Fifth Third Bancorp (FITB) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

SouthState Corp.

Ally Financial, Inc.

East West Bancorp, Inc.

First Citizens BancShares, Inc. (North Carolina)

Commerce Bancshares, Inc. (Missouri)

Cullen/Frost Bankers, Inc.

Truist Financial Corp.

M&T Bank Corp.

Fifth Third Bancorp

First Horizon Corp. (Tennessee)

Fiserv, Inc.

Why is Fifth Third Bancorp ?

Positive results in Mar 26

NII(Q) Highest at USD 1,934 MM
DIVIDEND PER SHARE(HY) Highest at USD 0
GROSS NPA (%)(Q) Lowest at 0.54%

With ROA of 0.67%, it has a expensive valuation with a 2.34 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 33.17%, its profits have risen by 8.2% ; the PEG ratio of the company is 2.1

High Institutional Holdings at 70.64%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Market Beating performance in long term as well as near term

Along with generating 33.17% returns in the last 1 year, the stock has outperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Fifth Third Bancorp should be less than 10%
Overall Portfolio exposure to Regional Banks should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Regional Banks)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Fifth Third Bancorp for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Fifth Third Bancorp

33.17%

1.83

26.19%

S&P 500

22.99%

1.78

12.93%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.19%

EBIT Growth (5y)

11.27%

EBIT to Interest (avg)

Debt to EBITDA (avg)

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

Dividend Payout Ratio

43.59%

Pledged Shares

Institutional Holding

70.64%

ROCE (avg)

ROE (avg)

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.34

EV to EBIT

13.98

EV to EBITDA

11.56

EV to Capital Employed

4.74

EV to Sales

3.73

PEG Ratio

2.07

Dividend Yield

1.86%

ROCE (Latest)

33.91%

ROE (Latest)

11.61%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

14What is working for the Company

NII(Q)

Highest at USD 1,934 MM

DIVIDEND PER SHARE(HY)

Highest at USD 0

GROSS NPA (%)

CREDIT DEPOSIT RATIO(Q)

Highest at 0.54%

DIVIDEND PAYOUT RATIO(Y)

Highest at 259.4%

CASH AND EQV(HY)

Highest at USD 7,583 MM

NET SALES(Q)

Highest at USD 2,972 MM

-13What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 2,429 MM

OPERATING PROFIT(Q)

Lowest at USD 206 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 6.93 %

PRE-TAX PROFIT(Q)

Lowest at USD 207 MM

NET PROFIT(Q)

Lowest at USD 165 MM

EPS(Q)

Lowest at USD 0.15

Here's what is working for Fifth Third Bancorp

NII

Highest at USD 1,934 MM and Grown

In each period in the last five periods

MOJO Watch

The bank's income from core business is increasing

Net NPA

Non Performing Loans (%)

Lowest at 0.54%

in the last four Semi-Annual periods

MOJO Watch

Proportion of stressed loans given by the bank are falling

Non Performing Loans (%)

Credit Deposit Ratio

Highest at 0.54% and Grown

In each half year in the last four Semi-Annual periods

MOJO Watch

Bank has been creating proportionately higher loans against its deposits, thereby creating higher revenue generating assets

Credit Deposit Ratio (%)

Dividend per share

Highest at USD 0 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Net Sales

Highest at USD 2,972 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Net Sales

At USD 2,972 MM has Grown at 20.04%

over average net sales of the previous four periods of USD 2,475.75 MM

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Cash and Eqv

Highest at USD 7,583 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend Payout Ratio

Highest at 259.4%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Depreciation

Highest at USD 199 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Depreciation

At USD 199 MM has Grown at 40.14%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (USD MM)

Here's what is not working for Fifth Third Bancorp

Pre-Tax Profit

At USD 207 MM has Fallen at -74.21%

over average net sales of the previous four periods of USD 802.5 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 165 MM has Fallen at -73.84%

over average net sales of the previous four periods of USD 630.75 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Operating Cash Flow

Lowest at USD 2,429 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Operating Profit

Lowest at USD 206 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at 6.93 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at USD 207 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD 165 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD 0.15

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Capital Adequacy Ratio

Lowest at 10.79%

in the last five periods

MOJO Watch

The Bank's capital base vs its risk assets is deteriorating.

CAR (%)