Flagstar Financial (FLG) AI Stock Analysis

• Market Cap: $5.02B
• Dividend Yield: 0.33%
• Average Volume (3M): 4.99M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.87
• Revenue Growth: -13.26%
• EPS Growth: 86.72%
• Country: US
• Employees: 6,993
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): -0.19
• Shares Outstanding: 415,561,200
• 10 Day Avg. Volume: 4,323,804
• 30 Day Avg. Volume: 4,993,157
• 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: 2.07
• Enterprise Value/Revenue: 1.87
• Enterprise Value/Gross Profit: 6.42
• Enterprise Value/Ebitda: -17.14
• 1Y Price Target: $13.70
• Price Target Upside: 12.39% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 54 Neutral
• Price Target: $13.00 ▲(6.64% Upside)

Flagstar Financial's overall stock score reflects significant financial challenges, including declining revenues and high leverage, which weigh heavily on the score. Positive technical indicators and some optimistic earnings call highlights provide a moderate uplift. The valuation is mixed, with a negative P/E ratio but a reasonable dividend yield. The cautiously optimistic sentiment from the earnings call slightly improves the outlook.

Positive Factors

C&I Growth Strategy

The successful C&I growth strategy indicates strong business model execution and potential for sustained revenue expansion in commercial lending.

Internal Reorganization

Streamlining operations through reorganization can lead to cost savings and improved efficiency, enhancing long-term profitability and competitive positioning.

Improved Credit Quality

Improved credit quality reduces risk exposure and enhances financial stability, supporting sustainable growth and profitability.

Negative Factors

Declining Revenue

Declining revenue growth poses a challenge to maintaining market position and profitability, potentially impacting long-term financial health.

High Leverage

High leverage increases financial risk and limits flexibility, potentially constraining future growth and investment opportunities.

Cash Flow Challenges

Cash flow challenges can hinder the company's ability to invest in growth initiatives and meet financial obligations, impacting long-term viability.

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 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: Neutral
• Last Price: 12.19
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Neutral. The current price of 12.19 is below the 20-day moving average (MA) of 12.64, above the 50-day MA of 12.03, and above the 200-day MA of 11.38, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 46.28 is Neutral, neither overbought nor oversold. The STOCH value of 27.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FLG.

Flagstar Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AX	81 Outperform	5.00B	11.87	16.15%	―	9.00%	-2.90%
AUB	77 Outperform	5.21B	17.78	6.65%	3.72%	37.25%	-8.67%
HWC	75 Outperform	5.40B	11.87	10.78%	2.75%	0.76%	27.66%
UBSI	72 Outperform	5.32B	13.40	7.36%	3.94%	7.29%	6.87%
FFIN	66 Neutral	4.99B	20.90	14.14%	2.12%	14.53%	21.78%
FLG	54 Neutral	$5.02B	―	-7.62%	0.33%	-13.26%	86.72%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Flagstar Financial Corporate Events

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.

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.

Flagstar Financial Plans to Streamline Operations

Flagstar Financial, Inc. announced plans to streamline its operations by eliminating its bank holding company structure, aiming to reduce duplicative supervision and regulation, and achieve annual cost savings of approximately $15 million. The company intends to issue a preliminary proxy in August 2025, with a shareholder meeting scheduled for October 2025, and expects to complete the merger by the fourth quarter of 2025, pending necessary approvals.

Flagstar Financial Announces Merger with Flagstar Bank

On July 24, 2025, Flagstar Financial, Inc. announced an internal reorganization plan to merge with its wholly-owned subsidiary, Flagstar Bank, N.A. This merger, approved by the boards of both entities, aims to streamline the corporate structure, reduce costs, and eliminate redundant activities. The merger will result in Flagstar Bank, N.A. continuing as the surviving entity, maintaining the same brand name, management, and board of directors. The reorganization is subject to regulatory and shareholder approval, with expectations to complete it by the end of 2025. The move is intended to enhance the company’s focus on its customers and communities, while also maintaining its position as a publicly traded company on the NYSE under the ticker symbol ‘FLG’.

Flagstar Financial Appoints New Executive Vice President

On July 1, 2025, Flagstar Bank entered into an employment agreement with Richard Raffetto, appointing him as the Senior Executive Vice President and President of Commercial and Private Banking. The agreement includes a base salary of $700,000, eligibility for a cash bonus, and participation in the company’s long-term equity incentive program. It also outlines conditions for termination and post-employment covenants, impacting the company’s executive management and potentially its strategic direction.