_edited.png)
RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
Fifth Third Bancorp (XNAS:FITB) In-Depth Stock/Fundamental/Options Analysis Today
Primary Facts
FITB
Name:
FIFTH THIRD BANCORP (XNAS:FITB)
Sector:
1.69B
Industry:
Banks�Regional
CEO:
Mr. Gregory Carmichael
Total Employees:
19,119
Our Technological Advancement Rating
Our Rating:
B
Technological advancement compared to industry is -40.09% lower
ANALYSIS OF ALL CRITICAL FACTORS & RISKS RELATED TO THE STOCK & FUNDAMENTAL/LONG-TERM ANALYSIS OF FIFTH THIRD BANCORP(FITB) AS PER DATA ANALYSIS OF LAST 3 YEARS AND COMPARISON WITH COMPETITORS/PEERS, AND BANKS�REGIONAL INDUSTRY. DATE: 07/09/2022
Primary Targets/Price Insights
Previous Close ($) :
33.67
One Month Price Target:
$33.91
Six Month Price Target :
$35.1
Likely Price in One Year's Time:
Ticker:
$36.52
Likely Trading Range Today Under (Normal Volatility)
$33.51
Price Upper limit ($) :
$33.88
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
$31.44
This week:
$28.68
This month :
$23.7
Other Primary facts
Market Cap:
22.83B
Market Cap Classification:
Large Cap
Number of Shares
IPO Date:
686.19M
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
18.5%
-21.78%
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$44.02
$39.26
$23.32
$28.08
Medium risk (<10%) entry points
Buy Call
Sell Call
$37.71
Buy Put:
Sell Put:
$36.70
$29.61
$30.64
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
FITB
Sharpe Ratio:
1.83%
Comparison:
FITB, is amongst the top 40% stocks with highest risk-adjusted returns
Sharpe ratio is 48.97% higher than the industry
& is -19.71% lower than the market/S&P 500 average
Average Returns/Yield of
FITB
Daily returns:
0.07%
Weekly returns:
0.34%
Monthly returns:
1.37%
Yearly returns:
10.91%
Comparison of returns:
Average annual returns/yield (last 3 years) is 50.64% above industry average
Classification:
FITB, is amongst the top 40% highest yielding stocks in terms of daily returns
Results of T-Test of Returns:
0.6
Statistical test of Returns:
FITB has yielded returns statistically similar to the market
Volatility (measured by Standard Deviation)
Daily Volatility:
3.26%
Weekly Volatility:
7.29%
Monthly Volatility:
14.57%
Yearly Volatility:
50.48%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
0.31%
Volatility in last five trading days has been -90.63% below long-term volatility
Value at Risk Analysis (VaR)
Daily VaR:
-6.62%
Weekly VaR:
-14.81%
Monthly VaR:
-29.62%
How Much Can the price of
FITB
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
-25%
Worst case (decline):
>85%
This translates to price declining to:
$25.11
This translates to price declining to:
$5.05
Severe Crash Probability
Risk of crash in next 6/12 months: High (50-70%)
What is Value at Risk (VaR)?
Risk Fundamentals
FITB is a 109.08% riskier investment compared to the market/S&P 500 & is 79.12% riskier than Nasdaq (IXIC)
Risk (measured by volatility) is 14.08% above industry average
Overall, it is amongst the top 50% most risky stocks
Beta Examination of
FITB
Beta in relation to market/S&P 500--1.26
Expected beta in 1 year's time:
0.823
Expected beta in 3 year's time:
1.163
Unlevered (debt free) Beta:
0.886
Beta in relation to Nasdaq (XNAS):
1.005
Beta in relation to all global stocks::
1.151
Beta Comparison & Analysis
Beta of competitors/peers::
1.306
Beta is -3.43% lower than peers
Average Industry Beta:
0.964
Beta is 30.91% above industry average
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
8.79%
Sustainable growth rate is -3.67% below industry average
Alpha provided | Alpha Analysis
Alpha provided:
0.046
Alpha is 300.36% above industry average alpha yield
Alpha is 296% higher than market/& is unsustainably high
Analysis of Cost of Capital of
FITB
Equity cost of capital:
0.118
Equity cost of capital is 20.92% above industry mean WACC
Unlevered (without debt) cost of capital:
8.28%
Before-tax cost of debt:
3.52%
After-tax cost of debt:
2.78%
Overall debt rating:
High AA grade (second highest grade)
Weighted average cost of capital (WACC):
2.78%
WACC is -1.70% below industry mean WACC
Key Per-Share Metrics & Analysis
Revenue per share:
$10.27
Revenue growth rate per share of (3Y):
1.15
Annual revenue growth rate is -27.00% below industry average
EPS:
$3.49
Expected Annual growth rate of EPS (3Y):
3.43%
Expected future EPS growth rate is -71.46% lower than the Banks�Regional industry
Free cash flow (FCF) per share:
$6.50
Balance sheet equity growth per share: 55.30%
Equity growth rate per share is 42.80% higher than the industry
Debt per share
$15.76
EBITDA per share
$5.79
Valuation Analysis Today of
FITB
P/E Ratio:
10.17
P/E Ratio of Competitors/Peers:
15.98
P/E ratio is -36.31% lower than main peers & is -18.00% lower than the industry
Stock price/value with industry average P/E ratio: $43.31
FITB is -22.25% undervalued if valued using industry average P/E ratio
Share value as per dividend discount (DDM) model: $27.34
Present value of the expected future dividends only: $13.02
P/S (Price to Sales ratio):
3.28
Price to sales ratio is -23.34% below the industry mean
P/B (Price to book value ratio):
1.15
Price to free cash flow: 5.18
-
Net income growth rate (3Y):
23.55%
Net income growth rate is -57.23% lower than the industry average net income growth rate
Dividend Analysis
Dividend payout rate: 9.02%
Dividend yeild: 3.56%
Previous Dividend: $0.30
Previous adjusted dividend: $0.30
Previous Dividend: $1.20
Expected next dividend best case: $0.32
Expected next dividend worst case: $0.28
Average dividend payment (long-term): $0.28
Average dividend increase/decrease (growth rate) % per period: 2.36%
Expected next dividend payment date: 13/10/2022
Expected next dividend record date: 28/09/2022
-
Previous dividend payment date: 15/07/2022
Previous dividend record date: 30/06/2022
-
Dividend History:
2022-06-29--$0.30
2021-12-30--$0.30
2021-06-29--$0.27
2022-03-30--$0.30
2021-09-29--$0.30
2021-03-30--$0.27
Dividend growth rate is -89.98% lower than the industry average
In-depth Debt & Leverage Analysis
Debt to equity ratio:
53.60%
Net debt to equity ratio:
42.81%
Debt to assets ratio:
5.11%
Net debt to assets ratio:
4.08%
Debt-to-asset ratio is -96.93% below industry average
Ability to repay debt:
Interest coverage ratio:
9.67
Interest coverage ratio is 1066.33% more than industry average
Looking forward:
Debt growth rate:
-21.26%
Annual debt growth is -6812% lower than industry average debt growth rate
Debt repayment rate in last quarter: 7.45%
Analysis of Key Statistics
Correlation of price movement with the market:
0.713
Statistical significance of correlation:
FITB has a statistically significant correlation with the market
Average Correlation of the industry with the market:
0.501
Stock price is 42.44% more correlated with the market, compared to the industry average correlation
R Squared (percentage of price movement explained by movement of the market):
0.501
Correlation of price movement with Nasdaq (^IXIC):
0.03
Covariance of price movement with the market:
0.058
Kurtosis
8.822
Returns have a significant fat-tails (leptokurtic), i.e., returns considerably higher or lower than the mean returns are more probable, compared to assets with normally distributed returns
Skewness of returns:
-0.012
Returns are, approximately, symmetrical
Fundamental Analysis & Dupont Analysis of
FITB
Gross Profit Margin Ratio:
-
Operating Profit Margin Ratio:
0.00%
-
Net Profit Margin Ratio:
-
Effective Tax Rate:
20.83%
Effective tax rate is -3.35% lower than the industry
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
12.64%
Return on equity (ROE) is 5.94% higher than the industry
Financial Leverage
Asset Turnover Ratio (ROA):
1.21%
Return on assets (ROA) is -47.67% lower than the industry
Financial Leverage:
1.1x
Current Ratio:
3.5
Current ratio is -94.17% below industry average
Cash Conversion Cycle (days):
0
-
The remaining useful life of property plant & equipment is: 1.1 years
Stock based compensation to net income ratio:
3.10%
In-depth Efficiency Analysis
Revenue generated per employee:
368.6K
Each employee generates -3% less revenue than industry average revenue per employee
EBITDA generated per employee:
207.8K
Each employee generates -8% less EBITDA than industry average revenue per employee
Profit generated per employee:
133.4K
Each employee generates -6% less net income/profit than industry average revenue per employee
Free cash flow (FCF) generated per employee:
88.2K
Each employee generates 6% more free cash flow than industry average revenue per employee
Assets/Capital per employee
1.4M
Each employee generates 6% more free cash flow than industry average revenue per employee
Research & Development (R&D) Analysis
-
-
Competitors/Peer firms of
FITB
Nasdaq, Inc. (XNAS:NDAQ)
INTERACTIVE BROKERS GROUP, INC. (XNAS:IBKR)
Willis Towers Watson Public Limited Company (XNAS:WTW)
NORTHERN TRUST CORPORATION (XNAS:NTRS)
GRAB HOLDINGS LIMITED (XNAS:GRAB)
HUNTINGTON BANCSHARES INCORPORATED (XNAS:HBAN)
ANZU SPECIAL ACQUISITION I UNT (XNAS:ANZUU)
CMLFU
SVB FINANCIAL GROUP (XNAS:SIVB)
Current Analyst Ratings
Strong buy�4%
Buy�8%
Hold�92%
Sell�8%
Strong sell�4%
Overall analyst sentiment is: Hold
Income Statement
Period:
TTM
Date:
3/31/22
Revenue:
7.05B
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
-
-
-
2.14B
2.25B
108.00M
-
24.00M
5.20B
411.00M
336.00M
3.97B
-
2.55B
3.25B
676.00M
2.55B
Statement of Cash Flow
Date:
Period:
109.00M
Differed Income Tax :
19.00M
Stock Based Compensation :
79.00M
Change in Working Capital :
986.00M
Accounts Receivables:
-
Other Working Capital:
-
Other Non-Cash Items:
-
Net Cash Provided by Operating Activities:
1.69B
Investments in PP&E:
-
Net Acquisitions:
-
Purchases of Investments:
- 11992000.00K
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
3/31/22
2022
Q1
3.05B
-
3.05B
-
-
-
3.05B
2.10B
4.51B
145.00M
20.53B
-
-
27.29B
235.70B
211.46B
-
872.00M
-
-
-
872.00M
10.82B
179.60B
190.41B
-
191.28B
2.05B
20.50B
- 1096000.0K
-
March 31, 2022 at 6:00:00 AM
-
20.18B
211.46B
-
11.69B
8.6B
1.45B
8.93B
- 1617000.00K
- 870000.00K
-
-
- 230000.00K
1.09B
- 15000.00K
-
55.00M
3.05B
2.99B
1.69B
-
1.69B
Our Proprietary Portfolio Rating
Our Rating:
D
Price Forecast/Expected Price in Next 5 Years of
FITB
2023
2024
2025
2026
2027
$46.42
$50.36
$54.63
$59.26
$64.28