Truist Financial (TFC) AI Stock Analysis

• Market Cap: $51.69B
• Dividend Yield: 5.26%
• Average Volume (3M): 11.76M
• Price to Earnings (P/E): 11.6
• Beta (1Y): 1.21
• Revenue Growth: -27.31%
• EPS Growth: N/A
• Country: US
• Employees: 37,529
• Sector: Financial
• Sector Strength: 86
• Industry: Banks - Regional
• EPS (TTM): 0.87
• Shares Outstanding: 1,309,539,000
• 10 Day Avg. Volume: 7,902,075
• 30 Day Avg. Volume: 11,762,763
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.16
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: -10.15
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $44.88
• Price Target Upside: 15.05% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

Truist Financial's overall stock score reflects a company facing mixed financial signals. While there is some recovery in revenue and net income, operational inefficiencies and high leverage present significant challenges. The technical analysis suggests bearish momentum, while the valuation appears attractive due to a low P/E ratio and high dividend yield. The earnings call provides a balanced view with growth in loans and deposits but a reduced revenue outlook due to economic uncertainties. Overall, the stock presents a cautious investment opportunity with potential for income generation but requires careful monitoring of operational improvements and market conditions.

Positive Factors

Capital Markets Performance

Capital Markets was a bright spot with revenue increasing by a significant percentage, positioning IB & Trading fees as leaders of fee income growth.

Dividend Yield

The stock is attractively valued, offering a 5.8% dividend yield for investors looking to add exposure to a regional bank stock.

Stock Buybacks

Buybacks are expected to accelerate to $750M, above the previous pace.

Negative Factors

EPS Forecast

There is potential downside risk to the revised EPS forecast if the economic slowdown is worse than expected.

Interest Income

There is a slight downside to '26 consensus estimates on lower NII from smaller NIM expansion expectations.

Revenue Guidance

The stock underperformed peers by over 100 basis points after lowering FY25 revenue guidance.

Truist Financial Business Overview & Revenue Model

Company Description

Truist Financial Corporation, a holding company, provides banking and trust services in the Southeastern and Mid-Atlantic United States. The company operates through three segments: Consumer Banking and Wealth, Corporate and Commercial Banking, and Insurance Holdings. Its deposit products include noninterest-bearing checking, interest-bearing checking, savings, and money market deposit accounts, as well as certificates of deposit and individual retirement accounts. The company also provides funding; asset management; automobile lending; bankcard lending; consumer finance; home equity and mortgage lending; insurance, such as property and casualty, life, health, employee benefits, workers compensation and professional liability, surety coverage, title, and other insurance products; investment brokerage; mobile/online banking; and payment, lease financing, small business lending, and wealth management/private banking services. In addition, it offers association, capital market, institutional trust, insurance premium and commercial finance, international banking, leasing, merchant, commercial deposit and treasury, government finance, commercial middle market lending, small business and student lending, floor plan and commercial mortgage lending, mortgage warehouse lending, private equity investment, real estate lending, and supply chain financing services. Further, the company provides corporate and investment banking, retail and wholesale brokerage, securities underwriting, and investment advisory services. As of December 31, 2021, the company operated through 2,517 banking offices. The company was formerly known as BB&T Corporation and changed its name to Truist Financial Corporation in December 2019. Truist Financial Corporation was founded in 1872 and is headquartered in Charlotte, North Carolina.

How the Company Makes Money

Truist Financial Corporation makes money through a diversified revenue model that includes several key streams. The primary source of income is through interest income, which is earned from loans and advances made to individuals, businesses, and other entities. Additionally, the company generates revenue from non-interest income sources such as fees and commissions from asset management, investment banking, insurance services, and transaction-based services. Truist also earns money from wealth management services, providing financial advisory and investment solutions to high-net-worth individuals. The company benefits from strategic partnerships and a strong regional presence, which enhances its ability to cross-sell products and services, thereby driving additional revenue. Economic factors, interest rate environments, and regulatory changes also play significant roles in influencing Truist's earnings.

Truist Financial Financial Statement Overview

Summary

Truist Financial's financial health shows mixed signals. Revenue and net income have shown some recovery, but operational inefficiencies and high leverage pose challenges. The stable cash flow indicates ongoing cash generation capability, but improvements in operational margins and debt management are needed.

Income Statement

The income statement reflects volatility with a notable turnaround in net income for 2024 after a negative figure in 2023. Revenue growth has been positive, with a 3.69% increase from 2023 to 2024. However, negative EBIT and EBITDA margins in recent periods raise concerns about operational efficiency.

Balance Sheet

The balance sheet portrays a stable equity base with a slight increase in stockholders' equity. The debt-to-equity ratio remains relatively high at approximately 1.01, signaling significant leverage. The equity ratio is around 12%, indicating moderate financial stability but potential vulnerability to debt-related risks.

Cash Flow

Cash flow analysis shows a decline in operating cash flow in 2024 but a positive free cash flow, which suggests ongoing cash generation capability. The free cash flow to net income ratio is strong, reflecting efficient cash utilization relative to profitability.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
13.28B	23.39B	23.04B	22.30B	22.70B
	Gross Profit
-10.97B	23.39B	23.04B	22.30B	22.70B
	EBIT
-481.00M	-185.00M	7.67B	7.99B	5.47B
	EBITDA
-481.00M	1.03B	9.04B	9.38B	7.08B
	Net Income Common Stockholders
4.82B	-1.09B	6.26B	6.44B	4.48B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
0.00	33.40B	24.37B	22.93B	21.15B
	Total Assets
531.18B	535.35B	555.25B	541.24B	509.23B
	Total Debt
64.16B	62.12B	65.07B	40.89B	45.30B
	Net Debt
12.82B	31.48B	43.65B	20.59B	26.44B
	Total Liabilities
467.50B	476.10B	494.72B	471.97B	438.32B
	Stockholders Equity
63.68B	59.10B	60.51B	69.27B	70.81B
Cash Flow		Free Cash Flow
2.16B	8.63B	10.52B	7.45B	6.62B
	Operating Cash Flow
2.16B	8.63B	11.08B	7.89B	7.44B
	Investing Cash Flow
18.60B	22.86B	-29.97B	-32.06B	-43.65B
	Financing Cash Flow
-11.64B	-22.27B	20.02B	25.59B	36.02B

Truist Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 39.01
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 39.01 is above the 20-day moving average (MA) of 37.20, above the 50-day MA of 38.89, and below the 200-day MA of 42.03, indicating a neutral trend. The MACD of 0.11 indicates Negative momentum. The RSI at 55.82 is Neutral, neither overbought nor oversold. The STOCH value of 53.05 is Neutral, 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
PNC	77 Outperform	$65.51B	11.69	11.15%	3.90%	3.07%	19.01%
RF	74 Outperform	$18.75B	10.20	11.33%	4.65%	1.05%	12.14%
FITB	73 Outperform	$24.47B	11.84	11.71%	3.98%	6.12%	0.68%
MTB	72 Outperform	$27.70B	11.75	9.39%	3.04%	1.41%	1.12%
USB	71 Outperform	$63.85B	10.26	11.50%	4.72%	2.19%	34.00%
Sector *	64 Neutral	$12.54B	9.79	7.92%	16985.69%	12.58%	-6.07%
TFC	55 Neutral	$51.69B	11.63	0.10%	5.26%	-27.31%	―

Truist Financial Corporate Events

Truist Financial COO Resignation Impacts Leadership Structure

Hugh S. ‘Beau’ Cummins III, Vice Chair and COO of Truist Financial, has resigned due to significant changes in his responsibilities following strategic initiatives he played a key role in, such as the sale of Truist Insurance Holdings. His resignation for ‘Good Reason’ entitles him to specific benefits, and his responsibilities will transition to other senior executives, impacting the company’s operational leadership.