Regions Financial Corp (RF.PC) stock analysis

P/E above its 5-year median

Regions Financial's P/E of 11.6 is above its own 5-year median of 10.5.

P/E below the industry

Regions Financial's P/E of 11.6 is below the Commercial Banks median of 12.3.

P/S below the industry

Regions Financial's price-to-sales of 3.20 is below the Commercial Banks median of 3.64.

P/B above the industry

Regions Financial's price-to-book of 1.29 is above the Commercial Banks median of 1.27.

Trading above fair value

The share price of $28.57 is above our fair value estimate of $27.63.

Margin of safety under 20%

The price is 3.4% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 1.4% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew 0.3% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew 7.5% over the last twelve months, against a 5-year average of 14.5% a year.

Growing slower than the industry

Revenue grew 4.4% over the last twelve months; the Commercial Banks median is 11.4%.

Guidance issued

The latest outlook (full year 2026 effective tax rate, Jan 16, 2026) was issued for the first time, so it neither adds nor takes away points.

Gross margin trend

Banks and insurers do not report gross profit.

Return on equity under 15%

Return on equity was 11.9% over the last twelve months and averaged 12.4% over five years; we look for 15% on both.

Return on assets over 1%

Return on assets was 1.4%; for a bank or insurer, 1% or more is considered good.

Return on equity above the industry

Regions Financial's return on equity of 11.9% is above the Commercial Banks median of 11.2%.

Earnings grew over 5 years

Net income grew 14.5% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 29.3% over the last twelve months, against a 5-year average of 508%.

Net margin below the industry

Regions Financial's net margin of 29.3% is below the Commercial Banks median of 30.0%.

Well capitalized

Equity is 11.7% of total assets; 8% or more is a comfortable cushion.

Loans funded by deposits

Loans equal 74.8% of deposits, so lending is funded by customer deposits.

Adequate loan-loss reserve

The allowance for credit losses is 1.5% of loans; we look for at least 1%.

Efficient operations

Non-interest expense takes 57.6% of revenue; under 60% is efficient for a bank.

Deposits shrinking

Deposits fell 0.2% over the past year.

Modest borrowings

Borrowings other than deposits are 15.9% of equity.

Pays a dividend

Regions Financial paid dividends worth 3.8% of the share price over the last twelve months.

Yield below Treasuries

The 3.8% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 4.0% or more; Regions Financial yields 3.8%.

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 41.1% of net income.

Cash-flow cover

Needs dividends paid and free cash flow.