Want to see CFG full AI Analyst Report?
Top Page
Citizens Financial
(NYSE:CFG)
Select Model
Select Model
Rating:73Outperform
Price Target:
$81.00
▲(12.69% Upside)
Action:Reiterated
Date:08/04/26
CFG scores solidly overall, led by positive earnings-call guidance and improving profitability/margins, supported by a constructive technical trend with the stock trading above key moving averages. Offsetting factors include weakening cash-flow momentum and a modest recent uptick in leverage, while valuation appears fair rather than clearly discounted.
Positive Factors
Improving Profitability & ROTCE
Sustained margin and ROTCE improvement indicate the franchise is converting revenue into returns more efficiently. Higher margins and improving ROE increase internal capital generation capacity, support dividend/buybacks and provide buffer to absorb cyclical credit or funding pressures over coming quarters.
Negative Factors
Rising Leverage
A material uptick in leverage reduces financial flexibility and increases sensitivity to funding stress. Higher debt-to-equity can compress capital buffers and limit capacity for loan growth or buybacks if macro or credit conditions deteriorate over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving Profitability & ROTCE
Sustained margin and ROTCE improvement indicate the franchise is converting revenue into returns more efficiently. Higher margins and improving ROE increase internal capital generation capacity, support dividend/buybacks and provide buffer to absorb cyclical credit or funding pressures over coming quarters.
Read all positive factors
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 (CFG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$30.74B
Dividend Yield2.49%
Average Volume (3M)4.85M
Price to Earnings (P/E)15.9
Beta (1Y)1.07
Revenue Growth1.24%
EPS Growth40.55%
CountryUS
Employees17,727
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)4.64
Shares Outstanding421,176,800
10 Day Avg. Volume5,107,742
30 Day Avg. Volume4,851,471
Financial Highlights & Ratios
PEG Ratio0.53
Price to Book (P/B)0.96
Price to Sales (P/S)2.26
P/FCF Ratio12.37
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$80.47Price Target Upside11.95% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering17
EPS Forecast (FY)5.31
Revenue Forecast (FY)$9.19B
Citizens Financial Business Overview & Revenue Model
Company Description
Citizens Financial Group, Inc. (CFG) functions as the holding company for Citizens Bank, National Association, a major financial institution offering a comprehensive suite of retail and commercial banking solutions across the United States. It ser...
How the Company Makes Money
Citizens Financial primarily makes money through (1) net interest income and (2) noninterest (fee) income. Net interest income is earned by taking in deposits and other funding (e.g., consumer and commercial deposits) and deploying those funds int...
Citizens Financial Earnings Call Summary
Earnings Call Date:Jul 16, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 16, 2026
Earnings Call Sentiment Positive
The call emphasized a strong quarter with record revenue, solid EPS and ROTCE improvement, broad loan growth, a record capital markets quarter, an accelerating private bank and robust shareholder returns. Management reiterated disciplined expense control and clear medium-term operational initiatives (RTB and NEXT) with quantified benefits. Lowlights were mostly moderate and largely transitory: slight deposit cost pressure, modest FHLB usage, ongoing CRE runoff timing, a small CET1 shortfall versus a 10.5% anchor, and some upfront transformation costs. On balance, positive operational momentum and sizeable near- and medium-term catalysts outweigh the manageable and largely temporary headwinds.Positive Updates
Strong EPS and ROTCE Improvement
EPS of $1.30 for Q2, up $0.17 (15%) sequentially and up 41% year-over-year; ROTCE improved to 13.9% from 12.2% in Q1, reflecting improving profitability and capital efficiency.
Negative Updates
Deposit Cost Pressure
Interest-bearing deposit costs increased ~4 basis points in Q2 and total deposit costs up ~3 basis points (linked quarter), driven in part by private bank growth and stronger loan competition; management expects deposit betas to be broadly stable but noted quarter-to-quarter movement.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong EPS and ROTCE Improvement
EPS of $1.30 for Q2, up $0.17 (15%) sequentially and up 41% year-over-year; ROTCE improved to 13.9% from 12.2% in Q1, reflecting improving profitability and capital efficiency.
Read all positive updates
Company Guidance
The company guided to third‑quarter net interest income growth of 2.5%–3.5% (driven by continued NIM expansion and earning asset growth), non‑interest income up roughly 1% (led by capital markets and wealth), expenses “stable to up slightly,” and charge‑offs “stable to down slightly,” and said it expects to end Q3 with CET1 of ~10.5% (assuming ~$125M of share repurchases). For the full year management said revenue is tracking above January guidance, they remain on track for >600 bps of positive operating leverage, and reiterated the medium‑term 16%–18% ROTCE target by end‑2027 (with efficiency improving from 61% this quarter toward a mid‑50s target). NIM has expanded ~10 bps in H1 and management expects 4Q‑26 NIM of 3.22%–3.27% and 4Q‑27 NIM of ~3.30%–3.50%; Reimagine the Bank is expected to deliver ~$100M pretax annualized benefit exiting 2026 (doubling in 2027 and reaching ~$450M exiting 2028).Citizens Financial Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
66
Positive
Cash Flow
54
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 11.47B | 11.15B | 12.35B | 12.19B | 9.07B | 6.99B |
| Gross Profit | 8.30B | 7.78B | 7.11B | 7.54B | 7.55B | 7.06B |
| EBITDA | 3.15B | 2.69B | 2.39B | 2.51B | 3.22B | 3.60B |
| Net Income | 2.13B | 1.83B | 1.51B | 1.61B | 2.07B | 2.32B |
Balance Sheet | ||||||
| Total Assets | 233.84B | 226.35B | 217.52B | 221.96B | 226.73B | 188.41B |
| Cash, Cash Equivalents and Short-Term Investments | 12.76B | 49.38B | 43.85B | 41.70B | 34.59B | 34.90B |
| Total Debt | 16.35B | 11.28B | 12.40B | 13.97B | 15.89B | 7.01B |
| Total Liabilities | 207.65B | 200.03B | 193.27B | 197.62B | 203.04B | 164.99B |
| Stockholders Equity | 26.18B | 26.32B | 24.25B | 24.34B | 23.69B | 23.42B |
Cash Flow | ||||||
| Free Cash Flow | 2.35B | 2.04B | 1.88B | 2.79B | 3.99B | 2.15B |
| Operating Cash Flow | 2.50B | 2.21B | 2.00B | 2.96B | 4.12B | 2.27B |
| Investing Cash Flow | -10.69B | -5.97B | 2.99B | 5.25B | -12.64B | -10.49B |
| Financing Cash Flow | 12.40B | 5.88B | -6.01B | -7.13B | 9.91B | 4.64B |
Citizens Financial Technical Analysis
Positive
71.88
Price Trends
69.52
Positive
65.72
Positive
61.55
Positive
Market Momentum
1.04
Positive
61.98
Neutral
68.39
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 71.88 is below the 20-day moving average (MA) of 72.26, above the 50-day MA of 69.52, and above the 200-day MA of 61.55, indicating a bullish trend. The MACD of 1.04 indicates Positive momentum. The RSI at 61.98 is Neutral, neither overbought nor oversold. The STOCH value of 68.39 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | $36.42B | 13.65 | 10.66% | 2.40% | 0.31% | 22.76% | |
74 Outperform | $52.24B | 19.60 | 8.43% | 2.79% | 17.05% | -8.65% | |
74 Outperform | $35.90B | 13.13 | 8.58% | 3.57% | 18.13% | -3.57% | |
74 Outperform | $24.21B | 13.23 | 10.12% | 3.62% | 18.47% | ― | |
73 Outperform | $30.74B | 15.93 | 8.14% | 2.50% | 1.24% | 40.55% | |
72 Outperform | $26.92B | 12.74 | 11.79% | 3.43% | 0.26% | 14.72% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
CFG
Citizens Financial
73.91
26.78
56.81%
FITB
Fifth Third Bancorp
58.01
16.44
39.55%
HBAN
Huntington Bancshares
17.86
1.75
10.83%
KEY
KeyCorp
22.89
5.41
30.95%
MTB
M&T Bank
253.55
65.92
35.13%
RF
Regions Financial
31.60
6.76
27.19%
Citizens Financial Corporate Events
Private Placements and FinancingRegulatory Filings and Compliance
Citizens Financial Issues New Series J Preferred Stock
Neutral
Jul 31, 2026
On July 21, 2026, Citizens Financial entered into an underwriting agreement with a syndicate of major securities firms for a public offering of 400,000 shares of its 6.750% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series J, each ...
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
Citizens Financial Announces New Series J Preferred Offering
Positive
Jul 21, 2026
On July 16, 2026, Citizens Financial reported second-quarter 2026 earnings showing diluted EPS of $1.30 and a return on tangible common equity of 13.9 percent, supported by 13 percent quarter-on-quarter and 24 percent year-on-year growth in pre-pr...
Business Operations and StrategyFinancial Disclosures
Citizens Financial posts strong Q2 2026 earnings growth
Positive
Jul 17, 2026
Citizens Financial Group, Inc. reported second-quarter 2026 net income of $587 million, a 35% year-on-year increase, with diluted EPS rising 41% to $1.30 and 15% sequentially, supported by 4.4% quarter-on-quarter net interest income growth and 8% ...
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.