MeritValue

REGIONS FINANCIAL CORP

RFdata completeness 88%19 fiscal years on file

Data notes: no data for concept 'capex'

The thesis, from the filings

REGIONS FINANCIAL CORP earns about 38% on invested capital, and has bought back 7% of its shares over 5 years. The applicable estimate puts fair value near $24.94 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$104M1$5.1B2$6.9B3$7.11B3$7.07B3
Net income$2.52B4$2.25B5$2.07B6$1.89B6$2.16B6
Operating cash flow$3.03B7$3.1B8$2.31B9$1.6B9$2.18B9
Capital expenditure—————
Free cash flow (derived)—————
Total debt$2.41B10$2.28B11$2.33B12$6.49B13$4.88B13
Cash & equivalents$29.4B14$11.2B15$6.8B15$10.7B15$10.9B15
Diluted shares963.0M942.0M938.0M918.0M896.0M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$212.53
your share of equity
Profit it earned you last year
$24.06
Free cash flow it threw off
—
Debt you’d be carrying
$54.51

10 shares is a claim on $212.53 of net worth that earned you $24.06 last year, against $54.51 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
38% avg · 5y
FY21 —FY22 36%FY23 26%FY24 42%FY25 47%

It earned an average 38% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
−7% shares · 5y

Share count is down 7% over 5 years — management has been buying back stock, quietly handing owners a bigger slice. Total debt has risen 103% over the same window.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
DCF · Growth Exit 5Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
Earnings Power Value
$24.94
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$2.16B
  • growthAssumed0.0%
Graham Number
$33.16
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001281761-22-000016 (RevenueFromContractWithCustomerIncludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0001281761-25-000010 (InterestAndDividendIncomeOperating)
  3. 10-K · period ending 2023-12-31 · accession 0001281761-26-000019 (InterestAndDividendIncomeOperating)
  4. 10-K · period ending 2021-12-31 · accession 0001281761-24-000010 (NetIncomeLoss)
  5. 10-K · period ending 2022-12-31 · accession 0001281761-25-000010 (NetIncomeLoss)
  6. 10-K · period ending 2023-12-31 · accession 0001281761-26-000019 (NetIncomeLoss)
  7. 10-K · period ending 2021-12-31 · accession 0001281761-24-000010 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-12-31 · accession 0001281761-25-000010 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-12-31 · accession 0001281761-26-000019 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-12-31 · accession 0001281761-23-000012 (LongTermDebt)
  11. 10-K · period ending 2022-12-31 · accession 0001281761-24-000010 (LongTermDebt)
  12. 10-K · period ending 2023-12-31 · accession 0001281761-25-000010 (LongTermDebt)
  13. 10-K · period ending 2024-12-31 · accession 0001281761-26-000019 (LongTermDebt)
  14. 10-K · period ending 2021-12-31 · accession 0001281761-25-000010 (CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents)
  15. 10-K · period ending 2022-12-31 · accession 0001281761-26-000019 (CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents)