Regions Financial (RF) AI Stock Analysis

• Market Cap: $18.75B
• Dividend Yield: 4.65%
• Average Volume (3M): 9.84M
• Price to Earnings (P/E): 10.2
• Beta (1Y): 1.21
• Revenue Growth: 1.05%
• EPS Growth: 12.14%
• Country: US
• Employees: 19,644
• Sector: Financial
• Sector Strength: 89
• Industry: Banks - Regional
• EPS (TTM): 0.54
• Shares Outstanding: 905,465,100
• 10 Day Avg. Volume: 7,055,816
• 30 Day Avg. Volume: 9,836,107
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.29
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 3.41
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $23.63
• Price Target Upside: 11.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

Regions Financial's stock score reflects strong financial health with no debt and a high equity ratio. The earnings call provides a positive outlook, but there are concerns about loan growth and asset quality. Technical analysis suggests a bearish trend, and the stock is undervalued with a high dividend yield. The combination of these factors results in a moderate score, indicating potential for growth tempered by market and operational risks.

Positive Factors

Earnings

Regions Financial Corp beat consensus EPS by 5% on lower expenses.

Financial Performance

The bank's strong capital position and recent stock pullback might lead to better than expected buybacks, estimated at approximately $150 million per quarter in 2025.

Operating Leverage

The bank is expected to maintain positive operating leverage for the year, with at least 125bps of positive operating leverage anticipated.

Negative Factors

Loan Growth

Management expects FY25 loan growth to be relatively stable, slightly worse than prior guidance.

Net Interest Income

RF lowered FY25 net interest income guidance by 100bps.

Strategic Investments

Strategy includes hiring 140 bankers over the next several years, which means headcount rising, but investments should be measured to avoid straining.

Regions Financial Business Overview & Revenue Model

Company Description

Regions Financial Corporation, a financial holding company, provides banking and bank-related services to individual and corporate customers. It operates through three segments: Corporate Bank, Consumer Bank, and Wealth Management. The Corporate Bank segment offers commercial banking services, such as commercial and industrial, commercial real estate, and investor real estate lending; equipment lease financing; deposit products; and securities underwriting and placement, loan syndication and placement, foreign exchange, derivatives, merger and acquisition, and other advisory services. It serves corporate, middle market, and commercial real estate developers and investors. The Consumer Bank segment provides consumer banking products and services related to residential first mortgages, home equity lines and loans, consumer credit cards, and other consumer loans, as well as deposits. The Wealth Management segment offers credit related products, and retirement and savings solutions; and trust and investment management, asset management, and estate planning services to individuals, businesses, governmental institutions, and non-profit entities. The company also provides investment and insurance products; low-income housing tax credit corporate fund syndication services; and other specialty financing services. As of March 01, 2022, it operated through a network of 1,300 banking offices and 2,000 automated teller machines across the South, Midwest, and Texas. Regions Financial Corporation was founded in 1971 and is headquartered in Birmingham, Alabama.

How the Company Makes Money

Regions Financial Corporation generates revenue through a variety of banking and financial services. The primary revenue streams include interest income from loans and leases, such as commercial and residential mortgages, consumer loans, and credit lines. Additionally, the company earns non-interest income through service charges and fees on deposit accounts, wealth management and investment services, and transaction processing. Regions Financial also benefits from its strategic partnerships and community banking presence, which help to enhance its service offerings and customer reach, thus contributing to its overall earnings.

Regions Financial Financial Statement Overview

Summary

Regions Financial demonstrates solid financial health with strong capital management, evidenced by a high equity ratio and no debt burden. The income statement reveals steady revenue growth despite a slight dip in net margins, while cash flow statements suggest proficient cash operations but a reduction in free cash flow, potentially impacting future growth investments. The company is well-positioned in the banking industry, albeit with some caution around margin pressures and cash flow contraction.

Income Statement

The company demonstrated a stable gross profit margin of 100% due to its nature as a financial institution. However, net profit margin decreased to 26.6% in 2024 from 30.1% in 2023, reflecting increased costs or reduced efficiency. Revenue growth rate from 2023 to 2024 was a moderate 3.1%, indicating steady growth despite economic challenges. The EBIT and EBITDA margins were not available for 2024, which limits the analysis of operating efficiency.

Balance Sheet

The company maintains a solid equity base with an equity ratio of 82.5% in 2024, indicating strong financial health. The debt-to-equity ratio is effectively 0 due to no reported debt, showcasing low leverage. Return on Equity (ROE) decreased to 10.6% in 2024 from 11.9% in 2023, which is a decent return but shows a slight decline in profitability on equity.

Cash Flow

Operating cash flow to net income ratio was 0.84 in 2024, showing robust cash generation capabilities. However, free cash flow decreased from $2.15 billion in 2023 to $1.60 billion in 2024, indicating a potential reduction in cash available for expansion or investment. Free cash flow to net income ratio stands at 0.84, reflecting a solid conversion despite the decline.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
7.08B	6.90B	7.17B	6.44B	6.28B
	Gross Profit
7.11B	6.90B	7.17B	6.44B	6.28B
	EBIT
2.45B	3.83B	3.19B	3.21B	1.31B
	EBITDA
2.45B	2.84B	3.23B	3.59B	1.74B
	Net Income Common Stockholders
1.89B	2.07B	2.25B	2.52B	1.09B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
34.16B	34.91B	39.16B	57.89B	45.11B
	Total Assets
157.30B	152.19B	155.22B	162.94B	147.39B
	Total Debt
6.49B	2.33B	2.28B	2.41B	3.57B
	Net Debt
-4.22B	-4.47B	-8.94B	-27.00B	-14.39B
	Total Liabilities
139.39B	134.70B	139.27B	144.61B	129.28B
	Stockholders Equity
17.88B	17.43B	15.95B	18.33B	18.11B
Cash Flow		Free Cash Flow
1.60B	2.15B	2.81B	2.96B	2.27B
	Operating Cash Flow
1.60B	2.31B	3.10B	3.03B	2.32B
	Investing Cash Flow
-262.00M	-1.61B	-12.94B	-2.87B	-4.85B
	Financing Cash Flow
2.58B	-5.13B	-8.35B	11.29B	16.37B

Regions Financial Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 21.16
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RF, the sentiment is Neutral. The current price of 21.16 is above the 20-day moving average (MA) of 20.19, above the 50-day MA of 20.86, and below the 200-day MA of 22.71, indicating a neutral trend. The MACD of 0.12 indicates Negative momentum. The RSI at 56.69 is Neutral, neither overbought nor oversold. The STOCH value of 77.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for RF.

Regions Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HBAN	77 Outperform	$21.97B	11.63	10.30%	4.14%	7.55%	17.46%
RF	74 Outperform	$18.75B	10.20	11.33%	4.65%	1.05%	12.14%
FITB	73 Outperform	$24.47B	11.84	11.71%	3.92%	6.12%	0.68%
MTB	72 Outperform	$27.70B	11.75	9.39%	3.04%	1.41%	1.12%
CFG	70 Outperform	$16.57B	12.33	6.37%	4.31%	-2.12%	13.92%
Sector *	64 Neutral	$12.57B	9.74	7.88%	16985.68%	12.42%	-5.45%
KEY	54 Neutral	$16.76B	1,663.64	0.14%	5.27%	-12.30%	-120.41%

Regions Financial Corporate Events

Regions Financial to Present Strategic Priorities to Investors

Regions Financial Corporation announced that its executives will present the company’s operations and performance to institutional investors during May and June 2025. The presentations will highlight Regions’ strategic priorities, including diversified revenue streams, disciplined expense management, and strong capital management. The company emphasizes its consistent outperformance in risk efficiency and profitability compared to peers, driven by strategic investments in talent, technology, and market expansion. These efforts are expected to enhance Regions’ market position and stakeholder value.

Spark’s Take on RF Stock

According to Spark, TipRanks’ AI Analyst, RF is a Outperform.

Regions Financial’s overall stock score reflects its strong financial health, with a high equity ratio and no debt. The earnings call provides a positive outlook, but there are concerns about loan growth and asset quality. Technical analysis suggests a bearish trend, and the stock appears undervalued with a high dividend yield. The combination of these factors results in a moderate score, indicating potential for growth tempered by market and operational risks.

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

Regions Financial Reports Strong Q1 Earnings Growth

On April 17, 2025, Regions Financial Corp. reported its first-quarter earnings for the period ending March 31, 2025, showing a net income available to common shareholders of $465 million, a 36% increase from the previous year. The company’s strategic focus on de-risking, hedging, and investment in talent and technology has positioned it well for sustainable performance across various economic conditions, as evidenced by a 2% year-over-year revenue growth to $1.8 billion.

Spark’s Take on RF Stock

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

Regions Financial’s overall stock score reflects its strong financial health, with a high equity ratio and no debt. The earnings call provides a positive outlook, but there are concerns about loan growth and asset quality. Technical analysis suggests a bearish trend, and the stock appears undervalued with a high dividend yield. The combination of these factors results in a moderate score, indicating potential for growth tempered by market and operational risks.

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

Regions Financial to Present at RBC Conference 2025

Regions Financial Corporation announced that its executives will present the company’s operations and performance to institutional investors at various meetings in February and March 2025. These presentations, including at the RBC Global Financial Institutions Conference, will highlight Regions’ strategic priorities, such as diversified revenue streams and disciplined expense management. The company aims to maintain its strong market position by focusing on credit risk management, capital, and liquidity management, and by investing in high-growth markets. This initiative is part of Regions’ ongoing efforts to sustain long-term performance and enhance stakeholder value.