Flagstar Financial (FLG) AI Stock Analysis

• Market Cap: $4.75B
• Dividend Yield: 0.36%
• Average Volume (3M): 5.20M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.86
• Revenue Growth: -18.33%
• EPS Growth: 92.89%
• Country: US
• Employees: 6,993
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): -0.11
• Shares Outstanding: 415,561,200
• 10 Day Avg. Volume: 5,251,173
• 30 Day Avg. Volume: 5,199,838
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.37
• Price to Sales (P/S): 0.47
• P/FCF Ratio: 59.78
• Enterprise Value/Market Cap: 2.11
• Enterprise Value/Revenue: 1.80
• Enterprise Value/Gross Profit: 6.19
• Enterprise Value/Ebitda: -16.53
• 1Y Price Target: $14.09
• Price Target Upside: 23.38% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 49 Neutral
• Price Target: $11.50 ▲(0.70% Upside)

Flagstar Financial's overall stock score reflects significant financial challenges, with declining revenues and profitability, high leverage, and cash flow issues. While the earnings call indicates some strategic improvements and cost management efforts, the ongoing net loss and valuation concerns weigh heavily on the score. Technical analysis provides mixed signals, contributing to a cautious outlook.

Positive Factors

Net Interest Margin Expansion

The consistent expansion of net interest margin indicates improved profitability from core banking operations, suggesting effective management of funding costs and loan portfolio adjustments. This trend supports long-term financial health and competitiveness in the banking sector.

Cost Control and Expense Reduction

Effective cost management through significant expense reductions enhances operational efficiency. This strategic focus on cost control can improve profit margins and provide a buffer against economic fluctuations, strengthening the company's long-term financial position.

C&I Loan Growth

Strong growth in commercial and industrial loans reflects successful strategic focus on specialized industries. This expansion diversifies revenue sources and reduces reliance on traditional mortgage lending, positioning the company for sustained growth in a competitive market.

Negative Factors

Declining Revenue Growth

The decline in revenue growth highlights challenges in maintaining market share and competitiveness. This trend could pressure profitability and limit the company's ability to invest in growth initiatives, potentially impacting long-term sustainability.

High Leverage

High leverage increases financial risk, especially in volatile markets. It can constrain the company's ability to invest in growth opportunities and may lead to higher interest expenses, affecting long-term financial stability and shareholder returns.

Cash Flow Challenges

Persistent cash flow issues indicate difficulties in generating sufficient cash from operations to support business activities. This can limit the company's ability to fund new projects, pay down debt, or return capital to shareholders, impacting long-term growth prospects.

Flagstar Financial Business Overview & Revenue Model

Company Description

Flagstar Financial (FLG) is a diversified financial services company that operates primarily in the banking and mortgage sectors. The company provides a wide range of financial products and services, including consumer and commercial banking, mortgage lending, and wealth management solutions. Flagstar serves both retail and commercial clients, focusing on delivering tailored financial solutions to meet their customers' needs.

How the Company Makes Money

Flagstar Financial generates revenue through multiple streams, predominantly from interest income and non-interest income. A significant portion of its revenue comes from the origination and servicing of residential mortgages, where it earns fees for processing loans and servicing them over time. Additionally, the company generates income through its banking operations, including interest earned on loans and mortgages issued to customers. Non-interest income is derived from service fees, investment income, and wealth management services. Flagstar also engages in strategic partnerships, which can enhance its product offerings and expand its customer base, further contributing to its earnings.

Flagstar Financial Financial Statement Overview

Summary

Flagstar Financial is facing significant financial challenges across all verticals. The income statement shows declining revenues and profitability, while the balance sheet reflects high leverage and negative returns on equity. Cash flow issues further compound these challenges, with negative operating cash flow and volatile free cash flow growth. The company needs to address these issues to improve its financial health and stability.

Income Statement

Flagstar Financial has experienced a decline in revenue growth, with a negative trend in the TTM period. The company has faced significant challenges in maintaining profitability, as evidenced by negative net profit and EBIT margins. The gross profit margin has also decreased over time, indicating pressure on cost management. Overall, the income statement reflects a challenging financial environment with declining revenues and profitability.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio, indicating significant leverage, which poses a risk in a volatile market. The return on equity has been negative in recent periods, reflecting the company's struggle to generate returns for shareholders. However, the equity ratio remains stable, suggesting that the company maintains a reasonable level of equity relative to its assets.

Cash Flow

Cash flow analysis reveals a concerning trend, with negative operating cash flow in the TTM period. The free cash flow growth rate has been volatile, and the operating cash flow to net income ratio is negative, indicating cash flow challenges. The free cash flow to net income ratio is relatively high, suggesting that the company is managing to convert net income into free cash flow efficiently, despite overall cash flow difficulties.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.54B	6.38B	6.05B	2.18B	1.75B	1.77B
Gross Profit	1.61B	1.49B	2.80B	1.35B	1.35B	1.10B
EBITDA	-605.00M	-1.19B	115.00M	849.00M	827.00M	612.00M
Net Income	-638.00M	-1.12B	-79.00M	650.00M	596.00M	511.00M
Balance Sheet
Total Assets	92.24B	100.16B	114.06B	90.14B	59.53B	56.31B
Cash, Cash Equivalents and Short-Term Investments	8.09B	25.83B	20.62B	10.66B	6.82B	6.48B
Total Debt	13.18B	14.43B	28.62B	31.66B	20.56B	16.35B
Total Liabilities	84.14B	91.99B	105.69B	81.32B	52.48B	49.46B
Stockholders Equity	8.10B	8.17B	8.37B	8.82B	7.04B	6.84B
Cash Flow
Free Cash Flow	-646.00M	50.00M	197.00M	1.02B	286.00M	334.00M
Operating Cash Flow	-651.00M	86.00M	263.00M	1.03B	290.00M	334.00M
Investing Cash Flow	14.45B	15.45B	20.67B	-6.32B	-2.76B	-1.02B
Financing Cash Flow	-24.68B	-11.59B	-11.41B	5.17B	2.73B	1.90B

Flagstar Financial Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 11.42
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 11.42 is below the 20-day moving average (MA) of 11.67, below the 50-day MA of 12.06, and below the 200-day MA of 11.63, indicating a bearish trend. The MACD of -0.12 indicates Positive momentum. The RSI at 44.85 is Neutral, neither overbought nor oversold. The STOCH value of 25.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FLG.

Flagstar Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AX	―	$4.42B	10.45	17.42%	―	9.00%	-2.90%
AUB	―	$4.63B	17.43	5.42%	4.18%	43.53%	-21.74%
UBSI	―	$5.07B	11.74	8.25%	4.14%	8.85%	15.56%
Sector *	―	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
HWC	―	$4.84B	10.23	11.12%	3.14%	-0.59%	―
FFIN	―	$4.42B	18.30	13.89%	2.40%	12.90%	16.92%
FLG	―	$4.75B	-11.10	-4.72%	0.36%	-18.33%	92.89%

Flagstar Financial Corporate Events

New York Community Bancorp’s Earnings Call: A Cautious Optimism

The latest earnings call from New York Community Bancorp paints a picture of a company on the rebound. The sentiment expressed during the call was cautiously optimistic, highlighting significant improvements in key metrics and strategic growth in C&I lending. However, the company continues to face challenges, particularly in its CRE and multi-family portfolios, which indicates ongoing hurdles. The focus remains on strategic execution and cost management as the company navigates these challenges.

Flagstar Financial Reports Q3 2025 Financial Results

Flagstar Bank, National Association, reported its third-quarter 2025 financial results, highlighting a strategic focus on expanding commercial and industrial (C&I) loans, which grew by $448 million or 3% quarter-over-quarter. The bank also emphasized improvements in credit quality, with a reduction in net charge-offs and a decrease in new problem loan formation. The management’s focus on proactive management of the commercial real estate (CRE) portfolio and cost control measures contributed to an improved earnings profile, despite challenges in specialty finance and leasing sectors.

The most recent analyst rating on (FLG) stock is a Hold with a $11.00 price target. To see the full list of analyst forecasts on Flagstar Financial stock, see the FLG Stock Forecast page.

Flagstar Financial Completes Internal Reorganization

On October 17, 2025, Flagstar Bank, N.A. completed an internal reorganization, merging with its holding company, Flagstar Financial Inc., to simplify its corporate structure and reduce regulatory burdens. The reorganization, which was approved by shareholders, allows Flagstar Bank to continue as a publicly traded entity on the New York Stock Exchange under the symbol ‘FLG’. This strategic move is expected to enhance operational efficiency and maintain the bank’s focus on becoming a top-performing regional bank while ensuring continuity in client services and operations.

The most recent analyst rating on (FLG) stock is a Hold with a $11.00 price target. To see the full list of analyst forecasts on Flagstar Financial stock, see the FLG Stock Forecast page.

Flagstar Financial Approves Corporate Reorganization

On October 15, 2025, Flagstar Financial, Inc. held a virtual special meeting of shareholders where key proposals were approved. The shareholders voted in favor of an internal corporate reorganization, merging the company with its subsidiary, Flagstar Bank, N.A., and converting the company into a federal savings association. These decisions are expected to streamline operations and potentially enhance the company’s market positioning.

The most recent analyst rating on (FLG) stock is a Hold with a $12.00 price target. To see the full list of analyst forecasts on Flagstar Financial stock, see the FLG Stock Forecast page.

Flagstar Financial Gains Approval for Major Reorganization

On October 3, 2025, Flagstar Financial, Inc. received approval from the Office of the Comptroller of the Currency to reorganize as a federal interim savings bank and merge with Flagstar Bank, N.A., making Flagstar Bank the surviving entity and publicly traded on the New York Stock Exchange. The transaction, pending shareholder approval at a meeting on October 15, 2025, is expected to close by late October 2025, potentially impacting the company’s market presence and shareholder value.

The most recent analyst rating on (FLG) stock is a Hold with a $12.00 price target. To see the full list of analyst forecasts on Flagstar Financial stock, see the FLG Stock Forecast page.

Flagstar Financial Announces Virtual Shareholder Meeting

Flagstar Financial, Inc. announced that its Special Meeting of Shareholders will be held on October 15, 2025, via a live virtual webcast. Shareholders as of the record date, August 18, 2025, will be eligible to participate and vote in the meeting. This announcement is part of the company’s ongoing efforts to engage with its stakeholders and ensure transparency in its operations.

The most recent analyst rating on (FLG) stock is a Buy with a $16.50 price target. To see the full list of analyst forecasts on Flagstar Financial stock, see the FLG Stock Forecast page.

Flagstar Financial Announces Internal Reorganization Plan

On August 22, 2025, Flagstar Financial, Inc. announced an internal reorganization plan to streamline its corporate structure by merging with its wholly-owned subsidiary, Flagstar Bank, N.A. The company entered into voting agreements with major investors holding 35.05% of its common stock, who agreed to support the merger and related proposals at a shareholder meeting scheduled for October 15, 2025. Additionally, the company and the bank amended their merger agreement to clarify the treatment of outstanding warrants for Series D Non-Voting Common Equivalent Preferred Stock.

The most recent analyst rating on (FLG) stock is a Hold with a $12.00 price target. To see the full list of analyst forecasts on Flagstar Financial stock, see the FLG Stock Forecast page.