Citigroup (C) AI Stock Analysis

• Market Cap: $157.60B
• Dividend Yield: 2.65%
• Average Volume (3M): 11.97M
• Price to Earnings (P/E): 13.3
• Beta (1Y): 1.40
• Revenue Growth: 2.97%
• EPS Growth: 87.82%
• Country: US
• Employees: 229,000
• Sector: Financial
• Sector Strength: 79
• Industry: Banks - Diversified
• EPS (TTM): 1.96
• Shares Outstanding: 1,867,733,600
• 10 Day Avg. Volume: 14,659,091
• 30 Day Avg. Volume: 11,969,879
• PEG Ratio: 1.55
• Price to Book (P/B): 0.69
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.98
• Enterprise Value/Market Cap: 3.72
• Enterprise Value/Revenue: 0.87
• Enterprise Value/Gross Profit: 8.24
• Enterprise Value/Ebitda: 7.80
• 1Y Price Target: $91.38
• Price Target Upside: 7.35% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

• Rating: 76 Outperform
• Price Target: $89.00 ▲(4.56%Upside)

Citigroup's overall stock score reflects strong earnings growth and positive technical momentum, tempered by financial leverage and cash flow challenges. The earnings call provided a positive outlook, further supported by strategic initiatives and capital returns.

Positive Factors

Financial Efficiency

Citi's efficiency has improved significantly, showing a decrease in efficiency ratios over the years, reflecting better cost management and operational performance.

Profitability

Over the last year, each of the five business areas within Citigroup are tracking improved profitability, especially wealth and banking, which have acquired a sharpened focus under new leadership.

Strategic Vision

Jane Fraser's strategic vision for Citigroup includes international consumer exits, balance sheet de-risking, tech/personnel investments, streamlining businesses, and hiring external talent, which gives Citi a fighting chance of becoming competitive.

Negative Factors

Financial Benefits

Citi is about three-quarters done with restructuring efforts, but only about one-quarter of financial benefits are reflected, indicating potential for improved performance.

Restructuring Challenges

Citi is estimated to be three-quarters done with its restructuring but has seen only a quarter of the financial benefits.

Workforce Cuts

Two-thirds of the way through targeted workforce cuts, driven by a simplified structure and optimized operations, suggesting further potential headcount reduction.

Citigroup Business Overview & Revenue Model

Company Description

Citigroup Inc. is a leading global financial services company, providing a wide array of financial products and services to consumers, corporations, governments, and institutions. The company operates through two primary segments: Global Consumer Banking (GCB) and Institutional Clients Group (ICG). Citigroup offers comprehensive banking services, including retail banking, credit cards, investment banking, securities brokerage, wealth management, and transaction services.

How the Company Makes Money

Citigroup generates revenue through a diverse range of financial services and products offered under its Global Consumer Banking and Institutional Clients Group segments. In the GCB segment, the company earns income from retail banking services such as deposits, loans, and mortgages, as well as credit card services where it charges interest and fees. The ICG segment generates revenue from investment banking activities, including advisory and underwriting services, trading and securities services, and lending to institutional clients. Additionally, Citigroup earns fees from asset management and private banking services. The company's global presence and extensive client network are significant factors contributing to its revenue generation capabilities. Citigroup's strategic partnerships and digital banking initiatives also play a crucial role in enhancing its service offerings and expanding its customer base.

Citigroup Financial Statement Overview

Summary

Citigroup shows strong revenue growth and profitability, but high leverage and negative cash flow highlight financial challenges. The income statement's strength is offset by a weak balance sheet and cash flow issues.

Income Statement

Citigroup's TTM (Trailing-Twelve-Months) income statement reflects strong profitability with a high gross profit margin of 77.1% and a solid net profit margin of 13.6%. Revenue growth over recent years shows a positive trend with a 38% increase in TTM revenue compared to the previous annual period. However, the EBIT margin has seen some fluctuation, indicating potential volatility in operational efficiency.

Balance Sheet

Citigroup's balance sheet shows a high debt-to-equity ratio of 3.52, which suggests significant leverage. The equity ratio is relatively low at 8.3%, indicating a heavy reliance on debt financing. Despite this, the return on equity of 6.3% is moderate, suggesting adequate profitability relative to equity. The high level of cash and short-term investments provides a buffer against potential financial instability.

Cash Flow

The cash flow statement reveals challenges with negative free cash flow and operating cash flow, indicating potential liquidity issues. The free cash flow to net income ratio is negative, highlighting a disconnect between profitability and cash generation. Citigroup's operating cash flow to net income ratio is also negative, which may signal inefficiencies in converting revenue into cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	168.15B	170.71B	155.38B	100.22B	79.87B	88.83B
Gross Profit	71.25B	71.12B	67.90B	69.37B	75.78B	58.12B
EBITDA	22.20B	21.36B	17.47B	23.07B	31.43B	17.57B
Net Income	13.38B	12.68B	9.23B	14.85B	21.95B	11.05B
Balance Sheet
Total Assets	2.57T	2.35T	2.41T	2.42T	2.29T	2.26T
Cash, Cash Equivalents and Short-Term Investments	527.78B	498.02B	506.00B	580.77B	541.33B	638.78B
Total Debt	748.78B	590.56B	602.18B	521.15B	473.63B	500.73B
Total Liabilities	2.36T	2.14T	2.21T	2.21T	2.09T	2.06T
Stockholders Equity	212.41B	208.60B	205.45B	201.19B	201.97B	199.44B
Cash Flow
Free Cash Flow	-73.96B	-26.17B	-80.00B	19.44B	42.97B	-26.93B
Operating Cash Flow	-67.55B	-19.67B	-73.42B	25.07B	47.09B	-23.49B
Investing Cash Flow	-27.58B	86.25B	-8.46B	-79.45B	-110.75B	-92.44B
Financing Cash Flow	134.32B	-38.30B	687.00M	137.76B	17.27B	233.59B

Citigroup Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 85.12
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For C, the sentiment is Positive. The current price of 85.12 is above the 20-day moving average (MA) of 79.10, above the 50-day MA of 74.35, and above the 200-day MA of 70.30, indicating a bullish trend. The MACD of 2.62 indicates Negative momentum. The RSI at 79.01 is Negative, neither overbought nor oversold. The STOCH value of 95.36 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for C.

Citigroup Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BAC	81 Outperform	$354.90B	14.07	9.46%	2.21%	8.23%	16.15%
HSBC	80 Outperform	$212.07B	11.24	10.83%	3.25%	-1.91%	-6.79%
JPM	78 Outperform	$797.91B	14.09	17.25%	1.95%	12.41%	23.05%
C	76 Outperform	$157.60B	13.33	6.30%	2.65%	2.97%	87.82%
MUFG	76 Outperform	$156.11B	13.23	9.18%	1.93%	5.39%	20.82%
WFC	76 Outperform	$258.71B	14.28	11.05%	2.01%	3.51%	16.51%
Sector *	67 Neutral	$16.67B	11.46	9.71%	3.91%	11.61%	-9.60%

Citigroup Corporate Events

Citigroup Appoints Jonathan Moulds as Independent Director

On June 16, 2025, Citigroup‘s Board of Directors elected Jonathan Moulds as an independent director, appointing him to the Risk Management and Transformation Oversight Committees. Moulds, who has a distinguished career in financial services, including roles at Bank of America and Barclays, is expected to enhance Citi’s board with his expertise in global markets and operational efficiency. His appointment is seen as a strategic move to strengthen Citi’s governance and oversight, potentially impacting the company’s operations and industry positioning positively.

The most recent analyst rating on (C) stock is a Buy with a $71.00 price target. To see the full list of analyst forecasts on Citigroup stock, see the C Stock Forecast page.

Citigroup Stockholders Approve Key Amendments at Annual Meeting

On April 29, 2025, Citigroup Inc. held its Annual Meeting of Stockholders where several key decisions were made. The stockholders approved an amendment to the Citigroup 2019 Stock Incentive Plan, increasing the authorized shares by 30 million. Additionally, 12 directors were elected, KPMG LLP was ratified as the independent accounting firm for 2025, and the 2024 Executive Compensation was approved. However, several stockholder proposals, including those on golden parachutes, Indigenous Peoples’ rights, climate change, and animal welfare, were not approved.