Citizens Financial (CFG)
NYSE:CFG
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Citizens Financial
(NYSE:CFG)
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Rating:69Neutral
Price Target:
$62.00
â–²(5.19% Upside)
Action:DowngradedDate:02/14/26
Overall score reflects strong forward outlook and execution signals from the latest earnings call (robust 2026 NII/fee growth guidance, operating leverage, and buybacks) plus supportive technical momentum. The main offset is mixed financial performance driven by the very weak reported 2025 cash flow metrics and 2025 revenue decline; valuation is fair with a moderate dividend yield.
Positive Factors
NII and fee growth guidance
Clear multi-line revenue guidance (NII +10–12%, fees +6–8%) indicates management expects sustainable core earnings expansion from margin improvement and fee diversification. Durable NII growth and fee momentum underpin operating leverage and recurring cash generation capacity across 2026 and beyond.
Negative Factors
Reported cash-flow collapse
A reported collapse in operating and free cash flow for 2025 materially reduces confidence in sustainable cash generation. Even if partly a timing or presentation issue, this erodes visibility on the bank’s ability to fund dividends, buybacks, and investments without relying on market or balance-sheet actions.
Read all positive and negative factors
Positive Factors
Negative Factors
NII and fee growth guidance
Clear multi-line revenue guidance (NII +10–12%, fees +6–8%) indicates management expects sustainable core earnings expansion from margin improvement and fee diversification. Durable NII growth and fee momentum underpin operating leverage and recurring cash generation capacity across 2026 and beyond.
Read all positive factors
Citizens Financial (CFG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$25.05B
Dividend Yield2.89%
Average Volume (3M)5.22M
Price to Earnings (P/E)11.9
Beta (1Y)1.19
Revenue Growth-3.93%
EPS Growth40.62%
CountryUS
Employees17,315
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.13
Shares Outstanding424,993,900
10 Day Avg. Volume5,200,788
30 Day Avg. Volume5,221,217
Financial Highlights & Ratios
PEG Ratio0.49
Price to Book (P/B)0.96
Price to Sales (P/S)2.26
P/FCF Ratio12.37
Enterprise Value/Market Cap0.96
Enterprise Value/Revenue2.16
Enterprise Value/Gross Profit3.10
Enterprise Value/Ebitda8.94
Forecast
1Y Price Target
$72.78Price Target Upside23.48% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering18
EPS Forecast (FY)5.12
Revenue Forecast (FY)$9.09B
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, ...
How the Company Makes Money
Citizens Financial Group primarily makes money through (1) net interest income and (2) noninterest income. Net interest income is generated by earning interest on loans and other interest-earning assets (such as certain securities) and paying inte...
Citizens Financial Key Performance Indicators (KPIs)
Any
Revenue By Segment
Breaks down revenue generated by each business segment, revealing which areas are driving growth and where there might be opportunities or challenges.
Breaks down revenue generated by each business segment, revealing which areas are driving growth and where there might be opportunities or challenges.
Data provided by:
The Fly
The FlyCitizens Financial Earnings Call Summary
Earnings Call Date:Jan 21, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 16, 2026
Earnings Call Sentiment Positive
The call emphasized strong execution and multiple areas of momentum: meaningful EPS and NII growth, record wealth performance, a rapidly scaling private bank with solid ROE, positive operating leverage, substantial non-core runoff, and a robust capital-return plan. Management provided constructive 2026 guidance (NII growth 10%–12%, fees +6%–8%, expenses +4.5%) and a clear medium-term ROTCE target (16%–18%). Headwinds are present but manageable: expenses slightly above prior guidance, quarter-to-quarter fee timing volatility, one-time Reimagine costs front-loaded in 2026, ongoing CRE/legacy portfolio work, and uncertainty around SCB/stress-test modeling. Overall, the positives substantially outweigh the challenges, with management confident in execution and a path to materially higher returns over the medium term.Positive Updates
Strong EPS and Earnings Growth
Fourth-quarter EPS of $1.13, up 8% sequentially and 36% year-over-year; full-year EPS of $3.86, up 19% versus 2024.
Negative Updates
Expense Growth Above Initial Guide
Full-year expenses rose 4.6%, above the beginning-of-year guide of 4%, driven by incentive compensation and continued investments in private bank and wealth expansion; 2026 expense growth guided ~4.5% with one-time Reimagine costs.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong EPS and Earnings Growth
Fourth-quarter EPS of $1.13, up 8% sequentially and 36% year-over-year; full-year EPS of $3.86, up 19% versus 2024.
Read all positive updates
Company Guidance
Management's 2026 guidance calls for very strong revenue and controlled expense growth: net interest income up 10–12% with NIM expanding ~4–5 bps per quarter to ~3.25% by 4Q26, spot loans +3–5% (average loans +2.5–3.5%), earning assets +4–5%, and noninterest income up 6–8% (led by wealth and capital markets); expenses are guided +4.5% (with Reimagine the Bank incurring ~$50M of one‑time costs offset by ~$45M of benefits in 2026 and targeting ~$450M pretax run‑rate benefits exiting 2028), which together imply full‑year operating leverage in excess of 500 bps and a path to mid‑50s efficiency over the medium term. Credit is expected to improve with net charge‑offs in the mid‑to‑high‑30s bps and CET1 managed to 10.5–10.6%; capital return plans include ~$700–$850M of share repurchases. Management also assumes two 25‑bp Fed cuts (June, September) with year‑end fed funds ~3.0–3.25% and the 10‑year ~4.25%, and reiterated medium‑term targets of 16–18% ROTCE (2027) with NIM 330–350 bps and private bank goals of $18–20B deposits, $11–13B loans, $16–20B client assets and a mid‑teens earnings contribution while maintaining a 20–25% ROE.Citizens Financial Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
70
Positive
Cash Flow
28
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 11.15B | 12.35B | 12.19B | 9.07B | 6.99B |
| Gross Profit | 7.78B | 7.11B | 7.54B | 7.55B | 7.06B |
| EBITDA | 2.69B | 2.39B | 2.51B | 3.22B | 3.60B |
| Net Income | 1.83B | 1.51B | 1.61B | 2.07B | 2.32B |
Balance Sheet | |||||
| Total Assets | 226.35B | 217.52B | 221.96B | 226.73B | 188.41B |
| Cash, Cash Equivalents and Short-Term Investments | 49.38B | 43.85B | 41.70B | 34.59B | 34.90B |
| Total Debt | 11.28B | 12.40B | 13.97B | 15.89B | 7.01B |
| Total Liabilities | 200.03B | 193.27B | 197.62B | 203.04B | 164.99B |
| Stockholders Equity | 26.32B | 24.25B | 24.34B | 23.69B | 23.42B |
Cash Flow | |||||
| Free Cash Flow | 2.04B | 1.88B | 2.79B | 3.99B | 2.15B |
| Operating Cash Flow | 2.21B | 2.00B | 2.96B | 4.12B | 2.27B |
| Investing Cash Flow | -5.97B | 2.99B | 5.25B | -12.64B | -10.49B |
| Financing Cash Flow | 5.88B | -6.01B | -7.13B | 9.91B | 4.64B |
Citizens Financial Technical Analysis
Positive
58.94
Price Trends
61.67
Negative
58.39
Positive
53.18
Positive
Market Momentum
-1.33
Negative
47.86
Neutral
64.04
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 58.94 is above the 20-day moving average (MA) of 58.75, below the 50-day MA of 61.67, and above the 200-day MA of 53.18, indicating a neutral trend. The MACD of -1.33 indicates Negative momentum. The RSI at 47.86 is Neutral, neither overbought nor oversold. The STOCH value of 64.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CFG.
Citizens Financial Risk Analysis
Citizens Financial disclosed 36 risk factors in its most recent earnings report. Citizens Financial 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
Citizens Financial Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $30.36B | 11.54 | 9.88% | 2.76% | -0.81% | 20.34% | |
72 Outperform | $21.98B | 11.00 | 11.45% | 3.74% | 4.00% | 28.54% | |
69 Neutral | $25.05B | 11.93 | 7.16% | 2.89% | -3.93% | 40.62% | |
68 Neutral | $41.47B | 12.33 | 11.96% | 3.14% | 0.15% | 11.62% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $31.04B | 11.61 | 10.06% | 3.50% | 5.73% | 38.39% | |
63 Neutral | $21.60B | 11.08 | 9.26% | 3.90% | 3.86% | 5473.29% |
* Financial Sector Average
CFG
Citizens Financial
58.94
18.43
45.50%
FITB
Fifth Third Bancorp
45.99
6.91
17.67%
HBAN
Huntington Bancshares
15.48
0.79
5.35%
KEY
KeyCorp
19.82
4.14
26.39%
MTB
M&T Bank
203.78
26.92
15.22%
RF
Regions Financial
25.64
4.30
20.17%
Citizens Financial Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Citizens Financial completes $400 million subordinated notes offering
Positive
Jan 29, 2026
On January 29, 2026, Citizens Financial Group, Inc. completed a $400 million offering of 5.299% Fixed-Reset Subordinated Notes due 2036, issued under its existing indenture with The Bank of New York Mellon as trustee and sold through a syndicate l...
Business Operations and StrategyFinancial Disclosures
Citizens Financial posts strong fourth-quarter 2025 earnings growth
Positive
Jan 22, 2026
On January 21, 2026, Citizens Financial Group reported its fourth-quarter and full-year 2025 results, highlighting an 8% sequential rise in earnings per share to $1.13 and a return on tangible common equity of 12.2%, supported by strong progress i...
Business Operations and StrategyFinancial Disclosures
Citizens Financial posts strong fourth-quarter 2025 earnings growth
Positive
Jan 21, 2026
Citizens Financial Group, Inc. reported strong results for the fourth quarter of 2025, with net income of $528 million, up 32% year over year, and diluted EPS of $1.13, up 36% year over year, driven by expanding net interest margin, robust fee inc...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.