KeyCorp (KEY) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: KeyCorp

Updated on October 21, 2026 · accounts published on October 20, 2026

Reading of October 20, 2026: A profitable, well-capitalized bank still short of top-tier returns on capital

Key trades at 1.1× book value and a P/E of 11.4, 14 % below its sector median, after beating EPS estimates in each of the last 8 quarters.

• Is Key expensive or cheap? Its P/E of 11.4× sits 14 % below the bank sector median of 13.3× and 8 % below its own ten-year median.
• How is the business doing? Revenue grew 24 % over the last 12 months and EPS rose 575 %, with a net margin of 20 %.
• How strong is the balance sheet? Equity covers 11.1 % of assets (fiscal 2025), above the 8 % robust mark, and the dividend yields 3.9 % with a 58 % payout.
• What to expect from the next earnings? Analysts expect EPS of $0.49 on January 19, 2027, after Key beat estimates in each of the last 8 quarters.
• Is Key an efficient, well-capitalized bank? Capital passes, but a 10.4 % return on tangible equity in fiscal 2025 falls short of the 12 % a strong bank clears.

Is Key expensive or cheap?

Key trades at 1.1× book value (fiscal 2025). For a bank earning a 10.4 % return on tangible equity, anything up to 1.3× counts as healthy, so investors are paying little above book for middling returns. The P/E of 11.4× over the last 12 months points the same way. It sits below the ten-year median of 12.5× and below the sector median of 13.3× across 470 banks. Still, the stock has traded cheaper in 45 % of the last decade, with a low of 4.3× and a high of 26.0×. After a 23 % rise over 12 months, the shares sit 13 % below their 52-week high of $23.99.

How is the business doing?

Revenue rose 24 % over the last 12 months, and earnings per share jumped 575 % over the same period. A move that large usually says more about a weak starting point than about a new normal. Profitability is the steadier measure: a 20 % net margin and a 14.1 % return on equity over the last 12 months. Return on assets stands at 1.2 %, above the 1 % mark of a healthy bank. Most of a bank's assets are funded with deposits and debt, and on that base these figures describe a lender that earns its keep without standing out.

How strong is the balance sheet?

Capital is Key's firmest point. Equity amounted to 11.1 % of total assets in fiscal 2025, comfortably above the 8 % level considered robust for a bank, which leaves a cushion against losses. Shareholders receive a dividend yield of 3.9 % over the last 12 months, well above the 2 % that marks a sustainable payer and far from the 8 % that would signal stress. The payout of 58 % of fiscal 2025 earnings leaves room to keep paying, but not much slack if profits fall back.

What to expect from the next earnings?

On October 20, 2026, Key reported EPS of $0.51 against $0.46 expected, a beat of 10.5 % and the eighth in eight quarters. For the next quarter, due January 19, 2027, analysts expect $0.49, slightly below the quarter just reported. The 2026 EPS consensus has barely moved in the last 30 days, from $1.83 to $1.84 among 14 analysts, and revenue estimates are equally stable. Of the 51 analysts covering the company, 31 recommend buying, 18 holding and 2 selling, so the consensus already leans positive.

Is Key an efficient, well-capitalized bank?

Banks run on leverage, so a P/E or ROE on its own can flatter a lender that takes too much risk. That is why the sector looks at return on assets, return on tangible equity and capital. Key clears most of these tests: a 1.2 % ROA over the last 12 months against a 1 % healthy mark, equity at 11.1 % of assets and a price of 1.1× book. The gap is ROTCE, at 10.4 % in fiscal 2025 against a 12 % pass mark and 15 % for excellence. Closing that gap would be the clearest sign of a better bank.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.