Munger Mode rating: 2 out of 5 — Sell. Our own rating from the research report below, on business quality first: moat durability and management, with price separating the top three.
We have spent our lives studying banks, owning banks, and occasionally being burned by banks, so let us say plainly what we found here. KeyCorp is a competently run, mid-sized regional bank in the middle of a genuine earnings recovery. The numbers are getting better every quarter, management's targets are credible, and the fee businesses are good ones. And yet — this is an average business. It has no durable moat that would let it earn high returns on capital across decades without heroic effort, its history includes two episodes of severe shareholder dilution (2009 and 2024), and its returns on tangible equity have spent most of the past decade in the mediocre low-teens. The stock at ~$23 and 1.7 times tangible book prices in the recovery that is already underway. An average business at a full price is not where we put capital. Two stars.
Recent filings analysed: 10-Q (2026-08-04), 8-K (2026-06-10), 8-K (2026-06-03), 8-K (2026-05-29).
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