SunTrust Banks Inc

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STI : NYSE : Financial
$53.88 -2.09 | -3.73%
Today's Range: 53.8213 - 55.46
Avg. Daily Volume: 4070600.0
01/17/17 - 4:02 PM ET

Financial Analysis


SUNTRUST BANKS INC's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 3.31% from the same quarter last year.

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Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)2340.02144.0
EBITDA ($mil)1190.01138.0
EBIT ($mil)1190.01138.0
Net Income ($mil)474.0537.0


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)9473.04695.0
Total Assets ($mil)205091.0187036.0
Total Debt ($mil)16765.012386.0
Equity ($mil)24449.023664.0


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin89.7492.82
EBITDA Margin50.8553.07
Operating Margin50.8553.08
Sales Turnover0.040.05
Return on Assets0.920.98
Return on Equity7.487.5
Debt Q3 FY16 Q3 FY15
Current Ratio0.00.0
Debt/Capital0.410.34
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)495.94514.11
Div / share0.260.24
EPS0.911.0
Book value / share49.346.03
Institutional Own % n/a n/a
Avg Daily Volume4086074.03130351.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 17.70 for the Commercial Banks industry and a significant discount compared to the S&P 500 average of 25.49. Conducting a second comparison, its price-to-book ratio of 1.13 indicates a significant discount versus the S&P 500 average of 2.84 and a discount versus the industry average of 1.22. 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 15.41 Peers 17.70   STI 30.85 Peers 12.28

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

STI is trading at a discount to its peers.

 

Premium. 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 significant premium 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 15.00 Peers 14.86   STI NM Peers 2.66

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 1.13 Peers 1.22   STI 6.19 Peers -39.58

Average. 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 valuation on par with 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 3.08 Peers 2.95   STI 4.46 Peers 5.47

Average. 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 valuation on par with its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

STI trails its peers on the basis of sales growth

 

 

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