KEY is now overvalued and could go down -23%

Based on our analysis, Keycorp has received a fairly valued rating of 2 out of 5 stars from Cashu, indicating that its current market price does not fully reflect its potential based on key financial metrics. One of the primary metrics to consider is the Return on Equity (ROE), which for Keycorp stands at -0.89, significantly below the sector average of 8.14. ROE measures a company's ability to generate profit from its shareholders' equity. A negative ROE suggests that Keycorp is currently facing challenges in converting equity into profit, which may raise concerns for investors about the company’s financial health and management efficiency. Additionally, the Return on Assets (ROA) ratio for Keycorp is -0.09 compared to the sector average of 0.88. ROA indicates how efficiently a company uses its assets to generate earnings. A negative ROA signals that Keycorp is struggling to generate profit from its asset base, further highlighting operational inefficiencies. Lastly, while Keycorp boasts a strong net profit margin of 26.38, which surpasses the sector average of 18.54, the presence of negative performance in both ROE and ROA suggests potential underlying issues that may limit future growth prospects. Despite its attractive dividend yield of 5.07 versus the sector's 3.08, these concerning performance metrics contribute to Cashu's rating. Investors may want to consider these factors carefully. This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.