Fifth Third Gross Profit vs. Price To Earning

FITB Stock  USD 48.06  0.10  0.21%   
Based on the measurements of profitability obtained from Fifth Third's financial statements, Fifth Third Bancorp is performing exceptionally good at this time. It has a great probability to showcase excellent profitability results in December. Profitability indicators assess Fifth Third's ability to earn profits and add value for shareholders.
 
Gross Profit  
First Reported
1990-03-31
Previous Quarter
3.3 B
Current Value
3.4 B
Quarterly Volatility
56.8 B
 
Oil Shock
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
At present, Fifth Third's Price To Sales Ratio is projected to increase slightly based on the last few years of reporting. The current year's EV To Sales is expected to grow to 7.06, whereas Days Sales Outstanding is forecasted to decline to 99.80. At present, Fifth Third's Change To Netincome is projected to increase significantly based on the last few years of reporting. The current year's Net Income Per Share is expected to grow to 3.61, whereas Accumulated Other Comprehensive Income is projected to grow to (4.3 B).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin1.231.39
Fairly Down
Slightly volatile
Net Profit Margin0.290.2866
Fairly Up
Slightly volatile
Operating Profit Margin0.790.5411
Way Up
Pretty Stable
Pretax Profit Margin0.40.3646
Significantly Up
Pretty Stable
Return On Assets0.01450.0109
Significantly Up
Pretty Stable
Return On Equity0.140.1225
Fairly Up
Very volatile
For Fifth Third profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Fifth Third to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Fifth Third Bancorp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Fifth Third's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Fifth Third Bancorp over time as well as its relative position and ranking within its peers.
  

Fifth Third's Revenue Breakdown by Earning Segment

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Is Regional Banks space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Fifth Third. If investors know Fifth will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Fifth Third listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.14)
Dividend Share
1.42
Earnings Share
3
Revenue Per Share
11.78
Quarterly Revenue Growth
(0.03)
The market value of Fifth Third Bancorp is measured differently than its book value, which is the value of Fifth that is recorded on the company's balance sheet. Investors also form their own opinion of Fifth Third's value that differs from its market value or its book value, called intrinsic value, which is Fifth Third's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Fifth Third's market value can be influenced by many factors that don't directly affect Fifth Third's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Fifth Third's value and its price as these two are different measures arrived at by different means. Investors typically determine if Fifth Third is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Fifth Third's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Fifth Third Bancorp Price To Earning vs. Gross Profit Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Fifth Third's current stock value. Our valuation model uses many indicators to compare Fifth Third value to that of its competitors to determine the firm's financial worth.
Fifth Third Bancorp is rated # 3 in gross profit category among its peers. It is rated below average in price to earning category among its peers . The ratio of Gross Profit to Price To Earning for Fifth Third Bancorp is about  697,237,077 . At present, Fifth Third's Gross Profit is projected to increase significantly based on the last few years of reporting. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Fifth Third's earnings, one of the primary drivers of an investment's value.

Fifth Price To Earning vs. Gross Profit

Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.

Fifth Third

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
7.82 B
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.

Fifth Third

P/E

 = 

Market Value Per Share

Earnings Per Share

 = 
11.22 X
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.

Fifth Price To Earning Comparison

Fifth Third is currently under evaluation in price to earning category among its peers.

Fifth Third Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Fifth Third, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Fifth Third will eventually generate negative long term returns. The profitability progress is the general direction of Fifth Third's change in net profit over the period of time. It can combine multiple indicators of Fifth Third, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-4.5 B-4.3 B
Operating Income4.4 B2.4 B
Net Income2.3 B1.2 B
Income Tax Expense639 M385.8 M
Income Before TaxB1.6 B
Total Other Income Expense Net-1.4 B-1.5 B
Net Income Applicable To Common Shares2.7 B1.7 B
Net Income From Continuing Ops2.6 B2.1 B
Net Interest IncomeBB
Interest Income9.2 B6.2 B
Change To Netincome3.3 B3.5 B
Net Income Per Share 3.43  3.61 
Income Quality 1.92  1.30 
Net Income Per E B T 0.79  0.58 

Fifth Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Fifth Third. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Fifth Third position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Fifth Third's important profitability drivers and their relationship over time.

Use Fifth Third in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Fifth Third position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Fifth Third will appreciate offsetting losses from the drop in the long position's value.

Fifth Third Pair Trading

Fifth Third Bancorp Pair Trading Analysis

The ability to find closely correlated positions to Fifth Third could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Fifth Third when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Fifth Third - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Fifth Third Bancorp to buy it.
The correlation of Fifth Third is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Fifth Third moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Fifth Third Bancorp moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Fifth Third can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Fifth Third position

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When determining whether Fifth Third Bancorp offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Fifth Third's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Fifth Third Bancorp Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Fifth Third Bancorp Stock:
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You can also try the Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
To fully project Fifth Third's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Fifth Third Bancorp at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Fifth Third's income statement, its balance sheet, and the statement of cash flows.
Potential Fifth Third investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Fifth Third investors may work on each financial statement separately, they are all related. The changes in Fifth Third's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Fifth Third's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.