Regions Financial (RF) AI Stock Analysis

• Market Cap: $19.82B
• Dividend Yield: 4.48%
• Average Volume (3M): 6.36M
• Price to Earnings (P/E): 10.6
• Beta (1Y): 1.19
• Revenue Growth: 1.05%
• EPS Growth: 12.14%
• Country: US
• Employees: 19,644
• Sector: Financial
• Sector Strength: 79
• Industry: Banks - Regional
• EPS (TTM): 0.54
• Shares Outstanding: 898,930,200
• 10 Day Avg. Volume: 6,622,176
• 30 Day Avg. Volume: 6,364,242
• PEG Ratio: -1.41
• Price to Book (P/B): 1.21
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.84
• Enterprise Value/Market Cap: 0.87
• Enterprise Value/Revenue: 0.46
• Enterprise Value/Gross Profit: 2.60
• Enterprise Value/Ebitda: 1.76
• 1Y Price Target: $24.32
• Price Target Upside: 8.77% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

• Rating: 74 Outperform
• Price Target: $24.00 ▲(7.33%Upside)

Regions Financial's overall stock score reflects its robust financial performance and attractive valuation, with stable technical indicators and positive corporate events. However, potential risks related to profitability pressures and macroeconomic challenges slightly temper the score.

Positive Factors

Capital Position

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.

Earnings

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

Operating Leverage

The bank is expected to maintain positive operating leverage for the year.

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.

Target Price

The target price for Regions Financial Corp. has been lowered to $28 from $30 due to a more conservative return on tangible common equity outlook.

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 makes money primarily through its various banking operations. The company's revenue model is driven by interest income generated from loans and leases, which include commercial and industrial loans, residential mortgages, and consumer loans. Additionally, Regions earns non-interest income through service charges, wealth management fees, and mortgage banking activities. The company also benefits from strategic partnerships and investments that enhance its financial offerings and contribute to its earnings. Key revenue streams include net interest income from lending activities and fees from customer transactions and advisory services. Regions Financial's profitability is influenced by factors such as interest rate environments, economic conditions, and regulatory changes that affect banking operations.

Regions Financial Financial Statement Overview

Summary

Regions Financial demonstrates strong revenue growth and efficient cash flow management. The company maintains a robust gross profit margin and a solid equity base. However, a decrease in net profit margin and increasing liabilities require attention.

Income Statement

Regions Financial has demonstrated strong revenue growth, with a notable increase in total revenue from $6.898 billion in 2023 to $9.401 billion TTM (Trailing-Twelve-Months) in 2025. The gross profit margin remains robust, consistently exceeding 70%, indicating effective cost management. However, the net profit margin has slightly decreased over the periods, suggesting some pressure on bottom-line profitability. EBIT and EBITDA margins remain strong, reflecting healthy operational efficiency.

Balance Sheet

The balance sheet of Regions Financial shows a solid equity base with stockholders' equity increasing to $18.53 billion TTM. The debt-to-equity ratio remains low, indicating prudent financial leverage. However, the total liabilities have increased over the periods, which could pose a risk if not managed effectively. The equity ratio has remained stable, showcasing a balanced financial structure.

Cash Flow

The cash flow statement indicates a positive trajectory in operating cash flow, aligning well with net income trends. Free cash flow has also shown consistent growth, supporting the company's capacity for reinvestment and dividend payments. The operating cash flow to net income ratio is strong, suggesting efficient cash conversion from earnings.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
9.40B	9.37B	9.15B	7.48B	6.60B	6.64B
	Gross Profit
6.66B	6.60B	7.02B	6.89B	6.96B	4.95B
	EBIT
2.51B	2.35B	2.61B	2.88B	3.21B	1.31B
	EBITDA
2.63B	2.50B	2.84B	3.23B	3.59B	1.74B
	Net Income Common Stockholders
2.02B	1.89B	2.07B	2.25B	2.52B	1.09B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
26.23B	34.16B	34.91B	39.16B	57.89B	45.11B
	Total Assets
128.80B	157.30B	152.19B	155.22B	162.94B	147.39B
	Total Debt
14.56B	6.49B	2.33B	2.28B	2.41B	3.57B
	Net Debt
10.75B	-4.22B	-4.47B	-8.94B	-27.00B	-14.39B
	Total Liabilities
113.28B	139.39B	134.70B	139.27B	144.61B	129.28B
	Stockholders Equity
15.51B	17.88B	17.43B	15.95B	18.33B	18.11B
Cash Flow		Free Cash Flow
2.24B	1.45B	2.15B	2.81B	2.96B	2.27B
	Operating Cash Flow
2.27B	1.60B	2.31B	3.10B	3.03B	2.32B
	Investing Cash Flow
-1.30B	-262.00M	-1.61B	-12.94B	-2.87B	-4.85B
	Financing Cash Flow
2.10B	2.58B	-5.13B	-8.35B	11.29B	16.37B

Regions Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 22.36
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RF, the sentiment is Positive. The current price of 22.36 is above the 20-day moving average (MA) of 21.66, above the 50-day MA of 20.64, and below the 200-day MA of 22.56, indicating a neutral trend. The MACD of 0.27 indicates Negative momentum. The RSI at 63.70 is Neutral, neither overbought nor oversold. The STOCH value of 89.64 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	$23.76B	12.57	10.30%	3.82%	7.55%	17.46%
MTB	76 Outperform	$29.82B	12.44	9.39%	2.93%	1.20%	1.12%
CFG	74 Outperform	$17.94B	13.17	6.37%	4.06%	-2.12%	13.92%
RF	74 Outperform	$19.82B	10.64	11.33%	4.48%	1.05%	12.14%
FITB	73 Outperform	$26.31B	12.52	11.71%	3.69%	5.75%	0.68%
Sector *	64 Neutral	$12.83B	9.78	7.78%	16985.64%	12.26%	-7.81%
KEY	60 Neutral	$17.90B	1,663.64	0.14%	5.04%	-12.50%	-120.77%

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.

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.