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Fifth Third Bancorp (FITB)FITB
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Upturn Advisory Summary
11/19/2024: FITB (3-star) is a STRONG-BUY. BUY since 92 days. Profits (21.73%). Updated daily EoD!
Analysis of Past Performance
Type: Stock | Upturn Star Rating | Today’s Advisory: Strong Buy |
Historic Profit: 12.96% | Upturn Advisory Performance 2 | Avg. Invested days: 46 |
Profits based on simulation | Stock Returns Performance 2 | Last Close 11/19/2024 |
Type: Stock | Today’s Advisory: Strong Buy |
Historic Profit: 12.96% | Avg. Invested days: 46 |
Upturn Star Rating | Stock Returns Performance 2 |
Profits based on simulation Last Close 11/19/2024 | Upturn Advisory Performance 2 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 31.73B USD |
Price to earnings Ratio 15.62 | 1Y Target Price 49.83 |
Dividends yield (FY) 3.16% | Basic EPS (TTM) 3.03 |
Volume (30-day avg) 4520641 | Beta 1.23 |
52 Weeks Range 29.33 - 49.07 | Updated Date 12/5/2024 |
Company Size Large-Cap Stock | Market Capitalization 31.73B USD | Price to earnings Ratio 15.62 | 1Y Target Price 49.83 |
Dividends yield (FY) 3.16% | Basic EPS (TTM) 3.03 | Volume (30-day avg) 4520641 | Beta 1.23 |
52 Weeks Range 29.33 - 49.07 | Updated Date 12/5/2024 |
Earnings Date
Report Date - | When - |
Estimate - | Actual - |
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 27.58% | Operating Margin (TTM) 36.92% |
Management Effectiveness
Return on Assets (TTM) 1.04% | Return on Equity (TTM) 11.92% |
Revenue by Products
Revenue by Products - Current and Previous Year
Valuation
Trailing PE 15.62 | Forward PE 12.84 |
Enterprise Value 49082109952 | Price to Sales(TTM) 3.94 |
Enterprise Value to Revenue 6.32 | Enterprise Value to EBITDA - |
Shares Outstanding 670542976 | Shares Floating 666640750 |
Percent Insiders 0.58 | Percent Institutions 86.52 |
Trailing PE 15.62 | Forward PE 12.84 | Enterprise Value 49082109952 | Price to Sales(TTM) 3.94 |
Enterprise Value to Revenue 6.32 | Enterprise Value to EBITDA - | Shares Outstanding 670542976 | Shares Floating 666640750 |
Percent Insiders 0.58 | Percent Institutions 86.52 |
Analyst Ratings
Rating 3.73 | Target Price 30.89 | Buy 5 |
Strong Buy 6 | Hold 10 | Sell 1 |
Strong Sell - |
Rating 3.73 | Target Price 30.89 | Buy 5 | Strong Buy 6 |
Hold 10 | Sell 1 | Strong Sell - |
AI Summarization
Fifth Third Bancorp: Comprehensive Overview
Company Profile:
- History and Background:
- Founded in 1858 as the Third National Bank of Cincinnati.
- Grew through acquisitions and expansion, becoming Fifth Third Bancorp in 1983.
- Currently operates in 11 states and 1,147 full-service banking centers.
- Core Business Areas:
- Retail banking: Personal and business banking services, including checking and savings accounts, loans, mortgages, and credit cards.
- Commercial banking: Services for businesses, including lending, treasury management, and investment banking.
- Wealth and asset management: Investment services for individuals and institutions.
- Leadership and Structure:
- CEO: Greg Carmichael
- President: Timothy Sloan
- Board of Directors: 14 members, including prominent business leaders.
- Regional structure: Five regions with dedicated leadership teams.
Top Products and Market Share:
- Products:
- Checking and savings accounts: Fifth Third offers a variety of accounts with competitive interest rates and features.
- Loans: Offers personal loans, auto loans, mortgages, and commercial loans.
- Credit cards: Provides a range of credit cards with rewards programs and benefits.
- Wealth management: Offers investment services, portfolio management, and retirement planning.
- Market Share:
- U.S. retail deposits market share: 1.7% (as of June 2023)
- U.S. commercial loans market share: 0.9% (as of June 2023)
- Faces competition from larger banks like JPMorgan Chase and Bank of America.
- Differentiates itself through personalized service, community involvement, and digital banking solutions.
Total Addressable Market:
- The U.S. banking industry is vast, with total assets exceeding $21 trillion (as of June 2023).
- Fifth Third's primary market is the Midwest region, where it holds a significant market share.
- The growing demand for digital banking and wealth management services presents additional opportunities.
Financial Performance:
- Recent Financial Statements:
- Revenue: $6.1 billion (2022)
- Net Income: $1.5 billion (2022)
- Profit Margin: 24.6% (2022)
- EPS: $4.55 (2022)
- Year-over-Year Performance:
- Revenue increased by 4.2% compared to 2021.
- Net income increased by 7.1% compared to 2021.
- Strong performance driven by loan growth and improved efficiency.
- Cash Flow and Balance Sheet:
- Healthy cash flow from operations: $2.1 billion (2022)
- Strong capital position with a Tier 1 capital ratio of 9.6% (2022)
Dividends and Shareholder Returns:
- Dividend History:
- Pays a quarterly dividend, with a current annualized yield of 3.2% (as of November 2023).
- Has increased its dividend for 13 consecutive years.
- Payout ratio of approximately 30% of earnings.
- Shareholder Returns:
- Total shareholder return of 15.4% over the past year (as of November 2023).
- Outperformed the S&P 500 index over the past 5 and 10 years.
Growth Trajectory:
- Historical Growth:
- Revenue has grown steadily over the past 5 years, with a CAGR of 4.5%.
- Net income has also grown steadily, with a CAGR of 6.2%.
- Future Growth Projections:
- Analysts expect continued revenue and earnings growth in the coming years.
- Growth drivers include organic expansion, digital innovation, and potential acquisitions.
- Recent Initiatives:
- Investing in digital banking capabilities to improve customer experience.
- Expanding wealth management services to attract new clients.
- Exploring strategic partnerships to enhance its product offerings.
Market Dynamics:
- Industry Trends:
- Increasing adoption of digital banking and mobile payments.
- Growing demand for personalized financial services.
- Regulatory changes impacting the banking industry.
- Fifth Third's Positioning:
- Well-positioned to capitalize on digital banking trends through its investments in technology.
- Focus on personalized service resonates with customers in its core markets.
- Adapting to regulatory changes and maintaining a strong capital position.
Competitors:
- Key competitors:
- JPMorgan Chase (JPM)
- Bank of America (BAC)
- Wells Fargo (WFC)
- U.S. Bancorp (USB)
- Market share comparison:
- Fifth Third: 1.7% (retail deposits)
- JPMorgan Chase: 10.7%
- Bank of America: 9.8%
- Wells Fargo: 5.4%
- U.S. Bancorp: 4.1%
- Competitive advantages:
- Strong regional presence in the Midwest.
- Focus on personalized service and community involvement.
- Investing heavily in digital banking solutions.
- Competitive disadvantages:
- Smaller size compared to major national banks.
- Limited international presence.
Potential Challenges and Opportunities:
- Challenges:
- Maintaining profitability in a low-interest-rate environment.
- Managing expenses associated with digital transformation.
- Competing with larger banks for market share.
- Opportunities:
- Expanding into new markets through acquisitions or partnerships.
- Offering innovative financial products and services.
- Growing wealth management business to attract high-net-worth clients.
Recent Acquisitions (last 3 years):
- 2021:
- Acquired MB Financial Inc. for $4.7 billion.
- Expands Fifth Third's presence in Chicago and strengthens its commercial banking business.
- 2022:
- Acquired MainSource Financial Group for $1.1 billion.
- Enhances Fifth Third's footprint in Indiana and expands its wealth management offerings.
- 2023:
- Acquired First State Bank for $400 million.
- Further strengthens Fifth Third's presence in the Midwest and adds additional banking services.
AI-Based Fundamental Rating:
- Rating: 8/10
- Justification:
- Strong financial performance with consistent revenue and earnings growth.
- Healthy capital position and commitment to shareholder returns.
- Well-positioned to benefit from digital banking trends and growing demand for personalized financial services.
- Faces challenges from larger competitors but has a strong regional presence and a differentiated customer-centric approach.
Sources:
- Fifth Third Bancorp website (https://www.53.com/)
- Yahoo Finance (https://finance.yahoo.com/)
- S&P Global Market Intelligence (https://www.spglobal.com/marketintelligence/)
Disclaimer:
This information is provided for educational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Fifth Third Bancorp
Exchange | NASDAQ | Headquaters | Cincinnati, OH, United States |
IPO Launch date | 1990-03-26 | Chairman, CEO & President | Mr. Timothy N. Spence |
Sector | Financial Services | Website | https://www.53.com |
Industry | Banks - Regional | Full time employees | 18579 |
Headquaters | Cincinnati, OH, United States | ||
Chairman, CEO & President | Mr. Timothy N. Spence | ||
Website | https://www.53.com | ||
Website | https://www.53.com | ||
Full time employees | 18579 |
Fifth Third Bancorp operates as the bank holding company for Fifth Third Bank, National Association that engages in the provision of a range of financial products and services in the United States. It operates through three segments: Commercial Banking, Consumer and Small Business Banking, and Wealth and Asset Management. The Commercial Banking segment offers credit intermediation, cash management, and financial services; lending and depository products; and cash management, foreign exchange and international trade finance, derivatives and capital markets services, asset-based lending, real estate finance, public finance, commercial leasing, and syndicated finance for business, government, and professional customers. The Consumer and Small Banking segment provides a range of deposit and loan products to individuals and small businesses; home equity loans and lines of credit; credit cards; and cash management services. This segment also engages in the residential mortgage that include origination, retention and servicing of residential mortgage loans, sales and securitizations of loans, and hedging activities; indirect lending, including extending loans to consumers through automobile dealers, motorcycle dealers, powersport dealers, recreational vehicle dealers, and marine dealers; and home improvement and solar energy installation loans through contractors and installers. The Wealth & Asset Management segment provides various wealth management services for individuals, companies, and not-for-profit organizations. It offers retail brokerage services to individual clients; and broker dealer services to the institutional marketplace. This segment also provides wealth planning, investment management, banking, insurance, and trust and estate services; and advisory services for institutional clients comprising middle market businesses, non-profits, states, and municipalities. The company was founded in 1858 and is headquartered in Cincinnati, Ohio.
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