TRUIST FINANCIAL CORP (TFC) Stock Analysis
TRUIST FINANCIAL CORP (TFC) Stock Analysis
Analysis from 10-Q filed 2025-10-30. Data as of Q4 2025.
Overall Grade: F (Concerning)
TRUIST FINANCIAL CORP faces challenges in financial performance that warrant careful analysis.
| Metric | Value | Context |
|---|---|---|
| ROIC | N/A | Below expectations |
| FCF Margin | 28.2% | Strong cash generation |
| Debt/Equity | 0.4x | Conservative leverage |
Investment Thesis: Healthy free cash flow margin of 28.2% provides financial flexibility for growth and shareholder returns.
Explore TRUIST FINANCIAL CORP: Earnings History | Filing Intelligence | ROIC Analysis
Profitability: TRUIST FINANCIAL CORP earns N/A ROIC
TRUIST FINANCIAL CORP's trailing-twelve-month ROIC of N/A (sector median: 7.3%). Source: 10-Q filed 2025-10-30.
| Metric | TFC | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | N/A | Red flag | Below sector median of 7.3% |
| Return on Equity (ROE) | 97.2% | Excellent | Efficient use of shareholder equity |
Cash Flow: TRUIST FINANCIAL CORP generates $5.7B FCF at 28.2% margin, positive NaN/8 quarters
TRUIST FINANCIAL CORP generated $5.7B in free cash flow (TTM), a 28.2% FCF margin, a margin that ranks Top 50% in Financials. Operating cash flow exceeds net income by 1.2x, indicating high earnings quality. FCF was positive in N/A of the last 8 quarters. Source: 10-Q filed 2025-10-30.
| Metric | TFC | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 28.2% | Excellent | Excellent cash conversion |
| Free Cash Flow (TTM) | $5.7B | Good | Positive cash generation |
| OCF/Net Income | 1.2x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: TRUIST FINANCIAL CORP at 0.4x leverage
TRUIST FINANCIAL CORP's debt-to-equity ratio of 0.4x reflects moderate leverage. Net cash position of $8.5B provides financial flexibility. Source: 10-Q filed 2025-10-30.
| Metric | TFC | Rating | Context |
|---|---|---|---|
| Debt to Equity | 0.4x | Good | Conservative capital structure |
| Net Cash Position | $8.5B | Excellent | Net cash positive |
Valuation: TRUIST FINANCIAL CORP trades at 13.0x earnings
TRUIST FINANCIAL CORP trades at a P/E of 13.0x. Free cash flow yield of 8.9% offers attractive cash returns relative to price.
| Metric | TFC | Rating | Context |
|---|---|---|---|
| P/E Ratio | 13.0x | Adequate | Reasonable valuation |
| EV/Sales | 2.4x | Good | Attractive revenue multiple |
| FCF Yield | 8.9% | Excellent | Attractive cash return |
| Dividend Yield | 4.2% | Good | Meaningful income |
Capital Allocation: TRUIST FINANCIAL CORP returns 8.0% shareholder yield
TRUIST FINANCIAL CORP's total shareholder yield is 8.0% (dividends 4.2% + buybacks 3.9%). Source: 10-Q filed 2025-10-30.
| Metric | TFC | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 8.0% | Excellent | Dividend + buyback yield combined |
| Buyback Yield | 3.9% | Good | Active share repurchases |
| Total Capital Returned (TTM) | $5.2B | Good | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Free Cash Flow Margin | 28.2% | Top 50% | 1.3x above |
| Return on Equity (ROE) | 97.2% | Top 5% | 9.3x above |
| P/E Ratio | 13.0x | N/A | - |
Financial Scorecard
| Metric | TFC | Rating | Sector Context |
|---|---|---|---|
| Free Cash Flow Margin | 28.2% | Excellent | Top 50% of sector (median: 21.7%) |
| Debt to Equity Ratio | 42.7% | Good | Moderate leverage |
| P/E Ratio (Price-to-Earnings) | 13.0x | Adequate | Attractively valued |
| Free Cash Flow Yield | 8.9% | Excellent | High cash return |
Frequently Asked Questions
Q: What is TRUIST FINANCIAL CORP's Return on Invested Capital (ROIC)?
TRUIST FINANCIAL CORP (TFC) has a trailing twelve-month Return on Invested Capital (ROIC) of N/A. This compares below the sector median of 7.3%. An ROIC below 8% suggests the company may be destroying shareholder value.
Q: What is TRUIST FINANCIAL CORP's Free Cash Flow Margin?
TRUIST FINANCIAL CORP (TFC) has a free cash flow margin of 28.2%, generating $5.7 billion in free cash flow over the trailing twelve months. A FCF margin above 20% indicates excellent cash conversion and a high-quality business model.
Q: Is TRUIST FINANCIAL CORP stock overvalued or undervalued?
TRUIST FINANCIAL CORP (TFC) trades at a P/E ratio of 13.0x, which is above the sector median of N/A. The EV/Sales multiple is 2.4x. Free cash flow yield is 8.9%, which represents an attractive cash return to investors.
Q: Does TRUIST FINANCIAL CORP pay a dividend?
TRUIST FINANCIAL CORP (TFC) currently pays a dividend yield of 4.2%. Including share buybacks, the total shareholder yield is 8.0%. A yield above 4% is attractive for income investors, though sustainability should be verified through payout ratio analysis.
Q: What is TRUIST FINANCIAL CORP's revenue and earnings growth?
TRUIST FINANCIAL CORP (TFC) grew revenue by 53.0% year-over-year. Earnings per share increased by 14.1% compared to the prior year. Double-digit revenue growth indicates strong demand and market share gains.
Q: Is TRUIST FINANCIAL CORP buying back stock?
TRUIST FINANCIAL CORP (TFC) repurchased $2.5 billion of stock over the trailing twelve months. This represents a buyback yield of 3.9%.
Q: How does TRUIST FINANCIAL CORP compare to competitors in Financials?
Compared to other companies in Financials, TRUIST FINANCIAL CORP (TFC) shows: ROIC of N/A is below the sector median of 7.3% (NaNx median). FCF margin of 28.2% exceeds the sector median of 21.7% (Top 35% of sector). These rankings are based on MetricDuck's analysis of all Financials companies with available SEC filings.
Q: What warning signs should I watch for with TRUIST FINANCIAL CORP?
TRUIST FINANCIAL CORP (TFC) shows no major financial warning signs based on current metrics. However, investors should always monitor: 1) Margin compression trends, 2) Cash flow consistency, 3) Debt levels relative to cash generation, and 4) Changes in competitive positioning.
Data Source: Data sourced from 10-Q filed 2025-10-30. TTM metrics as of Q4 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.