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Flagstar Financial
(NYSE:FLG)
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Rating:51Neutral
Price Target:
$11.50
▼(-15.50% Downside)
Action:Reiterated
Date:08/07/26
FLG scores in the low-50s primarily due to weak and volatile financial fundamentals—especially negative TTM free cash flow and very low returns—despite a recent return to modest profitability and improved leverage. The earnings call adds support via credible operational progress, strong capital and a buyback authorization, but technical indicators remain weak and valuation signals are mixed given a negative P/E despite a very high dividend yield.
Positive Factors
Profitability Turnaround
A third consecutive profitable quarter indicates that operational improvements are beginning to translate into recurring earnings rather than a single-period rebound. Continued profitability would strengthen internal capital generation and provide a foundation for rebuilding returns, although the earnings base remains early in its recovery.
Negative Factors
Thin and Volatile Profitability
The return to profit is not yet supported by strong earning power: margins and ROE remain very low, while revenue is contracting. The history of profits followed by several loss-making periods shows that earnings are volatile, limiting confidence that the recovery can produce durable returns through changing banking conditions.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability Turnaround
A third consecutive profitable quarter indicates that operational improvements are beginning to translate into recurring earnings rather than a single-period rebound. Continued profitability would strengthen internal capital generation and provide a foundation for rebuilding returns, although the earnings base remains early in its recovery.
Read all positive factors
Flagstar Financial (FLG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.70B
Dividend Yield0.35%
Average Volume (3M)4.88M
Price to Earnings (P/E)334.0
Beta (1Y)0.95
Revenue Growth-21.42%
EPS GrowthN/A
CountryUS
Employees5,631
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.03
Shares Outstanding415,092,830
10 Day Avg. Volume6,366,746
30 Day Avg. Volume4,881,870
Financial Highlights & Ratios
PEG Ratio0.29
Price to Book (P/B)0.64
Price to Sales (P/S)1.11
P/FCF Ratio-8.70
Enterprise Value/Market Cap3.93
Enterprise Value/Revenue4.23
Enterprise Value/Gross Profit9.40
Enterprise Value/Ebitda71.22
Forecast
1Y Price Target
$15.68Price Target Upside15.22% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering12
EPS Forecast (FY)0.28
Revenue Forecast (FY)$2.15B
Flagstar Financial Business Overview & Revenue Model
Company Description
Flagstar Financial, Inc. serves as the holding company for Flagstar Bank, N.A., delivering a wide array of banking solutions and services throughout the United States. Its deposit portfolio features interest-bearing checking, money market, savings...
Flagstar Financial Earnings Call Summary
Earnings Call Date:Jul 24, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 23, 2026
Earnings Call Sentiment Positive
The call conveyed clear operational progress: a third consecutive profitable quarter, robust and diversified C&I loan growth, meaningful deposit growth, disciplined expense control, material reduction in CRE/multifamily exposure, and a strong capital position that supported a $250 million buyback. These positive developments were balanced against near-term headwinds: elevated charge-offs and a modest rise in nonaccruals, continued high CRE/multifamily payoffs that reduce interest income, a slight compression in NIM in the quarter (though June showed improvement), and a lower near-term revenue guide driven by gain-on-sale and interest income pressures. Overall, management presented a credible execution story with risks acknowledged and under active management.Positive Updates
Sustained Profitability and EPS Improvement
Third consecutive quarter of profitability. GAAP diluted EPS of $0.06 and adjusted EPS of $0.05 in Q2 2026 (improved from an adjusted loss of $0.14 in Q2 2025). Management highlighted continued momentum in earnings generation.
Negative Updates
Increase in Net Charge-Offs
Net charge-offs rose to about $99–$100 million in Q2. Management noted ~ $47 million (roughly half) of the Q2 charge-offs had been previously 100% reserved for, but the rise still elevated the quarterly loss figure.
Read all updates
Q2-2026 Updates
Positive
Negative
Sustained Profitability and EPS Improvement
Third consecutive quarter of profitability. GAAP diluted EPS of $0.06 and adjusted EPS of $0.05 in Q2 2026 (improved from an adjusted loss of $0.14 in Q2 2025). Management highlighted continued momentum in earnings generation.
Read all positive updates
Company Guidance
Management updated guidance and outlook that trims interest income and mortgage gain‑on‑sale expectations while reiterating a path to improved earnings: EPS is now guided to $0.40–$0.50 for 2026 and $1.60–$1.70 for 2027; Q2 NIM was 2.13% (2.16% excl. an extra day) with June at 2.19% cited as a floor; the balance sheet is expected to finish 2026 at ~$91.5–$92.0B and reach ~$100B by end‑2027; Q2 saw $2.0B of net C&I growth on record $2.8B originations (C&I balances +12% Q/Q to $18.6B, pipeline >$2B), while CRE/multifamily payoffs remained elevated (total Q2 payoffs ~$1.5B, $1.1B par payoffs with 39% substandard), CRE balances down $14.9B (‑28% since 2023) and concentration improved to 350% from 367%; deposits: core (ex‑broker) +$700M Q/Q (~+$1.8B YTD), commercial/private bank deposits +$900M, deposit cost down 5 bps Q/Q (‑65 bps YoY) with spot funding cost ~2.49% and $4.8B/$4.4B of retail CDs maturing at ~3.98%/3.87% (85% retention into lower‑cost CDs); credit and reserves: ACL decreased $81M (coverage incl. unfunded 1.52%), multifamily ACL coverage 1.63% (NYC regulated tranche 2.87%), nonaccruals were $2.8B (up $123M Q/Q) but are expected to end the year ~ $2.3B (‑$450–$500M), Q2 net charge‑offs $99M (about $53M ex‑amounts already fully reserved), and management announced a $250M share buyback with CET1 at 13.16% (≈$1.6B excess capital after tax).Flagstar Financial Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
56
Neutral
Cash Flow
34
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.37B | 4.70B | 6.38B | 6.05B | 2.18B | 1.75B |
| Gross Profit | 1.96B | 1.77B | 1.49B | 2.80B | 1.35B | 1.35B |
| EBITDA | 259.00M | -50.00M | -1.19B | 115.00M | 849.00M | 827.00M |
| Net Income | 48.00M | -177.00M | -1.12B | -79.00M | 650.00M | 596.00M |
Balance Sheet | ||||||
| Total Assets | 87.71B | 87.51B | 100.16B | 114.06B | 90.14B | 59.53B |
| Cash, Cash Equivalents and Short-Term Investments | 16.97B | 16.25B | 25.83B | 20.62B | 10.66B | 6.82B |
| Total Debt | 10.94B | 12.18B | 14.43B | 28.62B | 31.66B | 20.56B |
| Total Liabilities | 79.57B | 79.37B | 91.99B | 105.69B | 81.32B | 52.48B |
| Stockholders Equity | 8.14B | 8.14B | 8.17B | 8.37B | 8.82B | 7.04B |
Cash Flow | ||||||
| Free Cash Flow | 79.00M | -601.00M | 50.00M | 197.00M | 1.02B | 286.00M |
| Operating Cash Flow | 173.00M | -534.00M | 86.00M | 263.00M | 1.03B | 290.00M |
| Investing Cash Flow | 1.37B | 3.04B | 15.45B | 20.67B | -6.32B | -2.76B |
| Financing Cash Flow | -4.54B | -12.09B | -11.59B | -11.41B | 5.17B | 2.73B |
Flagstar Financial Technical Analysis
Negative
13.61
Price Trends
13.07
Negative
13.78
Negative
13.57
Negative
Market Momentum
-0.52
Positive
17.80
Positive
15.00
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FLG, the sentiment is Negative. The current price of 13.61 is above the 20-day moving average (MA) of 12.09, above the 50-day MA of 13.07, and above the 200-day MA of 13.57, indicating a bearish trend. The MACD of -0.52 indicates Positive momentum. The RSI at 17.80 is Positive, neither overbought nor oversold. The STOCH value of 15.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FLG.
Flagstar Financial Risk Analysis
Flagstar Financial disclosed 44 risk factors in its most recent earnings report. Flagstar Financial reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Flagstar Financial Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $4.22B | 10.57 | 11.15% | 3.44% | 0.30% | 22.36% | |
74 Outperform | $6.02B | 10.11 | 8.94% | 2.93% | 2.88% | 30.47% | |
69 Neutral | $5.41B | 9.93 | 9.86% | 3.35% | 20.11% | 273.05% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $6.97B | 10.46 | 8.88% | 3.49% | 1.17% | 51.80% | |
61 Neutral | $5.40B | 11.28 | 9.68% | 3.92% | 35.21% | 61.65% | |
51 Neutral | $4.70B | 334.02 | 0.59% | 0.35% | -21.42% | ― |
* Financial Sector Average
FLG
Flagstar Financial
11.32
-0.23
-2.03%
ASB
Associated Banc-Corp
28.65
4.15
16.93%
FNB
F.N.B.
17.06
1.89
12.43%
FULT
Fulton Financial
22.10
5.06
29.66%
AUB
Atlantic Union Bankshares
37.80
4.58
13.78%
VLY
Valley National Bancorp
12.62
2.42
23.77%
Flagstar Financial Corporate Events
Business Operations and StrategyStock BuybackFinancial Disclosures
Flagstar Financial Announces Share Buyback After Profit Turnaround
Positive
Jul 24, 2026
Flagstar Bank reported second-quarter 2026 net income of $34 million, or $0.06 per diluted share attributable to common stockholders, marking its third straight profitable quarter and a sharp turnaround from a net loss a year earlier. Adjusted ear...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.