Citigroup (C) AI Stock Analysis

• Market Cap: $187.33B
• Dividend Yield: 2.24%
• Average Volume (3M): 13.35M
• Price to Earnings (P/E): 14.9
• Beta (1Y): 1.44
• Revenue Growth: 0.52%
• EPS Growth: 89.25%
• Country: US
• Employees: 229,000
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Diversified
• EPS (TTM): 1.96
• Shares Outstanding: 1,840,898,000
• 10 Day Avg. Volume: 13,171,674
• 30 Day Avg. Volume: 13,345,825
• PEG Ratio: 0.22
• Price to Book (P/B): 0.64
• Price to Sales (P/S): 0.78
• P/FCF Ratio: -5.11
• Enterprise Value/Market Cap: 4.57
• Enterprise Value/Revenue: 5.10
• Enterprise Value/Gross Profit: 11.82
• Enterprise Value/Ebitda: 37.02
• 1Y Price Target: $103.15
• Price Target Upside: 1.37% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 19

• Rating: 70 Outperform
• Price Target: $105.00 ▲(3.18% Upside)

Citigroup's overall stock score reflects strong technical momentum and positive earnings call sentiment, offset by financial challenges such as high leverage and negative cash flows. The fair valuation and strategic initiatives provide a balanced outlook.

Positive Factors

Strategic Partnership with BlackRock

The partnership with BlackRock enhances Citi's wealth management capabilities, leveraging BlackRock's expertise and technology to offer innovative solutions, potentially boosting client engagement and asset management growth.

Capital Returns and Stress Test Success

Successful stress test completion and planned dividend increase reflect Citi's strong capital position, enhancing shareholder value and demonstrating robust financial health and regulatory compliance.

Revenue Growth in Key Segments

Significant revenue growth in key segments like markets and banking indicates strong business performance and strategic execution, supporting long-term financial stability and market competitiveness.

Negative Factors

High Leverage

High leverage poses a risk in volatile markets, potentially straining cash flows and limiting financial flexibility, impacting long-term financial stability and operational resilience.

Negative Cash Flows

Negative cash flows highlight potential liquidity challenges, which could hinder operational capabilities and strategic investments, affecting long-term growth and financial health.

Declining Net Profit Margins

Declining net profit margins indicate pressure on profitability, which may affect the company's ability to invest in growth initiatives and maintain competitive advantages over time.

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 primarily through interest income, fees, and commissions. Key revenue streams include consumer banking, which provides interest income from loans and fees from services like credit cards and personal loans; institutional clients group, which earns through advisory fees, trading income, and lending; and investment banking, which contributes through underwriting and advisory services. Additionally, Citigroup benefits from asset management and wealth management services. Strategic partnerships with other financial institutions and corporations enhance its service offerings, while its global presence allows it to capitalize on diverse markets and economic conditions, contributing significantly to its overall earnings.

Citigroup Financial Statement Overview

Summary

Citigroup demonstrates strong revenue growth and profitability with a high gross profit margin and net income growth. However, the high debt-to-equity ratio and negative cash flow indicate significant leverage and liquidity challenges.

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	167.87B	170.71B	155.38B	100.22B	79.87B	88.83B
Gross Profit	72.36B	71.12B	67.90B	69.37B	75.78B	58.12B
EBITDA	23.11B	21.36B	17.47B	23.07B	31.43B	17.57B
Net Income	14.18B	12.68B	9.23B	14.85B	21.95B	11.05B
Balance Sheet
Total Assets	2.62T	2.35T	2.41T	2.42T	2.29T	2.26T
Cash, Cash Equivalents and Short-Term Investments	573.27B	498.02B	506.00B	580.77B	541.33B	638.78B
Total Debt	721.23B	590.56B	602.18B	521.15B	473.63B	500.73B
Total Liabilities	2.41T	2.14T	2.21T	2.21T	2.09T	2.06T
Stockholders Equity	213.22B	208.60B	205.45B	201.19B	201.97B	199.44B
Cash Flow
Free Cash Flow	-93.69B	-26.17B	-80.00B	19.44B	42.97B	-26.93B
Operating Cash Flow	-87.17B	-19.67B	-73.42B	25.07B	47.09B	-23.49B
Investing Cash Flow	10.19B	86.25B	-8.46B	-79.45B	-110.75B	-92.44B
Financing Cash Flow	160.15B	-38.30B	687.00M	137.76B	17.27B	233.59B

Citigroup Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 101.76
• 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 101.76 is above the 20-day moving average (MA) of 96.76, above the 50-day MA of 94.07, and above the 200-day MA of 78.36, indicating a bullish trend. The MACD of 2.00 indicates Negative momentum. The RSI at 71.41 is Negative, neither overbought nor oversold. The STOCH value of 95.22 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
HSBC	81 Outperform	238.97B	13.67	12.96%	4.71%	-2.96%	-13.66%
GS	76 Outperform	240.43B	17.31	12.54%	1.64%	3.53%	45.85%
BAC	74 Outperform	380.72B	14.84	9.37%	2.06%	4.95%	20.49%
JPM	74 Outperform	857.24B	15.86	15.84%	1.70%	4.00%	8.73%
WFC	72 Outperform	264.22B	13.96	11.36%	2.00%	0.37%	19.89%
C	70 Outperform	$187.33B	14.88	6.64%	2.24%	0.52%	89.25%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Citigroup Corporate Events

Citigroup Establishes New Preferred Stock Series GG

On July 22, 2025, Citigroup Inc. filed a Certificate of Designations with the State of Delaware to establish a new series of preferred stock, the 6.875% Fixed Rate Reset Noncumulative Preferred Stock, Series GG. This move, effective immediately upon filing, amends Citigroup’s Restated Certificate of Incorporation and reflects the company’s strategic efforts to enhance its capital structure, potentially impacting its financial operations and stakeholder interests.

Citigroup Completes 2025 Stress Test, Plans Dividend Increase

On July 1, 2025, Citigroup announced the completion of the Federal Reserve Board’s 2025 annual supervisory stress test, resulting in a reduced Stress Capital Buffer requirement of 3.6% and a preliminary Standardized Common Equity Tier 1 capital ratio requirement of 11.6%. As of March 31, 2025, Citi’s CET1 capital ratio stood at 13.4%, exceeding the regulatory requirement. Citi plans to increase its quarterly common stock dividend and continues its $20 billion share repurchase program, having repurchased $3.75 billion year-to-date. These actions reflect Citi’s strong capital position and strategic focus on returning capital to shareholders.

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.