Citizens Financial (CFG) AI Stock Analysis

• Market Cap: $22.31B
• Dividend Yield: 3.25%
• Average Volume (3M): 3.78M
• Price to Earnings (P/E): 15.8
• Beta (1Y): 1.33
• Revenue Growth: -3.68%
• EPS Growth: 25.31%
• Country: US
• Employees: 17,315
• Sector: Financial
• Sector Strength: 71
• Industry: Banks - Regional
• EPS (TTM): 0.92
• Shares Outstanding: 431,349,000
• 10 Day Avg. Volume: 3,606,615
• 30 Day Avg. Volume: 3,784,329
• PEG Ratio: -4.10
• Price to Book (P/B): 0.81
• Price to Sales (P/S): 1.60
• P/FCF Ratio: 10.50
• Enterprise Value/Market Cap: 1.16
• Enterprise Value/Revenue: 2.16
• Enterprise Value/Gross Profit: 3.59
• Enterprise Value/Ebitda: 10.35
• 1Y Price Target: $56.50
• Price Target Upside: 9.28% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

• Rating: 73 Outperform
• Price Target: $58.00 ▲(12.19% Upside)

Citizens Financial's overall stock score is driven by strong earnings performance and positive technical indicators. While financial stability is evident, challenges in revenue growth and external uncertainties pose risks. The valuation is fair, supported by a reasonable P/E ratio and dividend yield.

Positive Factors

Earnings Performance

Stock outperformed peers after 2Q25 EPS of $0.92 beat consensus driven by stronger fee revenues.

Investment Opportunities

Franchise investments over the last few years offer idiosyncratic opportunities to drive growth.

Loan Growth

Loan growth of +1% linked quarter was a positive surprise, supported by continued expansion of the private bank.

Negative Factors

Capital Markets

EPS risk skews to the downside from weaker capital markets and rapid Fed rate-cuts.

Loan Growth Outlook

The stock is rated Hold due to an uncertain core loan growth outlook and macro-driven softer capital markets outlook.

Macro Uncertainty

Macro uncertainty may continue to suppress customer activity.

Citizens Financial Business Overview & Revenue Model

Company Description

Citizens Financial Group, Inc. (CFG) is a prominent American bank headquartered in Providence, Rhode Island. It operates primarily in the financial services sector, offering a wide range of banking products and services for consumers, businesses, and institutions. The company provides personal banking services, including checking and savings accounts, mortgages, and auto loans, as well as commercial banking services such as lending, treasury management, and investment banking. Citizens Financial also offers wealth management and investment advisory services, catering to both individual and institutional clients.

How the Company Makes Money

Citizens Financial generates revenue through several key streams. A significant portion of its income comes from net interest income, which is derived from the interest earned on loans and securities minus the interest paid on deposits and borrowings. The bank issues various types of loans, including personal loans, mortgages, and commercial loans, which contribute substantially to its revenue. Additionally, Citizens Financial earns non-interest income through service fees, transaction fees, and commissions related to wealth management and investment advisory services. The company has established partnerships with fintech firms and other financial institutions to enhance its service offerings, improve customer experience, and drive growth. These collaborations can lead to new revenue opportunities, particularly in the digital banking space.

Citizens Financial Financial Statement Overview

Summary

Citizens Financial demonstrates stable financial performance with strong profit margins and a balanced leverage position. However, challenges in revenue growth and cash conversion efficiency are notable concerns.

Income Statement

Citizens Financial shows a mixed performance in its income statement. The TTM data indicates a slight decline in revenue growth, but the company maintains healthy profit margins. The gross profit margin is strong at approximately 60%, and the net profit margin is stable at around 13%. However, the negative revenue growth rate of -0.965% in the TTM period is a concern, suggesting potential challenges in revenue generation.

Balance Sheet

The balance sheet reflects a moderate financial position with a debt-to-equity ratio of 0.51, indicating a balanced approach to leveraging. The return on equity is reasonable at 6.41%, showing effective use of equity to generate profits. However, the equity ratio is not explicitly calculated, but the overall asset base is substantial, supporting stability.

Cash Flow

Cash flow analysis reveals a stable cash position with a positive free cash flow growth rate of 4.42% in the TTM period. The operating cash flow to net income ratio is low, suggesting limited cash conversion efficiency. The free cash flow to net income ratio is healthy at approximately 90%, indicating strong cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.00B	12.35B	12.19B	9.07B	6.99B	7.68B
Gross Profit	7.20B	7.11B	7.54B	7.55B	7.06B	5.29B
EBITDA	2.50B	2.39B	2.51B	3.22B	3.60B	1.88B
Net Income	1.59B	1.51B	1.61B	2.07B	2.32B	1.06B
Balance Sheet
Total Assets	218.31B	217.52B	221.96B	226.73B	188.41B	183.35B
Cash, Cash Equivalents and Short-Term Investments	43.21B	43.85B	41.70B	34.59B	34.90B	35.43B
Total Debt	12.78B	12.40B	13.97B	15.89B	7.01B	8.59B
Total Liabilities	193.08B	193.27B	197.62B	203.04B	164.99B	160.68B
Stockholders Equity	25.23B	24.25B	24.34B	23.69B	23.42B	22.67B
Cash Flow
Free Cash Flow	1.16B	1.88B	2.79B	3.99B	2.15B	-7.00M
Operating Cash Flow	1.29B	2.00B	2.96B	4.12B	2.27B	111.00M
Investing Cash Flow	-767.00M	2.99B	5.25B	-12.64B	-10.49B	-6.14B
Financing Cash Flow	-3.74B	-6.01B	-7.13B	9.91B	4.64B	15.37B

Citizens Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 51.70
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CFG, the sentiment is Positive. The current price of 51.7 is above the 20-day moving average (MA) of 50.42, above the 50-day MA of 48.64, and above the 200-day MA of 43.51, indicating a bullish trend. The MACD of 1.18 indicates Negative momentum. The RSI at 63.33 is Neutral, neither overbought nor oversold. The STOCH value of 48.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CFG.

Citizens Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HBAN	78 Outperform	$25.84B	13.13	10.43%	3.50%	6.06%	28.03%
RF	77 Outperform	$24.12B	12.60	11.59%	3.75%	2.94%	20.85%
FITB	76 Outperform	$30.20B	14.20	11.58%	3.25%	1.90%	2.87%
MTB	76 Outperform	$31.19B	12.93	9.47%	2.78%	0.69%	14.79%
CFG	73 Outperform	$22.31B	15.77	6.48%	3.25%	-3.68%	25.31%
KEY	71 Outperform	$20.77B	1,663.64	1.02%	4.28%	-12.30%	-108.78%
Sector *	68 Neutral	$17.78B	11.94	9.89%	3.74%	9.69%	1.17%

Citizens Financial Corporate Events

Citizens Financial Issues New Preferred Stock Series I

On July 31, 2025, Citizens Financial Group, Inc. issued a 6.500% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series I, with a liquidation preference of $1,000 per share. The issuance imposes restrictions on the company’s ability to declare or pay dividends on junior stocks if dividends on the Series I Preferred Stock are not declared and paid. Additionally, the company filed a Certificate of Designations on July 25, 2025, to establish the rights and limitations of this stock. On July 22, 2025, Citizens Financial entered into an underwriting agreement with several financial institutions for the public offering of 16,000,000 depositary shares, each representing a 1/40th interest in a share of the Series I Preferred Stock. The agreement includes various conditions, indemnification rights, and termination provisions.

Citizens Financial Launches New Preferred Stock Offering

Citizens Financial Group, Inc. announced its second quarter 2025 earnings on July 17, 2025, highlighting strong revenue performance and disciplined expense management. The company reported an EPS of $0.92, up $0.15 from the previous quarter, with significant contributions from its Private Bank. Additionally, Citizens Financial launched a proposed public offering of a new series of Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series I, on July 22, 2025. The proceeds from this offering, if successful, are intended to redeem some or all outstanding shares of its Series F Preferred Stock, subject to market conditions. The outcome of this offering could impact the company’s financial strategy and stakeholder interests.

Citizens Financial Reports Strong Q2 2025 Earnings

Citizens Financial Group, Inc. reported a net income of $436 million for the second quarter of 2025, with an earnings per share (EPS) of $0.92. The company experienced a sequential net interest income (NII) growth of 3%, fee growth of 10%, and positive operating leverage of approximately 5%. The quarter also saw strong revenue performance and disciplined expense management, with notable contributions from the Private Bank. Loans and deposits both increased by 1% quarter-over-quarter, and the company maintained a strong liquidity profile with a loan-to-deposit ratio of 79.6%.

Citizens Financial Expands Share Repurchase Program by $1.2B

On June 13, 2025, Citizens Financial Group announced an increase in its common share repurchase program to $1.5 billion, a significant rise of $1.2 billion from the previous authorization. This move reflects the company’s confidence in its financial performance and strategic growth initiatives, aiming to deliver attractive capital returns to shareholders. The repurchases will be subject to various factors, including market conditions and regulatory considerations.