KeyCorp Story

KEY -- USA Stock

USD 20.65 0.41 2.03%

Macroaxis Story

While many traders are getting carried away by overanalyzing financial services space, it is reasonable to break down KeyCorp. We will evaluate why recent KeyCorp price moves suggest a bounce in February. Is the entity operations in 2021 sustainable? Here we are going to cover the stock perspective on valuation to give you a better outlook on taking a position in this stock.

Published over a month ago

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Is KeyCorp (NYSE:KEY) ready for a correction?

The company has 13.88 B in debt with debt to equity (D/E) ratio of 7.85, demonstrating that KeyCorp may be unable to create cash to meet all of its financial commitments. Our investment recommendation tool can cross-verify current analyst consensus on KeyCorp and to analyze the entity potential to grow in the current economic cycle.

We determine the current worth of KeyCorp using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of KeyCorp based exclusively on its fundamental and basic technical indicators. By analyzing KeyCorp's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of KeyCorp's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of KeyCorp. We calculate exposure to KeyCorp's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to KeyCorp's related companies.

KeyCorp Investment Alerts

KeyCorp investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring KeyCorp performance across your portfolios.Please check all investment alerts for KeyCorp

KeyCorp Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare KeyCorp value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across KeyCorp competition to find correlations between indicators driving the intrinsic value of KeyCorp.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.

It is good to see analyst projects for KeyCorp, but it might be worth checking our own buy vs. sell analysis

Payment of 4038 shares by Angela Mago of KeyCorp subject to Rule 16b-3

Legal trades by KeyCorp insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:

KeyCorp insider trading alert for payment of common shares by Angela Mago, Head of Commercial Bank, on 27th of February 2021. This event was filed by Keycorp with SEC on 2021-02-26. Statement of changes in beneficial ownership - SEC Form 4. Angela Mago currently serves as head of commercial bank, executive officer of KeyCorp [view details]

Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

What is driving KeyCorp Investor Appetite?

KeyCorp reported the last year's revenue of 5.37 B. Total Income to common stockholders was 1.11 B with profit before taxes, overhead, and interest of 5.92 B.

	2018	2019	2020	2021 (projected)
Net Income	1.87 B	1.72 B	1.97 B	1.66 B
Gross Profit	6.18 B	5.92 B	6.81 B	6.28 B

Net Income Gross Profit

Margins Breakdown

KeyCorp profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or KeyCorp itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of KeyCorp profit margins.

0.29

Profit Margin

0.44

EBITDA Margin

	EBITDA Margin	0.44
	Gross Margin	0.89
	Profit Margin	0.29

KeyCorp Net Income Per Employee is increasing over the last 8 years. The previous year's value of KeyCorp Net Income Per Employee was 75,896. Also, KeyCorp Earnings Before Interest Taxes and Depreciation Amortization EBITDA is fairly stable at the moment.

KeyCorp is projected to stay under $18.51 in February

Variance is down to 13.7. It may suggest a possible volatility slide. KeyCorp currently demonstrates below-verage downside deviation. It has Information Ratio of 0.14 and Jensen Alpha of 0.36. However, we do advice investors to further question KeyCorp expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Takeaway on KeyCorp Investment

While some other firms under the banks?regional industry are still a bit expensive, KeyCorp may offer a potential longer-term growth to investors. With a less-than optimistic outlook for your 30 days horizon, it may be a good time to short some or all of your KeyCorp holdings as it seems the potential growth was already fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to KeyCorp.

About Contributor

Raphi Shpitalnik is a Junior Member of Macroaxs Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time base at the beginning of the pandemic and eventually acquired a real test for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI. View Profile

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of KeyCorp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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