cif stock recommendation report (fall 2012) · cif stock recommendation report (fall 2012) ... jp...

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Date: October 22,2012

Analyst Name: Jun Mei

CIF Stock Recommendation Report (Fall 2012)

Company Name and Ticker: KeyBank (KEY)

Section (A) Summary

Recommendation Buy: Yes No Target Price: Stop-Loss Price:

Sector: Financial Industry: Banking Market Cap (in Billions): 8.18

# of Shrs. O/S (in Millions): 943.44

Current Price: $8.74

52 WK Hi: $9.12

52 WK Low: $6.60

EBO Valuation: $9.40

Morningstar (MS) Fair Value Est.: $10

MS FV Uncertainty: High

MS Consider Buying: $6.00

MS Consider Selling: $15.50

EPS (TTM): .79

EPS (FY1): .88

EPS (FY2): .88

MS Star Rating: 3 Stars

Next Fiscal Yr. End ”Year”: 2012 “Month”: December

Last Fiscal Qtr. End: October 18,2012 Less Than 8 WK: Y N

If Less Than 8 WK, next Earnings Ann. Date: December 2012

Analyst Consensus Recommendation: Hold

Forward P/E: 9.8

Mean LT Growth: 5.23

PEG: 1.90

Beta: .91

% Inst. Ownership: 84.42

Inst. Ownership- Net Buy: Y N

Short Interest Ratio: Short as % of Float:

Ratio Analysis Company Industry Sector

P/E (TTM) 9.87 20.75 32.78

P/S (TTM) 1.98 4.69 5.37

P/B (MRQ) .82 1.58 1.31

P/CF (TTM) 12.4 5.91 12.51

Dividend Yield 2.29 2.25 1.97

Total Debt/Equity (MRQ) 80.51 156.45 151.50

Net Profit Margin (TTM) 20.89 19.03 17.16

ROA (TTM) .98 .56 .95

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ROE (TTM) 8.58 6.93 5.79

Investment Thesis I recommend the Cougar Investment Fund to not by this stock for the following reasons:

Unattractive Valuation ratios (P/B, P/CF, PE,PEG) comparing to its competitors.

Current price is near its 52 weeks high and I don't there are much growth potential.

54% of the analysts recommended to hold the stock while only 12 percent recommended to buy.

Competitors stock prices increase at a faster rate than Key.

Even though Key revenue and earnings have surpassed its estimated, stock price still reflect slow growth in the past year.

MS 3 star ratings and high uncertainty FV.

Summary Provide brief summary of your analysis in each section that follows

Company Profile: KeyBank, headquartered in Cleveland, Ohio, is the 24th biggest bank in the United States with 87 billion in Assets.

Fundamental Valuation: EBO valuation is $9.40 with normal growth period to 2016.

Relative Valuation: P/B and P/S ratio: KeyBank is the second lowest at .82 for P/B and 3rd highest with 1.98 for P/S comparing to the 4 major competitors. These two ratios are somewhat unattractive for investors since competitors' ratio are better.

Revenue and Earnings Estimates: Actual revenue and earnings have surpassed its estimated.

Analyst Recommendations: Majority of the analyst recommended to hold the stock. Only 4 out of 31 recommended to buy.

Institutional Ownership: Institutional ownership is 85.37%.

Short Interest: Short interest varies throughout this year. Months from June to August saw the biggest changes.

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Stock Price Chart: From a 3 months and 1 year horizon, KEY is less volatile compared to its competitor. But, the stock is nowhere near recovery from the financial crisis.

Section (B) Company Profile (two pages maximum)

Company Summary

KeyBank originated in Cleveland Ohio around 160 years. "The Company provides a range of

retail and commercial banking, commercial leasing, investment management, consumer finance

and investment banking products and services to individual, corporate and institutional clients

through two business segments: Key Community Bank and Key Corporate Bank"(Reuters.com).

Today the company has 87 billion in assets and operate in 14 states throughout the country.

Business Model, Competition, Environment and Strategy

KeyBank compete in the financial service industry with the financial sector. Some of the its

competitors include Bank of America, JP Morgan Chase, U.S Bank, and Wells Fargo. Out of its

competitors, KeyBank has the lowest in assets with 87 billion. Tying to its assets, KeyBank's

differentiation strategy against its competitor is picking "markets within each state. We pick

cities where we do business and really look to enhance our presence in those cities. The whole

model is designed to be a local bank"(Oregonlive.com).

Beside commercial banking, Key also compete in the "corporate trust services, personal

financial services, access to mutual funds, cash management services, investment banking and

capital markets products, and international banking services. Through its bank, trust company

and investment adviser subsidiaries, the Company provides investment management services

to clients that include corporate and public retirement plans, foundations and endowments,

individuals and trust funds" (Reuters.com) .

Revenue and Earnings History

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This information is available in Reuters.com, “Financials” tab. Copy/paste the quarterly

revenue and earnings per share numbers for the most recent three years. Add the numbers

over four fiscal quarters to get annual revenue and earnings. For the current fiscal year, go

ahead add up as many quarters as are available. NOTE: revenue numbers are “in millions”.

Discuss any pattern in revenue and earnings (e.g., increasing year over year; seasonal; etc.)

Annual Income Statement

View: Income Statement

Annual Interim

In Millions of U.S. Dollars (except for per share items)

2011 2011-12-31 Period Leng

th 12 Months

2010 2010-12-31

Restated 2011-12-31 Period Leng

th 12 Months

2009 2009-12-31 Reclassified 2011-12-31 Period Leng

th 12 Months

2008 2008-12-31


th 12 Months

2007 2007-12-31


th 12 Months

Interest Income, Bank 2,889.0 3,408.0 3,795.0 4,353.0 5,336.0

Basic EPS Excluding Extraordinary Items

0.920 0.472 (2.268) (2.971) 2.385

The trend for revenue has been decreasing at a steady pace since 2007. At 2007,

revenue was at 5.33 billion compared to 2.89 billion in 2011. This is due to the

impact of the financial crises where the company is still recovering from it. As for

EPS, KeyBank suffered negative EPS during 2008 and 2009, since then, it has been

increasing slightly at .472 in 2010 and .920 in 2011.

Section (C) Fundamental Valuation (EBO)

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Include the following here:Copy/paste completed Fundamental Valuation (EBO) Spreadshe

Inputs (provide below input values used in your analysis)

EPS forecasts (FY1 & FY2): .88 and .88

Long-term growth rate: 5.23%

Book value /share (along with book value and number of shares outstanding):

Book value: _____________________

# of shares outstanding: _____________________

Book value / share: 10.39

Dividend payout ratio: 18.02

Next fiscal year end: 2012

Current fiscal month: October

KEY PARAMETERS FY1 FY2 Ltg

EPS Fore casts 0.88 0.88 5.23% Mode l 1: 12-ye ar fore casting horiz on (T=12).

Book value /share (last fye ) 10.39 and a 7-ye ar growth pe riod.

Discount Rate 8.88%

Divide nd Payout Ratio (POR) 18.02% Please download and save this template to your own storage device

Ne xt Fsc Ye ar e nd 2012 You only ne e d to input value s to ce lls highlighte d in "ye llow"

Curre nt Fsc Mth (1 to 12) 10 The re st o f the spre adshe e t is calculate d automatically

Targe t ROE (industry avg .) 11.85% Ple ase re ad "Guide line s_for_Fundame ntalValuation_ProfLe e _Spre adshe e t" file care fully

Ye ar 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Long-term EPS Growth Rate (Ltg) 0.0523 0.0523 0.0523 0.0523 0.0523

Forecasted EPS 0.88 0.88 0.93 0.97 1.03 1.08 1.14

Beg. of year BV/Shr 10.390 11.111 11.833 12.592 13.391 14.231 15.116

Implied ROE 0.079 0.078 0.077 0.077 0.076 0.075

ROE (Beg. ROE, from EPS forecasts) 0.085 0.079 0.078 0.077 0.077 0.076 0.075 0.084 0.092 0.101 0.110 0.119

Abnormal ROE (ROE-k) -0.004 -0.010 -0.011 -0.011 -0.012 -0.013 -0.014 -0.005 0.004 0.012 0.021 0.030

growth rate for B (1-POR)*(ROEt-1) 0.000 0.069 0.065 0.064 0.063 0.063 0.062 0.062 0.069 0.076 0.083 0.090

Compounded growth 1.000 1.069 1.139 1.212 1.289 1.370 1.455 1.544 1.651 1.776 1.923 2.096

growth*AROE -0.004 -0.010 -0.012 -0.014 -0.016 -0.018 -0.020 -0.008 0.006 0.022 0.040 0.062

required rate (k) 0.089 0.089 0.089 0.089 0.089 0.089 0.089 0.089 0.089 0.089 0.089 0.089 0.089

Compound discount rate 1.089 1.185 1.291 1.405 1.530 1.666 1.814 1.975 2.150 2.341 2.549 2.776

div. payout rate (k) 0.180

Add to P/B PV(growth*AROE) 0.00 -0.01 -0.01 -0.01 -0.01 -0.01 -0.01 0.00 0.00 0.01 0.02 0.02

Cum P/B 1.00 0.99 0.98 0.97 0.96 0.95 0.94 0.93 0.94 0.94 0.96 0.98

Add: Perpetuity

beyond current yr (Assume this yr's AROE forever) -0.04 -0.10 -0.10 -0.11 -0.12 -0.12 -0.12 -0.04 0.03 0.11 0.18 0.25

Total P/B (P/B if we stop est. this period) 0.95 0.89 0.87 0.86 0.84 0.83 0.81 0.89 0.97 1.05 1.14 1.24

Implie d price 10.64 9.93 9.75 9.57 9.40 9.23 9.07 9.91 10.79 11.72 12.71 13.79

Che ck:

Beg. BV/Shr 10.39 11.11 11.83 12.59 13.39 14.23 15.12 16.05 17.15 18.45 19.98 21.78

Implied EPS 0.88 0.88 0.93 0.97 1.03 1.08 1.14 1.34 1.59 1.87 2.19 2.58

Implied EPS growth 0.000 0.052 0.052 0.052 0.052 0.052 0.184 0.179 0.177 0.176 0.176

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Target ROE: 6.93%

Output

Above normal growth period chosen: 6 Years

EBO valuation (Implied price from the spreadsheet): 9.07

Sensitivity Analysis

EBO valuation would be (you can include more than one scenario in each of the following):

$9.40 if changing above normal growth period to 2016.

$9.93 if changing growth rate from mean (consensus) to the highest estimate to 6.9%

$9.07 if changing growth rate from mean (consensus) to the lowest estimate to 6.2%

$12.55 if changing discount rate to 6.5%

$9.57 if changing target ROE to 8%.

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Section (D) Relative Valuation

Copy/paste your completed relative valuation spreadsheet here

From the top panel

Discuss whether your stock and its competitors have very different multiples. Point out if any of

the five stocks have multiple that is far off from the others. Make an attempt to explain why

(you would want to read analyst research report in Morningstar Direct; you should also look for

comments from other financial sites). The discussions should address all of the following

valuation metrics: forward P/E, PEG, P/B (MRQ), P/S (TTM), and P/CF (TTM).

Compare the implied prices derived from various valuation metrics. Also compare those implied

price to the stock’s current price, and 52-week high and low.

KEY

Mean FY2

Earnings Estimate Forward Mean LT PEG P/B ROE Value P/S P/CF

Ticker Name Mkt Cap Current Price (next fiscal year) P/E Growth Rate (MRQ) 5 yr ave Ratio TTM TTM

1 JPM JPMorgan Chase 160,763.30$ 42.32$ 5.29$ 8.00 7.13% 1.12 0.84 8.20% 0.10 1.69 1.6

2 BAC Bank of America 101,737.40$ 9.44$ 0.98$ 9.63 7.20% 1.34 0.46 1.33% 0.35 1.14 6.5

3 WFC Wells Fargo 181,644.91$ 34.34$ 3.64$ 9.43 8.74% 1.08 1.28 10.65% 0.12 2.14 8.9

4 USB U.S. Bancorp 64,352.40$ 34.23$ 3.07$ 11.15 8.66% 1.29 1.90 14.57% 0.13 3.21 14.1

KEY Keycorp 8,182.34$ 8.74$ 0.88$ 9.93 5.23% 1.90 0.82 -1.78% (0.46) 1.98 12.4

Implied Price based on: P/E PEG P/B Value P/S P/CF

1 JPM JPMorgan Chase $7.04 $5.16 $8.95 -$1.94 $7.46 $1.13

2 BAC Bank of America $8.48 $6.16 $4.90 -$6.56 $5.03 $4.58

3 WFC Wells Fargo $8.30 $4.97 $13.64 -$2.28 $9.45 $6.27

4 USB U.S. Bancorp $9.81 $5.93 $20.25 -$2.47 $14.17 $9.94

High $9.81 $6.16 $20.25 -$1.94 $14.17 $9.94

Low $7.04 $4.97 $4.90 -$6.56 $5.03 $1.13

Median $8.39 $5.54 $11.30 -$2.38 $8.45 $5.43

Cougar Investment Fund Relative Valuation Template

Please download and save this template to your own storage device

You only need to input values to ce lls highlighted in "ye llow"

The rest of the spreadsheet is calculated automatically

Please read "Stock Recommendation Guide lines" document carefully

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From the relative table above, one of the biggest gap between KeyBank and its competitors is

the market capitalization. KeyBank has the smallest market capitalization at 8.18 billion in

comparison to 160.7 billion by JP Morgan and 101.7 billion of Bank of America. One reason

justifying that is that KeyBank does not have a strong dominant presence in the 14 states that

they operate. KeyBank fit in the category of a mid cap stock, which generally has a higher risk

and a higher return comparing to its competitors.

KeyBank PEG(1.90) and PE (9.93) ratios are among the highest comparing to its competitors.

This mean that the stock could be overvalued comparing to JPM, BAC, USB, and WFC, but it

could also mean that KeyBank has higher growth potential. Earlier this year, KeyBank bought

out 37 bank branches from HSBC bank in Buffalo and Rochester NY (PRNEWSWIRE.COM). Also

in a interview with KeyBank CEO, Beth Mooney, the company is planning to open 2 more

branches in Oregon. Clearly, KeyBank is planning to expand its operations.

As for the P/B and P/S ratio, KeyBank is the second lowest at .82 for P/B and 3rd highest with

1.98 for P/S comparing to the 4 major competitors. These two ratios are somewhat unattractive

for investors since competitors' ratio are better.

With KeyBank expanding its operations, we see from the relative valuation that the P/CF is at

12.4, which is the second highest comparing to its competitors.

From the bottom panel

Discuss the various implied prices of your stock derived from competitors’ (“comparables”)

multiples. How different are the prices derived from the various valuation metrics? Note any

valuation metrics that seem to yield outlier prices and explain why (HINT: is that because that

particular valuation metrics is not very relevant for the industry? Do you best to provide

convincing arguments).

For each valuation metrics, Compare the current price and 52-week high /low of your stock to

the High-low range derived from multiples of its competitors.

Among the valuation metrics analyzed, which ones do you think are most relevant as a

valuation tool for your stock?

The implied prices from the P/B and P/E would probably be the most relevant for the financial

industry. In the P/B section, implied high price for KeyBank is at $20.25 which surpasses the

current 52 week high price by $11.13. The implied low price is $1.10 lower the current 52 week

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low. As for the P/E section, the implied prices is pretty similar to the price the stock is current

selling, with a high of $9.81, median of $8.39 and low of $7.04.

Section (E) Revenue and Earnings Estimates

Copy/Paste the “Historical Surprises” Table from Reuters.com, “Analysts” tab (include both

revenue and earnings; make note that revenues might be in “millions”)

Review recent trends in company’s reported revenue and earnings, and discuss whether (1) the

company has a pattern of “surprising” the market with numbers different from analysts’

estimates; (2) Were they positive(actual greater than estimate) or negative (actual less than

estimate) surprises? (3) Were surprises more notable for revenue or earnings? (4) Look up the

stock chart to see how the stock price reacted to the “surprises. NOTE: Reuters does not put

the sign on the surprise. You need to put a “negative” sign when it is a negative surprise.

HISTORICAL SURPRISES

Sales and Profit Figures in US Dollar (USD) Earnings and Dividend Figures in US Dollar (USD)

Estimates vs Actual Estimate Actual Difference Surprise %

SALES (in millions)

Quarter Ending Sep-12 1,027.02 1,122.00 94.98 9.25

Quarter Ending Jun-12 997.46 1,029.00 31.54 3.16

Quarter Ending Mar-12 999.60 1,031.00 31.40 3.14

Quarter Ending Dec-11 1,004.91 977.00 -27.91 -2.78

Quarter Ending Sep-11 1,010.36 1,038.00 27.64 2.74

Earnings (per share)

Quarter Ending Sep-12 0.21 0.23 0.02 11.00

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Quarter Ending Jun-12 0.18 0.24 0.06 30.72

Quarter Ending Mar-12 0.19 0.20 0.01 4.44

Quarter Ending Dec-11 0.20 0.20 0.00 0.99

Quarter Ending Sep-11 0.21 0.22 0.01 5.16

In the past two fiscal years, KeyBank's actual sales and earnings have surprised the estimated

earnings and sales. The last quarter had the biggest surprise with estimated sale of 1,027.02

million but actual was 1,122 million. The difference was 94.98 million with a surprise

percentage of 9.25%. The only quarter when actual sales was over estimated was the quarter

ended December 2011. As for earnings, KeyBank did a great job beating the estimated earnings

throughout last 2 years.

Copy/paste the “Consensus Estimates Analysis” Table from Reuters.com, “Analysts” tab

(include both revenue and earnings)

Review the range and the consensus of analysts’ estimates. (1) Calculate the % difference of the

“high” estimate from the consensus (mean); (2) Calculate the % (negative) difference of the

“low” estimate from the consensus; (3) Are the divergent more notable for the current or out-

quarter, FY1 or FY2, revenue or earnings? (4) Note the number of analysts providing LT growth

rate estimate. It that roughly the same as the number of analysts providing revenue and

earnings estimates?

CONSENSUS ESTIMATES ANALYSIS


# of Estimates Mean High Low

1 Year

Ago

SALES (in millions)

Quarter Ending Dec-12 18 1,052.74 1,108.10 1,012.00 1,049.28

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Quarter Ending Mar-13 13 1,027.70 1,093.00 958.00 1,032.43

Year Ending Dec-12 19 4,157.06 4,282.00 3,957.25 4,011.50

Year Ending Dec-13 20 4,204.20 4,519.46 3,985.00 4,089.53


Quarter Ending Dec-12 27 0.22 0.27 0.19 0.19

Quarter Ending Mar-13 18 0.21 0.27 0.18 0.18

Year Ending Dec-12 24 0.88 0.91 0.75 0.74

Year Ending Dec-13 29 0.88 1.11 0.75 0.82

LT Growth Rate (%) 7 5.23 12.30 1.30 8.29

Copy/paste the “Consensus Estimates Trend” Table from Reuters.com, “Analysts” tab (include

both revenue and earnings)

Review recent trend of analysts’ consensus (mean) estimates on revenue and earnings. (1) Are

the consensus estimates trending up, down, or stay the same? (2) Is the trend more notable for

the near- or out- quarter, FY1 or FY2, revenue or earnings?

CONSENSUS ESTIMATES TREND


Current

1 Week

Ago

1 Month

Ago

2 Month

Ago

1 Year

Ago

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SALES (in millions)

Quarter Ending Dec-12 1,052.74 1,040.74 1,040.17 1,040.14 1,049.28

Quarter Ending Mar-13 1,027.70 1,022.28 1,023.94 1,029.72 1,032.43

Year Ending Dec-12 4,157.06 4,096.85 4,095.71 4,094.84 4,011.50

Year Ending Dec-13 4,204.20 4,188.24 4,108.30 4,116.01 4,089.53


Quarter Ending Dec-12 0.22 0.21 0.21 0.21 0.19

Quarter Ending Mar-13 0.21 0.21 0.21 0.20 0.18



Currently, the estimated sales for the quarter ending in December 2012 is 1,052.74 million,

which is 12.60 million higher than it was 2 months ago. The estimated trend show consistency

in both sales and earnings between 2 months ago to last week. Currently, the slight increase in

estimated sales and earnings are reflected by the release of KeyBank's 3rd quarter earnings

report on October 18, 2012. The report showed that "net interest income increased by 6%" and

"net interest margin up by 17 basis points" from the 2nd quarter (snl.com).

Copy/paste the “Estimates Revisions Summary” Table from Reuters.com, “Analysts” tab

(include both revenue and earnings)

Review the number of analysts revising up or down their estimates (both revenue and earnings)

in the last and last four weeks. (1) Note whether there are more up or down revisions; (2) are

the revisions predominantly one directional? (3) Any notable difference last week versus last

four weeks, revenue versus earnings?

ESTIMATES REVISIONS SUMMARY

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Last Week Last 4 Weeks

Number Of Revisions: Up Down Up Down

Revenue

Quarter Ending Dec-12 13 3 13 3

Quarter Ending Mar-13 8 2 6 3

Year Ending Dec-12 15 1 15 2


Earnings

Quarter Ending Dec-12 11 4 14 2

Quarter Ending Mar-13 9 1 9 2



Throughout the past 4 weeks, there have been more up revision in both sales and earnings

estimates. As for the trend, it's fairly consistent throughout the 4 weeks. The biggest change

was on the earnings section for quarter ending December 2012, where 2 analyst shifted from

ups to downs.

I think KeyBank can beat the upcoming consensus estimates by a small margin because they

have been consistently that in previous quarter. But the presidential election can have great

impact on the financial industry.

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Section (F) Analysts’ Recommendations

ANALYST RECOMMENDATIONS AND REVISIONS

1-5 Linear Scale Current

1 Month

Ago

2 Month

Ago

3 Month

Ago

(1) BUY 4 6 6 6

(2) OUTPERFORM 7 8 7 7

(3) HOLD 17 14 14 14

(4) UNDERPERFORM 2 2 2 3

(5) SELL 1 1 1 1

No Opinion 0 0 0 0

Mean Rating 2.65 2.48 2.50 2.55

The past 3 months, there hasn't been any significant shift in analysts' opinion of the stock. It

might be turning slightly bearish with 2 analysts changing their buy recommendation to hold.

Currently, 17 out of the 31 analyst choose to hold the stock, while 4 choose to buy, and 7 think

it will outperform. Only 2 think the stock will underperform and 1 believes it is time to sell.

Section (G) Institutional Ownership

Copy/paste the completed “CIF Institutional Ownership” spreadsheet here.

Cougar Investment Fund Institutional Ownership Template

Please download and save this template to your own storage device

You only need to input values to cells highlighted in "yellow"

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The rest of the spreadsheet is calculated automatically

Please read "Stock Recommendation Guidelines" document carefully

KEY

Ownership Activity # of Holders % Beg. Holders Shares % Shares

Shares Outstanding

943,444,030 100.00%

# of Holders/Tot Shares Held 617 100.65% 805,418,168 85.37%

# New Positions 10 1.63%

# Closed Positions 6 0.98%

# Increased Positions 40 6.53%

# Decreased Positions 44 7.18%

Beg. Total Inst. Positions 613 100.00% 781,411,131 82.83%

# Net Buyers/3 Mo. Net Chg -4 47.62% 24,007,037 2.54%

Ownership Information % Outstanding

Top 10 Institutions % Ownership 29.10%

Mutual Fund % Ownership 92.00%

Float % 99.76%

> 5% Ownership

Holder Name % Outstanding Report Date Vanguard Group, INC 5.94 6/30/2012 State Street Corp 5 6/30/2012

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Institutional ownerships have decreased by 4 positions in the past 3 months change. But

overall, 617 institutions hold 85.37 of the total market shares. Vanguard Group, Inc and State

Street Corp have the highest outstanding percentage with 5.94% and 5% respectively. Since

many institutions are conservative investors, this could mean a slight bullish indication for

future stock price.

Section (H) Short Interest (two page

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Avg Vol Avg Vol Shares Float (3 month) (10 day) Outstanding

12,787,800 20,080,000 936.20M 933.66M

Shares Short Short Ratio Short % of Float Shares Short

( Sep 28, 2012) (Sep 28, 2012) (Most recent date) (2 weeks prior)

10.12M 0.80 1.10% 12.56M

Based on the short interest statistics and its recent trend, how is the market sentiment on the

stock? Has the sentiment turned more bullish or bearish over the last year? How about in

more recent month and why?

The short interest has been fairly inconsistent throughout this year. From January to May, the

day to cover ratio was 1 which showed that investors are bullish towards the stock. Then from

June to August, the ratio was more than 1, which showed a more bearish trend. Now, it's back

to 1. I think the reason behind this is that investors are more optimistic about the company

with their release of quarter earnings.

18

Section (I) Stock Charts

A three months price chart

Copy/paste the “3 Mos.” stock chart here

A one year price chart

Copy/paste the “1 Yr” stock chart here

A five year price chart

19

Copy/paste the “5 Yrs.” stock chart here

Discuss what you observe from the stock charts. This should include comparing your stock to

competitors, sector, and SP500 over the three different time horizons.

In the 3 months horizon, Key has underperformed comparing to JPM, BAC, and the financial

sector. In the 1 year horizon, Key is less cyclical compared to BAC and JPM and has showed

slight growth throughout the year. In the 5 year horizon, the graph showed that Key has not

nearly recover itself from the financial crisis.

Sources:

Morningstar.com

fiance.yahoo.com

reuters.com

http://www.prnewswire.com/news-releases/keybank-completes-acquisition-of-hsbc-branches-in-

upstate-new-york-162394636.html

http://www.oregonlive.com/business/index.ssf/2012/04/keybank_ceo_beth_e_mooney_talk.html

nasdaq.com

http://www.prnewswire.com/news-releases/keybank-completes-acquisition-of-hsbc-branches-in-upstate-new-york-162394636.html

http://www.prnewswire.com/news-releases/keybank-completes-acquisition-of-hsbc-branches-in-upstate-new-york-162394636.html

http://www.oregonlive.com/business/index.ssf/2012/04/keybank_ceo_beth_e_mooney_talk.html

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