SunTrust Banks, Inc. [NYSE:STI]: Analyst Rating and Earnings
Equities traders often pay a significant amount of attention to what top market analysts have to say about a potential stock investment. In regards to SunTrust Banks, Inc. [STI], the most recent average analyst recommendation we can read comes from the fiscal quarter ending in December. On average, stock market experts give STI an Outperform rating. Its stock price has been found in the range of 46.05 to 75.08. This is compared to its latest closing price of $64.19.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for SunTrust Banks, Inc. [STI] is sitting at 2.42. This is compared to 1 month ago, when its average rating was 2.42.
For the quarter ending in Mar-19 SunTrust Banks, Inc. [STI] generated $2.35 billion in sales. That’s 1.03% higher than the average estimate of $2.33 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Keep your eyes on this company’s next financial results, which are scheduled to be made public on Thu 18 Jul (In 35 Days).
Fundamental Analysis of SunTrust Banks, Inc. [STI]
Now let’s turn to look at profitability: with a current Operating Margin for SunTrust Banks, Inc. [STI] sitting at +31.94, this company’s Net Margin is now 34.70%. These measurements indicate that SunTrust Banks, Inc. [STI] is generating considerably more profit, after expenses are accounted for, compared to its market peers.
This company’s Return on Total Capital is 7.59, and its Return on Invested Capital has reached 13.90%. Its Return on Equity is 11.23, and its Return on Assets is 1.32. These metrics suggest that this SunTrust Banks, Inc. does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.
Turning to investigate this organization’s capital structure, SunTrust Banks, Inc. [STI] has generated a Total Debt to Total Equity ratio of 98.20. Similarly, its Total Debt to Total Capital is 49.55, while its Total Debt to Total Assets stands at 11.06. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 67.72, and its Long-Term Debt to Total Capital is 31.32. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 11.33. The Enterprise Value to Sales for this firm is now 4.36, and its Total Debt to Enterprise Value stands at 0.55. SunTrust Banks, Inc. [STI] has a Price to Book Ratio of 1.01, a Price to Cash Flow Ratio of 10.74 and P/E Ratio of 11.21. These metrics all suggest that SunTrust Banks, Inc. is more likely to generate a positive ROI.
Shifting the focus to workforce efficiency, SunTrust Banks, Inc. [STI] earns $455,522 for each employee under its payroll. Similarly, this company’s Total Asset Turnover is 0.05. This publicly-traded organization’s liquidity data is also interesting: its Current Ratio is 0.08.
SunTrust Banks, Inc. [STI] has 448.71M shares outstanding, amounting to a total market cap of $28.65B. Its stock price has been found in the range of 46.05 to 75.08. At its current price, it has moved by -14.97% from its 52-week high, and it has moved 38.63% from its 52-week low.
This stock’s Beta value is currently 1.53, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 56.79. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is SunTrust Banks, Inc. [STI] a Reliable Buy?
Shares of SunTrust Banks, Inc. [STI], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.