Regions Story

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RF -- USA Stock  

USD 21.42  0.31  1.47%

While many traders are getting carried away by overanalyzing financial services space, it is reasonable to digest Regions Financial. We will check why this entity may not get much respect from shareholders given the current market uncertainty. 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 Regions Financial (NYSE:RF) ready for a correction?
The company reports 6.72 B of total liabilities with total debt to equity ratio (D/E) of 6.48, which implies that Regions Financial may not be able to produce enough cash to satisfy its debt commitments. Our trade recommendations tool can cross-verify current analyst consensus on Regions Financial and to analyze the firm potential to grow in the current economic cycle.
We determine the current worth of Regions Financial Corp 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 Regions Financial Corp based exclusively on its fundamental and basic technical indicators. By analyzing Regions Financial'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 Regions Financial'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 Regions Financial. We calculate exposure to Regions Financial's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Regions Financial's related companies.

Regions Financial Corp Investment Alerts

Regions 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 Regions Financial Corp performance across your portfolios.Please check all investment alerts for Regions

Regions Financial Valuation Ratios as Compared to Competition

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

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 Regions Financial, but it might be worth checking our own buy vs. sell analysis

A Deeper look at Regions

Regions Financial generated the yearly revenue of 4.66 B. Reported Net Income was 769 M with gross profit of 5.52 B.
 2015 2016 2020 2021 (projected)
Operating Income1.53 B1.67 B1.5 B1.62 B
Operating Expenses3.61 B3.62 B3.26 B3.25 B

Margins Breakdown

Regions profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Regions Financial itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Regions Financial profit margins.
EBITDA Margin0.51
Gross Margin0.89
Profit Margin17.82

Regions Financial Net Income Per Employee is rather stable at the moment. Also, Regions Financial Earnings Before Interest Taxes and Depreciation Amortization USD is rather stable at the moment.

Our Regions analysis indicates possible reversion in February

The risk adjusted performance is down to 0.21 as of today. Regions Financial currently demonstrates below-verage downside deviation. It has Information Ratio of 0.17 and Jensen Alpha of 0.42. However, we do advice investors to further question Regions Financial expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Final Take On Regions Financial

Although some firms within the banks?regional industry are still a little expensive, even after the recent corrections, Regions Financial may offer a potential longer-term growth to shareholders. The bottom line, as of the 21st of January 2021, our primary 30 days buy-hold-sell recommendation on the firm is Strong Buy. We believe Regions Financial is undervalued with below average chance of distress for the next two years.

About Contributor

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 Ellen Johnson do not own shares of Regions Financial Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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