Regions Financial Corporation (RF): fair value, margin of safety and Wheel Score

Is RF undervalued?

At 26.89 (close of 16 Oct 2026), RF trades 22% under the GLS average fair value of 34.44. 6 of the 9 models that produced a value land above the price. A discount of this size counts as a positive margin of safety in every GLS screen; whether it is enough depends on the rest of the picture - the health score, the moat and the option premium below.

The 9 models disagree widely: GLS Growth gives 10.11 while Graham Growth gives 67.14. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.

The nightly engine files RF under High Yield Income: a dividend yield above 4%.

Nine valuation models for RF

Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.

Quality and financial health

On financial health RF scores 7/9 (Piotroski): most of the nine tests - positive earnings and cash flow, falling debt, rising margins and turnover - are passed, which is the kind of balance sheet a wheel trader is happy to be assigned. The GLS Moat score is 6.3 out of 10: a ten-year record that is consistent in some of the metrics the score tracks (revenue, earnings, margins, cash flow, returns on capital) and patchy in others.

Returns on capital are moderate - ROIC 9.0%, ROE 11.3%, ROA 1.4% - with debt at 0.26 times equity and a free-cash-flow yield of 7.7%.

The dividend yield is high at 4.07% (payout ratio 45%). A yield this size is often the market's way of pricing a risk to the payout, so the health score and cash flow matter more than usual. Revenue comes mainly from Consumer Bank 58%, Corporate Bank 38%, Wealth Management 3% (quarter Q1 FY2024).

Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 1/10 on the GLS smart-money scales.

Wheel Score 87: Prime

RF scores 87 out of 100 on the Wheel Score, in the Prime band (80 and above), which fewer than one stock in twenty reaches on any night. The score blends five things a wheel trader checks before selling a cash-secured put: the margin of safety (Value, 22/25), Piotroski health (16/20), the GLS moat (9/15), the option premium on offer (20/20) and how easily the stock trades (20/20).

Implied volatility is 38% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. The option chain is deep: 88,402 contracts of open interest across all expiries, which means tight fills at most strikes.

Volume runs at 9.6M shares a day on a market cap of $22.9B, with a beta of 1.06; the Stability part of the Wheel Score gives that 20 of 20.

The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.

Upcoming events

Regions Financial Corporation reports earnings on 16 Oct 2026 (before the open) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk. The next ex-dividend date is 1 Dec 2026 (0.3000 per share).

Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.

Similar stocks in Banks - Regional

The 12 companies below are the closest to Regions Financial Corporation by market cap within the Banks - Regional industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.

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