Citizens Financial (CFG) AI Stock Analysis

• Market Cap: $18.14B
• Dividend Yield: 4.02%
• Average Volume (3M): 5.15M
• Price to Earnings (P/E): 13.3
• Beta (1Y): 1.33
• Revenue Growth: -2.12%
• EPS Growth: 13.92%
• Country: US
• Employees: 17,315
• Sector: Financial
• Sector Strength: 87
• Industry: Banks - Regional
• EPS (TTM): 0.77
• Shares Outstanding: 433,649,100
• 10 Day Avg. Volume: 4,213,572
• 30 Day Avg. Volume: 5,152,550
• PEG Ratio: 2.82
• Price to Book (P/B): 0.69
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.71
• Enterprise Value/Market Cap: 0.94
• Enterprise Value/Revenue: 0.53
• Enterprise Value/Gross Profit: 1.94
• Enterprise Value/Ebitda: 1.94
• 1Y Price Target: $46.00
• Price Target Upside: 10.63% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16

Citizens Financial displays a solid financial foundation with strong profitability and an appealing valuation. While technical indicators show short-term weakness, the optimistic earnings guidance and strong dividend yield support the stock's potential for growth. Market uncertainty and declining revenue remain key risks that need to be monitored.

Positive Factors

Fee Income Growth

Management reaffirmed prior guidance for fee income to grow in the 8-10% y/y range.

Net Interest Margin

The company increased the high end of their medium term net interest margin guidance, benefiting from fewer rate cuts and a favorable yield environment.

Private Bank Expansion

Opportunity for idiosyncratic growth, such as private bank expansion, offers a potential offset.

Negative Factors

Earnings Risk

EPS risk skews to the downside from weaker capital markets and rapid Fed rate-cuts.

Macro Environment

Macro uncertainty may continue to suppress customer activity.

Revenue Growth

Weaker client activity is likely to serve as a drag to revenue growth.

Citizens Financial Business Overview & Revenue Model

Company Description

Citizens Financial Group, Inc. operates as the bank holding company for Citizens Bank, National Association that provides retail and commercial banking products and services to individuals, small businesses, middle-market companies, corporations, and institutions in the United States. The company operates in two segments, Consumer Banking and Commercial Banking. The Consumer Banking segment offers deposit products, mortgage and home equity lending products, credit cards, business loans, wealth management, and investment services; and auto, education, and point-of-sale finance loans, as well as digital deposit products. This segment serves its customers through telephone service centers, as well as through its online and mobile platforms. The Commercial Banking segment provides various financial products and solutions, including lending and leasing, deposit and treasury management services, foreign exchange, and interest rate and commodity risk management solutions, as well as syndicated loans, corporate finance, mergers and acquisitions, and debt and equity capital markets services. This segment serves government banking, not-for-profit, healthcare, technology, professionals, oil and gas, asset finance, franchise finance, asset-based lending, commercial real estate, private equity, and sponsor finance industries. It operates approximately 1,200 branches in 14 states and the District of Columbia; 114 retail and commercial non-branch offices in national markets; and approximately 3,300 automated teller machines. The company was formerly known as RBS Citizens Financial Group, Inc. and changed its name to Citizens Financial Group, Inc. in April 2014. Citizens Financial Group, Inc. was founded in 1828 and is headquartered in Providence, Rhode Island.

How the Company Makes Money

Citizens Financial Group generates revenue primarily through interest income from its lending activities, including personal loans, mortgages, and commercial loans. The company also earns non-interest income from various financial services such as deposit account fees, investment management services, and transaction processing. Additionally, CFG benefits from strategic partnerships and collaborations that enhance its product offerings and customer reach. Key factors contributing to its earnings include effective risk management practices, customer relationship management, and technological investments that enhance operational efficiency and customer experience.

Citizens Financial Financial Statement Overview

Summary

Citizens Financial exhibits strong profitability with stable profit margins and manageable leverage. However, concerns arise from declining revenue and free cash flow growth, requiring strategic focus on maintaining equity growth and cash flow sustainability.

Income Statement

Citizens Financial has demonstrated stable performance in its income statement, with a consistent gross profit margin over time. The TTM shows a slight decline in total revenue compared to the previous periods, but the net profit margin remains strong at 20.12%. EBIT and EBITDA margins also indicate robust operational efficiency, although there has been a decrease in revenue compared to 2023, which may be a concern if this trend continues.

Balance Sheet

The balance sheet exhibits a moderate debt-to-equity ratio of 0.50 in the TTM, reflecting a balanced approach to leveraging. The equity ratio is stable, suggesting good asset management. However, the declining stockholders' equity over the past few periods may pose a risk if not addressed. Return on equity is solid at 4.73%, indicating effective use of shareholders' funds.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth, with a negative trend from previous periods. The operating cash flow to net income ratio is 1.23, indicating a healthy cash generation from operations. However, the free cash flow to net income ratio has decreased, pointing to potential challenges in maintaining cash reserves if this continues.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
8.73B	7.79B	8.22B	8.05B	6.65B	6.91B
	Gross Profit
8.81B	7.79B	8.22B	8.05B	6.65B	6.91B
	EBIT
2.06B	1.83B	2.03B	2.65B	2.98B	1.30B
	EBITDA
2.77B	0.00	2.51B	3.22B	3.60B	1.88B
	Net Income Common Stockholders
1.55B	1.51B	1.61B	2.07B	2.32B	1.06B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
35.29B	43.85B	41.70B	34.59B	34.90B	35.43B
	Total Assets
220.15B	217.52B	221.96B	226.73B	188.41B	183.35B
	Total Debt
12.31B	12.40B	13.97B	15.89B	7.01B	8.59B
	Net Debt
88.00M	1.17B	1.94B	5.04B	-2.47B	-4.45B
	Total Liabilities
195.28B	193.27B	197.62B	203.04B	164.99B	160.68B
	Stockholders Equity
24.87B	24.25B	24.34B	23.69B	23.42B	22.67B
Cash Flow		Free Cash Flow
1.11B	1.88B	2.79B	3.99B	2.15B	-7.00M
	Operating Cash Flow
1.23B	2.00B	2.96B	4.12B	2.27B	111.00M
	Investing Cash Flow
840.00M	2.99B	5.25B	-12.64B	-10.49B	-6.14B
	Financing Cash Flow
-2.13B	-6.01B	-7.13B	9.91B	4.64B	15.37B

Citizens Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 41.58
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CFG, the sentiment is Positive. The current price of 41.58 is above the 20-day moving average (MA) of 38.77, above the 50-day MA of 38.47, and below the 200-day MA of 41.73, indicating a neutral trend. The MACD of 1.10 indicates Negative momentum. The RSI at 65.25 is Neutral, neither overbought nor oversold. The STOCH value of 88.76 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CFG.

Citizens Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HBAN	77 Outperform	$23.57B	12.47	10.30%	3.83%	7.55%	17.46%
KB	77 Outperform	$24.71B	6.39	10.66%	2.90%	10.29%	-5.75%
FCNCA	76 Outperform	$25.76B	11.19	11.46%	0.37%	0.33%	-3.13%
RF	75 Outperform	$20.31B	10.90	11.33%	4.38%	1.05%	12.14%
CFG	70 Outperform	$18.14B	13.32	6.37%	4.02%	-2.12%	13.92%
Sector *	64 Neutral	$12.82B	9.87	7.67%	17000.34%	12.39%	-5.85%
KEY	58 Neutral	$18.23B	1,663.64	0.14%	4.93%	-12.50%	-120.77%

Citizens Financial Corporate Events

Citizens Financial Reports Q1 2025 Earnings and Loan Sale

Citizens Financial Group, Inc. reported a first-quarter 2025 net income of $373 million and earnings per share of $0.77. The company highlighted a strong liquidity profile with a CET1 ratio of 10.64% and a loan-to-deposit ratio of 77.5%. Key developments included an agreement to sell approximately $1.9 billion of non-core education loans, with $200 million settled in the first quarter and the remainder to settle throughout 2025. The company’s financial metrics showed a slight decline in pre-provision net revenue and net interest income, while spot deposits increased by 2% quarter-over-quarter.

Spark’s Take on CFG Stock

According to Spark, TipRanks’ AI Analyst, CFG is a Neutral.

Citizens Financial’s overall score reflects solid financial performance with challenges in operational efficiency and cash flow management. Positive earnings call highlights and attractive valuation support the score, despite technical indicators suggesting caution. Continued focus on growth initiatives and strategic investments may enhance future performance.

To see Spark’s full report on CFG stock, click here.