Flagstar Financial (FLG) AI Stock Analysis

• Market Cap: $5.00B
• Dividend Yield: 0.5%
• Average Volume (3M): 6.17M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.00
• Revenue Growth: -8.28%
• EPS Growth: 73.59%
• Country: US
• Employees: 6,993
• Sector: Financial
• Sector Strength: 88
• Industry: Banks - Regional
• EPS (TTM): -2.66
• Shares Outstanding: 415,074,300
• 10 Day Avg. Volume: 6,258,502
• 30 Day Avg. Volume: 6,171,321
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.38
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 2.67
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $13.71
• Price Target Upside: 13.78% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

Flagstar Financial's overall score reflects the company's struggle with declining profitability and high leverage, counterbalanced by its strong liquidity position. While there are strategic improvements in cost management and loan portfolio growth, the negative valuation metrics and technical indicators suggest cautious optimism. The earnings call provided some positive guidance, but ongoing financial challenges and execution risks remain significant factors.

Positive Factors

Loan Growth

Increasing confidence in C&I growth drives up our forward NII estimates.

Operational Improvements

The company's operational improvements and enhanced credit situation are expected to show substantial progress into 2026 and beyond.

Valuation and Risk/Reward

The shares are seen as having a positive risk/reward skew due to a deeply discounted valuation and an improving operational outlook.

Negative Factors

Investor Sentiment

Investor sentiment remains negative with short interest around 13% due to concerns about capital and credit issues.

Net Interest Income

Flagstar reduced their net interest income guidance for 2025 from a range of midpoint partly driven by the miss in the first quarter.

Flagstar Financial Business Overview & Revenue Model

Company Description

Flagstar Financial, Inc. operates as the bank holding company for Flagstar Bank, N.A. that provides banking products and services in the United States. The company's deposit products include interest-bearing checking and money market, savings, non-interest-bearing, and retirement accounts, as well as certificates of deposit. Its loan products comprise multi-family loans; commercial real estate loans; acquisition, development, and construction loans; commercial and industrial loans; one-to-four family loans; specialty finance loans and leases; warehouse loans; and other loans, such as home equity lines of credit, boat and recreational vehicle indirect lending, point of sale consumer loans, and other consumer loans, including overdraft loans. The company offers cash management products; non-deposit investment and insurance products; and online banking, mobile banking, and bank-by-phone services. It primarily serves individuals, small and mid-size businesses, and professional associations. The company was formerly known as New York Community Bancorp, Inc. and changed its name to Flagstar Financial, Inc. in October 2024. Flagstar Financial, Inc. was founded in 1859 and is headquartered in Hicksville, New York.

How the Company Makes Money

Flagstar Financial primarily generates revenue through interest income on loans and mortgages, as well as fees and service charges associated with its banking operations. The company earns a substantial portion of its income from the interest rate spread between what it charges borrowers and what it pays to depositors. Additionally, Flagstar Financial makes money through mortgage origination and servicing fees, where it acts as an intermediary in the home-buying process. Key partnerships with real estate companies and financial institutions enhance its market reach and contribute to its earnings. The company also benefits from cross-selling financial products to its existing customer base, further strengthening its revenue streams.

Flagstar Financial Financial Statement Overview

Summary

Flagstar Financial is facing financial challenges with declining revenues and profitability, as indicated by an income statement score of 32. However, the company shows resilience in cash flow management with a score of 58, and maintains a stable balance sheet with a score of 45, providing some liquidity cushion. Overall, the financial performance indicates a need for improvement in profitability and revenue generation.

Income Statement

Flagstar Financial has experienced declining revenue and profitability in recent years. The company's gross profit margin remains steady at 100%, but it is operating at a net loss, with significant negative EBIT and EBITDA margins. Revenue decreased significantly from 2023 to 2024, indicating potential challenges in maintaining revenue streams.

Balance Sheet

The balance sheet of Flagstar Financial shows high leverage with a debt-to-equity ratio that remains elevated. Stockholders' equity has remained relatively stable, but the equity ratio has decreased over time. The company has a substantial amount of cash and equivalents, which provides some liquidity buffer.

Cash Flow

Flagstar Financial's cash flow shows some resilience with positive operating and free cash flows, although they have decreased from the prior year. The company has managed to maintain positive free cash flow despite lower operating cash flow, indicating some efficiency in capital expenditure management.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.58B	3.63B	1.48B	1.35B	1.16B
	Gross Profit
2.58B	3.63B	1.48B	1.35B	1.16B
	EBIT
-1.38B	-50.00M	826.00M	806.00M	588.00M
	EBITDA
-1.27B	115.00M	849.00M	827.00M	612.00M
	Net Income Common Stockholders
-1.12B	-79.00M	650.00M	596.00M	511.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
25.83B	20.62B	10.66B	6.82B	6.48B
	Total Assets
100.16B	114.06B	90.14B	59.53B	56.31B
	Total Debt
14.43B	28.62B	31.66B	20.56B	16.35B
	Net Debt
-1.00B	17.14B	29.63B	18.35B	14.40B
	Total Liabilities
91.99B	105.69B	81.32B	52.48B	49.46B
	Stockholders Equity
8.17B	8.37B	8.82B	7.04B	6.84B
Cash Flow		Free Cash Flow
50.00M	197.00M	1.02B	286.00M	334.00M
	Operating Cash Flow
86.00M	263.00M	1.03B	290.00M	334.00M
	Investing Cash Flow
15.45B	20.67B	-6.32B	-2.76B	-1.02B
	Financing Cash Flow
-11.59B	-11.41B	5.17B	2.73B	1.90B

Flagstar Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.05
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FLG, the sentiment is Positive. The current price of 12.05 is above the 20-day moving average (MA) of 10.94, above the 50-day MA of 11.44, and above the 200-day MA of 10.95, indicating a bullish trend. The MACD of 0.16 indicates Negative momentum. The RSI at 63.35 is Neutral, neither overbought nor oversold. The STOCH value of 77.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FLG.

Flagstar Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OZK	79 Outperform	$4.31B	6.18	12.85%	3.76%	13.85%	2.51%
FNB	76 Outperform	$4.92B	10.81	7.39%	3.51%	10.18%	2.27%
GBCI	73 Outperform	$4.38B	22.98	6.63%	3.15%	8.10%	6.95%
VLY	69 Neutral	$4.98B	12.96	5.48%	4.94%	1.60%	-18.84%
COLB	67 Neutral	$4.95B	10.02	9.73%	6.08%	-0.21%	1.69%
Sector *	64 Neutral	$12.64B	9.74	8.05%	17044.60%	12.66%	-4.62%
FLG	51 Neutral	$5.00B	―	-10.40%	0.50%	-8.28%	73.59%

Flagstar Financial Corporate Events

Flagstar Financial Reports Strong Q1 2025 Results

On April 25, 2025, Flagstar Financial announced its first quarter results, highlighting significant growth in credit commitments and loan originations, driven by strategic focus areas such as expanding product offerings and reducing operating expenses. The company is actively managing its commercial real estate portfolio and aims to improve its earnings profile by reducing costs and enhancing operational efficiencies, with over 80% of targeted efficiencies already realized.

Spark’s Take on FLG Stock

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

Flagstar Financial is in a transitional phase with notable strategic improvements in capital and cost management. However, declining revenues, profitability challenges, and technical weaknesses weigh on the stock’s performance. The stock is currently undervalued given its negative earnings, which, combined with low dividend yield, provides limited investment appeal. The optimistic strategic outlook offers some hope, but execution risks remain.

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

Flagstar Financial Announces Virtual 2025 Shareholder Meeting

On February 24, 2025, Flagstar Financial announced that its 2025 Annual Meeting of Shareholders will be held virtually on June 4, 2025. The meeting will be accessible via live webcast, with April 7, 2025, set as the record date for voting eligibility. This move to a virtual format reflects ongoing trends in shareholder engagement and may impact how stakeholders participate in the company’s governance processes.

Flagstar Financial Set to Present Strategic Plans for 2025

Flagstar Financial announced plans to present at the Bank of America Securities 2025 Financial Services Conference on February 11, 2025, detailing strategic initiatives to reduce commercial real estate exposure, grow corporate banking, and enhance their residential mortgage segment. The company aims to reach a top quartile CET1 capital ratio of 11.9% and achieve profitability by 2026, driven by cost optimization and a strategic focus on diversified financial services.