KeyCorp (KEY, Financial), a prominent player in the banking industry, has experienced a notable shift in its stock performance over recent times. With a market capitalization of $11.16 billion, the current stock price stands at $11.92. Over the past week, KeyCorp's stock has seen a 5.49% gain, which contrasts with a 10.24% loss over the past three months. This fluctuation in price is particularly interesting when considering the company's GF Value, which is currently at $17.69, down from a past GF Value of $18.7. Despite the recent downturn, KeyCorp is currently deemed Significantly Undervalued, a marked improvement from its previous assessment as a Possible Value Trap, where investors were advised to Think Twice.
Understanding KeyCorp's Business Model
KeyCorp, with its headquarters in Ohio, boasts assets exceeding $170 billion and has a significant presence in Ohio and New York. The company's business model is tailored to cater to middle-market commercial clients, operating through a hybrid community/corporate bank model. This strategic focus has allowed KeyCorp to carve out a niche in the competitive banking landscape. 
Profitability Insights
When it comes to profitability, KeyCorp holds a Profitability Rank of 5/10, which is a moderate score reflecting its financial health and market position. The company's Return on Equity (ROE) is 9.49%, outperforming 42.95% of its industry peers. Furthermore, its Return on Assets (ROA) stands at 0.67%, surpassing 31.99% of competitors. Impressively, KeyCorp has maintained profitability for the past 10 years, a feat better than 99.93% of industry peers, showcasing its consistent performance and resilience. 
Growth Trajectory and Industry Standing
KeyCorp's Growth Rank is currently at 4/10. The company has witnessed a 3-Year Revenue Growth Rate per Share of 6.90%, which is better than 53.66% of its industry peers. Its 5-Year Revenue Growth Rate per Share is also strong at 6.70%, outperforming 58.85% of competitors. Looking ahead, KeyCorp's Total Revenue Growth Rate is estimated at 0.82% for the next 3 to 5 years, which is better than 18.7% of industry peers. The 3-Year EPS without NRI Growth Rate stands at 6.10%, and the 5-Year EPS without NRI Growth Rate is at an impressive 11.50%, both of which are commendable when compared to industry standards. The EPS Growth Rate for the next 3 to 5 years is projected at 1.30%, surpassing 24.64% of industry peers. 
Key Shareholders in KeyCorp
KeyCorp's shareholder composition includes notable investors such as Jim Simons (Trades, Portfolio), who holds 2,398,551 shares, representing a 0.26% share percentage. PRIMECAP Management (Trades, Portfolio) follows closely with 2,187,600 shares, accounting for a 0.23% share percentage. Richard Pzena (Trades, Portfolio) also has a significant stake, with 1,729,986 shares, equating to a 0.18% share percentage. These holders reflect the confidence and interest from savvy investors in KeyCorp's market potential.
Competitive Landscape
In comparison to its competitors, KeyCorp stands strong. Credicorp Ltd (BAP, Financial) has a market cap of $9.67 billion, while Citizens Financial Group Inc (CFG, Financial) boasts a market cap of $12.39 billion. New York Community Bancorp Inc (NYCB, Financial) has a market cap of $6.57 billion. These figures place KeyCorp in a competitive position within the banking industry, highlighting its stability and potential for growth amidst its peers.
Conclusive Analysis
In conclusion, KeyCorp's recent stock performance indicates a positive trend, as the company is currently considered Significantly Undervalued according to its GF Value. The company's profitability and growth metrics demonstrate a solid foundation and potential for future expansion. With a stable shareholder base and a competitive stance in the market, KeyCorp appears to be an attractive option for value investors seeking opportunities in the banking sector. As the financial landscape evolves, KeyCorp's strategic focus and consistent performance may continue to drive its stock value upward, making it a noteworthy consideration for investment portfolios.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
