SunTrust Banks Inc

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STI : NYSE : Financial
$44.18 | %
Today's Range: 43.90 - 44.55
Avg. Daily Volume: 3,437,800
09/23/16 - 4:02 PM ET

Financial Analysis


SUNTRUST BANKS INC's gross profit margin for the second quarter of its fiscal year 2016 has decreased when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago.

During the same period, stockholders' equity ("net worth") has increased by 5.34% from the same quarter last year.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)2270.02172.0
EBITDA ($mil)1107.01132.0
EBIT ($mil)1107.01132.0
Net Income ($mil)492.0483.0


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)4933.06975.0
Total Assets ($mil)198892.0188858.0
Total Debt ($mil)17121.016226.0
Equity ($mil)24464.023223.0


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin87.6292.77
EBITDA Margin48.7652.11
Operating Margin48.7752.12
Sales Turnover0.040.05
Return on Assets0.980.99
Return on Equity7.737.83
Debt Q2 FY16 Q2 FY15
Current Ratio0.00.0
Debt/Capital0.410.41
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)501.41518.05
Div / share0.240.24
EPS0.940.89
Book value / share48.7944.83
Institutional Own % n/a n/a
Avg Daily Volume3526721.03802755.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 13.07 for the Commercial Banks industry and a significant discount compared to the S&P 500 average of 24.84. Conducting a second comparison, its price-to-book ratio of 0.90 indicates a significant discount versus the S&P 500 average of 2.78 and a discount versus the industry average of 1.06. The current price-to-sales ratio is well above the S&P 500 average and above the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, SUNTRUST BANKS INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
STI 11.95 Peers 13.07   STI 8.23 Peers 9.05

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

STI is trading at a valuation on par with its peers.

 

Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

STI is trading at a valuation on par to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
STI 12.22 Peers 12.29   STI NM Peers 2.12

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

STI is trading at a valuation on par with its peers.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

STI's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
STI 0.90 Peers 1.06   STI 6.95 Peers -8.61

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

STI is trading at a discount to its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

STI is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
STI 2.53 Peers 2.27   STI 2.30 Peers 1.60

Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

STI is trading at a premium to its industry on this measurement.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

STI has a sales growth rate that significantly exceeds its peers.

 

 

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