Fifth Third Bancorp (FITB) AI Stock Analysis

• Market Cap: $22.26B
• Dividend Yield: 4.38%
• Average Volume (3M): 6.02M
• Price to Earnings (P/E): 10.6
• Beta (1Y): 1.23
• Revenue Growth: 6.12%
• EPS Growth: 0.68%
• Country: US
• Employees: 18,786
• Sector: Financial
• Sector Strength: 76
• Industry: Banks - Regional
• EPS (TTM): 3.15
• Shares Outstanding: 668,098,940
• 10 Day Avg. Volume: 7,830,558
• 30 Day Avg. Volume: 6,024,530
• PEG Ratio: 15.58
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.31
• Price to Cash Flow (P/CF): -65.10
• P/FCF Ratio: 8.30
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $44.54
• Price Target Upside: 28.54% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

Fifth Third Bancorp's overall score reflects strong financial health and a positive outlook from earnings call guidance. However, technical indicators suggest caution due to bearish trends, while valuation metrics and dividend yield provide a supportive base. The company faces challenges in cash flow generation and economic uncertainties but remains well-positioned in its industry.

Positive Factors

Earnings

Fifth Third Bancorp reported a solid quarter with higher fee income driving an Operating EPS that beat consensus expectations.

Loan Growth

Loan growth commentary on the conference call was decidedly bullish compared to prior commentary and compared to most other banks this earnings season.

Negative Factors

Fee Income

Given the weaker macro environment, the company reduced its fee income growth guidance for 2025 as expected from 'up 3-6%' to 'up 1-3%' given weaker markets related fee income across wealth management and capital markets.

Non-performing Loans

Non-performing loans increased by 17% quarter over quarter.

Fifth Third Bancorp Business Overview & Revenue Model

Company Description

Fifth Third Bancorp is a diversified financial services company headquartered in Cincinnati, Ohio, operating principally through its banking subsidiary, Fifth Third Bank. The company provides a broad range of services including commercial banking, branch banking, consumer lending, and investment advisory services. It serves customers through a network of branches and ATMs across several states in the U.S., focusing on delivering personalized financial solutions to individuals, small businesses, and large corporations.

How the Company Makes Money

Fifth Third Bancorp generates revenue primarily through interest income from lending activities, including commercial and consumer loans, mortgages, and credit cards. The bank earns interest on the loans it provides to individuals and businesses, which forms a significant portion of its revenue. Additionally, the company earns non-interest income through service charges on deposit accounts, transaction fees, and wealth management services. Fifth Third also benefits from investment banking services, which include underwriting and advisory fees. Partnerships with financial technology firms and strategic acquisitions also contribute to expanding its revenue base and enhancing its service offerings.

Fifth Third Bancorp Financial Statement Overview

Summary

Fifth Third Bancorp shows strong revenue growth with improved debt metrics. However, declining net profit margin and reduced cash flow generation present challenges. The balance sheet remains stable with reduced financial leverage, but reliance on liabilities is evident.

Income Statement

Fifth Third Bancorp shows strong revenue growth with a notable increase in total revenue from $8195M to $10426M year-over-year. The gross profit margin remains robust at 100%, indicating effective cost management. However, the net profit margin slightly decreased from 28.67% to 22.19%, reflecting a drop in net income relative to the revenue growth. Positive EBIT margin indicates efficient core operations.

Balance Sheet

The company has a healthy equity position with a debt-to-equity ratio improving significantly from 0.99 to 0.23, which suggests reduced financial leverage. Return on equity decreased from 12.25% to 11.78%, indicating slightly lower profitability relative to shareholders' equity. The equity ratio of 9.23% suggests a reliance on liabilities for asset financing, which is typical in banking.

Cash Flow

Operating cash flow decreased from $4509M to $1328M, indicating challenges in cash generation from operations. Free cash flow decreased from $4018M to $1328M, reflecting less cash available for expansion or debt repayment. The operating cash flow to net income ratio is robust, suggesting earnings quality, but the decline in free cash flow growth rate poses a concern.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
10.43B	8.20B	8.29B	7.80B	7.49B
	Gross Profit
10.43B	12.64B	8.29B	7.80B	7.49B
	EBIT
0.00	4.43B	4.07B	3.52B	1.80B
	EBITDA
0.00	3.47B	3.53B	3.87B	2.29B
	Net Income Common Stockholders
2.31B	2.35B	2.45B	2.77B	1.43B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
42.56B	3.14B	62.45B	75.68B	74.06B
	Total Assets
212.93B	214.57B	207.45B	211.12B	204.68B
	Total Debt
4.45B	18.91B	18.55B	12.80B	16.16B
	Net Debt
1.44B	15.77B	15.09B	9.81B	13.02B
	Total Liabilities
193.28B	195.40B	190.13B	188.91B	181.57B
	Stockholders Equity
19.64B	19.17B	17.33B	22.21B	23.11B
Cash Flow		Free Cash Flow
2.41B	3.99B	5.74B	2.40B	13.00M
	Operating Cash Flow
2.82B	4.51B	6.43B	2.70B	371.00M
	Investing Cash Flow
1.04B	-9.49B	-4.87B	-7.97B	-31.90B
	Financing Cash Flow
-3.99B	4.66B	-1.08B	5.11B	31.40B

Fifth Third Bancorp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 34.65
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FITB, the sentiment is Negative. The current price of 34.65 is below the 20-day moving average (MA) of 36.08, below the 50-day MA of 39.05, and below the 200-day MA of 41.40, indicating a bearish trend. The MACD of -1.50 indicates Negative momentum. The RSI at 41.84 is Neutral, neither overbought nor oversold. The STOCH value of 41.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FITB.

Fifth Third Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FCNCA	77 Outperform	$22.64B	8.90	12.77%	0.43%	18.05%	-75.88%
FITB	73 Outperform	$22.26B	10.58	11.71%	4.38%	6.12%	0.68%
HBAN	73 Outperform	$19.68B	10.36	10.30%	4.60%	7.89%	17.47%
RF	72 Outperform	$17.29B	9.22	11.33%	5.18%	1.23%	12.14%
CFG	64 Neutral	$15.56B	11.76	6.37%	4.87%	-2.52%	13.92%
Sector *	63 Neutral	$12.07B	9.35	8.15%	79.57%	12.85%	-5.13%
MTB	63 Neutral	$25.95B	10.79	9.39%	3.44%	1.41%	1.12%

Fifth Third Bancorp Corporate Events

Fifth Third Bancorp Reports Q1 2025 Earnings

Fifth Third Bancorp reported a diluted earnings per share of $0.71 for the first quarter of 2025, driven by loan growth, net interest margin expansion, and disciplined expense management. The company achieved positive operating leverage and a stable net charge-off ratio, with a 3% increase in average loans and a 7% rise in wealth and asset management revenue year-over-year. Despite a challenging economic environment, Fifth Third Bancorp’s diversified business mix and proactive credit risk management have reinforced its position in the industry.

Spark’s Take on FITB Stock

According to Spark, TipRanks’ AI Analyst, FITB is a Neutral.

Fifth Third Bancorp demonstrates strong financial performance with revenue growth and improved debt metrics. The earnings call highlights robust capital return and positive future outlook, but technical indicators show bearish trends. The stock’s valuation is reasonable with a good dividend yield, although challenges in credit quality and cash flow generation affect its overall score.

To see Spark’s full report on FITB stock, click here.

Fifth Third Bancorp Highlights 2024 Financial Success

During the 2025 Annual Meeting of Shareholders held on April 15, Fifth Third Bancorp highlighted its strong financial performance in 2024, including a 12.47% return on average common equity and a 25% increase in middle market relationship managers in high-growth areas. The company also emphasized its commitment to community development, having delivered over $42 billion towards its sustainability and stewardship target and provided significant charitable donations and community development investments.

Spark’s Take on FITB Stock

According to Spark, TipRanks’ AI Analyst, FITB is a Neutral.

Fifth Third Bancorp demonstrates strong financial performance with revenue growth and improved debt metrics. The earnings call highlights robust capital return and positive future outlook, but technical indicators show bearish trends. The stock’s valuation is reasonable with a good dividend yield, although challenges in credit quality and cash flow generation affect its overall score.

To see Spark’s full report on FITB stock, click here.

Fifth Third Bancorp to Present at RBC Conference

On March 5, 2025, Fifth Third Bancorp will participate in the RBC Capital Markets Financial Institutions Conference, where they will present their financial outlook and strategic initiatives. The presentation will address various forward-looking statements concerning the company’s financial condition and future performance, highlighting potential risks and uncertainties that could impact their operations and market positioning.

Fifth Third Bancorp Highlights Operations at Roadshow

During a non-deal roadshow in February 2025, Fifth Third Bancorp executives planned to present their operations and performance to institutional investors. The focus of these presentations was to highlight the company’s market positioning and financial results, although specific forward-looking statements were not detailed due to inherent uncertainties in financial forecasting. The roadshow and its presentations may influence investor perceptions and potentially impact future business strategies or stakeholder engagements.