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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 6/10

vs
industry
vs
history
Cash to Debt 0.08
KEY's Cash to Debt is ranked lower than
51% of the 1574 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 1.37 vs. KEY: 0.08 )
KEY' s 10-Year Cash to Debt Range
Min: 0.02   Max: 0.5
Current: 0.08

0.02
0.5
Equity to Asset 0.11
KEY's Equity to Asset is ranked higher than
78% of the 2016 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 0.09 vs. KEY: 0.11 )
KEY' s 10-Year Equity to Asset Range
Min: 0.07   Max: 0.12
Current: 0.11

0.07
0.12
Interest Coverage 4.87
KEY's Interest Coverage is ranked higher than
89% of the 1886 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 1.43 vs. KEY: 4.87 )
KEY' s 10-Year Interest Coverage Range
Min: 0.09   Max: 4.87
Current: 4.87

0.09
4.87
F-Score: 4
Z-Score: 0.31
WACC vs ROIC
8.56%
6.86%
WACC
ROIC
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 5/10

vs
industry
vs
history
Operating margin (%) 31.10
KEY's Operating margin (%) is ranked higher than
77% of the 2042 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 30.23 vs. KEY: 31.10 )
KEY' s 10-Year Operating margin (%) Range
Min: -52.05   Max: 33.25
Current: 31.1

-52.05
33.25
Net-margin (%) 22.00
KEY's Net-margin (%) is ranked higher than
76% of the 2042 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 22.13 vs. KEY: 22.00 )
KEY' s 10-Year Net-margin (%) Range
Min: -35.26   Max: 23.9
Current: 22

-35.26
23.9
ROE (%) 8.62
KEY's ROE (%) is ranked higher than
76% of the 2045 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 8.70 vs. KEY: 8.62 )
KEY' s 10-Year ROE (%) Range
Min: -16.11   Max: 18.27
Current: 8.62

-16.11
18.27
ROA (%) 0.98
KEY's ROA (%) is ranked higher than
82% of the 2048 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 0.78 vs. KEY: 0.98 )
KEY' s 10-Year ROA (%) Range
Min: -1.45   Max: 1.35
Current: 0.98

-1.45
1.35
ROC (Joel Greenblatt) (%) 139.23
KEY's ROC (Joel Greenblatt) (%) is ranked higher than
85% of the 2010 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 78.54 vs. KEY: 139.23 )
KEY' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -97.35   Max: 280.85
Current: 139.23

-97.35
280.85
Revenue Growth (3Y)(%) 2.30
KEY's Revenue Growth (3Y)(%) is ranked higher than
78% of the 1760 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 1.70 vs. KEY: 2.30 )
KEY' s 10-Year Revenue Growth (3Y)(%) Range
Min: 0   Max: 10.9
Current: 2.3

0
10.9
EBITDA Growth (3Y)(%) -0.40
KEY's EBITDA Growth (3Y)(%) is ranked higher than
64% of the 1578 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 6.30 vs. KEY: -0.40 )
KEY' s 10-Year EBITDA Growth (3Y)(%) Range
Min: 0   Max: 29.4
Current: -0.4

0
29.4
EPS Growth (3Y)(%) 4.20
KEY's EPS Growth (3Y)(%) is ranked higher than
70% of the 1607 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 7.80 vs. KEY: 4.20 )
KEY' s 10-Year EPS Growth (3Y)(%) Range
Min: -45.1   Max: 80.6
Current: 4.2

-45.1
80.6
» KEY's 10-Y Financials

Financials


Revenue & Net Income
Equity & Asset
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q2 2014

KEY Guru Trades in Q2 2014

Jim Simons 1,046,463 sh (New)
HOTCHKIS & WILEY 4,569,727 sh (+12.03%)
Richard Snow 5,274,657 sh (+9.38%)
Richard Pzena 4,938,275 sh (+8.85%)
Manning & Napier Advisors, Inc 789,050 sh (+0.70%)
Irving Kahn 18,569 sh (unchged)
Martin Whitman 5,644,398 sh (unchged)
John Buckingham 101,862 sh (-0.07%)
RS Investment Management 6,172,389 sh (-1.32%)
Third Avenue Management 7,846,078 sh (-9.22%)
Pioneer Investments 7,428,861 sh (-13.15%)
David Dreman 147,623 sh (-28.56%)
Paul Tudor Jones 10,200 sh (-34.19%)
Arnold Schneider 105,380 sh (-50.63%)
Jeremy Grantham 185,200 sh (-51.24%)
Diamond Hill Capital 18,003 sh (-63.36%)
» More
Q3 2014

KEY Guru Trades in Q3 2014

Caxton Associates 250,000 sh (New)
Paul Tudor Jones 54,451 sh (+433.83%)
Jeremy Grantham 266,800 sh (+44.06%)
Richard Pzena 5,373,500 sh (+8.81%)
David Dreman 153,348 sh (+3.88%)
Richard Snow 5,450,627 sh (+3.34%)
John Buckingham 103,235 sh (+1.35%)
Pioneer Investments 5,270,650 sh (unchged)
Martin Whitman 5,644,398 sh (unchged)
Arnold Schneider Sold Out
Diamond Hill Capital Sold Out
HOTCHKIS & WILEY Sold Out
Manning & Napier Advisors, Inc Sold Out
RS Investment Management 6,116,709 sh (-0.90%)
Jim Simons 911,563 sh (-12.89%)
Third Avenue Management 6,787,103 sh (-13.50%)
Irving Kahn 15,573 sh (-16.13%)
» More
Q4 2014

KEY Guru Trades in Q4 2014

Jim Simons 2,011,263 sh (+120.64%)
Richard Snow 5,930,619 sh (+8.81%)
John Buckingham 110,778 sh (+7.31%)
Third Avenue Management 7,208,189 sh (+6.20%)
David Dreman 156,940 sh (+2.34%)
Richard Pzena 5,445,875 sh (+1.35%)
Martin Whitman 5,644,398 sh (unchged)
Caxton Associates Sold Out
Paul Tudor Jones Sold Out
Irving Kahn 15,200 sh (-2.40%)
Jeremy Grantham 221,400 sh (-17.02%)
Pioneer Investments 2,988,018 sh (-43.31%)
RS Investment Management 3,258,413 sh (-46.73%)
» More
2015

KEY Guru Trades in 2015

Martin Whitman 6,050,798 sh (+7.20%)
» More
» Details

Insider Trades

Latest Guru Trades with KEY

(List those with share number changes of more than 20%, or impact to portfolio more than 0.1%)



No Guru Trades Found!
» Interactive Charts

Peter Lynch Chart ( What is Peter Lynch Charts )

Preferred stocks of KeyCorp

SymbolPriceYieldDescription
KEYPRG0.005.92KeyCorp,7.750% Non-Cumulative Perpetual Convertible Preferred Stock, Series A

Guru Investment Theses on KeyCorp

Third Avenue Value Fund Comments on KeyCorp - Sep 12, 2014

We have preferred regional banks for three reasons. First, at TAM we focus on price to tangible book value (P/TBV) as opposed to simple P/B. Tangible book value is a better measure of intrinsic value as it excludes intangible assets which wouldn’t carry much value in liquidation. As discussed earlier, one of the dimensions we focus on as we evaluate companies is the assets. The valuations of KEY and CMA are much closer to peers listed above on a P/TBV basis. Evaluating just a single statistic may provide misleading conclusions when evaluating an investment. Thus, we also consider how well a company can compound its book value over time. As seen in the table above, both KEY and CMA are generating higher returns on assets (ROA) than peers. This is important as companies that generate higher returns deserve premium valuations. Again, we distinguish among the many metrics. We focus on ROA as the measure of ROA does not favor companies that carry higher leverage and perhaps higher risk.



Second, the Tier 1 Common Equity ratios for KEY and CMA compare favorably against the money center peers. This metric indicates that the Fund’s regional banks are as well, if not better, capitalized than money center banks. As discussed in the opening paragraphs of the letter, the integrity of the balance sheet is a key dimension to our analysis.



Third, the chart above also shows the Level III assets for each company. Level III assets are not traded in liquid markets so prices are determined using a company’s internal models. Those prices could be entirely accurate, but as seen during the financial crisis, when liquidity dries up, asset prices of illiquid securities can get distorted quickly. We aren’t willing to take that risk. By focusing on KEY and CMA’s TBV and lower exposure to Level III assets, we gain additional comfort with their balance sheets. The regulators agree with our view. The table above shows “severely stressed capital ratios” from the Federal Reserve test earlier this year. The stress test assumptions are extreme (deep recession, high unemployment, 50% decline in equity prices and 2001 house prices), but the results do provide insight into the strength of the asset portfolios.



KEY and CMA’s above average results on the stress tests are another indication of the high transparency and durability of their balance sheets.



In sum, a discount to book value isn’t good enough for us at TAM to invest in a stock. We also need conviction in adequate downside protection. Investing in companies with low leverage and high quality assets helps us develop that conviction. CMA and KEY fit our strict criteria and have provided solid returns to investors thus far and as both grow book value plus dividends in the future, we are confident those returns will continue.



The Fund invested in the common stocks in KEY and CMA at discounts to tangible book and with the expectation that they could grow book value at double digit rates over time. Given the satisfactory ROAs and BV compounding (trailing twelve month BV growth including dividends: CMA: 12%, KEY: 9.8%), we are happy with how our companies are executing, despite persistently low interest rates and sluggish loan growth. What’s more impressive is that our companies are able to generate higher ROAs despite carrying more excess capital which weighs on returns. Both companies are positive contributors to the Fund’s performance year to date.



From Third Avenue Value Fund’s Third Quarter 2014 Commentary.



Check out Martin Whitman latest stock trades

Top Ranked Articles about KeyCorp

Third Avenue Value Fund Comments on KeyCorp
We have preferred regional banks for three reasons. First, at TAM we focus on price to tangible book value (P/TBV) as opposed to simple P/B. Tangible book value is a better measure of intrinsic value as it excludes intangible assets which wouldn’t carry much value in liquidation. As discussed earlier, one of the dimensions we focus on as we evaluate companies is the assets. The valuations of KEY and CMA are much closer to peers listed above on a P/TBV basis. Evaluating just a single statistic may provide misleading conclusions when evaluating an investment. Thus, we also consider how well a company can compound its book value over time. As seen in the table above, both KEY and CMA are generating higher returns on assets (ROA) than peers. This is important as companies that generate higher returns deserve premium valuations. Again, we distinguish among the many metrics. We focus on ROA as the measure of ROA does not favor companies that carry higher leverage and perhaps higher risk. Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 14.00
KEY's P/E(ttm) is ranked higher than
81% of the 2685 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 17.90 vs. KEY: 14.00 )
KEY' s 10-Year P/E(ttm) Range
Min: 5.86   Max: 54.9
Current: 14

5.86
54.9
Forward P/E 10.94
KEY's Forward P/E is ranked higher than
85% of the 2685 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 17.73 vs. KEY: 10.94 )
N/A
PE(NRI) 13.50
KEY's PE(NRI) is ranked higher than
84% of the 2685 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 17.90 vs. KEY: 13.50 )
KEY' s 10-Year PE(NRI) Range
Min: 5.49   Max: 46.67
Current: 13.5

5.49
46.67
P/B 1.18
KEY's P/B is ranked higher than
73% of the 2685 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 1.34 vs. KEY: 1.18 )
KEY' s 10-Year P/B Range
Min: 0.36   Max: 2.06
Current: 1.18

0.36
2.06
P/S 3.02
KEY's P/S is ranked higher than
71% of the 2685 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 3.61 vs. KEY: 3.02 )
KEY' s 10-Year P/S Range
Min: 0.59   Max: 3.36
Current: 3.02

0.59
3.36
PFCF 10.00
KEY's PFCF is ranked higher than
87% of the 2685 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 0.00 vs. KEY: 10.00 )
KEY' s 10-Year PFCF Range
Min: 1.81   Max: 3745
Current: 10

1.81
3745
POCF 9.27
KEY's POCF is ranked higher than
86% of the 2685 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 41.60 vs. KEY: 9.27 )
KEY' s 10-Year POCF Range
Min: 1.7   Max: 185.35
Current: 9.27

1.7
185.35
EV-to-EBIT 11.71
KEY's EV-to-EBIT is ranked higher than
85% of the 2685 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 19.72 vs. KEY: 11.71 )
KEY' s 10-Year EV-to-EBIT Range
Min: -101.4   Max: 532.2
Current: 11.71

-101.4
532.2
Shiller P/E 44.86
KEY's Shiller P/E is ranked higher than
74% of the 2685 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 0.00 vs. KEY: 44.86 )
KEY' s 10-Year Shiller P/E Range
Min: 3.17   Max: 279.2
Current: 44.86

3.17
279.2

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 1.86
KEY's Dividend Yield is ranked lower than
62% of the 1924 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 2.44 vs. KEY: 1.86 )
KEY' s 10-Year Dividend Yield Range
Min: 0.42   Max: 20.78
Current: 1.86

0.42
20.78
Dividend Payout 0.24
KEY's Dividend Payout is ranked higher than
84% of the 2685 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 0.60 vs. KEY: 0.24 )
KEY' s 10-Year Dividend Payout Range
Min: 0.09   Max: 3.81
Current: 0.24

0.09
3.81
Dividend growth (3y) 35.70
KEY's Dividend growth (3y) is ranked higher than
94% of the 1182 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 5.60 vs. KEY: 35.70 )
KEY' s 10-Year Dividend growth (3y) Range
Min: -69.9   Max: 75.2
Current: 35.7

-69.9
75.2
Yield on cost (5-Year) 8.61
KEY's Yield on cost (5-Year) is ranked higher than
92% of the 1933 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 2.64 vs. KEY: 8.61 )
KEY' s 10-Year Yield on cost (5-Year) Range
Min: 1.9   Max: 94.22
Current: 8.61

1.9
94.22
Share Buyback Rate 2.10
KEY's Share Buyback Rate is ranked higher than
93% of the 1468 Companies
in the Global Banks - Regional - US industry.

( Industry Median: -1.10 vs. KEY: 2.10 )
KEY' s 10-Year Share Buyback Rate Range
Min: 2.1   Max: -30.4
Current: 2.1

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 1.34
KEY's Price/Tangible Book is ranked higher than
74% of the 2685 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 1.58 vs. KEY: 1.34 )
KEY' s 10-Year Price/Tangible Book Range
Min: 0.59   Max: 3.97
Current: 1.34

0.59
3.97
Price/DCF (Projected) 0.49
KEY's Price/DCF (Projected) is ranked higher than
93% of the 2685 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 0.00 vs. KEY: 0.49 )
KEY' s 10-Year Price/DCF (Projected) Range
Min: 0.38   Max: 1.02
Current: 0.49

0.38
1.02
Price/Median PS Value 1.33
KEY's Price/Median PS Value is ranked higher than
68% of the 2685 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 1.28 vs. KEY: 1.33 )
KEY' s 10-Year Price/Median PS Value Range
Min: 0.36   Max: 2.3
Current: 1.33

0.36
2.3
Price/Graham Number 0.86
KEY's Price/Graham Number is ranked higher than
82% of the 2685 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 1.20 vs. KEY: 0.86 )
KEY' s 10-Year Price/Graham Number Range
Min: 0.52   Max: 2.46
Current: 0.86

0.52
2.46
Earnings Yield (Greenblatt) 8.50
KEY's Earnings Yield (Greenblatt) is ranked higher than
81% of the 2032 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 6.40 vs. KEY: 8.50 )
KEY' s 10-Year Earnings Yield (Greenblatt) Range
Min: 0.2   Max: 13.9
Current: 8.5

0.2
13.9
Forward Rate of Return (Yacktman) -6.37
KEY's Forward Rate of Return (Yacktman) is ranked higher than
54% of the 1318 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 14.65 vs. KEY: -6.37 )
KEY' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -6.8   Max: 40.5
Current: -6.37

-6.8
40.5

Business Description

Industry: Banks » Banks - Regional - US
Compare:MTB, USB, PNC, PB, CFR » details
Traded in other countries:KEY.Germany,
KeyCorp was organized in 1958 under the laws of the State of Ohio. It is a parent holding company for KeyBank National Association, its principal subsidiary, through which of its banking services are provided. Through subsidiaries, the Company provides retail and commercial banking, commercial leasing, investment management, consumer finance and investment banking products and services to individual, corporate and institutional clients. The Company has two business segments: Key Community Bank and Key Corporate Bank. Key Community Bank serves individuals and small to mid-sized businesses by offering deposit, investment, lending, credit card, and personalized wealth management products and services. These products and services are provided through its relationship managers and specialists working in its 12-state branch network. Key Corporate Bank is a full-service corporate and investment bank focused principally on serving the needs of middle market clients in six industry sectors: consumer, energy, healthcare, industrial, public sector and real estate. Key Corporate Bank delivers a broad product suite of banking and capital markets products to its clients, including syndicated finance, debt and equity capital markets, commercial payments, equipment finance, commercial mortgage banking, derivatives, foreign exchange, financial advisory and public finance. It is also a servicer of commercial mortgage loans. Other Segments consist of Corporate Treasury, Community Development, Principal Investing and various exit portfolios. The Company is subject to extensive federal and state regulation and supervision.
» More Articles for KEY

Headlines

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