Fifth Third Bancorp is scored 65 for moat and 54 for management. The management score rests on a return on invested capital of 8.9% and a gross margin of 65.3% — figures that describe returns closer to the cost of the capital behind them. Debt sits at 0.67x equity. A solid moat alongside mixed management is a combination worth understanding before the price matters at all.
The price anchors are built on deliberately conservative assumptions. Growth is modelled at 9.9% a year, below the 10.0% actually measured over the last decade — the model caps growth rather than extrapolating a good run forwards. The exit multiple assumed is 13.4x. That produces an intrinsic value of $24.86, a 10-CAP price of $38.68 and a payback time price of $48.39, with the value zone set at the highest of the three, $48.39. Today's price of $50.41 sits 4% above it.
The price is above the value zone and the business scores 65 for moat and 54 for management. Neither test argues for paying up here.
| Price | $50.41 |
| Market cap | $45.7B |
| P/E ratio | 17.2x |
| Return on invested capital | 8.9% |
| Gross margin | 65.3% |
| Debt to equity | 0.67x |
| Free cash flow yield | 12.2% |
| Growth rate used | 9.9% |
| Growth rate measured | 10.0% |
| Exit multiple assumed | 13.4x |
| Company | Moat | Buy price |
| Truist Financial (TFC) | 48 | $46.79 |
| M&T Bank (MTB) | 60 | $364.93 |
| Huntington Bancshares (HBAN) | 67 | $23.66 |
| Citizens Financial Group (CFG) | 59 | $63.81 |
Every number above is built on assumptions that can be changed. In Moatly you can move the growth rate, the exit multiple and the margin of safety and watch every figure recalculate, so you are testing your own view of Fifth Third Bancorp rather than accepting ours.