Citigroup (C) AI Stock Analysis

• Market Cap: $208.04B
• Dividend Yield: 1.94%
• Average Volume (3M): 13.89M
• Price to Earnings (P/E): 16.6
• Beta (1Y): 1.49
• Revenue Growth: -0.62%
• EPS Growth: 105.57%
• Country: US
• Employees: 229,000
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Diversified
• EPS (TTM): 1.19
• Shares Outstanding: 1,789,266,100
• 10 Day Avg. Volume: 13,274,535
• 30 Day Avg. Volume: 13,891,644
• PEG Ratio: 0.75
• Price to Book (P/B): 1.00
• Price to Sales (P/S): 1.26
• P/FCF Ratio: -3.14
• Enterprise Value/Market Cap: 2.76
• Enterprise Value/Revenue: 3.41
• Enterprise Value/Gross Profit: 7.72
• Enterprise Value/Ebitda: 23.80
• 1Y Price Target: $131.94
• Price Target Upside: 14.19% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 18
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: $120.00 ▲(3.85% Upside)

Overall score reflects mixed financial performance led by weak recent cash-flow consistency and higher leverage, partially offset by a constructive earnings-call outlook (NII growth, efficiency improvements, ROTCE targets and buybacks). Technicals are broadly neutral and valuation is reasonable with a moderate dividend yield; corporate events add only minor, mixed impact.

Positive Factors

Diversified, record revenues across businesses

Sustained record performance across five core businesses indicates a diversified revenue base that reduces single-market cyclicality. Over time this breadth supports stability in top-line cash flows and makes recovery from segment-specific shocks (markets, cards, wealth) more durable versus peers reliant on one line of business.

Strong capital position and active returns

A robust CET1 buffer, large available liquidity and significant buybacks reflect disciplined capital management that supports investor returns while preserving regulatory headroom. This capital flexibility underpins strategic optionality for future buybacks, M&A once constraints ease, and resilience through macro stress.

Transformation & AI adoption improving efficiency

High completion of transformation programs and broad AI adoption signal durable productivity gains and stronger controls. Ongoing automation of complex processes should reduce operating costs and control risk over time, enabling sustainable efficiency improvements and supporting management's mid-term efficiency targets.

Negative Factors

Persistent negative cash flow

Repeated negative operating and free cash flow over multiple years raises questions about the quality and convertibility of reported earnings into cash. For a bank, persistent cash outflows constrain internal capital generation, increase reliance on external funding or capital issuance, and limit the pace of durable shareholder returns.

Rising leverage with modest returns

Increasing leverage alongside only mid-single-digit returns signals deteriorating capital efficiency. Higher leverage amplifies sensitivity to credit losses or margin compression and leaves less room for growth investments, while subdued returns limit the bank's ability to organically rebuild capital and improve shareholder value persistently.

Concentrated credit losses in cards & Mexico

Credit losses concentrated in cards and Mexico point to structural pockets of underwriting and portfolio risk. Persistent elevated NCLs in these segments can erode margins, necessitate higher reserves, and constrain returns in consumer-facing franchises, limiting durable profitability unless credit performance materially improves.

Citigroup Business Overview & Revenue Model

Company Description

Citigroup Inc., a diversified financial services holding company, provides various financial products and services to consumers, corporations, governments, and institutions in North America, Latin America, Asia, Europe, the Middle East, and Africa. The company operates in two segments, Global Consumer Banking (GCB) and Institutional Clients Group (ICG). The GCB segment offers traditional banking services to retail customers through retail banking, Citi-branded cards, and Citi retail services. It also provides various banking, credit card, lending, and investment services through a network of local branches, offices, and electronic delivery systems. The ICG segment offers wholesale banking products and services, including fixed income and equity sales and trading, foreign exchange, prime brokerage, derivative, equity and fixed income research, corporate lending, investment banking and advisory, private banking, cash management, trade finance, and securities services to corporate, institutional, public sector, and high-net-worth clients. As of December 31, 2020, it operated 2,303 branches primarily in the United States, Mexico, and Asia. Citigroup Inc. was founded in 1812 and is headquartered in New York, New York.

How the Company Makes Money

Citigroup generates revenue through multiple streams. Its Global Consumer Banking segment earns money primarily from interest income on loans, fees from credit card services, and various banking fees. The Institutional Clients Group contributes significantly through investment banking services, including advisory fees, underwriting, and trading revenues. Additionally, Citigroup benefits from asset management fees and transaction-related fees in its wealth management services. The company's extensive network of partnerships with financial institutions and corporations enhances its ability to offer integrated financial solutions, further bolstering its earnings. Key factors contributing to its revenue include global economic conditions, interest rate fluctuations, and the performance of the capital markets.

Citigroup Financial Statement Overview

Summary

Mixed fundamentals: income statement remains profitable but shows meaningful margin compression and uneven revenue, the balance sheet shows rising leverage with only mid-single-digit ROE, and cash flow is a major weakness with negative operating/free cash flow in 2023–2025.

Income Statement

Revenue has been volatile: strong growth in 2022–2024 was followed by a modest decline in 2025 (annual revenue down ~2.7%). Profitability has also compressed materially versus earlier years—net margin fell from ~27.5% (2021) to ~8.5% (2025)—but the company still delivered positive earnings and improved net income versus 2023–2024. Overall, the income statement shows resilience in absolute profits, but weakening margins and uneven top-line momentum are key watch items.

Balance Sheet

The balance sheet is asset-heavy as expected for a diversified bank, but leverage has been trending higher recently: debt-to-equity increased to ~3.37x in 2025 from ~2.83x in 2024 and ~2.59x in 2022. Shareholders’ equity has grown modestly over time, supporting stability, while returns on equity remain mid-single-digit (about 6.7% in 2025), below earlier peaks (about 10.9% in 2021). Strength is the steady equity base; the main risk signal is rising leverage paired with only moderate returns.

Cash Flow

Cash generation is a clear weakness: operating cash flow and free cash flow were negative in 2023–2025 (including a large outflow in 2025), after being positive in 2021–2022. The repeated negative operating cash flow suggests elevated volatility in cash movements (common in banking), but the persistence and magnitude of recent outflows raise questions around the quality and consistency of cash earnings relative to reported profits. Improvement back to sustainably positive cash flow would be an important catalyst for a higher score.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	168.35B	168.30B	170.71B	155.38B	100.22B	79.87B
Gross Profit	74.33B	74.98B	71.12B	67.90B	69.37B	75.78B
EBITDA	24.11B	23.10B	21.36B	17.47B	23.07B	31.43B
Net Income	14.69B	14.27B	12.68B	9.23B	14.85B	21.95B
Balance Sheet
Total Assets	2.64T	2.66T	2.35T	2.41T	2.42T	2.29T
Cash, Cash Equivalents and Short-Term Investments	672.58B	675.44B	498.02B	506.00B	580.77B	541.33B
Total Debt	720.24B	715.80B	590.56B	602.18B	521.15B	473.63B
Total Liabilities	2.43T	2.44T	2.14T	2.21T	2.21T	2.09T
Stockholders Equity	213.02B	212.29B	208.60B	205.45B	201.19B	201.97B
Cash Flow
Free Cash Flow	-75.97B	-67.63B	-26.17B	-80.00B	19.44B	42.97B
Operating Cash Flow	-69.39B	-67.63B	-19.67B	-73.42B	25.07B	47.09B
Investing Cash Flow	-51.20B	-86.28B	86.25B	-8.46B	-79.45B	-110.75B
Financing Cash Flow	165.44B	0.00	-38.30B	687.00M	137.76B	17.27B

Citigroup Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 115.55
• 50DMA: Negative
• 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 C, the sentiment is Positive. The current price of 115.55 is below the 20-day moving average (MA) of 116.03, below the 50-day MA of 115.73, and above the 200-day MA of 96.86, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 49.59 is Neutral, neither overbought nor oversold. The STOCH value of 40.61 is Neutral, 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
HSBC	78 Outperform	$299.62B	18.60	8.66%	4.14%	-9.54%	-22.46%
GS	78 Outperform	$280.05B	18.19	13.91%	1.55%	2.31%	44.49%
WFC	71 Outperform	$273.88B	14.15	11.85%	1.80%	-4.37%	26.41%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
JPM	67 Neutral	$832.79B	15.42	16.06%	1.79%	1.89%	12.32%
BAC	65 Neutral	$384.86B	14.01	10.23%	1.93%	0.15%	33.84%
C	58 Neutral	$208.04B	16.63	6.72%	1.94%	-0.62%	105.57%

Citigroup Corporate Events

Citigroup Board Sets $42 Million Pay for CEO

On February 11, 2026, Citi’s board set CEO Jane Fraser’s 2025 compensation at $42 million, citing record 2025 revenues in each of the firm’s five core businesses, improved returns, and sector‑leading share price performance. The package, heavily weighted to deferred stock and performance share units, reflects progress on regulatory remediation, risk and control transformation, international divestitures and business simplification, and underscores the board’s focus on retention and alignment with shareholder value.

The most recent analyst rating on (C) stock is a Buy with a $134.00 price target. To see the full list of analyst forecasts on Citigroup stock, see the C Stock Forecast page.

Citigroup Establishes New 6.5% Series JJ Preferred Stock

On February 11, 2026, Citigroup Inc. filed a Certificate of Designations in Delaware to create a new series of preferred stock, the 6.500% Fixed Rate Reset Noncumulative Preferred Stock, Series JJ, which became effective immediately and amended the company’s Restated Certificate of Incorporation. The move expands Citigroup’s capital structure alongside its existing preferred, trust preferred, and medium-term senior note issuances listed on the New York Stock Exchange, underscoring its continued use of tiered securities to manage funding, regulatory capital, and investor demand for yield-bearing instruments.

Citigroup’s roster of listed instruments now includes common stock, depositary shares linked to 6.250% Noncumulative Preferred Stock Series II, multiple trust preferred securities, and several floating rate medium-term senior notes due between 2026 and 2029. This diversified mix of equity-linked and debt securities provides the bank with flexibility in balancing capital requirements and funding costs while offering investors varied risk-return profiles across its capital stack.

The most recent analyst rating on (C) stock is a Buy with a $134.00 price target. To see the full list of analyst forecasts on Citigroup stock, see the C Stock Forecast page.

Citigroup Establishes New 6.250% Preferred Stock Series II

On February 2, 2026, Citigroup Inc. filed a Certificate of Designations in Delaware to create a new series of preferred equity, its 6.250% Noncumulative Preferred Stock, Series II, immediately amending its Restated Certificate of Incorporation. The move expands Citigroup’s capital structure with an additional class of preferred shares, adding to its existing mix of common stock, trust preferred securities and medium‑term notes already listed on the New York Stock Exchange, and underscores the bank’s continued use of preferred instruments as a tool for capital management and funding diversification.

The most recent analyst rating on (C) stock is a Hold with a $125.00 price target. To see the full list of analyst forecasts on Citigroup stock, see the C Stock Forecast page.

Citigroup Board Approves Sale of Remaining Russian Operations

On December 29, 2025, Citigroup’s board approved a plan to sell AO Citibank, which houses Citi’s remaining operations in Russia and is currently reported across its Services, Markets, Banking and Legacy Franchises segments. As a result, Citi will classify its Russian business as held for sale beginning in the fourth quarter of 2025, with the transaction expected to be signed and closed in the first half of 2026, triggering an approximately $1.2 billion pre-tax loss on sale in the fourth quarter tied largely to previously accumulated currency translation adjustment losses. The loss recognition, which is recorded as a reduction of Other Revenue via a valuation allowance and incorporates expected benefits from derecognizing a fully reserved net investment and anticipated sale proceeds, is described as capital neutral to Citi’s Common Equity Tier 1 ratio once the related CTA amounts are released from accumulated other comprehensive income, though the ultimate loss remains subject to foreign exchange movements.

The most recent analyst rating on (C) stock is a Buy with a $125.00 price target. To see the full list of analyst forecasts on Citigroup stock, see the C Stock Forecast page.

Citigroup Establishes New Series of Preferred Stock

On December 9, 2025, Citigroup Inc. filed a Certificate of Designations with the Delaware Secretary of State to establish a new series of preferred stock, the 6.625% Fixed Rate Reset Noncumulative Preferred Stock, Series HH. This move, effective immediately upon filing, is part of Citigroup’s strategic efforts to enhance its capital structure and offer diversified investment options, potentially impacting its market positioning and stakeholder interests.

The most recent analyst rating on (C) stock is a Hold with a $110.00 price target. To see the full list of analyst forecasts on Citigroup stock, see the C Stock Forecast page.