Keycorp Intrinsic Value – Zacks Research Lowers KeyCorp’s Q3 2023 Earnings Estimates
August 11, 2023
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KEYCORP ($NYSE:KEY): KeyCorp (NYSE: KEY) is a regional banking institution based in Cleveland, Ohio. Recently, Zacks Research analysts have lowered their Q3 2023 earnings projections for the company in a research note. The revision was prompted by the current economic outlook and a shift in KeyCorp’s capital allocation strategy. The new projections suggest that KeyCorp will experience a decline in profits compared to the previous quarter. This could also mean lower dividends for investors in the near future, as the company seeks to maintain its financial stability. The revised estimates come at a time when many banks are making adjustments to their operating model in order to remain competitive in an ever-changing market.
KeyCorp is no exception, as it seeks to capitalize on the current low interest rates and increase its digital banking presence. Although a decrease in profits is not ideal, the company has taken steps to ensure that it can remain competitive in the future. Overall, Zacks Research has lowered its Q3 2023 earnings projections for KeyCorp. While this presents a challenge to the company, it is also an opportunity to make necessary changes and adapt to the current market conditions. With the right strategies in place, KeyCorp may be able to weather this storm and emerge as an even stronger competitor in the banking industry.
Earnings
In the earning report of FY2023 Q2 as of June 30 2021, KEYCORP earned a total revenue of 75.0M USD. This is a 3.8% decrease from the same period from the previous year. Furthermore, the total revenue of KEYCORP has decreased from 75.0M USD to 65.0M USD in the past three years. In the face of these declining numbers, Zacks Research has adjusted their earnings estimates accordingly.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Keycorp. KeyCorps_Q3_2023_Earnings_Estimates”>More…
| Total Revenues | Net Income | Net Margin |
| – | 1.4k | – |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Keycorp. KeyCorps_Q3_2023_Earnings_Estimates”>More…
| Operations | Investing | Financing |
| 4.47k | -10.93k | 6.44k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Keycorp. KeyCorps_Q3_2023_Earnings_Estimates”>More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 195.04k | 181.19k | – |
Key Ratios Snapshot
Some of the financial key ratios for Keycorp are shown below. KeyCorps_Q3_2023_Earnings_Estimates”>More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 4.4% | – | – |
| FCF Margin | ROE | ROA |
| – | – | – |
Market Price
On Monday, Zacks Research announced that it had lowered its earnings estimates for KeyCorp’s third quarter of 2023. Investors appeared to take this news in stride, with the stock still managing to close higher.
However, the estimates from Zacks Research still showed a decline year-over-year in earnings for the third quarter of 2023. This may be cause for concern among investors, as a decline in earnings is typically an indication of a company’s financial health. It remains to be seen how KEYCORP will respond to this news and how investors will react to the revised figures. Live Quote…
Analysis – Keycorp Intrinsic Value
At GoodWhale, we have analyzed the fundamentals of KEYCORP and have come up with some interesting insights. Our proprietary Valuation Line has calculated the intrinsic value of KEYCORP stock to be around $18.3. This means that currently KEYCORP stock, trading at $12.0, is undervalued by 34.3%. This presents a great buying opportunity for investors who are looking for sound long-term investments. We believe KEYCORP is a solid company with strong fundamentals and a bright future ahead, and thus recommend it for those who want to diversify their portfolio. More…
Peers
In recent years, the banking sector has seen increased competition between KeyCorp and its main competitors, Bank of Xi’an Co Ltd, Fellow Bank PLC and Elmer Bancorp Inc. All four banks have been striving to win market share and customers, through a combination of innovative products, competitive pricing and excellent customer service. In the coming years, it is likely that this competition will continue to intensify, as all four banks look to expand their operations and grow their market share.
– Bank of Xi’an Co Ltd ($SHSE:600928)
Bank of Xi’an Co Ltd has a market cap of 15.16B as of 2022. The company is a leading commercial bank in China that focuses on providing banking services to small and medium enterprises. It has a wide network of branches across China and offers a variety of products and services, including loans, deposits, and foreign exchange.
– Fellow Bank PLC ($LTS:0RD4)
Fellow Bank PLC is a UK-based banking company with a market cap of 33.48M as of 2022. The company offers personal banking, business banking, and corporate banking services through a network of branches and ATMs across the UK. Fellow Bank PLC is a subsidiary of Fellow Group PLC.
– Elmer Bancorp Inc ($OTCPK:ELMA)
Elmer Bancorp Inc is a bank holding company that operates through its subsidiary, Elmer Bank & Trust Company. The company offers a range of banking services to individuals and businesses, including checking and savings accounts, loans, and investment services. Elmer Bancorp Inc has a market cap of 15.05M as of 2022. The company has a strong presence in the southern New Jersey market and is committed to providing quality customer service.
Summary
Investing in KeyCorp has seen a shift in recent months as analysts at Zacks Research have lowered their projections for Q3 2023 earnings. Investors will need to consider other indicators when deciding whether or not to buy into KeyCorp, such as its financial health, industry trends, and management decisions. They should also be aware of any significant risks that may arise from investing in the company. KeyCorp’s stock can be affected by external factors such as market conditions, political and economic uncertainties, and changes in interest rates.
It is important to do thorough research and understand the investment before making a decision. Analysts will continue to monitor KeyCorp’s performance and provide updates on the company’s potential for future success.
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