Citizens Financial (CFG) AI Stock Analysis

• Market Cap: $23.44B
• Dividend Yield: 3.15%
• Average Volume (3M): 3.64M
• Price to Earnings (P/E): 15.3
• Beta (1Y): 1.18
• 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: 3,569,264
• 30 Day Avg. Volume: 3,640,579
• 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: 1.04
• Enterprise Value/Revenue: 2.20
• Enterprise Value/Gross Profit: 3.26
• Enterprise Value/Ebitda: 8.90
• 1Y Price Target: $62.04
• Price Target Upside: 13.67% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 16
• EPS Forecast (FY): 3.85
• Revenue Forecast (FY): $8.25B

• Rating: 77 Outperform
• Price Target: $61.00 ▲(11.76% Upside)

Citizens Financial Group's stock score is driven by strong earnings call results and technical indicators, reflecting robust financial performance and positive market momentum. While financial performance shows operational efficiency, challenges in revenue growth and commercial loan pricing present some risks. The stock's reasonable valuation and attractive dividend yield further support its investment appeal.

Positive Factors

EPS Growth

The significant EPS growth indicates strong financial performance and effective management strategies, enhancing shareholder value and supporting future profitability.

Fee Income Growth

Robust fee income growth from Capital Markets and Wealth business suggests a diversified revenue stream, reducing reliance on interest income and enhancing financial stability.

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, allowing for strategic investments, debt reduction, and shareholder returns, supporting long-term growth.

Negative Factors

Revenue Growth Challenges

Negative revenue growth indicates challenges in market expansion or product competitiveness, potentially impacting long-term profitability and market position.

Commercial Loan Pricing Spreads

Tightening loan pricing spreads can pressure net interest margins, affecting profitability and competitive positioning in the commercial banking sector.

Interest Rate Sensitivity

Sensitivity to interest rate changes can affect net interest margins, influencing earnings stability and financial performance in varying economic conditions.

Citizens Financial Business Overview & Revenue Model

Company Description

Citizens Financial Group, Inc. (CFG) is a bank holding company headquartered in Providence, Rhode Island. It operates primarily through its subsidiary, Citizens Bank, providing a wide array of financial services to individuals, businesses, and institutions. The company serves customers in multiple sectors including consumer banking, commercial banking, and wealth management, offering products such as loans, mortgages, credit cards, investment services, and treasury management solutions. Citizens Financial is committed to delivering innovative financial solutions and enhancing customer experience through digital banking initiatives.

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	11.05B	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	2.73B	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: 54.58
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 54.58 is above the 20-day moving average (MA) of 52.20, above the 50-day MA of 51.67, and above the 200-day MA of 45.25, indicating a bullish trend. The MACD of 0.84 indicates Negative momentum. The RSI at 65.04 is Neutral, neither overbought nor oversold. The STOCH value of 91.80 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	77 Outperform	$26.00B	11.62	10.37%	3.91%	5.73%	38.39%
CFG	77 Outperform	$23.44B	15.31	6.71%	3.15%	-3.93%	40.62%
RF	76 Outperform	$22.21B	11.15	11.43%	4.07%	4.00%	28.54%
MTB	74 Outperform	$29.24B	11.72	9.60%	2.98%	-0.81%	20.34%
FITB	73 Outperform	$28.93B	13.09	11.52%	3.45%	0.15%	11.62%
KEY	69 Neutral	$20.35B	22.98	5.82%	4.40%	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 Group Reports Strong Q3 2025 Results

Citizens Financial Group, Inc., headquartered in Providence, Rhode Island, is one of the largest financial institutions in the United States, offering a wide range of retail and commercial banking products and services to individuals, businesses, and institutions. The company operates in the financial services sector, providing tailored solutions through its extensive network of branches and ATMs across 14 states and the District of Columbia.

Citizens Financial Group Reports Strong Q3 Earnings

The recent earnings call for Citizens Financial Group painted a picture of strong financial performance, with notable growth across several key metrics. The sentiment was overwhelmingly positive, driven by significant improvements in earnings per share (EPS), net interest income (NII), and deposit growth. While there were some challenges, particularly in commercial loan pricing and non-core runoff, the overall outlook remains optimistic, with the highlights far outweighing any concerns.

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%.

The most recent analyst rating on (CFG) stock is a Buy with a $65.00 price target. To see the full list of analyst forecasts on Citizens Financial stock, see the CFG Stock Forecast page.

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.

The most recent analyst rating on (CFG) stock is a Hold with a $58.00 price target. To see the full list of analyst forecasts on Citizens Financial stock, see the CFG Stock Forecast page.

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.

The most recent analyst rating on (CFG) stock is a Buy with a $51.00 price target. To see the full list of analyst forecasts on Citizens Financial stock, see the CFG Stock Forecast page.