KeyCorpKEYNYSE
Loading

Executive Summary

Latest Data: Dec 2025
Financial ServicesBanks - Regional
$24.3BLarge Cap

A large-scale business, with solid profitability, showing strong growth trading at a discount.

Key Investment Themes
High-growth business (24% revenue expansion)
Solid 16% profitability
Attractive valuation (13.2x P/E)

Business Narrative

KeyCorp operates as the holding company for KeyBank National Association that provides various retail and commercial banking products and services in the United States. It operates in two segments, Consumer Bank and Commercial Bank. The company offers various deposits, investment products and services; and personal finance and financial wellness, student loan refinancing, mortgage and home equity, lending, credit card, treasury, business advisory, wealth management, asset management, investment, cash management, portfolio management, and trust and related services to individuals and small and medium-sized businesses.

Financial ServicesBanks - Regional
Cyclical
Revenue Mix
Single segment business
Bull Case
  • +Strong revenue growth demonstrates market share expansion
  • +Solid profitability with room for margin expansion

Company at a Glance

Revenue Growth
24%
Profit Margin
16%
Free Cash Flow
$0
P/E Ratio
13.2x
+23% vs 5Y avg
IN-LINE

Business Performance

Business Scale
Revenue$11.2B
Net Income$1.8B
Profitability Quality
Gross Margin62%
Operating Margin21%
Net Margin16%
Growth Trajectory
Revenue Growth
24%
EPS Growth
1236%
FCF Growth
-100%

Key Highlights

Positive Signals

  • Strong double-digit revenue growth trend
  • Healthy profit margins demonstrating pricing power

Watch Areas

  • Negative free cash flow - burning cash
  • Current liabilities exceed current assets

Financial Health

Liquidity
Concern
Current Ratio0.77
<1.0 = Weak
Cash & Equivalents$1.3B
Leverage
Concern
Debt / Equity0.54
<1.0 = Low leverage
Interest Coverage0.61x
<2x = Tight
Efficiency
Concern
Return on Equity9.0%
8-15% = Fair
Return on Capital5.8%
<8% = Weak

Valuation Assessment

Market Cap
$24.3B
Large Cap
P/E (TTM)
13.2x
Discounted
vs 5Y avg: 10.7x (+23%)
P/S (TTM)
2.2x
In-line
vs 5Y avg: 2.0x (+7%)
EV/EBITDA
14.6x
In-line
vs 5Y avg: 17.1x
(-15%)
P/E Historical Range (5Y)
Min: 8.3xAvg: 10.7xNow: 13.2xMax: 13.8x
P/S Historical Range (5Y)
Min: 1.3xAvg: 2.0xNow: 2.2xMax: 3.0x
EV/EBITDA Historical Range (5Y)
Min: 10.3xAvg: 17.1xNow: 14.6xMax: 26.7x

Valuation Corridor

EXPENSIVE
PEG Ratio
2.13
P/E 13.2x / Growth 618.8% = Expensive
FCF Yield
5.9%
vs Cost of Capital ~8.0% = Strong
P/E Corridor (5Y)13.2x
8.3xFair: 8.3x-13.5x13.8x
P/S Corridor (5Y)2.2x
1.3xFair: 1.4x-2.6x3.0x
EV/EBITDA Corridor (5Y)14.6x
10.3xFair: 10.3x-24.2x26.7x

Detailed Financials

Comprehensive financial statement data for deep analysis

MetricDec 21Dec 22Dec 23Dec 24Dec 25
Return on Equity
-
-
-
-
-
Return on Invested Capital
-
-
-
-
-
Gross Margin
101.7%
82.5%18.9%
56.0%32.1%
44.8%19.9%
62.3%39.0%
Operating Margin
44.4%
29.5%33.5%
11.3%61.5%
-3.4%129.8%
20.6%709.4%
Net Margin
35.8%
24.2%32.3%
9.5%61.0%
-1.8%118.8%
16.3%1019.4%
Earnings Yield
-
-
-
-
-
Page 1 of 2