Key Stock in Brief

Key logged a -5.0% change during today's morning session, and is now trading at a price of $11.76 per share.

Key shares moved -41.3% over the last 52 weeks, with a high of $22.13 and a low of $9.61. During this time, the stock lagged the S&P 500 index by -36.0%. As of January 2022, the company's 50-day average price is $15.01. KeyCorp operates as the holding company for KeyBank National Association that provides various retail and commercial banking products and services in the United States. The large-cap Finance company has 18,891 full time employees and is based in Cleveland, OH. Key has returned a 6.4% dividend yield over the last 12 months.

Snapshot of the Company's Net Margins in Line With the 26.96% Industry Average:

2019-12-31 2020-12-31 2021-12-31 2022-12-31
Revenue (MM) $6,182 $6,490 $7,038 $7,033
Revenue Growth n/a 4.98% 8.44% -0.07%
Net Margins 27.77% 20.69% 37.3% 27.26%
Net Margins Growth n/a -25.5% 80.28% -26.92%
Earnings Per Share $1.62 $1.27 $2.63 $1.92
EPS Growth n/a -21.6% 107.09% -27.0%
Diluted Shares (MM) 1,002 975 957 928
Free Cash Flow (MM) $2,821 $1,610 $1,087 $4,361
FCF Growth n/a -42.93% -32.48% 301.2%
Capital Expenditures (MM) -$85 -$63 -$66 -$108
Net Debt / EBITDA 2.18 2.49 1.66 4.17

Key Is Currently Undervalued:

Compared to the Finance sector's average of 14.34, Key has a trailing twelve month P/E ratio of 6.1 and, according to its EPS guidance of 1.9, an expected P/E ratio of 6.2. Key's PEG ratio is 2.41 based on its 3.2% compound average growth rate of historical and projected earnings per share. This suggests that the company's shares are overvalued.

However, Key is likely undervalued in terms of its equity because its P/B ratio is 1.0 compared to its sector average of 1.57. The company's shares are currently trading -46.9% below their Graham number, implying there is a margin of safety for the stock. The Graham number is calculated according to the formula:

√(22.5 * 4-year average EPS * book value per share) = √(22.5 * 1.86 * 11.737) = $22.16

Key Is the Subject of Mixed Market Indicators:

20 analysts are following Key and have set target prices ranging from $12.0 to $38.0 per share. On average, they have given the company a rating of buy. At the current price of $11.76, KEY is trading -29.58% away from its average analyst target price of $16.7 per share, implying an analyst consensus of strong upside potential for the stock.

The company has an average amount of shares sold short since 3.4% of the company's shares are tied to short positions. Institutions own 85.0% of Key's shares, while the insider ownership rate stands at 0.33%. The biggest shareholder is the Vanguard Group, Inc. with a 12% stake in the company worth approximately $1,296,058,688.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.