Citigroup (C) AI Stock Analysis

• Market Cap: $211.20B
• Dividend Yield: 1.94%
• Average Volume (3M): 13.77M
• Price to Earnings (P/E): 16.9
• Beta (1Y): 1.44
• 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: 14,138,580
• 30 Day Avg. Volume: 13,771,862
• 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: 2.64
• Enterprise Value/Revenue: 3.31
• Enterprise Value/Gross Profit: 7.49
• Enterprise Value/Ebitda: 23.10
• 1Y Price Target: $126.77
• Price Target Upside: 7.40% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 19
• EPS Forecast (FY): 10.21
• Revenue Forecast (FY): $90.12B

• Rating: 60 Neutral
• Price Target: $122.00 ▲(3.35% Upside)

The score is anchored by uneven financial quality: improving earnings and revenue are meaningfully offset by persistently negative operating/free cash flow and rising leverage. The latest earnings call provides a clear positive catalyst via continued NII growth, efficiency targets, and sizable buybacks backed by solid CET1, while technicals and valuation are supportive but only moderate.

Positive Factors

Record, diversified revenues across five businesses

Sustained record revenues across five distinct franchises (Markets, Banking, Services, Wealth, USPB) indicates broad-based client wins and diversification. That reduces reliance on any single business or market and supports steadier top-line resilience and cross-selling over the medium term.

Strong capital position and liquidity supporting returns

A healthy CET1 buffer and ample liquidity provide durable financial flexibility to absorb shocks, fund strategic investments, and sustain capital returns. That gives management scope to execute buybacks and growth plans while meeting regulatory expectations over the next several quarters.

Transformation and AI adoption improving controls and efficiency

High program completion and broad AI deployment materially strengthen control frameworks and operational productivity. Structural automation reduces manual error risk, lowers run-rate costs, and supports the targeted ~60% efficiency ratio, yielding sustainable margin improvement potential.

Negative Factors

Persistent negative operating and free cash flow

Chronic negative operating and free cash flow undermines financial flexibility and makes earnings less cash-backed. Over time this necessitates reliance on capital markets, non-cash accounting, or balance-sheet adjustments to fund buybacks, dividends, and growth, raising long-term funding risk.

Rising leverage with only mid-level returns

A clear upward leverage trend combined with modest ROE increases sensitivity to asset shocks and regulatory scrutiny. Higher leverage magnifies losses and constrains capital allocation, making it harder to sustainably lift returns without either deleveraging or materially improving profitability.

Concentrated consumer credit losses in cards and Mexico

Elevated, concentrated losses in cards and Mexico create a structural headwind to margins and require higher provisioning. Persistent elevated NCLs impair net interest margins, increase capital consumption via reserves, and limit sustainable growth in higher-risk consumer lending segments.

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

Income statement is improving (earnings recovery and higher TTM revenue), but this is offset by rising leverage (higher debt-to-equity and only modest ROE) and persistently negative operating/free cash flow in recent periods, which is a major quality and flexibility concern.

Income Statement

Citigroup shows a clear earnings recovery versus 2023–2024, with TTM (Trailing-Twelve-Months) net income of ~$14.7B and stronger profitability (net margin ~8.7% vs ~7.4% in 2024). Revenue is also higher on a TTM basis (up ~28.7%), indicating better top-line momentum. The main offset is that profitability is still well below 2021–2022 levels (when margins were materially higher), suggesting the business has not fully regained prior-cycle earnings power.

Balance Sheet

The balance sheet is very large (~$2.64T assets TTM) with equity of ~$213B, but leverage has increased: debt-to-equity is ~3.38 in TTM (higher than ~2.83 in 2024 and ~1.58 in 2022). Return on equity is modest at ~6.9% TTM, improving from 2023–2024 but still not strong versus earlier years (e.g., ~10.9% in 2021). Overall, the balance sheet looks adequately capitalized on an absolute basis, but the rising leverage trend and only mid-level returns are key watch items.

Cash Flow

Cash generation is the weakest area: operating cash flow is negative in TTM (about -$69.4B) and was also negative in 2024 and 2023, leading to negative free cash flow in those periods as well. While banks can show volatile cash flow timing, the persistence of negative operating and free cash flow reduces financial flexibility and makes earnings quality harder to underwrite from cash conversion. The notable positive is that net income remains solid while cash flow is pressured, implying the core earnings base is holding up even as cash movements are unfavorable.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	168.35B	170.71B	155.38B	100.22B	79.87B	88.83B
Gross Profit	74.33B	71.12B	67.90B	69.37B	75.78B	58.12B
EBITDA	24.11B	21.36B	17.47B	23.07B	31.43B	17.57B
Net Income	14.69B	12.68B	9.23B	14.85B	21.95B	11.05B
Balance Sheet
Total Assets	2.64T	2.35T	2.41T	2.42T	2.29T	2.26T
Cash, Cash Equivalents and Short-Term Investments	672.58B	498.02B	506.00B	580.77B	541.33B	638.78B
Total Debt	720.24B	590.56B	602.18B	521.15B	473.63B	500.73B
Total Liabilities	2.43T	2.14T	2.21T	2.21T	2.09T	2.06T
Stockholders Equity	213.02B	208.60B	205.45B	201.19B	201.97B	199.44B
Cash Flow
Free Cash Flow	-75.97B	-26.17B	-80.00B	19.44B	42.97B	-26.93B
Operating Cash Flow	-69.39B	-19.67B	-73.42B	25.07B	47.09B	-23.49B
Investing Cash Flow	-51.20B	86.25B	-8.46B	-79.45B	-110.75B	-92.44B
Financing Cash Flow	165.44B	-38.30B	687.00M	137.76B	17.27B	233.59B

Citigroup Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 118.04
• 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 C, the sentiment is Positive. The current price of 118.04 is below the 20-day moving average (MA) of 118.44, above the 50-day MA of 109.91, and above the 200-day MA of 91.55, indicating a neutral trend. The MACD of 1.97 indicates Positive momentum. The RSI at 55.09 is Neutral, neither overbought nor oversold. The STOCH value of 40.17 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	$283.24B	17.42	8.66%	4.14%	-9.54%	-22.46%
GS	77 Outperform	$288.53B	18.75	13.91%	1.55%	2.31%	44.49%
JPM	75 Outperform	$850.63B	15.61	16.06%	1.79%	1.89%	12.32%
WFC	73 Outperform	$277.43B	14.12	11.85%	1.80%	-4.37%	26.41%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
BAC	65 Neutral	$386.81B	13.90	10.23%	1.93%	0.15%	33.84%
C	60 Neutral	$211.20B	16.88	6.72%	1.94%	-0.62%	105.57%

Citigroup Corporate Events

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.

Citigroup Announces New CFO in Leadership Transition

On November 19, 2025, Citigroup announced a significant leadership transition, appointing Gonzalo Luchetti as the new Chief Financial Officer, effective March 2026, succeeding Mark Mason, who will become Executive Vice Chair and Senior Executive Advisor. This change is part of a broader strategic restructuring to integrate Retail Banking into the Wealth business and establish U.S. Consumer Cards as a core business, aiming to enhance Citi’s competitive positioning and growth trajectory.

The most recent analyst rating on (C) stock is a Buy with a $120.00 price target. To see the full list of analyst forecasts on Citigroup stock, see the C Stock Forecast page.

Citigroup Awards CEO Jane Fraser $25M Equity Package

On October 22, 2025, Citigroup‘s Board of Directors awarded CEO Jane Fraser a one-time equity award valued at $25 million in Restricted Stock Units and 1.055 million stock options, reflecting her leadership and strategic execution. This decision underscores the Board’s confidence in Fraser’s ability to drive long-term growth and stability, as evidenced by Citi’s organizational transformation, strategic asset sales, and stock performance improvements since 2022.

The most recent analyst rating on (C) stock is a Hold with a $107.00 price target. To see the full list of analyst forecasts on Citigroup stock, see the C Stock Forecast page.