Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.
NEW YORK (
) has been reiterated by TheStreet Ratings as a buy with a ratings score of B. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, good cash flow from operations and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.
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Highlights from the ratings report include:
- Powered by its strong earnings growth of 64.28% and other important driving factors, this stock has surged by 34.42% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
- REGIONS FINANCIAL CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, REGIONS FINANCIAL CORP turned its bottom line around by earning $0.75 versus -$0.02 in the prior year. This year, the market expects an improvement in earnings ($0.85 versus $0.75).
- The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Commercial Banks industry average. The net income increased by 68.3% when compared to the same quarter one year prior, rising from $199.00 million to $335.00 million.
- Net operating cash flow has increased to $1,130.00 million or 49.66% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 13.25%.
- The gross profit margin for REGIONS FINANCIAL CORP is currently very high, coming in at 91.30%. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of 23.62% trails the industry average.
Regions Financial Corporation, together with its subsidiaries, provides banking and bank-related services to individual and corporate customers in the United States. The company operates in three segments: Business Services, Consumer Services, and Wealth Management. Regions Financial has a market cap of $12.9 billion and is part of the financial sector and banking industry. The company has a P/E ratio of 11.00, below the S&P 500 P/E ratio of 18.00. Shares are up 27.6% year to date as of the close of trading on Monday.
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--Written by a member of TheStreet Ratings Staff.
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