Truist Financial (TFC)

Financials · $60.3B market cap · SEC CIK 0000092230

Next reports on Jan 20, 2027, after the close, with analysts expecting $1.23 in earnings per share.

52-week range $43.13 to $56.20. 11% below its 52-week high and 17% above its low.

The case for TFC

• Cheap for its growth: 11.6× earnings, where 10%+ a year of growth plus a 6.5% dividend would justify about 33×.
• 24% of revenue drops through to net profit.
• Trades at 0.90× book value, below what the balance sheet says it owns.
• Pays a 6.5% dividend while you wait.
• Has compounded revenue at 17.7% a year over five years.

The case against

• Return on equity of 8% is lower than 89% of Financials companies.
• Its weakest area is profitability (52/100): return on equity 8%, net margin 23.8%.

What the score is made of

Each factor is half a curve over reported figures and half a rank among the other Financials companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.

• Its one-year revenue change (+58%) is far out of line with its five-year trend (+18% a year). In the Financials sector that is usually interest income swinging with rates rather than growth, so only the five-year figure is used.
• Its debt and cash flow are not scored, as for every company in the Financials sector: for banks, insurers and brokers, borrowing is the business.
• Each factor except momentum is half fixed thresholds, half rank among the 76 Financials companies.

The financials

The financials, five years deep

Pulled from Truist Financial's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.

What Truist Financial says it does

Truist Financial Corporation is a purpose-driven financial services company committed to inspiring and building better lives and communities. Headquartered in Charlotte, North Carolina, Truist has leading market share in many of the high-growth markets in the U.S. and offers a wide range of products and services through its WB and CSBB operating segments, including consumer and small business banking, commercial and corporate banking, investment banking and capital markets, wealth management, payments, and specialized lending businesses. Refer to the “Segment Results” section in MD&A and “Note 21. Operating Segments” for additional information on the Company’s reportable segments. Truist Bank, the largest subsidiary of Truist Financial Corporation, was chartered in 1872 and is the oldest bank headquartered in North Carolina. Truist Bank is one of the 10 largest commercial banks in the U.S. and provides banking and trust services for…

Risk factors TFC lists in its 10-K

• Changes in monetary, fiscal, and other policies, and changes in the U.S. political environment, could adversely affect us
• Our financial results, the value of loans and debt securities we hold, and lending and other business activities have in the past, and may in the future, be adversely affected by weak or deteriorating economic conditions
• Geopolitical conditions, the outbreak or escalation of hostilities, acts or threats of terrorism, and related volatility and instability in global economic and market conditions could adversely affect us
• Changes in interest rates have affected our net interest income and other financial results in the past and could in the future adversely affect us
• The Company’s hedging strategies may not be successful in mitigating our interest rate, foreign exchange, and market risks, which could adversely affect our results of operations and financial condition
• The Company is subject to credit risk, and the Company’s allowance for credit losses may not be adequate to cover realized and future losses
• The Company may suffer losses if the value of collateral declines in weak, deteriorating, or stressed economic or market conditions
• Our inability to retain and grow deposits or a change in deposit costs or mix could negatively impact our funding strategy and financial results
• Truist’s liquidity could be impaired by an inability to access short-term funding, an unforeseen outflow of cash, or an inability to monetize liquid assets
• A disruption in our access to the mortgage secondary market and GSEs for liquidity could negatively affect us
• The Company’s cost of funding or access to the banking and capital markets could be adversely affected if our credit ratings are downgraded or otherwise fail to meet investor expectations
• The financial system is highly interrelated, and financial or systemic shocks or the failure of even a single financial institution or other participant in the financial system could adversely impact us
• The Company faces risks associated with the privacy, quality, availability, and retention of key data for operational, strategic, regulatory, and compliance purposes
• Truist faces substantial risks in safeguarding personal and other sensitive information, which may negatively impact the Company’s business, financial condition, results of operations, prospects, or reputation
• The use of AI in our products and services, as well as our business and the industry more broadly, may negatively impact our business, operations, financial condition, results of operations, prospects, and reputation
• Truist can be negatively affected if it fails to identify and address operational and compliance risks associated with the introduction of or changes to products, services, and delivery platforms
• Truist is subject to risks related to originating and selling loans, including repurchase and indemnification obligations, which may adversely affect our business, results of operations, and financial condition
• Truist faces loan servicing risks that could adversely impact the Company’s business, operations, liquidity, and results of operations
• Truist is subject to extensive and evolving government regulation and supervision, which could adversely affect our business, financial condition, results of operations, and prospects
• The Company may incur damages, fines, and penalties and face other negative consequences from supervisory actions and regulatory or other legal violations, including inadvertent or unintentional violations
• Pending or threatened legal proceedings and other matters may adversely affect the Company’s business, financial condition, results of operations, prospects, and reputation
• Differences in, or changes to, regulation and supervision and industry disruption can affect the Company’s ability to compete effectively, which may adversely affect our business, financial condition, financial results, or growth
• Truist faces risks of non-compliance and may incur additional operational and compliance costs under laws relating to anti-money laundering, economic sanctions, embargo programs, anti-bribery, and anti-corruption
• Ineffective execution of strategic initiatives could adversely affect investor sentiment and the Company’s business, financial condition, results of operations, prospects, and reputation
• Truist has businesses other than banking that are subject to a variety of risks that may affect our financial condition and results of operations
• Truist’s business and operations rely significantly on the use of models, and any deficiencies in the design, implementation, or use of models could adversely affect our business, results of operations, and financial condition
• Depressed market values for the Company’s stock and adverse economic conditions sustained over a period of time may require the Company to write down all or some portion of the Company’s goodwill
• Negative public opinion, whether or not warranted, could damage the Company’s brand in the market and relationships with stakeholders, and adversely impact our business, financial condition, results of operations, and prospects
• We could be harmed by an inability to attract, develop, retain, and motivate qualified teammates while effectively managing recruiting and compensation costs amid highly competitive and rapidly changing market conditions
• The Company relies on its ability, and the ability of key external parties, to maintain appropriately staffed workforces and on the competence, trustworthiness, health, and safety of teammates
• The Company is at risk of losses from fraud which could result in financial loss and reputational harm
• Physical, transition, and other risks associated with climate change, together with governmental responses to such risks, may negatively impact our business, financial condition, operations, reputation, and clients
• Natural disasters, pandemics, extreme weather events, and other catastrophic events could adversely affect our financial condition and results of operations

Filings

Other Financials companies