Fifth Third Profitability Analysis

FITB -  USA Stock  

USD 43.60  0.21  0.48%

For Fifth Third profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Fifth Third to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Fifth Third Bancorp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Fifth Third's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Fifth Third Bancorp over time as well as its relative position and ranking within its peers. Please check Investing Opportunities.

Fifth Current Profitability Trends 

 
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The current year Price to Sales Ratio is expected to grow to 3.17. The current year Return on Sales is expected to grow to 0.36. Fifth Third Accumulated Other Comprehensive Income is projected to increase significantly based on the last few years of reporting. The past year's Accumulated Other Comprehensive Income was at 2.6 Billion. The current year Consolidated Income is expected to grow to about 1.7 B, whereas Net Income to Non Controlling Interests is forecasted to decline to (3.9 M).

Fifth Third Revenues

7.06 BillionShare
The market value of Fifth Third Bancorp is measured differently than its book value, which is the value of Fifth that is recorded on the company's balance sheet. Investors also form their own opinion of Fifth Third's value that differs from its market value or its book value, called intrinsic value, which is Fifth Third's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Fifth Third's market value can be influenced by many factors that don't directly affect Fifth Third Bancorp underlying business (such as pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Fifth Third's value and its price as these two are different measures arrived at by different means. Investors typically determine Fifth Third value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Fifth Third's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Fifth Third Bancorp Total Debt vs. Debt to Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Fifth Third's current stock value. Our valuation model uses many indicators to compare Fifth Third value to that of its competitors to determine the firm's financial worth.
Fifth Third Bancorp is rated # 3 in debt to equity category among related companies. It is rated as one of the top companies in total debt category among related companies making up about  2,058,227,848  of Total Debt per Debt to Equity. . Fifth Third Total Debt is projected to increase significantly based on the last few years of reporting. The past year's Total Debt was at 16.46 Billion

Fifth Total Debt vs. Debt to Equity

Debt to Equity is calculated by dividing the Total Debt of a company by its Equity. If the debt exceeds equity of a company, then the creditors have more stakes in a firm than the stockholders. In other words, Debt to Equity ratio provides analysts with insights about composition of both equity and debt, and its influence on the valuation of the company.
Fifth Third 
D/E 
 = 
Total Debt 
Total Equity 
7.90 %
High Debt to Equity ratio typically indicates that a firm has been borrowing aggressively to finance its growth and as a result may experience a burden of additional interest expense. This may reduce earnings or future growth. On the other hand a small D/E ratio may indicate that a company is not taking enough advantage from financial leverage. Debt to Equity ratio measures how the company is leveraging borrowing against the capital invested by the owners.
Total Debt refers to the amount of long term interest-bearing liabilities that a company carries on its balance sheet. That may include bonds sold to the public, notes written to banks or capital leases. Typically, debt can help a company magnify its earnings, but the burden of interest and principal payments will eventually prevent the firm from borrow excessively.
Fifth Third 
Total Debt 
 = 
Bonds 
+  
Notes 
16.26 B
In most industries, total debt may also include the current portion of long-term debt. Since debt terms vary widely from one company to another, simply comparing outstanding debt obligations between different companies may not be adequate. It is usually meant to compare total debt amounts between companies that operate within the same sector.

Fifth Total Debt vs Competition

Fifth Third Bancorp is rated as one of the top companies in total debt category among related companies. Total debt of Banks—Regional industry is currently estimated at about 17.04 Billion. Fifth Third totals roughly 16.26 Billion in total debt claiming about 95% of stocks in Banks—Regional industry.
Total debt  Valuation  Revenue  Capitalization  Workforce

Fifth Third Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Fifth Third, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Fifth Third will eventually generate negative long term returns. The profitability progress is the general direction of Fifth Third's change in net profit over the period of time. It can combine multiple indicators of Fifth Third, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for 2021
Accumulated Other Comprehensive Income2.6 B2.8 B
Consolidated Income1.4 B1.7 B
Net Income1.4 B1.7 B
Net Income Common Stock1.3 B1.6 B
Net Income to Non Controlling Interests-3.6 M-3.9 M
Operating Income1.8 B2.3 B
Preferred Dividends Income Statement Impact104 M96.4 M
Income Tax Expense370 M533.1 M
Net Income Per Employee71.6 K75 K
Fifth Third Bancorp is a diversified financial services company headquartered in Cincinnati, Ohio, and the indirect parent company of Fifth Third Bank, National Association, a federally chartered institution. Fifth Thirds common stock is traded on the NASDAQ Global Select Market under the symbol FITB. Fifth Third operates under BanksRegional classification in the United States and is traded on NASDAQ Exchange. It employs 19402 people.

Fifth Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Fifth Third. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Fifth Third position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Fifth Third's important profitability drivers and their relationship over time.

Fifth Third Profitability Trends

Fifth Third profitability trend refers to the progression of profit or loss within a business. An upward trend means that Fifth Third's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Fifth Third's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

Fifth Third Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Fifth Third different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Fifth Third in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Fifth Third's future profitability.

Use Fifth Third in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Fifth Third position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Fifth Third will appreciate offsetting losses from the drop in the long position's value.

Fifth Third Pair Trading

Fifth Third Bancorp Pair Trading Analysis

Correlation analysis and pair trading evaluation for Fifth Third and Merchants Bancorp. Pair trading can be used as a hedging technique within a particular sector or industry or even over random equities to generate better risk-adjusted return
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Use Investing Themes to Complement your Fifth Third position

In addition to having Fifth Third in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Recreation Theme
Fama and French focuses on testing asset pricing under different economic assumptions. Recreation theme has 18 constituents.
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Please check Investing Opportunities. Note that the Fifth Third Bancorp information on this page should be used as a complementary analysis to other Fifth Third's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .

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When running Fifth Third Bancorp price analysis, check to measure Fifth Third's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Fifth Third is operating at the current time. Most of Fifth Third's value examination focuses on studying past and present price action to predict the probability of Fifth Third's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Fifth Third's price. Additionally, you may evaluate how the addition of Fifth Third to your portfolios can decrease your overall portfolio volatility.
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To fully project Fifth Third's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Fifth Third Bancorp at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Fifth Third's income statement, its balance sheet, and the statement of cash flows.
Potential Fifth Third investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Fifth Third investors may work on each financial statement separately, they are all related. The changes in Fifth Third's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Fifth Third's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.