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RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
Fifth Third Bancorp (XNAS:FITBI) In-Depth Stock/Fundamental/Options Analysis Today
Primary Facts
FITBI
Name:
FIFTH THIRD BANCORP (XNAS:FITBI)
Sector:
1.69B
Industry:
-
CEO:
Mr. Gregory D. Carmichael
Total Employees:
19,119
Our Technological Advancement Rating
Our Rating:
-
-
ANALYSIS OF ALL CRITICAL FACTORS & RISKS RELATED TO THE STOCK & FUNDAMENTAL/LONG-TERM ANALYSIS OF FIFTH THIRD BANCORP(FITBI) AS PER DATA ANALYSIS OF LAST 3 YEARS AND COMPARISON WITH COMPETITORS/PEERS, AND - INDUSTRY. DATE: 07/09/2022
Primary Targets/Price Insights
Previous Close ($) :
25.78
One Month Price Target:
$25.96
Six Month Price Target :
$26.87
Likely Price in One Year's Time:
Ticker:
$27.97
Likely Trading Range Today Under (Normal Volatility)
$25.72
Price Upper limit ($) :
$25.84
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
$25.05
This week:
$24.16
This month :
$22.53
Other Primary facts
Market Cap:
23.10B
Market Cap Classification:
Large Cap
Number of Shares
IPO Date:
686.19M
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
9.3%
-15.09%
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:
$29.15
$27.62
$22.41
$23.94
Medium risk (<10%) entry points
Buy Call
Sell Call
$27.12
Buy Put:
Sell Put:
$26.80
$24.43
$24.76
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
FITBI
Sharpe Ratio:
-1.02%
Comparison:
FITBI, is amongst the top 40% stocks with lowest risk-adjusted returns
& is -144.57% lower than the market/S&P 500 average
Average Returns/Yield of
FITBI
Daily returns:
-0.01%
Weekly returns:
-0.03%
Monthly returns:
-0.10%
Yearly returns:
Comparison of returns:
Classification:
FITBI, is amongst the top 40% lowest yielding stocks in terms of daily returns
Results of T-Test of Returns:
0.45
Statistical test of Returns:
FITBI has yielded returns statistically similar to the market
Volatility (measured by Standard Deviation)
Daily Volatility:
1.37%
Weekly Volatility:
3.06%
Monthly Volatility:
6.12%
Yearly Volatility:
21.20%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
0.53%
Volatility in last five trading days has been -61.44% below long-term volatility
Value at Risk Analysis (VaR)
Daily VaR:
-2.82%
Weekly VaR:
-6.30%
Monthly VaR:
-12.59%
How Much Can the price of
FITBI
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
-11%
Worst case (decline):
-43.62%
This translates to price declining to:
$22.89
This translates to price declining to:
$14.53
Severe Crash Probability
Risk of crash in next 6/12 months: Low (<25%)
What is Value at Risk (VaR)?
Risk Fundamentals
FITBI is -11.12% less risky an investment compared to the market/S&P 500 & is -23.85% less risky than Nasdaq(IXIC)
Overall, it is amongst the top 50% most risky stocks
Beta Examination of
FITBI
Beta in relation to market/S&P 500--1.26
Expected beta in 1 year's time:
0.757
Expected beta in 3 year's time:
1.071
Unlevered (debt free) Beta:
0.886
Beta in relation to Nasdaq (XNAS):
0.324
Beta in relation to all global stocks::
0.461
Beta Comparison & Analysis
Beta of competitors/peers::
0.821
Beta is 53.61% higher than peers
Average Industry Beta:
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
-
Alpha provided | Alpha Analysis
Alpha provided:
-0.130
-
Alpha is -828% below the market average
Analysis of Cost of Capital of
FITBI
Equity cost of capital:
0.118
Equity cost of capital is 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%
-
Key Per-Share Metrics & Analysis
Revenue per share:
$10.27
Revenue growth rate per share of (3Y):
0.88
-
EPS:
-
Expected Annual growth rate of EPS (3Y):
-
-
Free cash flow (FCF) per share:
$6.24
-
-
Debt per share
$15.76
EBITDA per share
$5.79
Valuation Analysis Today of
FITBI
P/E Ratio:
-
P/E Ratio of Competitors/Peers:
25.33
-
-
-
Share value as per dividend discount (DDM) model: $23.29
Present value of the expected future dividends only: $14.04
P/S (Price to Sales ratio):
2.51
P/B (Price to book value ratio):
0.88
Price to free cash flow: 4.13
-
Net income growth rate (3Y):
-
Dividend Analysis
Dividend payout rate: 9.02%
Dividend yeild: 6.42%
Previous Dividend: $0.41
Previous adjusted dividend: $0.41
Previous Dividend: $1.66
Expected next dividend best case: $0.41
Expected next dividend worst case: $0.41
Average dividend payment (long-term): $0.41
Average dividend increase/decrease (growth rate) % per period: 0.00%
-
-
-
-
-
-
Dividend History:
2022-06-27--$0.41
2021-12-28--$0.41
2021-06-25--$0.41
2022-03-28--$0.41
2021-09-27--$0.41
2021-03-26--$0.41
-
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%
-
Ability to repay debt:
Interest coverage ratio:
9.67
-
Looking forward:
Debt growth rate:
-
-
Debt repayment rate in last quarter: 7.45%
Analysis of Key Statistics
Correlation of price movement with the market:
0.503
Statistical significance of correlation:
FITBI has a statistically significant correlation with the market
Average Correlation of the industry with the market:
R Squared (percentage of price movement explained by movement of the market):
Correlation of price movement with Nasdaq (^IXIC):
-0.006
Covariance of price movement with the market:
-0.005
Kurtosis
39.405
Returns have severe fat-tails (leptokurtic), i.e., returns considerably higher or lower than the mean returns are considerably more likely, compared to assets with normally distributed returns
Skewness of returns:
-2.035
Returns are left (negative) skewed; mean returns are lower than median and mode returns
Fundamental Analysis & Dupont Analysis of
FITBI
Gross Profit Margin Ratio:
-
Operating Profit Margin Ratio:
-
-
Net Profit Margin Ratio:
-
Effective Tax Rate:
20.83%
-
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
12.64%
Financial Leverage
Asset Turnover Ratio (ROA):
1.21%
Financial Leverage:
1.1x
Current Ratio:
3.5
-
Cash Conversion Cycle (days):
-
-
The remaining useful life of property plant & equipment is: 2.5 years
Stock based compensation to net income ratio:
3.10%
In-depth Efficiency Analysis
Revenue generated per employee:
368.6K
-
EBITDA generated per employee:
207.8K
-
Profit generated per employee:
133.4K
-
Free cash flow (FCF) generated per employee:
88.2K
-
Assets/Capital per employee
1.4M
-
Research & Development (R&D) Analysis
-
-
Competitors/Peer firms of
FITBI
CINCINNATI FINANCIAL CORPORATION (XNAS:CINF)
TRADEWEB MARKETS INC. (XNAS:TW)
Futu Holdings Ltd (XNAS:FUTU)
MARKETAXESS HOLDINGS INC. (XNAS:MKTX)
ARCH CAPITAL GROUP LTD. (XNAS:ACGL)
HUNTINGTON BANCSHARES INCORPORATED (XNAS:HBAN)
THE CARLYLE GROUP INC. (XNAS:CG)
ACGLP
ARCH CAPITAL GROUP LTD. (XNAS:ACGLO)
Current Analyst Ratings
Strong buy�0%
Buy�0%
Hold�0%
Sell�0%
Strong sell�0%
Overall analyst sentiment is: -
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:
-
Price Forecast/Expected Price in Next 5 Years of
FITBI
2023
2024
2025
2026
2027
$28.11
$30.49
$33.08
$35.88
$38.92