Fifth Third Bancorp Fundamental Analysis
Fifth Third Bancorp (FITB) shows weak financial fundamentals with a PE ratio of 19.72, profit margin of 15.91%, and ROE of 8.86%. The company generates $15.0B in annual revenue with weak year-over-year growth of -1.40%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 47.1/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze FITB's fundamental strength across five key dimensions:
Efficiency Score
WeakFITB struggles to generate sufficient returns from assets.
Valuation Score
ExcellentFITB trades at attractive valuation levels.
Growth Score
ModerateFITB shows steady but slowing expansion.
Financial Health Score
ExcellentFITB maintains a strong and stable balance sheet.
Profitability Score
ModerateFITB maintains healthy but balanced margins.
Key Financial Metrics
Is FITB Expensive or Cheap?
P/E Ratio
FITB trades at 19.72 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, FITB's PEG of -3.68 indicates potential undervaluation.
Price to Book
The market values Fifth Third Bancorp at 1.26 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 10.26 times EBITDA. This signals the market has high growth expectations.
How Well Does FITB Make Money?
Net Profit Margin
For every $100 in sales, Fifth Third Bancorp keeps $15.91 as profit after all expenses.
Operating Margin
Core operations generate 20.24 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.86 in profit for every $100 of shareholder equity.
ROA
Fifth Third Bancorp generates $0.73 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Fifth Third Bancorp produces operating cash flow of $2.39B, showing steady but balanced cash generation.
Free Cash Flow
Fifth Third Bancorp generates strong free cash flow of $2.18B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.40 in free cash annually.
FCF Yield
FITB converts 4.21% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
19.72
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-3.68
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.26
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.45
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.59
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.17
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.007
vs 25 benchmark
ROCE
Return on capital employed
0.009
vs 25 benchmark
How FITB Stacks Against Its Sector Peers
| Metric | FITB Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 19.72 | 19.38 | Neutral |
| ROE | 8.86% | 804.00% | Weak |
| Net Margin | 15.91% | -7623.00% (disorted) | Strong |
| Debt/Equity | 0.59 | 1.07 | Strong (Low Leverage) |
| Current Ratio | 3.17 | 609.22 | Strong Liquidity |
| ROA | 0.73% | -20946.00% (disorted) | Weak |
FITB outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Fifth Third Bancorp's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
72.30%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
90.20%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
1208.91%
Industry Style: Value, Dividend, Cyclical
High Growth