Truist Financial (TFC) AI Stock Analysis

• Market Cap: $52.13B
• Dividend Yield: 5.22%
• Average Volume (3M): 7.09M
• Price to Earnings (P/E): 11.7
• Beta (1Y): 1.19
• Revenue Growth: -27.31%
• EPS Growth: N/A
• Country: US
• Employees: 37,529
• Sector: Financial
• Sector Strength: 76
• Industry: Banks - Regional
• EPS (TTM): 0.87
• Shares Outstanding: 1,309,539,000
• 10 Day Avg. Volume: 6,463,082
• 30 Day Avg. Volume: 7,085,319
• PEG Ratio: -1.37
• Price to Book (P/B): 0.68
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 20.84
• Enterprise Value/Market Cap: 1.63
• Enterprise Value/Revenue: 0.87
• Enterprise Value/Gross Profit: 7.38
• Enterprise Value/Ebitda: -7.10
• 1Y Price Target: $44.61
• Price Target Upside: 10.75% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

• Rating: 63 Neutral
• Price Target: $42.00 ▲(4.27%Upside)

Truist Financial's overall stock score is driven by its robust cash flow and reasonable valuation, providing a foundation for stability. However, profitability challenges and a mixed earnings outlook present headwinds. The technical analysis provides a neutral view, with no strong momentum indicators to support a bullish outlook.

Positive Factors

Digital Transformation

Focus on building out digital capabilities is expected to improve efficiencies and drive process automation.

Stock Valuation

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

Negative Factors

Economic Slowdown Risk

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

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 generates revenue primarily through interest income from loans and investment securities, as well as non-interest income from fees and commissions associated with various financial services. Key revenue streams include retail and commercial banking services, where the company earns interest on loans extended to individuals and businesses. In addition, Truist derives income from wealth management and investment services, which involve managing assets and providing financial advisory services for clients. Insurance services also contribute significantly to the company's earnings, with Truist offering a variety of insurance products through its subsidiaries. Strategic partnerships and acquisitions further bolster its revenue, enabling the company to expand its market presence and service offerings.

Truist Financial Financial Statement Overview

Summary

Truist Financial shows mixed financial health. While cash flow is strong, indicating liquidity and operational efficiency, there are concerns with declining revenue and profitability pressures in the income statement. The balance sheet is stable but shows some leverage and equity stability issues. Overall, cash flow strength supports potential stability and growth.

Income Statement

Truist Financial shows signs of instability in its income statement with a negative EBIT and declining revenue over recent periods. The gross profit margin remains reasonable, but the net profit margin has seen fluctuations due to varying net income levels. Despite these challenges, the company has managed to maintain positive EBITDA, which indicates some operational resilience.

Balance Sheet

The balance sheet reflects a moderate level of financial stability with a reasonable debt-to-equity ratio. However, the decreasing trend in stockholder's equity and fluctuating total assets raise concerns. The equity ratio shows the company maintains a decent proportion of equity financing, suggesting potential for leveraging equity for growth.

Cash Flow

Cash flow analysis reveals a positive trajectory with a significant increase in operating and free cash flow over recent periods. The company has managed to convert operating performance into cash effectively, showcasing a strong cash flow to net income ratio. This cash generation capability offers a buffer against earnings volatility.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
24.00B	24.25B	29.95B	22.29B	23.06B	24.43B
	Gross Profit
11.53B	11.41B	17.91B	19.20B	23.11B	20.37B
	EBIT
-431.00M	-601.00M	-765.00M	7.03B	7.99B	5.47B
	EBITDA
495.00M	378.00M	450.00M	8.39B	9.38B	7.08B
	Net Income Common Stockholders
4.88B	4.82B	-1.09B	6.26B	6.44B	4.48B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
52.85B	50.30B	102.73B	99.35B	180.08B	143.69B
	Total Assets
535.90B	531.18B	535.35B	555.25B	541.24B	509.23B
	Total Debt
55.76B	62.27B	62.12B	65.07B	40.89B	45.30B
	Net Debt
13.59B	22.50B	31.89B	43.65B	20.59B	26.44B
	Total Liabilities
471.26B	467.50B	476.10B	494.72B	471.97B	438.32B
	Stockholders Equity
64.64B	63.68B	59.10B	60.51B	69.27B	70.81B
Cash Flow		Free Cash Flow
3.32B	2.16B	8.63B	10.52B	7.45B	6.62B
	Operating Cash Flow
3.23B	2.16B	8.63B	11.08B	7.89B	7.44B
	Investing Cash Flow
11.04B	18.60B	22.86B	-29.97B	-32.06B	-43.65B
	Financing Cash Flow
-7.78B	-11.64B	-22.27B	20.02B	25.59B	36.02B

Truist Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 40.28
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 40.28 is above the 20-day moving average (MA) of 39.74, above the 50-day MA of 38.78, and below the 200-day MA of 41.87, indicating a neutral trend. The MACD of 0.11 indicates Positive momentum. The RSI at 54.76 is Neutral, neither overbought nor oversold. The STOCH value of 39.35 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	81 Outperform	$69.33B	12.37	11.15%	3.65%	3.07%	19.01%
FITB	77 Outperform	$25.89B	12.32	11.71%	3.82%	5.75%	0.68%
MTB	77 Outperform	$29.17B	12.17	9.39%	2.97%	1.20%	1.12%
RF	75 Outperform	$19.74B	10.60	11.33%	4.55%	1.05%	12.14%
USB	70 Outperform	$67.42B	10.71	11.50%	4.62%	2.19%	34.00%
Sector *	64 Neutral	$12.73B	9.92	7.90%	78.88%	12.06%	-7.95%
TFC	63 Neutral	$52.13B	11.73	0.10%	5.22%	-27.31%	―

Truist Financial Corporate Events

Truist Financial Appoints Jonathan Pruzan to Board

On May 27, 2025, Truist Financial Corporation appointed Jonathan Pruzan as a director of the company and a member of the Board of Directors of its subsidiary, Truist Bank. Pruzan, who brings 35 years of financial services experience, will serve on the Joint Risk Committee of the Boards. His extensive background includes roles at Morgan Stanley and Pretium, providing him with a wealth of knowledge in technology, operations, finance, and corporate strategy, which is expected to benefit Truist’s strategic direction and operations.

The most recent analyst rating on (TFC) stock is a Hold with a $48.00 price target. To see the full list of analyst forecasts on Truist Financial stock, see the TFC Stock Forecast page.