High Dividend Yield
Decent Operating Profit Margin
Strong Liquidity Ratios
Low Debt to Assets
💪 Strong Revenue Momentum
🏦 Robust Credit Performance
📈 Investment Banking Strength
🚀 Growth in Wealth Management
📊 Optimistic Loan Growth Outlook
💻 Technological Advancements
Extremely High P/E Ratio
High EV/EBITDA Ratio
Low Return on Equity
Low Net Profit Margin
High Debt to Equity Ratio
Very Low Interest Coverage
⚠️ Soft Loan Demand
KeyCorp displays strong business quality with solid revenue growth, robust credit performance, and strength in investment banking. Future prospects are promising due to growth in wealth management, optimism for loan growth, and significant technology investments, although soft loan demand poses a challenge.
Analysis Date: January 21, 2025
Last Updated: March 12, 2025
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$1.05
Current Market Price: $14.96
IV/P Ratio: 0.07x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
-1327.0%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for KEY
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (160.69)
P/B ratio ≤ 1.5 (13.36)
Current ratio ≥ 2.0 (18.52x)
Long-term debt < Net current assets (0.32x)
Margin of safety (-1327.0%)
KEY does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
An operating profit margin of 9.46% indicates that the company has some operational efficiency.
A return on equity of 0.70% indicates that the company is not efficiently generating profits from shareholders' equity.
The net profit margin of 1.22% is considerably low, suggesting that the company retains very little profit out of its revenues.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
0.70%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-16)
Return on Assets (ROA)
Measures how efficiently a company uses its assets to generate profits
0.00%
Higher values indicate better asset utilization
TTM (as of 2025-04-16)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
120.05%
Higher values indicate better efficiency in production
TTM (as of 2025-04-16)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
1.22%
Higher values indicate better overall profitability
TTM (as of 2025-04-16)
The current ratio and quick ratio both stand at 18.52, indicating exceptional short-term liquidity and ability to cover liabilities.
A debt to assets ratio of 8.37% indicates a conservative approach to leveraging, which is a positive sign for financial stability.
The debt to equity ratio of 14.31 suggests that the company may be taking on excessive debt relative to its equity base.
An interest coverage ratio of 0.14 indicates that the company is struggling to cover its interest expenses, which can be a red flag.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
14.31x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q4 2024
Current Ratio
Current assets divided by current liabilities
18.52x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q4 2024
KeyCorp reported an 11% sequential increase in revenue and a 16% year-over-year increase, showcasing strong performance in net interest income and adjusted fees. This indicates a solid revenue-generating capability.
The company reported improvements in credit metrics, with criticized loans down by $500 million and net charge-offs decreasing by $40 million sequentially. This reflects a healthy credit environment.
KeyCorp's investment banking fees reached $221 million for the fourth quarter, marking the second strongest year in their history. This indicates a strong market position and capability in investment banking.
KeyCorp's assets under management reached a record of approximately $61.4 billion, with a focus on adding wealth professionals and expanding their wealth management capabilities.
Despite current challenges, management expressed confidence in commercial loan growth, supported by a robust pipeline and improving economic conditions.
KeyCorp is investing in technology with plans to increase tech spending by 10% in 2025, enhancing digital tools and platforms to improve customer experience.
Loan demand remained soft throughout the year, with expectations for average loans to decline by 2% to 5% in 2025, indicating potential headwinds for growth.