Banks Industry Report
Market Cap: $11.5T
Stocks: 424
Median P/E: 10.6x
Median ROIC: 9.3%
Data sourced from SEC EDGAR filings. Report refreshed weekly.
Part of the Financials sector.
Performance Dashboard
| Period | Sector (MCW) | Sector (Median) |
|---|---|---|
| 1 Day | +0.2% | -0.3% |
| 1 Week | -2.4% | -1.6% |
| 1 Month | — | — |
| 3 Months | — | — |
| 6 Months | — | — |
| YTD | -0.3% | -0.2% |
| 1 Year | +54.1% | +15.9% |
| 3 Years | +113.4% | +37.3% |
| 5 Years | +1344.5% | +29.6% |
Today's Breadth: 131 advancing · 241 declining · 28 flat
Valuation Summary
| Metric | Median | P25 | P75 | vs 5Y Avg |
|---|---|---|---|---|
| P/E | 10.6x | 1.8x | 13.9x | +6% |
| P/B | 0.9x | 0.3x | 1.2x | +1% |
| P/S | 2.4x | 0.4x | 3.2x | — |
| P/FCF | 9.2x | 1.0x | 12.7x | — |
| EV/EBITDA | 12.9x | 6.5x | 26.6x | — |
| EV/EBIT | 15.3x | 7.5x | 45.2x | — |
Earnings Yield
8.2%
FCF Yield
8.8%
Below Fair Value
19% of stocks
Profitability Profile
Margins
| Metric | Median | 5Y Avg | P25 | P75 |
|---|---|---|---|---|
| Gross Margin | 68.2% | 77.3% | 60.1% | 73.3% |
| Operating Margin | 11.0% | — | 1.9% | 27.9% |
| Net Margin | 18.9% | 22.1% | 14.2% | 24.1% |
| FCF Margin | 21.9% | — | 13.6% | 29.2% |
Returns on Capital
| Metric | Median | 5Y Avg | P25 | P75 |
|---|---|---|---|---|
| ROE | 9.7% | — | 6.6% | 12.0% |
| ROA | 0.9% | — | 0.6% | 1.2% |
| ROIC | 9.3% | 10.0% | 5.7% | 13.9% |
Growth Metrics
| Metric | 1Y | 3Y CAGR | 5Y CAGR |
|---|---|---|---|
| Revenue | +5.1% | +12.4% | +10.0% |
| EPS | +13.8% | +1.2% | +8.3% |
| Free Cash Flow | +8.3% | -5.8% | +7.3% |
All values represent sector median growth rates.
Balance Sheet Health
Debt / Equity
0.3x
Net Debt / EBITDA
-3.4x
Interest Coverage
0.8x
Current Ratio
—
Altman Z-Score
Safe (>3): 1 (1%)
Gray (1.8–3): 0 (0%)
Distress (<1.8): 75 (99%)
Piotroski F-Score
Strong (7–9): 70 (17%)
Moderate (4–6): 282 (67%)
Weak (0–3): 71 (17%)
Top Companies
| Symbol | #▲ | Mkt Cap | P/E | EV/EBITDA | ROIC | Net Mgn | Rev Gr. | Div Yld | YTD | Qual. |
|---|---|---|---|---|---|---|---|---|---|---|
| HSBC | 1 | $1.8T | — | — | 26.5% | — | — | — | -1.5% | 3/9 |
| BACRP | 2 | $1.4T | 50.7x | 410.6x | 4.8% | 15.2% | -2.5% | 0.6% | 0.0% | 4/9 |
| JPM | 3 | $872.4B | 16.3x | 12.8x | 7.2% | 30.5% | +2.8% | 1.8% | +1.4% | 5/9 |
| BAC | 4 | $406.8B | 14.7x | 142.3x | 4.8% | 15.2% | -2.5% | 1.9% | +0.3% | 4/9 |
| SWED-A-ST | 5 | $371.3B | 6.8x | — | — | 46.3% | +0.5% | 7.2% | — | 3/9 |
| DGP | 6 | $358.0B | — | — | 25.2% | -0.0% | -0.2% | — | — | 2/9 |
| HBCYF | 7 | $345.0B | — | — | 26.5% | — | — | — | -3.3% | 3/9 |
| WFC | 8 | $280.7B | 15.1x | 41.2x | 5.7% | 16.4% | -1.5% | 1.8% | +1.3% | 4/9 |
| BWVTF | 9 | $269.4B | — | — | 28.4% | 19.9% | -9.2% | — | 0.0% | 2/9 |
| C | 10 | $258.4B | 17.1x | 23.4x | 2.8% | 8.5% | -1.2% | 2.2% | +2.1% | 4/9 |
| HSBA-L | 11 | $254.7B | 9.7x | — | — | — | — | 6.0% | — | 4/9 |
| MUFG | 12 | $206.2B | 18.2x | 97.7x | 3.2% | 22.4% | +4.5% | 2.3% | -5.8% | 3/9 |
| SAN | 13 | $179.5B | 9.8x | — | — | 15.2% | -2.2% | 2.2% | -14.8% | 5/9 |
| BCDRF | 14 | $174.5B | — | — | — | 15.2% | -2.2% | — | +2.4% | 3/9 |
| IFED | 15 | $157.3B | — | — | 45.1% | — | — | — | +1.0% | 3/9 |
| HDB | 16 | $137.5B | 21.7x | 22.0x | 5.0% | 16.1% | +14.3% | 1.1% | +1.1% | 6/9 |
| SMFG | 17 | $136.2B | 28.6x | — | 3.5% | 7.7% | +14.8% | 2.8% | +3.5% | 1/9 |
| BBVA | 18 | $133.0B | 10.5x | — | 18.3% | 19.1% | -0.8% | 3.6% | +0.3% | 6/9 |
| BBVXF | 19 | $131.4B | — | — | 187.3% | 19.1% | -0.8% | — | -0.2% | 4/9 |
| GBUG | 20 | $115.5B | — | — | 28.4% | 19.9% | -9.2% | — | 0.0% | 2/9 |
Industry Composition
| Industry | Stocks | Market Cap | % | |
|---|---|---|---|---|
| National Commercial Banks | 118 | $4.8T | 41.8% | |
| Commercial Banks, Nec | 28 | $2.3T | 19.9% | |
| Savings Institution, Federally Chartered | 39 | $2.1T | 18.5% | |
| State Commercial Banks | 201 | $1.1T | 9.8% | |
| Banks - Regional | 11 | $765.2B | 6.6% | |
| Banks - Diversified | 5 | $387.1B | 3.4% | |
| Savings Institutions, Not Federally Chartered | 22 | $15.6B | 0.1% |
Quality Distribution
0
1
2
3
4
5
6
7
8
9
Quality Score (0-9)
High Quality (7+)
1%
Median Piotroski F
5/9
Profitable Years
10 of 10
Dividends & Shareholder Returns
Paying Dividends
70%
Median Div Yield
2.9%
Median Buyback Yield
0.6%
Shareholder Yield
3.3%
Payout Ratio
34.4%
Div Growth (3Y)
4.8%
Div Growth (5Y)
6.1%
Strengths & Weaknesses
Strengths
- +[Balance Sheet]Conservative balance sheets with a median Debt/Equity of 0.3x, providing financial flexibility for opportunistic investment.
- +[Growth]Strong secular growth with a median 5-year revenue CAGR of 10.0%, outpacing nominal GDP.
- +[Profitability]High pricing power with a median gross margin of 68.2%, reflecting differentiated products or strong brand moats.
Weaknesses
- −[Financial Health]98.7% of companies fall in the Altman Z-Score distress zone (<1.8), indicating elevated bankruptcy risk within the sector.
- −[Growth]Revenue growth is decelerating: median 1-year growth of 5.1% trails the 3-year CAGR of 12.4%, indicating potential cyclical headwinds.
- −[Leverage]Tight interest coverage at 0.8x, leaving limited cushion for debt servicing if earnings decline.
- −[Quality]Only 1.4% of companies score 7+ on the quality checklist, reflecting structural challenges in achieving consistent returns across the sector.