| 2021 | 2022 | 2023 | 2024 (projected) | Capital Expenditures | 66M | 108M | 142M | 99.8M | Dividends Paid | 823M | 854M | 911M | 456.1M |
Here is why KeyCorp (USA Stocks:KEY) can still attract investors
 | By Raphi Shpitalnik | Macroaxis Story |
When it comes to financial fortitude, KeyCorp (NYSE: KEY) stands out as a force to be reckoned with in the Banks - Regional industry. With an enterprise value of $40.3 billion and a solid base of 16.8K full-time employees, KeyCorp's significance in the domestic banking sector is undeniable.
The bank's 2024 fiscal year-end figures reveal a compelling narrative. A net income from continuing operations of $1.3 billion reflects the firm's operational strength, despite a significant income tax expense of $196 million. The bank also managed to generate a substantial net interest income of $4.2 billion, further emphasizing its robust financial health.
Moreover, the bank's accumulation distribution of 0.037 points towards a steady demand for the stock. However, it's important to consider that the current market valuation stands at $16.21, slightly above the Wall Street target price of $16.23, and substantially above the analyst target price estimated value of $12.74.
Despite this discrepancy, the bank's robust fundamentals, and its potential to navigate through challenging economic climates, make it an investment worth considering. The bank's solid income generation and cost management - with selling and marketing expenses standing at $109 million - underpin its strong financial performance.
In conclusion, KeyCorp's financial resilience and strong performance make it a compelling investment opportunity. However, as with any investment, it is crucial to carry out further due diligence and consider the bank's future prospects in line with broader market and economic trends. Currently, KeyCorp's price-to-cash-flow ratio remains relatively stable compared to the previous year. The return on equity is projected to increase to 0.12 in 2024, while the dividend yield is expected to decrease to 0.05 in the same year. Given the indifference of many baby boomers towards the banking sector, it's worthwhile to analyze KeyCorp. We'll examine why recent price movements suggest a potential rebound in August. This article will also discuss various factors influencing KeyCorp's products and services, and their potential impact on investors.
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Reviewed by Vlad Skutelnik
KeyCorp (NYSE: KEY), a leading player in the Banks - Regional industry, presents a compelling investment opportunity with its impressive profit margin of 15.21% and a favorable PEG ratio of 0.74. With an operating income of $3M, the company's financial health is robust, further solidifying its position as a promising investment.
Main Points
KeyCorp has a "Buy" average rating from 22 analysts. Our investment recommendation tool can validate this consensus and assess KeyCorp's potential growth in the current economic cycle. However, the company has a net profit margin of 0.15%, suggesting that even a minor decline in revenue could wipe out profits and lead to a net loss. This is significantly below average. Similarly, its net operating margin is 0.2%, meaning that it generates $0.2 of operating income for every $100 of revenue. This indicates the need for a revised competitive strategy.The performance of KeyCorp in the marketplace will significantly impact your decision to invest in its stock. Revenue growth, profitability, competitive positioning, management quality, and industry trends can influence KeyCorp's stock prices. When investing in KeyCorp, there are several factors to consider and potential outcomes to expect. As a company performs well, its stock price may increase, allowing investors to benefit from price appreciation. However, KeyCorp Stock can experience significant price fluctuations due to market conditions, economic factors, industry trends, or company-specific news. This is why investing in stocks such as KeyCorp carries risks, including the potential for capital loss. Stock prices can decline, and investors may incur losses if they sell shares at a lower price than their initial investment.And What about dividends?
A dividend is the distribution of a portion of KeyCorp earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. KeyCorp dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. KeyCorp one year expected dividend income is about USD0.54 per share.
Dividends Paid is likely to drop to about 456.1 M in 2024. Dividend Yield is likely to drop to 0.05 in 2024. | Last Reported | Projected for Next Year | ||
| Dividends Paid | 911 M | 456.1 M | |
| Dividend Yield | 0.07 | 0.05 | |
| Dividend Payout Ratio | 0.94 | 0.53 | |
| Dividend Paid And Capex Coverage Ratio | 3.78 | 3.59 |
Investing in dividend-paying stocks, such as KeyCorp is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in KeyCorp must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for KeyCorp. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.How important is KeyCorp's Liquidity
KeyCorp financial leverage refers to using borrowed capital as a funding source to finance KeyCorp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. KeyCorp financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to KeyCorp's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of KeyCorp's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between KeyCorp's total debt and its cash.
What do experts say about KeyCorp?
Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
Analysis ConsensusWhat is driving KeyCorp Investor Appetite?
The concept of asset utilization usually refers to the revenue earned for every dollar of assets a company currently reports. The current return on assets of KeyCorp suggests not a very effective usage of assets in July.
As Warren Buffet wisely stated, price is what you pay, value is what you get. In the case of KeyCorp (NYSE: KEY), investors are getting a lot of value for their money.The bank boasts a solid operating margin of 0.20% and a net income of $964 million, demonstrating its ability to generate profits. With a PEG ratio of 0.7441, KeyCorp is undervalued relative to its earnings growth, suggesting a compelling investment opportunity. Furthermore, the bank's risk-adjusted performance of 0.0776 shows that it offers a reasonable return for the level of risk it carries. Considering these factors, KeyCorp remains a promising investment opportunity..
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