KEYCORP /NEW/ (KEY) — Executive Summary KEYCORP is a regional commercial bank providing consumer and commercial banking and related financial services; its balance sheet shows relatively conservative leverage and liquidity but its top‑line and earnings exhibit pronounced volatility. Positive Indicators High trailing gross margin of 56.7% (TTM, period ending 2024‑12‑31 ), indicating a wide spread o
KEYCORP is a regional commercial bank providing consumer and commercial banking and related financial services; its balance sheet shows relatively conservative leverage and liquidity but its top‑line and earnings exhibit pronounced volatility.
Going forward, watch for trends in operating cash flow TTM (currently $2.29B) and quarterly revenue and revenue per share (latest -0.35), as shown in Revenue & Net Income and EPS Diluted & Revenue per Share. Trends in gross margin (56.7%) and ROE (latest 5.2%) in Profit Margin Trends and Return on Equity (ROE). Additionally, monitor shifts in investing and financing cash flows (investing TTM -$10.93B, financing TTM -$5.88B) in Strategic Capital Allocation and the historical P/E context in Price-to-Earnings (PE) Ratio Trend.
The foundation of business quality and long-term value creation
Revenue for KEYCORP /NEW/ shows large quarter-to-quarter variability over the recent period. After a $3.38B quarter at 2024-12-31, reported quarterly revenue moved to smaller amounts in 2025 (Q1 $668.0M, Q2 $387.0M, Q3 $702.0M) before a $-1.42B value at 2025-12-31 and a $0 value at 2026-03-31. Notable inflection points on the revenue series are the spike at 2024-12-31 and the subsequent negative reading at 2025-12-31, with the most recent revenue observation at 2026-03-31 showing $0.
Net income for KEYCORP /NEW/ also exhibits volatility in recent quarters. The most recent net income reported is a positive $1.32B for the quarter ended 2025-09-30, contrasting with a net loss of -$410.0M for 2024-09-30 and various positive net income entries in earlier years. The latest reported values are: Revenue (2026-03-31) $0, and Net Income (2025-09-30) $1.32B.
Why Growth Matters
Consistent revenue and earnings growth are the lifeblood of successful long-term investments. Companies that can grow their top line (revenue) and bottom line (net income) over many years demonstrate they have products or services customers value and are willing to pay for repeatedly.
Revenue Growth shows whether the company is expanding its market reach, gaining market share, or successfully launching new products.Net Income Growth demonstrates the company can convert that revenue into actual profits while managing costs effectively.
Look for steady, sustainable growth rather than erratic spikes. The best businesses compound earnings year after year, creating tremendous value for shareholders over time. Companies that can grow earnings faster than revenue are improving their profitability—a sign of operational excellence and competitive strength.
Year-over-year growth rates for revenue and earnings per share
Reading the Growth Rate Chart
This chart converts the absolute per-share figures into year-over-year percentage changes, making it easy to see whether growth is accelerating, decelerating, or reverting to trend — regardless of the company's absolute size.
Revenue per Share Growth (1-year, split-adjusted) measures how quickly the top line is expanding on a per-share basis. Sustained positive growth signals that the company continues to win customers and grow its addressable market.EPS Diluted Growth (1-year, split-adjusted) measures how quickly earnings are compounding for each shareholder. When EPS growth consistently outpaces revenue growth, operating leverage and margin expansion are at work.
Look for consistency, not just magnitude. A company that reliably grows EPS 10–15% per year is far more valuable than one that alternates between 50% spikes and deep contractions. Negative EPS growth during a period of positive revenue growth is a red flag — costs are rising faster than sales. Quarters where both lines converge near zero or go negative deserve close scrutiny.
How revenue converts to net income for the most recent annual period
Period Information
Report Type: Annual (10-K)
Period: Apr 2025 to Mar 2026
Analyzing long-term margin stability and competitive positioning
The chart for KEYCORP /NEW/ contains a single reported trailing twelve-month gross profit margin of 56.7% for the period ending 2024-12-31. With only this one data point available, the display indicates the company's gross margin level at that date but does not show prior quarters or longer-term movement needed to identify a trend or inflection.
Operating margin and net profit margin values are not provided in the dataset, so no comparison across margin types or assessment of directional change is possible from the supplied information. The most recent gross margin (TTM, period ending 2024-12-31) was 56.7%.
Understanding Profit Margins
Between Apr 2025 and Mar 2026, Keycorp New converts every dollar of revenue through the following stages:
Sustainable competitive advantages reveal themselves through consistently superior profit margins over extended periods. Companies with durable economic moats maintain pricing power and operational efficiency that competitors struggle to match.
A sign of durable competitive advantage is earning sustained higher margins than competitors.Look for margins that remain stable or improve over time, especially during economic downturns. Declining margins may signal increasing competition, pricing pressure, or deteriorating business fundamentals.
Comparing reported earnings to actual cash generation
KEYCORP /NEW/’s trailing twelve-month operating cash flow shows pronounced volatility over the period in the dataset. Operating cash flow fell from a multi-year high of $4.31B at 2023‑03‑31 to $664.0M at 2024‑12‑31 and then to a trough of $165.0M at 2025‑03‑31, before recovering to $2.21B at 2025‑12‑31 and rising slightly to $2.29B at 2026‑03‑31. The recent two quarters show a meaningful rebound in cash generation after the sharp decline earlier in the series.
Net income (TTM) entries in the provided data are older and cluster around mid-2010s; the latest net income TTM in the dataset is $927.0M as of 2017‑03‑31, so a direct, contemporaneous comparison between net income and operating cash flow in the most recent quarters is not available from these records. The most recent Operating Cash Flow (TTM) observed was $2.29B (period end 2026-03-31). The most recent Net Income (TTM) observed in the provided data was $927.0M (period end 2017-03‑31).
The Earnings vs. Cash Flow Gap
Reported earnings (Net Income) doesn't always reflect actual cash generation. Companies use accrual accounting, which recognizes revenue when earned and expenses when incurred—not when cash actually changes hands. This creates timing differences and opportunities for accounting discretion that can mask underlying business health.
Net Income (the "earnings" number) can be influenced by non-cash items like depreciation, stock-based compensation, and changes in accounting estimates.Operating Cash Flow, however, shows the actual cash the business generates from its core operations—a harder number to manipulate.
What to Look For
Key Insight: Companies with durable competitive advantages typically show operating cash flow that meets or exceeds net income over time, demonstrating they convert accounting profits into actual cash that can be returned to shareholders or reinvested in the business.
Measuring management's efficiency at generating profits from shareholder capital
KEYCORP /NEW/'s trailing twelve-month Return on Equity trended around the mid-to-high single digits from 2012 through 2015 (8.3% in 2012, 8.8% in 2013, 9.1% in the 2014 quarter, and 8.5% in 2015). The series shows relative stability in that period followed by a marked decline at the end of 2016. The most noticeable inflection is the drop from 8.5% at 2015-12-31 to 5.2% at 2016-12-31.
Most Recent ROE (2016-12-31): 5.2%
The Gold Standard of Profitability
Return on Equity (ROE) is a powerful measure of how effectively a company's management is using the money shareholders have invested. Calculated by dividing Net Income by Shareholders' Equity, it reveals how much profit is generated for every dollar of equity capital.
A consistently high ROE (typically above 15-20%) is often the signature of a "quality" business with a durable competitive advantage. It indicates that the company can generate high returns on its own capital, which it can then reinvest at these high rates to compound value over time.
What to Look For:
How the company generates and deploys its cash
KEYCORP /NEW/’s operating cash flow (TTM) shows a pronounced rise into 2022 followed by a multi-quarter decline and a partial recovery most recently. Operating CF peaked at $4.47B in the 2022 year, fell to $664M by 2024-12-31 and reached a trough near $165.0M at 2025-03-31, then increased to $2.21B by 2025-12-31 and to $2.29B in the latest 2026-03-31 reporting period.
Investing cash flow (TTM) is recorded as a large net outflow of -$10.93B at 2022-12-31.
Financing cash flow (TTM) shifted from sizable inflows in earlier years (e.g., $13.74B at 2021-12-31 and $6.44B at 2022-12-31) to a net outflow of -$5.88B at 2025-12-31.
The most recent TTM values are: Operating Cash Flow $2.29B (), Investing Cash Flow -$10.93B (), Financing Cash Flow -$5.88B ().
Understanding Company Strategy
Capital allocation refers to how management decides to spend and invest the company's cash. Analyzing the three primary categories of cash flow reveals a company's true operational strategy:
What to look for: Is the company bootstrapping (funding growth solely from operating cash)? Are they borrowing to fund aggressive expansion or dividends? Or are they capital raising by issuing new shares, potentially diluting your ownership? A healthy, mature company typically generates strong operating cash, moderately invests in growth, and returns the surplus to shareholders through financing activities.
Net assets attributable to each share — the accounting floor of intrinsic value
Why Book Value per Share Matters
Book value per share is the net worth of the company — total assets minus total liabilities — divided by shares outstanding (split-adjusted). It represents the theoretical liquidation value per share if every asset were sold and every liability repaid at balance-sheet carrying values. It is the accounting foundation upon which much of equity valuation is built.
A steadily rising book value per share is one of the most reliable signals of compounding wealth creation. It means the company is retaining earnings and building net worth faster than it is returning capital or eroding it. Warren Buffett famously tracked Berkshire Hathaway's book value per share for decades as his primary measure of intrinsic value growth.
Context is essential. Asset-heavy businesses (banks, manufacturers, utilities) should be judged by book value more directly than asset-light businesses (software, consumer brands), where intangible assets like intellectual property and customer loyalty may far exceed their balance-sheet carrying values. A company trading at a large premium to book value is not necessarily overvalued — it may simply possess competitive advantages that accounting rules do not capture. Conversely, a declining book value per share — especially over multiple years — is a serious warning sign of capital destruction.
How much of the company is financed by debt versus shareholders' equity
Reading the Debt-to-Equity Ratio
The debt-to-equity (D/E) ratio compares total financial debt to shareholders' equity. A ratio of 1.0 means the company has borrowed one dollar for every dollar of equity; a ratio of 2.0 means it has borrowed twice as much as it owns. Financial leverage amplifies both returns and risk: in good times, debt turbocharges equity returns; in bad times, it accelerates losses and can threaten solvency.
Trends matter more than a single number. A rising D/E ratio can mean the company is taking on debt to fund growth — potentially value-creating if returns exceed the cost of capital. But it can also mean equity is being eroded through losses or that the business is borrowing simply to sustain operations. A falling D/E ratio generally reflects strengthening financial health: earnings are being retained, debt maturities are being paid down, or both.
Industry norms vary enormously. Capital-intensive sectors (utilities, real estate, financials) routinely carry high D/E ratios that would be alarming in, say, a technology company. Always compare against sector peers. As a rough rule of thumb, a D/E above 2× in a cyclical business warrants careful scrutiny of interest coverage and refinancing risk.
Short-term liquidity — can the company cover its near-term obligations?
Liquidity: Can the Business Pay Its Bills?
The current ratio is calculated as current assets divided by current liabilities. A ratio of 1.5 means the company has $1.50 of short-term assets — cash, receivables, inventory — for every $1.00 of obligations due within the next twelve months. It is the most direct measure of near-term financial resilience: can the business meet its obligations without needing to raise new capital or sell long-term assets at a discount?
A ratio above 1.0 is generally healthy, meaning current assets exceed current liabilities. A ratio consistently above 2.0 may indicate the company is holding excess cash or inventory that could be deployed more productively. A ratio below 1.0 is a warning sign — the company is relying on future cash generation or external financing to cover its near-term obligations, which is manageable in normal conditions but dangerous during a downturn.
Trends and context matter.A declining current ratio isn't always alarming — highly efficient businesses (e.g., large retailers with reliable daily cash flows) often run leaner balance sheets intentionally. Conversely, a rapidly rising current ratio can signal slowing sales causing inventory to build, or customers taking longer to pay. Always compare the trend against industry peers and cross-reference with the cash flow statement to assess whether the business is genuinely liquid or just holding non-cash current assets.
How much the market is paying for each dollar of company earnings
KEYCORP /NEW/’s trailing twelve-month P/E moved from 9.3x at the end of 2012 into a mid‑teens range through 2013–2015 (10.8x to 14.3x, with 13.7x at 2015‑12). The series shows a notable re‑rating in 2016, with the P/E rising sharply to 21.9x by 2016‑12.
In the most recent quarter, the P/E pulled back modestly to 18.2x as of 2017‑03, following the 2016‑12 peak. The most recent reported P/E ratio was 18.2x as of 2017-03-31.
What Is the PE Ratio?
The Price-to-Earnings (PE) ratio is one of the most widely used valuation metrics in investing. It divides the current stock price by the company's earnings per share (EPS), revealing how much investors are willing to pay for each dollar of earnings. A high PE can signal that the market expects strong future growth, while a low PE may suggest undervaluation—or reflect genuine concerns about the company's prospects.
Context matters:PE ratios vary significantly across industries. High-growth technology companies routinely trade at PE ratios above 30x or 40x, while mature, low-growth sectors like utilities or financials often trade closer to 10–15x. Always compare a company's PE to its own history and its industry peers, not just an absolute number.
What to Look For:
Key Insight:The PE ratio is a snapshot of market sentiment and expectations. Tracking it over time alongside earnings trends reveals whether the market's valuation has expanded or contracted—and whether that change is justified by fundamentals.