KeyCorp (KEY.PI) stock analysis

P/E above its 5-year median

KeyCorp's P/E of 12.3 is above its own 5-year median of 10.3.

P/E below the industry

KeyCorp's P/E of 12.3 is below the Commercial Banks median of 12.4.

P/S below the industry

KeyCorp's price-to-sales of 2.90 is below the Commercial Banks median of 3.67.

P/B below the industry

KeyCorp's price-to-book of 1.14 is below the Commercial Banks median of 1.28.

Trading above fair value

The share price of $21.23 is above our fair value estimate of $20.55.

Margin of safety under 20%

The price is 3.3% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 1.1% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -7.7% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 1053% over the last twelve months, against a 5-year average of 6.4% a year.

Growing faster than the industry

Revenue grew 51.1% over the last twelve months; the Commercial Banks median is 11.4%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin trend

Banks and insurers do not report gross profit.

Return on equity under 15%

Return on equity was 10.3% over the last twelve months and averaged 8.5% over five years; we look for 15% on both.

Return on assets over 1%

Return on assets was 1.1%; for a bank or insurer, 1% or more is considered good.

Return on equity below the industry

KeyCorp's return on equity of 10.3% is below the Commercial Banks median of 11.2%.

Earnings grew over 5 years

Net income grew 6.4% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 26.0% over the last twelve months, against a 5-year average of 19.7%.

Net margin below the industry

KeyCorp's net margin of 26.0% is below the Commercial Banks median of 30.0%.

Well capitalized

Equity is 10.3% of total assets; 8% or more is a comfortable cushion.

Loans funded by deposits

Loans equal 71.2% of deposits, so lending is funded by customer deposits.

Adequate loan-loss reserve

The allowance for credit losses is 1.3% of loans; we look for at least 1%.

High cost base

Non-interest expense takes 61.9% of revenue; under 60% is efficient for a bank.

Deposits growing

Deposits grew 4.2% over the past year.

Borrowings

Needs debt and equity figures.

Pays a dividend

KeyCorp paid dividends worth 3.9% of the share price over the last twelve months.

Yield below Treasuries

The 3.9% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.9% or more; KeyCorp yields 3.9%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 51.4% of net income.

Covered by free cash flow

Dividends take 87.0% of free cash flow.