Fifth Third Bancorp (FITB) AI Stock Analysis

• Market Cap: $26.37B
• Dividend Yield: 3.68%
• Average Volume (3M): 5.22M
• Price to Earnings (P/E): 12.6
• Beta (1Y): 1.20
• Revenue Growth: 5.75%
• EPS Growth: 0.68%
• Country: US
• Employees: 18,786
• Sector: Financial
• Sector Strength: 84
• Industry: Banks - Regional
• EPS (TTM): 0.71
• Shares Outstanding: 667,492,200
• 10 Day Avg. Volume: 3,599,668
• 30 Day Avg. Volume: 5,223,544
• PEG Ratio: 34.84
• Price to Book (P/B): 1.23
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.34
• Enterprise Value/Market Cap: 1.71
• Enterprise Value/Revenue: 0.98
• Enterprise Value/Gross Profit: 3.71
• Enterprise Value/Ebitda: 4.32
• 1Y Price Target: $44.72
• Price Target Upside: 14.46% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17

Fifth Third Bancorp's strong financial performance and strategic positioning provide a solid foundation. The earnings call highlighted positive future outlook with robust capital return. However, the technical analysis indicates potential overbought conditions, and challenges in credit quality and cash flow generation affect the overall score. The stock's valuation is reasonable, with an attractive dividend yield, but does not suggest significant undervaluation.

Positive Factors

Loan Growth

FITB is highlighted as a loan growth standout that continues its SE expansion while reiterating confidence in NII and credit with de-regulation tailwinds.

Market Expansion

FITB has been one of the most successful in new market expansion, having built approximately 130 new branches over the past several years, which has helped drive household growth.

Net Interest Income

Fifth Third's net interest income is expected to benefit from loan growth and favorable conditions, with a stable outlook for reinvestment gains.

Negative Factors

Cautious Approach

Management remains optimistic but acknowledges the risk of being too cautious in volatile environments, which could lead to missed opportunities.

Fee Income

Given the weaker macro environment, the company reduced its fee income growth guidance for 2025 as expected from 'up 3-6%' to 'up 1-3%' given weaker markets related fee income across wealth management and capital markets.

Non-performing Loans

Non-performing loans increased by 17% quarter over quarter.

Fifth Third Bancorp Business Overview & Revenue Model

Company Description

Fifth Third Bancorp operates as a diversified financial services company in the United States. The company's 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. Its Branch Banking segment provides a range of deposit and loan products to individuals and small businesses. This segment offers checking and savings accounts, home equity loans and lines of credit, credit cards, and loans for automobiles and personal financing needs, as well as cash management services for small businesses. The company's Consumer Lending segment engages in direct lending activities that include origination, retention, and servicing of residential mortgage and home equity loans or lines of credit; and indirect lending activities, including loans to consumers through correspondent lenders and automobile dealers. Fifth Third Bancorp's Wealth & Asset Management segment provides various investment alternatives 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. As of December 31, 2021, the company operated 1,117 full-service banking centers and 2,322 ATMs in Ohio, Kentucky, Indiana, Michigan, Illinois, Florida, Tennessee, West Virginia, Georgia, North Carolina, and South Carolina. Fifth Third Bancorp was founded in 1858 and is headquartered in Cincinnati, Ohio.

How the Company Makes Money

Fifth Third Bancorp generates revenue primarily through interest income from lending activities, including commercial and consumer loans, mortgages, and credit cards. The bank earns interest on the loans it provides to individuals and businesses, which forms a significant portion of its revenue. Additionally, the company earns non-interest income through service charges on deposit accounts, transaction fees, and wealth management services. Fifth Third also benefits from investment banking services, which include underwriting and advisory fees. Partnerships with financial technology firms and strategic acquisitions also contribute to expanding its revenue base and enhancing its service offerings.

Fifth Third Bancorp Financial Statement Overview

Summary

Fifth Third Bancorp demonstrates strong revenue growth and solid financial health with improved debt metrics. However, declining net profit margin and reduced cash flow generation present challenges. The balance sheet remains stable, yet reliance on liabilities is evident. Continued focus on cash flow improvement and maintaining profitability will be crucial.

Income Statement

Fifth Third Bancorp shows strong revenue growth with a notable increase in total revenue from $8195M to $10426M year-over-year. The gross profit margin remains robust at 100%, indicating effective cost management. However, the net profit margin slightly decreased from 28.67% to 22.19%, reflecting a drop in net income relative to the revenue growth. Positive EBIT margin indicates efficient core operations.

Balance Sheet

The company has a healthy equity position with a debt-to-equity ratio improving significantly from 0.99 to 0.23, which suggests reduced financial leverage. Return on equity decreased from 12.25% to 11.78%, indicating slightly lower profitability relative to shareholders' equity. The equity ratio of 9.23% suggests a reliance on liabilities for asset financing, which is typical in banking.

Cash Flow

Operating cash flow decreased from $4509M to $1328M, indicating challenges in cash generation from operations. Free cash flow decreased from $4018M to $1328M, reflecting less cash available for expansion or debt repayment. The operating cash flow to net income ratio is robust, suggesting earnings quality, but the decline in free cash flow growth rate poses a concern.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
8.25B	8.20B	8.29B	7.80B	7.49B
	Gross Profit
8.25B	12.64B	8.29B	7.80B	7.49B
	EBIT
2.88B	4.43B	4.07B	3.52B	1.80B
	EBITDA
0.00	3.47B	3.53B	3.87B	2.29B
	Net Income Common Stockholders
2.31B	2.35B	2.45B	2.77B	1.43B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
42.56B	3.14B	62.45B	75.68B	74.06B
	Total Assets
212.93B	214.57B	207.45B	211.12B	204.68B
	Total Debt
18.50B	18.91B	18.55B	12.80B	16.16B
	Net Debt
15.48B	15.77B	15.09B	9.81B	13.02B
	Total Liabilities
193.28B	195.40B	190.13B	188.91B	181.57B
	Stockholders Equity
19.64B	19.17B	17.33B	22.21B	23.11B
Cash Flow		Free Cash Flow
2.41B	3.99B	5.74B	2.40B	13.00M
	Operating Cash Flow
2.82B	4.51B	6.43B	2.70B	371.00M
	Investing Cash Flow
1.04B	-9.49B	-4.87B	-7.97B	-31.90B
	Financing Cash Flow
-3.99B	4.66B	-1.08B	5.11B	31.40B

Fifth Third Bancorp Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 39.07
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FITB, the sentiment is Neutral. The current price of 39.07 is above the 20-day moving average (MA) of 37.41, above the 50-day MA of 37.11, and below the 200-day MA of 41.26, indicating a neutral trend. The MACD of 0.81 indicates Negative momentum. The RSI at 60.94 is Neutral, neither overbought nor oversold. The STOCH value of 87.37 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FITB.

Fifth Third Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HBAN	77 Outperform	$23.48B	12.47	10.30%	3.85%	7.55%	17.46%
FCNCA	76 Outperform	$25.54B	11.19	11.46%	0.37%	0.33%	-3.13%
RF	75 Outperform	$20.26B	10.90	11.33%	4.38%	1.05%	12.14%
MTB	74 Outperform	$30.07B	12.55	9.39%	2.88%	1.20%	1.12%
CFG	70 Outperform	$18.03B	13.32	6.37%	4.04%	-2.12%	13.92%
FITB	69 Neutral	$26.37B	12.59	11.71%	3.68%	5.75%	0.68%
Sector *	64 Neutral	$12.82B	9.87	7.67%	17000.34%	12.39%	-5.85%

Fifth Third Bancorp Corporate Events

Fifth Third Bancorp Reports Q1 2025 Earnings

Fifth Third Bancorp reported a diluted earnings per share of $0.71 for the first quarter of 2025, driven by loan growth, net interest margin expansion, and disciplined expense management. The company achieved positive operating leverage and a stable net charge-off ratio, with a 3% increase in average loans and a 7% rise in wealth and asset management revenue year-over-year. Despite a challenging economic environment, Fifth Third Bancorp’s diversified business mix and proactive credit risk management have reinforced its position in the industry.

Spark’s Take on FITB Stock

According to Spark, TipRanks’ AI Analyst, FITB is a Neutral.

Fifth Third Bancorp demonstrates strong financial performance with revenue growth and improved debt metrics. The earnings call highlights robust capital return and positive future outlook, but technical indicators show bearish trends. The stock’s valuation is reasonable with a good dividend yield, although challenges in credit quality and cash flow generation affect its overall score.

To see Spark’s full report on FITB stock, click here.

Fifth Third Bancorp Highlights 2024 Financial Success

During the 2025 Annual Meeting of Shareholders held on April 15, Fifth Third Bancorp highlighted its strong financial performance in 2024, including a 12.47% return on average common equity and a 25% increase in middle market relationship managers in high-growth areas. The company also emphasized its commitment to community development, having delivered over $42 billion towards its sustainability and stewardship target and provided significant charitable donations and community development investments.

Spark’s Take on FITB Stock

According to Spark, TipRanks’ AI Analyst, FITB is a Neutral.

Fifth Third Bancorp demonstrates strong financial performance with revenue growth and improved debt metrics. The earnings call highlights robust capital return and positive future outlook, but technical indicators show bearish trends. The stock’s valuation is reasonable with a good dividend yield, although challenges in credit quality and cash flow generation affect its overall score.

To see Spark’s full report on FITB stock, click here.

Fifth Third Bancorp to Present at RBC Conference

On March 5, 2025, Fifth Third Bancorp will participate in the RBC Capital Markets Financial Institutions Conference, where they will present their financial outlook and strategic initiatives. The presentation will address various forward-looking statements concerning the company’s financial condition and future performance, highlighting potential risks and uncertainties that could impact their operations and market positioning.