Truist Financial’s ‘Transformational Merger of Equals’ Continues to be a Hot Topic for Shareholders
January 11, 2023
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Truist Financial Stock Intrinsic Value – Since its formation in 2019, the company has become one of the largest financial institutions in the US, and has seen a tremendous amount of growth and success. At the end of February 2019, Truist ($NYSE:TFC) announced their ‘transformational merger of equals’ with BB& T and SunTrust. This merger created the leading financial institution in the US, and was the first such merger of its kind in recent memory. The merger had a profound impact on the stock market and generated a great deal of interest from shareholders. Since the announcement, the word ‘merger’ has been mentioned during 15 separate earnings calls a total of 530 times.
This demonstrates just how important the merger is to shareholders, as they are eager to receive updates on the progress of the merger and the future of the company. The company has made significant strides in integrating the operations of BB& T and SunTrust. They have also developed a digital-first approach to banking, with an emphasis on customer service and convenience. The success of this merger is paramount for Truist, as it will give them a competitive edge in the market and ensure that they remain at the forefront of the US banking industry. Shareholders have been keeping a close eye on the progress of the merger and will continue to do so for years to come.
Price History
At the time of writing, media exposure continues to be mostly mixed, with some analysts citing concerns over the potential financial and operational risks associated with the merger. On Tuesday, TRUIST FINANCIAL stock opened at $45.8 and closed at $46.0, up by 0.4% from the previous closing price. This increase in the stock price demonstrates that there are some investors who are optimistic about the potential of the merger to succeed. At the same time, however, some analysts remain cautious in their outlook, citing the potential challenges posed by integrating two separate businesses with different cultures and strategies. They also point out that the actual benefits of the merger may take some time to materialize, as it takes time for a new organization to become profitable.
Additionally, some analysts have noted that the merger may have limited upside for shareholders, as most of the cost savings and synergies are expected to be achieved by reducing headcount and other operating expenses. The success or failure of the merger will have a significant impact on the future performance of the company, and investors will be closely monitoring developments as they unfold. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Truist Financial. More…
| Total Revenues | Net Income | Net Margin |
| – | 5.84k | – |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Truist Financial. More…
| Operations | Investing | Financing |
| 7.89k | -32.06k | 25.59k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Truist Financial. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 548.44k | 487.63k | – |
Key Ratios Snapshot
Some of the financial key ratios for Truist Financial are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 24.4% | – | – |
| FCF Margin | ROE | ROA |
| – | – | – |
VI Analysis – Truist Financial Stock Intrinsic Value
TRUIST FINANCIAL is a company with a strong fundamental base that reflects its long term potential. This potential can be easily accessed with the help of a VI app. The intrinsic value of the TRUIST FINANCIAL share is calculated to be around $52.4, utilizing the VI Line method. At the time of writing, the stock is being traded at $46.0 per share, creating a fair price that is currently undervalued by 12%. This undervaluation offers investors the opportunity to purchase shares of TRUIST FINANCIAL at a discounted rate and benefit from the company’s future growth. The company’s fundamentals, when coupled with the current market price, form an attractive value proposition for investors looking to get involved with TRUIST FINANCIAL. The strong fundamentals of TRUIST FINANCIAL are not only evidenced by the current stock price, but also by a number of other factors such as revenue growth, operating margins, and debt-to-equity ratio. All of these factors suggest that the company is well-positioned for future growth and success. With these in mind, it is clear that investing in TRUIST FINANCIAL at its current price presents an opportunity for investors to benefit from its long term potential. More…
VI Peers
Truist Financial Corp is a large financial institution that offers a variety of banking and financial services to its customers. Its competitors include Public Bank Bhd, Bandhan Bank Ltd, and Bank of Georgia Group PLC.
– Public Bank Bhd ($KLSE:1295)
Public Bank Bhd is a Malaysian bank holding company. It was founded in 1966 and is headquartered in Kuala Lumpur. The company provides banking and financial services to individuals, businesses, and governments in Malaysia, Singapore, Cambodia, and Vietnam. Public Bank Bhd has a market cap of 84.24B as of 2022. The company’s main business activities are deposit-taking, loan and financing, foreign exchange, money market and treasury operations, and other related services.
– Bandhan Bank Ltd ($BSE:541153)
Bandhan Bank Ltd is an Indian banking and financial services company headquartered in Kolkata, West Bengal. It was founded in 2001 by Chandra Shekhar Ghosh. As of March 2019, the bank had 9,421 branches and 13,958 ATMs across 2,764 cities in India. Bandhan Bank offers banking products and services including savings and deposit accounts, loans, debit and credit cards, money transfer, and insurance. The bank had a market capitalization of 432.67 billion as of March 2019.
– Bank of Georgia Group PLC ($LSE:BGEO)
Bank of Georgia Group PLC is a leading banking group in Georgia, offering a wide range of banking and financial services to individuals, businesses and corporate clients. The Group has a significant market share in deposits, loans, credit cards and other key banking indicators. It is also the largest non-bank financial institution in the country. The Group employs around 4,000 people and serves over 1.5 million customers through a network of 97 branches and 202 ATMs across Georgia.
Summary
Truist Financial, formed through the “Transformational Merger of Equals” between BB&T and SunTrust, is an attractive investment for shareholders. Investors have responded favorably to the merger, as the combined entity offers increased diversification and a larger customer base. While there is mixed media exposure regarding the merger, analysts have given it a positive outlook overall. The company is expected to realize cost savings and generate higher revenues due to synergies from the merger.
Additionally, the company has a strong balance sheet and cash flow, making it a sound investment for shareholders.
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