Truist Financial may be undervalued with mixed growth prospects, but the 22 analysts following the company give it an rating of hold. Their target prices range from $31.0 to $45.0 per share, for an average of $36.82. At today's price of $30.54, Truist Financial is trading -17.06% away from its average target price, suggesting there is an analyst consensus of some upside potential for the stock.
Truist Financial Corporation, a holding company, provides banking and trust services in the Southeastern and Mid-Atlantic United States. Based in Charlotte, NC, the large-cap Finance company has 52,848 full time employees. Truist Financial has provided a 6.6% dividend yield over the last 12 months.
Truist Financial has a trailing twelve month P/E ratio of 7.1, compared to an average of 14.34 for the Finance sector. Considering its EPS guidance of $3.61, the company has a forward P/E ratio of 8.5.
The average compound growth rate of the company's historical and projected earnings per share is -0.5%. On this basis, the company's PEG ratio is -13.63, which indicates that its shares are overpriced.
On the other hand, the market is potentially undervaluing Truist Financial in terms of its book value because its P/B ratio is 0.72. In comparison, the sector average P/B ratio is 1.57. The company's shares are currently -50.1% below their Graham number, indicating that its shares have a margin of safety.
| 2019-12-31 | 2020-12-31 | 2021-12-31 | 2022-12-31 | |
|---|---|---|---|---|
| Revenue (MM) | $12,568 | $22,705 | $22,259 | $23,035 |
| Interest Income (MM) | $7,313 | $13,826 | $13,006 | $14,316 |
| Net Margins | 25.65% | 19.74% | 28.93% | 27.18% |
| Net Income (MM) | $3,224 | $4,482 | $6,440 | $6,260 |
| Depreciation & Amort. (MM) | -$630 | -$1,608 | -$1,384 | -$1,366 |
| Earnings Per Share | $3.71 | $3.08 | $4.47 | $4.33 |
| EPS Growth | n/a | -16.98% | 45.13% | -3.13% |
| Diluted Shares (MM) | 815 | 1,358 | 1,349 | 1,332 |
| Free Cash Flow (MM) | $1,520 | $6,622 | $7,450 | $10,517 |
| Capital Expenditures (MM) | n/a | -$815 | -$442 | -$564 |
| Long Term Debt (MM) | $41,339 | $39,597 | $35,913 | $43,203 |
| Net Debt / EBITDA | 3.39 | 1.28 | 0.93 | 1.94 |
