Truist Financial (TFC) AI Stock Analysis

• Market Cap: $61.30B
• Dividend Yield: 4.19%
• Average Volume (3M): 7.55M
• Price to Earnings (P/E): 12.8
• Beta (1Y): 1.08
• Revenue Growth: 22.02%
• EPS Growth: N/A
• Country: US
• Employees: 37,529
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.04
• Shares Outstanding: 1,279,246,300
• 10 Day Avg. Volume: 6,251,468
• 30 Day Avg. Volume: 7,551,429
• PEG Ratio: -0.03
• Price to Book (P/B): 0.91
• Price to Sales (P/S): 2.38
• P/FCF Ratio: 26.68
• Enterprise Value/Market Cap: 2.17
• Enterprise Value/Revenue: 4.48
• Enterprise Value/Gross Profit: 7.54
• Enterprise Value/Ebitda: 19.52
• 1Y Price Target: $49.91
• Price Target Upside: 0.42% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): 3.91
• Revenue Forecast (FY): $20.49B

• Rating: 71 Outperform
• Price Target: $53.00 ▲(6.64% Upside)

Truist Financial's overall stock score reflects a strong earnings call and positive technical indicators, offset by mixed financial performance and reasonable valuation. The company's strategic growth initiatives and robust capital return are significant strengths, while challenges in revenue growth and cash flow generation present risks.

Positive Factors

Non-Interest Income Growth

The surge in non-interest income, driven by investment banking and wealth management, enhances revenue diversification and reduces reliance on interest income.

Strategic Growth Initiatives

Expansion of branches and digital enhancements positions Truist for long-term growth, improving market reach and customer engagement.

Strong Capital Return

Robust capital return through dividends and buybacks reflects financial strength and commitment to shareholder value, supporting long-term investor confidence.

Negative Factors

Deposit Balance Decline

Declining deposit balances can strain liquidity and limit lending capacity, potentially impacting future revenue growth and financial stability.

Increased Non-Performing Loans

Rising non-performing loans indicate potential asset quality issues, which could lead to higher credit costs and impact profitability.

Cash Flow Challenges

Declining free cash flow growth suggests difficulties in generating cash, which could hinder investment capacity and financial flexibility.

Truist Financial Business Overview & Revenue Model

Company Description

Truist Financial Corporation (TFC) is a leading bank holding company formed through the merger of BB&T and SunTrust Banks in 2019. Headquartered in Charlotte, North Carolina, Truist operates in the financial services sector, offering a wide range of products and services, including personal and commercial banking, investment services, mortgage and auto loans, insurance, and wealth management. The company serves millions of customers through its extensive branch network and digital platforms, focusing on delivering innovative solutions and exceptional customer experiences.

How the Company Makes Money

Truist Financial generates revenue primarily through interest income and non-interest income. Interest income is derived from loans, including personal, commercial, and mortgage loans, where the bank earns interest on the money it lends. Non-interest income comes from fees related to services such as account maintenance, asset management, investment banking, and insurance services. Additionally, Truist benefits from wealth management services, which involve advising and managing investments for clients, thus earning management fees. The company has strategic partnerships for certain financial products and technology solutions, enhancing its service offerings and increasing revenue potential. Factors contributing to earnings include market conditions, interest rate fluctuations, and the overall economic environment, which can impact loan demand and investment performance.

Truist Financial Financial Statement Overview

Summary

Truist Financial shows a mixed financial performance. While profitability and operational efficiency have improved, revenue growth and cash flow generation present challenges. The balance sheet remains strong, with manageable leverage and improved return on equity.

Income Statement

Truist Financial's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) gross profit margin is healthy at 47.08%, but the net profit margin has decreased to 17.46% from 19.87% in the previous year. Revenue growth is negative at -2.18%, indicating a decline in sales. However, the EBIT and EBITDA margins have improved significantly from negative figures in 2024 to 16.01% and 18.51% respectively in the TTM, reflecting better operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.94, showing a slight improvement from 0.98 in 2024. Return on equity has increased to 7.84% in the TTM, indicating better profitability from shareholders' investments. The equity ratio remains strong, suggesting a solid capital structure.

Cash Flow

Cash flow analysis reveals challenges, with a significant decline in free cash flow growth at -75.16% in the TTM. The operating cash flow to net income ratio is low at 0.24, suggesting potential issues in converting income into cash. However, the free cash flow to net income ratio remains stable at 1.0, indicating that the company is generating enough free cash flow to cover its net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	29.76B	24.25B	29.95B	22.29B	23.06B	24.43B
Gross Profit	17.67B	11.41B	17.91B	19.20B	23.11B	20.37B
EBITDA	6.83B	378.00M	450.00M	8.39B	9.38B	7.08B
Net Income	5.07B	4.82B	-1.09B	6.26B	6.44B	4.48B
Balance Sheet
Total Assets	543.85B	531.18B	535.35B	555.25B	541.24B	509.23B
Cash, Cash Equivalents and Short-Term Investments	42.58B	44.32B	97.60B	93.22B	173.42B	139.66B
Total Debt	71.11B	62.27B	62.12B	65.07B	40.89B	45.30B
Total Liabilities	478.20B	467.50B	476.10B	494.72B	471.97B	438.32B
Stockholders Equity	65.65B	63.68B	59.10B	60.51B	69.27B	70.81B
Cash Flow
Free Cash Flow	3.70B	2.16B	8.63B	10.52B	7.45B	6.62B
Operating Cash Flow	3.70B	2.16B	8.63B	11.08B	7.89B	7.44B
Investing Cash Flow	-33.59B	18.60B	22.86B	-29.97B	-32.06B	-43.65B
Financing Cash Flow	36.30B	-11.64B	-22.27B	20.02B	25.59B	36.02B

Truist Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 49.70
• 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 TFC, the sentiment is Positive. The current price of 49.7 is above the 20-day moving average (MA) of 46.37, above the 50-day MA of 44.71, and above the 200-day MA of 42.02, indicating a bullish trend. The MACD of 1.22 indicates Negative momentum. The RSI at 81.18 is Negative, neither overbought nor oversold. The STOCH value of 85.61 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TFC.

Truist Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HBAN	81 Outperform	$27.65B	12.34	10.37%	3.46%	5.73%	38.39%
MTB	76 Outperform	$31.45B	12.61	9.60%	2.77%	-0.81%	20.34%
USB	76 Outperform	$80.16B	11.81	11.69%	3.77%	2.91%	33.77%
FITB	71 Outperform	$29.87B	13.51	11.52%	3.12%	0.15%	11.62%
TFC	71 Outperform	$61.30B	12.85	7.98%	4.19%	22.02%	―
PNC	71 Outperform	$81.17B	13.36	11.31%	3.12%	1.79%	30.93%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Truist Financial Corporate Events

Truist Financial Director Steven Voorhees Announces Retirement

Steven C. Voorhees, a member of the Board of Directors at Truist Financial Corporation, has announced his retirement effective December 31, 2025, citing personal reasons. His departure is not due to any disagreements with the company, and Truist’s management has expressed gratitude for his significant contributions during his tenure.

Truist Financial to Redeem Series P Preferred Stock

On October 28, 2025, Truist Financial Corporation announced its decision to redeem all outstanding depositary shares of its Series P Preferred Stock on November 13, 2025. This move is part of the company’s strategic financial management, potentially impacting its capital structure and shareholder value.

Truist Financial Issues $1.25 Billion in Notes

On October 23, 2025, Truist Financial Corporation issued and sold $1.25 billion in Fixed-to-Floating Rate Medium-Term Notes due in 2036, while its subsidiary, Truist Bank, concurrently issued and sold $1.25 billion in Senior Bank Notes due in 2029. This strategic move is likely aimed at strengthening the company’s financial position and enhancing its market offerings, potentially impacting its operations and stakeholder interests.