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. Several key financial ratios indicate areas of concern that contribute to this assessment. Firstly, the Price-to-Earnings (P/E) ratio for Keycorp stands at an exceptionally high 812.09, compared to the sector average of 12.19. This ratio indicates how much investors are willing to pay for each dollar of earnings. A significantly high P/E ratio may suggest that the market has overly optimistic expectations about the company’s future earnings potential, which may not be justifiable. Additionally, Keycorp's Return on Equity (ROE) ratio is -0.89, whereas the sector average is 8.04. This ratio measures how effectively a company uses shareholders' equity to generate profits. A negative ROE indicates that Keycorp is not generating sufficient profit from its equity investments, raising concerns about its operational efficiency. Another critical metric is the Return on Assets (ROA) ratio, which for Keycorp is -0.09, while the sector average is 0.88. ROA shows how efficiently a company can convert its assets into profit. A negative ROA suggests that Keycorp is failing to utilize its assets effectively to generate earnings. Despite these challenges, Keycorp offers a dividend yield of 4.74, which is above the sector average of 3.30, indicating a commitment to returning value to shareholders. However, investors should weigh this against the company’s operational difficulties highlighted by the other ratios. 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.