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Citigroup (C)
NYSE:C
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Citigroup
(NYSE:C)
64Neutral
Positive Factors
Regulatory Environment
The bank is seen as benefiting from a more balanced regulatory backdrop, potentially allowing for accelerated share buybacks and improved capital flexibility.
Share Buybacks
Share buybacks are accelerating, with buybacks in the first quarter exceeding management's guidance.
Valuation
The gap between perceived and actual risk in Citigroup creates a compelling opportunity as the stock trades at a low price-to-tangible book value ratio.
Negative Factors
Credit Risk
Investors perceive credit risk tied to Citigroup's credit card book and concerns about below-average PPNR defensibility.
Loan Growth
Citi's loan growth moderated in both branded and retail services, with retail services growth going negative year over year.
Citigroup (C) vs. S&P 500 (SPY)
Market Cap
$141.42B
Dividend Yield2.92%
Average Volume (3M)16.77M
Price to Earnings (P/E)12.0
Beta (1Y)1.37
Revenue Growth2.97%
EPS Growth87.82%
CountryUS
Employees229,000
SectorFinancial
Sector Strength87
IndustryBanks - Diversified
Share Statistics
EPS (TTM)1.96
Shares Outstanding1,867,733,600
10 Day Avg. Volume12,019,369
30 Day Avg. Volume16,774,625
Financial Highlights & Ratios
PEG Ratio1.41
Price to Book (P/B)0.63
Price to Sales (P/S)0.00
P/FCF Ratio-5.10
Enterprise Value/Market Cap6.24
Enterprise Value/Revenue2.78
Enterprise Value/Gross Profit11.29
Enterprise Value/Ebitda8.07
Forecast
1Y Price Target
$88.33Price Target Upside16.03% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
Citigroup Business Overview & Revenue Model
Company DescriptionCitigroup 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 MoneyCitigroup 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 Key Performance Indicators (KPIs)
Any
Institutional Revenue Breakdown
Details revenue from institutional clients, highlighting Citigroup's performance in investment banking, trading, and other financial services for large organizations.
Details revenue from institutional clients, highlighting Citigroup's performance in investment banking, trading, and other financial services for large organizations.
Data provided by:
Main Street Data
Main Street DataCitigroup Financial Statement Overview
Summary
Citigroup exhibits a mixed financial performance. The income statement suggests operational efficiency with room for profitability improvement. The balance sheet indicates stability and a solid equity base but is burdened by high leverage. Cash flow metrics highlight volatility and challenges in sustaining positive free cash flow. Overall, Citigroup must focus on enhancing profitability and cash flow management to strengthen its financial position.Income Statement
Citigroup's income statement reveals a moderate financial performance. The gross profit margin is robust due to a strong revenue base. However, the net profit margin is relatively low, indicating controlled profitability. The revenue growth rate has been inconsistent over the years, with a recent decline. EBIT and EBITDA margins suggest operational efficiency but highlight the need for improved earnings growth.65
Positive
Balance Sheet
The balance sheet of Citigroup is relatively strong, with a solid equity position. The debt-to-equity ratio is high, typical for banks, indicating significant leverage. The return on equity reflects moderate profitability for equity holders, while the equity ratio suggests a stable financial structure. Overall, the balance sheet demonstrates financial strength but carries potential risks from high debt levels.70
Positive
Cash Flow
Citigroup's cash flow statement shows a mixed picture. Operating cash flow is volatile, reflecting fluctuating net income and operational activities. Free cash flow has been negative in recent years, impacting the cash flow to net income ratios. The free cash flow growth rate indicates challenges in maintaining positive cash flow, which could affect long-term liquidity.50
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 71.36B | 78.49B | 75.31B | 71.89B | 75.49B | Gross Profit |
| 71.36B | 78.49B | 75.31B | 71.89B | 75.49B | EBIT |
| 30.23B | 22.81B | 18.81B | 27.47B | 13.63B | EBITDA |
| 17.74B | 27.37B | 23.07B | 31.43B | 0.00 | Net Income Common Stockholders |
| 12.68B | 9.23B | 14.85B | 21.95B | 11.05B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 22.78B | 241.91B | 325.05B | 248.61B | 282.24B | Total Assets |
| 2.35T | 2.41T | 2.42T | 2.29T | 2.26T | Total Debt |
| 335.81B | 324.08B | 318.70B | 282.35B | 301.20B | Net Debt |
| 264.52B | 63.14B | -6.35B | 33.74B | 18.96B | Total Liabilities |
| 2.14T | 2.21T | 2.21T | 2.09T | 2.06T | Stockholders Equity |
| 208.60B | 205.45B | 201.19B | 201.97B | 199.76B |
| Cash Flow | Free Cash Flow | |||
| -26.17B | -80.00B | 19.44B | 57.13B | -24.07B | Operating Cash Flow |
| -19.67B | -73.42B | 25.07B | 61.25B | -20.62B | Investing Cash Flow |
| 86.25B | -8.46B | -79.45B | -124.91B | -95.31B | Financing Cash Flow |
| -38.30B | 687.00M | 137.76B | 17.27B | 233.59B |
Citigroup Technical Analysis
Positive
76.13
Price Trends
68.22
Positive
72.36
Positive
67.60
Positive
Market Momentum
2.45
Negative
69.93
Neutral
95.04
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 76.13 is above the 20-day moving average (MA) of 70.67, above the 50-day MA of 68.22, and above the 200-day MA of 67.60, indicating a bullish trend. The MACD of 2.45 indicates Negative momentum. The RSI at 69.93 is Neutral, neither overbought nor oversold. The STOCH value of 95.04 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for C.
Citigroup Risk Analysis
Citigroup disclosed 27 risk factors in its most recent earnings report. Citigroup reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Citigroup Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $743.57B | 13.13 | 17.25% | 1.89% | 12.48% | 23.05% | |
80 Outperform | $207.39B | 10.87 | 10.83% | 5.57% | -1.91% | -6.79% | |
78 Outperform | $247.90B | 13.69 | 11.05% | 2.03% | 3.51% | 16.51% | |
73 Outperform | $336.60B | 13.34 | 9.46% | 2.28% | 8.23% | 16.15% | |
65 Neutral | $153.81B | 12.90 | 9.18% | 1.74% | 13.21% | -12.06% | |
64 Neutral | $141.42B | 11.96 | 6.30% | 2.92% | 2.97% | 87.82% | |
64 Neutral | $12.82B | 9.87 | 7.67% | 17000.34% | 12.39% | -5.85% |
* Financial Sector Average
Performance Comparison
C
Citigroup
76.13
13.51
21.57%
BAC
Bank of America
44.77
6.08
15.71%
HSBC
HSBC Holdings
59.67
17.75
42.34%
JPM
JPMorgan Chase
264.88
69.88
35.84%
MUFG
Mitsubishi UFJ
13.75
4.06
41.90%
WFC
Wells Fargo
76.06
16.04
26.72%
Citigroup Earnings Call Summary
Earnings Call Date:Apr 15, 2025
(Q1-2025)
| % Change Since: 21.38%|
Next Earnings Date:Jul 15, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong quarter with significant growth in net income and revenues across various segments, particularly in wealth management and markets. However, challenges in non-interest revenue and a decline in retail services highlight areas of concern. Overall, the firm's strategic initiatives and strong capital returns provide a positive outlook despite macroeconomic uncertainties.Q1-2025 Updates
Positive Updates
Strong Net Income and Revenue Growth
Reported net income of $4.1 billion and earnings per share of $1.96 with an ROTCE of 9.1%. Total revenues were up 3%, driven by growth in each of the businesses.
Positive Operating Leverage Across All Segments
Citi delivered its third consecutive quarter of positive operating leverage for each of its five lines of business and the fourth consecutive quarter for the firm overall.
Record Performance in Wealth Management
Wealth revenues were up 24%, with growth across Citi Gold, the private bank, and Wealth at Work. The segment delivered record revenue this quarter with improved efficiency and returns.
Strong Performance in Markets
Markets revenues were up 12%, with equities revenues increasing by 23% and fixed income revenues by 8%. This marks the fourth consecutive quarter of positive operating leverage in markets.
Increased Capital Return to Shareholders
Returned $2.8 billion in capital to shareholders, including $1.75 billion of buybacks, which is the highest quarterly amount since 2022.
Negative Updates
Challenges in Non-Interest Revenue
Non-interest revenues excluding markets were down 6% as better results in banking and wealth were more than offset by declines in all other segments, USPB, and services.
Retail Services Revenue Decline
Retail services revenues declined by 11%, primarily driven by higher partner payment accruals.
Macroeconomic Uncertainty and Credit Concerns
The firm faced a cost of credit of $2.7 billion, primarily consisting of net credit losses and a firm-wide net ACL build reflecting uncertainty and deterioration in the macroeconomic outlook.
Company Guidance
During the first quarter of 2025, Citi reported a net income of $4.1 billion, translating to earnings per share of $1.96 and a return on tangible common equity (ROTCE) of 9.1%. The bank achieved a 5% year-over-year decline in expenses and delivered positive operating leverage across its five business lines for the third consecutive quarter, and for the firm overall, for the fourth quarter. Revenues increased by 3% to $21.6 billion, driven by growth in each business segment. The services segment recorded its highest first-quarter revenue in a decade, while markets revenue rose 12%, with a notable 23% increase in equities. The banking division experienced a 12% revenue increase, partly due to M&A revenue nearly doubling. Wealth management revenues grew by 24%, driven by an 11% organic growth in client investments. US Personal Banking (USPB) saw a 2% uptick, supported by increased loan balances in branded cards. Citi returned $2.8 billion in capital to shareholders, including $1.75 billion in buybacks, and ended the quarter with a Common Equity Tier 1 (CET1) ratio of 13.4% and a tangible book value per share of $90. The bank remains focused on transformation investments and leveraging artificial intelligence to enhance client experience.Citigroup Corporate Events
Executive/Board ChangesShareholder Meetings
Citigroup Stockholders Approve Key Amendments at Annual Meeting
Neutral
May 1, 2025
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.
Spark’s Take on C Stock
According to Spark, TipRanks’ AI Analyst, C is a Neutral.
Citigroup’s overall stock score reflects a balanced view of its financial health and market potential. Strengths include robust revenue growth and strategic leadership changes, while challenges in cash flow and macroeconomic uncertainties weigh on the outlook. The stock’s fair valuation and dividend yield provide a stable investment opportunity, though technical indicators suggest cautious optimism.
To see Spark’s full report on C stock, click here.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.