated status, potentially impacting the company’s capital structure and shareholder composition.

The most recent analyst rating on (RF) stock is a Hold with a $21.00 price target. To see the full list of analyst forecasts on Regions Financial stock, see the RF Stock Forecast page.

Regions Financial to Present Strategic Priorities to Investors

Regions Financial Corporation announced that its executives will present the company’s operations and performance to institutional investors during May and June 2025. The presentations will highlight Regions’ strategic priorities, including diversified revenue streams, disciplined expense management, and strong capital management. The company emphasizes its consistent outperformance in risk efficiency and profitability compared to peers, driven by strategic investments in talent, technology, and market expansion. These efforts are expected to enhance Regions’ market position and stakeholder value.