Regions Financial (RF)
Financials · NYSE · US
Fundamentals
Valuation and ratings
Regions Financial trades at $32.40, which is 111% below the $68.24 our discounted cash flow model puts on the business. On that measure alone it screens as undervalued, though a DCF is an argument rather than a measurement, and the market is frequently right about why something is cheap.
Our moat model scores it 48 out of 100, which is a moat, but not a deep one. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 12.9 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Regions Financial
Regions Financial Corporation, a financial holding company, provides various banking and related products and 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; capital markets activities, such as securities underwriting and placement; and loan syndication and placement, foreign exchange, derivatives, merger and acquisition, and other advisory services to 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 the corresponding deposit relationships. The Wealth Management segment offers credit related products, and retirement and savings solutions; and trust and investment management, asset management, and estate planning to individuals, businesses, governmental institutions, and non-profit entities. It also provides investment and insurance products; home improvement lending, investment advisory services, equipment financing for commercial clients, small business customers, low-income housing tax credit corporate fund syndication services, financing to CRA-qualified customers, and broker-dealer services to commercial clients, as well as other specialty financing services. The company was founded in 1971 and is headquartered in Birmingham, Alabama.
RF passes 6 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Smart money ownership
13 of the funds we track reported a position in their latest SEC 13F filing. Largest first:
- Cliff Asness, AQR CAPITAL MANAGEMENT LLC$79.18M · 0.0% of book
- Two Sigma, TWO SIGMA INVESTMENTS, LP$78.91M · 0.1% of book
- Israel Englander, MILLENNIUM MANAGEMENT LLC$69.21M · 0.0% of book
- Renaissance Technologies, RENAISSANCE TECHNOLOGIES LLC$56.00M · 0.1% of book
- Richard Pzena, PZENA INVESTMENT MANAGEMENT LLC$48.06M · 0.2% of book
A word of warning on reading these figures: a 13F reports the market value of a holding, so a fund that traded nothing at all still appears to have sold when the price fell. We found 102 companies where the standard reading gives the opposite answer. Only the share count is honest.
Common questions
Is Regions Financial (RF) undervalued?
Against our discounted cash flow estimate of $68.24, RF at $32.40 is 111% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
Which funds own RF?
13 of the institutions we track reported a position in RF in their most recent SEC 13F filing. A 13F is filed up to 45 days after quarter end, so it tells you what a fund held then, not what it holds now.
What is RF's P/E ratio?
RF trades at 12.9 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
The full research page for RF, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.
Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.