Citizens Financial (CFG) AI Stock Analysis

• Market Cap: $21.27B
• Dividend Yield: 3.41%
• Average Volume (3M): 5.23M
• Price to Earnings (P/E): 13.8
• Beta (1Y): 1.34
• Revenue Growth: -3.70%
• EPS Growth: 40.62%
• Country: US
• Employees: 17,315
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.05
• Shares Outstanding: 431,349,000
• 10 Day Avg. Volume: 6,472,383
• 30 Day Avg. Volume: 5,230,504
• 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: 1.14
• Enterprise Value/Revenue: 2.02
• Enterprise Value/Gross Profit: 3.37
• Enterprise Value/Ebitda: 9.71
• 1Y Price Target: $62.19
• Price Target Upside: 23.66% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 15

• Rating: 67 Neutral
• Price Target: $53.00 ▲(5.39% Upside)

Citizens Financial's overall score is driven by strong earnings call performance and fair valuation. However, technical analysis indicates bearish trends, and financial performance shows areas needing improvement, particularly in revenue growth and cash conversion.

Positive Factors

EPS Growth

The strong EPS growth reflects effective cost management and revenue generation, indicating robust financial health and potential for continued profitability.

Net Interest Income Growth

Growth in net interest income and margin expansion suggest effective interest rate management and a strong lending portfolio, supporting future earnings.

Capital Markets Performance

Strong Capital Markets performance indicates a diversified revenue stream and enhances the company's competitive position in financial services.

Negative Factors

Negative Revenue Growth

Declining revenue growth could signal challenges in market expansion or product competitiveness, potentially impacting long-term financial stability.

Commercial Loan Pricing Spreads

Tightening loan pricing spreads may pressure net interest margins, affecting profitability and limiting growth in the commercial lending segment.

Non-Core Loan Runoff

The runoff of non-core loans reduces asset base and could limit growth opportunities, impacting overall revenue and strategic flexibility.

Citizens Financial Business Overview & Revenue Model

Company Description

Citizens Financial Group, Inc. operates as the bank holding company for Citizens Bank, National Association that provides retail and commercial banking products and services to individuals, small businesses, middle-market companies, corporations, and institutions in the United States. The company operates in two segments, Consumer Banking and Commercial Banking. The Consumer Banking segment offers deposit products, mortgage and home equity lending products, credit cards, business loans, wealth management, and investment services; and auto, education, and point-of-sale finance loans, as well as digital deposit products. This segment serves its customers through telephone service centers, as well as through its online and mobile platforms. The Commercial Banking segment provides various financial products and solutions, including lending and leasing, deposit and treasury management services, foreign exchange, and interest rate and commodity risk management solutions, as well as syndicated loans, corporate finance, mergers and acquisitions, and debt and equity capital markets services. This segment serves government banking, not-for-profit, healthcare, technology, professionals, oil and gas, asset finance, franchise finance, asset-based lending, commercial real estate, private equity, and sponsor finance industries. It operates approximately 1,200 branches in 14 states and the District of Columbia; 114 retail and commercial non-branch offices in national markets; and approximately 3,300 automated teller machines. The company was formerly known as RBS Citizens Financial Group, Inc. and changed its name to Citizens Financial Group, Inc. in April 2014. Citizens Financial Group, Inc. was founded in 1828 and is headquartered in Providence, Rhode Island.

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: Neutral
• Last Price: 50.29
• 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 CFG, the sentiment is Neutral. The current price of 50.29 is below the 20-day moving average (MA) of 52.04, below the 50-day MA of 51.32, and above the 200-day MA of 44.63, indicating a neutral trend. The MACD of -0.49 indicates Positive momentum. The RSI at 45.15 is Neutral, neither overbought nor oversold. The STOCH value of 22.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CFG.

Citizens Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HBAN	74 Outperform	$22.72B	10.86	10.37%	3.91%	5.99%	38.40%
RF	73 Outperform	$21.04B	10.39	11.43%	4.30%	4.28%	28.54%
MTB	70 Outperform	$28.23B	11.13	9.61%	3.07%	-0.66%	20.36%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
CFG	67 Neutral	$21.27B	13.83	6.71%	3.41%	-3.70%	40.62%
FITB	67 Neutral	$27.06B	12.23	11.52%	3.69%	-1.74%	11.62%
KEY	64 Neutral	$19.06B	20.88	5.82%	4.83%	3.97%	5473.29%

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.