Citizens Financial (CFG) AI Stock Analysis

• Market Cap: $25.06B
• Dividend Yield: 2.95%
• Average Volume (3M): 4.43M
• Price to Earnings (P/E): 16.4
• Beta (1Y): 1.16
• Revenue Growth: -3.93%
• EPS Growth: 40.62%
• Country: US
• Employees: 17,315
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.05
• Shares Outstanding: 429,486,200
• 10 Day Avg. Volume: 6,042,041
• 30 Day Avg. Volume: 4,429,598
• 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: 0.97
• Enterprise Value/Revenue: 2.02
• Enterprise Value/Gross Profit: 3.26
• Enterprise Value/Ebitda: 9.16
• 1Y Price Target: $62.25
• Price Target Upside: 6.61% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 16
• EPS Forecast (FY): 3.85
• Revenue Forecast (FY): $8.25B

• Rating: 75 Outperform
• Price Target: $63.00 ▲(7.90% Upside)

Citizens Financial Group's strong earnings call performance and technical indicators are the most significant factors driving the score. The company's operational efficiency and cash generation capabilities further support a stable financial outlook. While valuation is fair, challenges in revenue growth and commercial loan pricing present some risks.

Positive Factors

Operational Efficiency

Strong operational efficiency and cash generation indicate effective management and sustainable profitability, supporting long-term stability.

Capital Markets Performance

Strong capital markets performance enhances revenue diversification and positions the company well in competitive financial services.

Balance Sheet Health

Improved CET1 ratio and stock buybacks reflect a robust balance sheet, enhancing financial resilience and shareholder value.

Negative Factors

Revenue Growth Challenges

Negative revenue growth indicates potential difficulty in market expansion and could pressure future earnings and strategic initiatives.

Commercial Loan Pricing Spreads

Tightening loan pricing spreads could compress margins, affecting profitability and competitiveness in the lending market.

Expense Growth

Projected expense growth could strain profitability if not matched by revenue increases, impacting operational efficiency.

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, primarily from interest income and non-interest income. The bulk of its earnings comes from the interest spread between loans it issues and the interest it pays on deposits. This includes personal loans, auto loans, mortgages, and commercial loans. Additionally, Citizens earns non-interest income through fees for various services such as account maintenance, transaction fees, and wealth management services. Significant partnerships with technology firms enhance its digital offerings, while strategic initiatives in commercial banking and investment services also contribute to its earnings. Overall, the company's diversified revenue model and focus on customer service help sustain its profitability.

Citizens Financial Financial Statement Overview

Summary

Citizens Financial demonstrates strong operational efficiency and cash generation capabilities, with healthy EBIT and EBITDA margins. The company has improved its leverage position, though revenue growth challenges persist. Overall, the financial health is stable, with potential for improvement in profitability and revenue growth.

Income Statement

Citizens Financial shows a strong gross profit margin of 67.29% in TTM, indicating effective cost management. However, the net profit margin has decreased to 15.43% from previous years, reflecting pressure on profitability. Revenue growth has been negative at -7.96% TTM, suggesting challenges in maintaining revenue levels. Despite this, the EBIT and EBITDA margins remain healthy at 19.54% and 24.69% respectively, showcasing operational efficiency.

Balance Sheet

The debt-to-equity ratio has improved to 0.41 TTM, indicating a reduction in leverage and a more stable financial position. Return on equity is moderate at 6.80%, showing reasonable profitability relative to shareholder equity. The equity ratio stands at 11.60%, reflecting a solid equity base relative to total assets, though slightly lower than industry norms.

Cash Flow

Free cash flow growth is robust at 135.26% TTM, indicating strong cash generation capabilities. The free cash flow to net income ratio is high at 89.97%, suggesting efficient conversion of earnings into cash. However, the operating cash flow to net income ratio is not available, limiting a full assessment of cash flow efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.02B	12.35B	12.19B	9.07B	6.99B	7.68B
Gross Profit	7.43B	7.11B	7.54B	7.55B	7.06B	5.29B
EBITDA	2.65B	2.39B	2.51B	3.22B	3.60B	1.88B
Net Income	1.70B	1.51B	1.61B	2.07B	2.32B	1.06B
Balance Sheet
Total Assets	222.75B	217.52B	221.96B	226.73B	188.41B	183.35B
Cash, Cash Equivalents and Short-Term Investments	47.65B	43.85B	41.70B	34.59B	34.90B	35.43B
Total Debt	10.65B	12.40B	13.97B	15.89B	7.01B	8.59B
Total Liabilities	196.92B	193.27B	197.62B	203.04B	164.99B	160.68B
Stockholders Equity	25.83B	24.25B	24.34B	23.69B	23.42B	22.67B
Cash Flow
Free Cash Flow	2.72B	1.88B	2.79B	3.99B	2.15B	-7.00M
Operating Cash Flow	2.85B	2.00B	2.96B	4.12B	2.27B	111.00M
Investing Cash Flow	-2.42B	2.99B	5.25B	-12.64B	-10.49B	-6.14B
Financing Cash Flow	308.00M	-6.01B	-7.13B	9.91B	4.64B	15.37B

Citizens Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 58.39
• 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 CFG, the sentiment is Positive. The current price of 58.39 is above the 20-day moving average (MA) of 54.21, above the 50-day MA of 52.32, and above the 200-day MA of 45.75, indicating a bullish trend. The MACD of 1.68 indicates Negative momentum. The RSI at 75.70 is Negative, neither overbought nor oversold. The STOCH value of 86.17 is Negative, 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	80 Outperform	$28.06B	12.52	10.37%	3.48%	5.73%	38.39%
RF	79 Outperform	$24.20B	12.15	11.43%	3.73%	4.00%	28.54%
MTB	76 Outperform	$31.62B	12.68	9.60%	2.80%	-0.81%	20.34%
CFG	75 Outperform	$25.06B	16.37	6.71%	2.95%	-3.93%	40.62%
FITB	71 Outperform	$31.83B	14.40	11.52%	3.14%	0.15%	11.62%
KEY	69 Neutral	$22.61B	25.54	5.82%	3.97%	3.86%	5473.29%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Citizens Financial Corporate Events

Citizens Financial Reports Strong Q3 2025 Earnings

Citizens Financial Group, Inc. reported a net income of $494 million for the third quarter of 2025, with earnings per share (EPS) of $1.05. The company experienced a 9% sequential growth in pre-provision net revenue (PPNR) and achieved positive operating leverage of 3%. Key highlights include a 3.5% increase in net interest income, strong fee performance in capital markets and wealth management, and a 1% growth in loans driven by the Private Bank and retail sectors. The company’s liquidity profile remains robust, with a strong CET1 ratio of 10.7% and a spot loan-to-deposit ratio of 78.3%.

Citizens Financial Eliminates Series F Preferred Stock

On October 6, 2025, Citizens Financial Group, Inc. filed a Certificate of Elimination with the Secretary of State of Delaware, effectively eliminating its 5.650% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series F, from its Restated Certificate of Incorporation. This move follows the redemption of all outstanding shares of the Series F Preferred Stock on the same date, and the company also integrated its previously filed Certificate of Designations for the 6.500% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series I.