Regions Financial (RF) AI Stock Analysis

• Market Cap: $23.70B
• Dividend Yield: 3.81%
• Average Volume (3M): 17.95M
• Price to Earnings (P/E): 12.4
• Beta (1Y): 1.24
• Revenue Growth: 2.94%
• EPS Growth: 20.85%
• Country: US
• Employees: 19,644
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.60
• Shares Outstanding: 892,308,350
• 10 Day Avg. Volume: 19,941,688
• 30 Day Avg. Volume: 17,948,891
• 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: 0.70
• Enterprise Value/Revenue: 1.75
• Enterprise Value/Gross Profit: 2.45
• Enterprise Value/Ebitda: 6.21
• 1Y Price Target: $28.78
• Price Target Upside: 7.95% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 18

• Rating: 77 Outperform
• Price Target: $29.00 ▲(8.78% Upside)

Regions Financial's strong financial performance and positive earnings call sentiment are the most significant factors contributing to the score. The technical analysis supports a bullish outlook, while the valuation remains reasonable. Overall, the company is well-positioned within the regional banking sector.

Positive Factors

Revenue Growth

Strong revenue growth indicates successful business operations and market expansion, supporting long-term shareholder value.

Technological Advancements

Investments in technology enhance operational efficiency and customer experience, positioning the company for future growth.

Deposit Growth

Significant deposit growth strengthens the bank's funding base, enabling further lending and investment opportunities.

Negative Factors

Moderate Loan Growth

Limited loan growth can constrain revenue potential, impacting the bank's ability to capitalize on lending opportunities.

Provision Expense Increase

Higher provision expenses indicate potential credit risks, which could pressure future profitability if credit conditions worsen.

Expense Growth

Rising expenses, particularly in salaries and benefits, could erode profit margins if not managed effectively over time.

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 primarily through interest income from loans and fees associated with its banking services. The bank earns interest income by lending to consumers and businesses, with personal loans, mortgages, and commercial loans being significant contributors. Additionally, Regions charges fees for various services, including account maintenance, ATM usage, and transaction processing. The Wealth Management segment adds another layer of revenue through investment advisory fees and asset management. Regions also engages in capital markets activities, providing underwriting and advisory services which contribute to its earnings. The company's strategic partnerships with fintech firms and investment platforms enhance its service offerings and broaden its customer base, further supporting its revenue growth.

Regions Financial Financial Statement Overview

Summary

Regions Financial demonstrates strong revenue growth and efficient cash flow management. The balance sheet reflects prudent leverage, though increasing liabilities warrant monitoring. Profitability remains robust, but vigilance on net margins is advisable.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.52B	9.37B	9.15B	7.48B	6.60B	6.64B
Gross Profit	6.81B	6.60B	7.02B	6.89B	6.96B	4.95B
EBITDA	2.69B	2.50B	2.84B	3.23B	3.59B	1.74B
Net Income	2.08B	1.89B	2.07B	2.25B	2.52B	1.09B
Balance Sheet
Total Assets	159.21B	157.30B	152.19B	155.22B	162.94B	147.39B
Cash, Cash Equivalents and Short-Term Investments	34.79B	34.16B	34.91B	39.16B	57.89B	45.11B
Total Debt	5.28B	6.49B	2.33B	2.28B	2.41B	3.57B
Total Liabilities	140.50B	139.39B	134.70B	139.27B	144.61B	129.28B
Stockholders Equity	18.67B	17.88B	17.43B	15.95B	18.33B	18.11B
Cash Flow
Free Cash Flow	2.64B	1.45B	2.15B	2.81B	2.96B	2.27B
Operating Cash Flow	2.68B	1.60B	2.31B	3.10B	3.03B	2.32B
Investing Cash Flow	-1.98B	-262.00M	-1.61B	-12.94B	-2.87B	-4.85B
Financing Cash Flow	2.00B	2.58B	-5.13B	-8.35B	11.29B	16.37B

Regions Financial Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 26.66
• 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 Neutral. The current price of 26.66 is below the 20-day moving average (MA) of 26.98, above the 50-day MA of 26.04, and above the 200-day MA of 23.11, indicating a neutral trend. The MACD of 0.25 indicates Positive momentum. The RSI at 51.34 is Neutral, neither overbought nor oversold. The STOCH value of 33.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for RF.

Regions Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HBAN	78 Outperform	25.46B	12.92	10.08%	3.57%	6.06%	28.03%
RF	77 Outperform	$23.70B	12.38	11.59%	3.81%	2.94%	20.85%
FITB	76 Outperform	29.90B	14.05	11.06%	3.28%	1.90%	2.87%
CFG	73 Outperform	22.93B	16.20	6.31%	3.16%	-3.68%	25.31%
FCNCA	72 Outperform	23.52B	10.92	10.75%	0.43%	-2.09%	-6.84%
KEY	71 Outperform	20.58B	-276.84	0.90%	4.37%	-12.30%	-108.78%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Regions Financial Corporate Events

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 August and September 2025. The presentations will highlight Regions’ strategic priorities, including diversified revenue streams, disciplined expense management, and robust capital management. The company has demonstrated strong growth in loans and deposits, as well as a leading shareholder return, positioning it well for future economic conditions. These efforts underscore Regions’ commitment to maintaining a strong financial position and delivering value to shareholders.

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.

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.