Citizens Financial (CFG) AI Stock Analysis

• Market Cap: $22.48B
• Dividend Yield: 3.29%
• Average Volume (3M): 4.79M
• Price to Earnings (P/E): 14.7
• Beta (1Y): 1.22
• 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: 3,556,171
• 30 Day Avg. Volume: 4,794,034
• 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: 1.08
• Enterprise Value/Revenue: 2.02
• Enterprise Value/Gross Profit: 3.37
• Enterprise Value/Ebitda: 9.71
• 1Y Price Target: $62.04
• Price Target Upside: 18.76% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 16
• EPS Forecast (FY): 3.85
• Revenue Forecast (FY): $8.25B

• Rating: 71 Outperform
• Price Target: $56.00 ▲(7.20% Upside)

Citizens Financial's overall score reflects a stable financial performance and strong earnings call results, which are the most significant factors. While technical analysis shows mixed signals, the valuation remains attractive. The positive earnings call sentiment and strategic initiatives support a favorable outlook, despite some challenges in revenue growth and loan pricing.

Positive Factors

EPS Growth

The sequential EPS growth indicates effective cost management and revenue generation, enhancing shareholder value and supporting long-term profitability.

Deposit and Loan Growth

Growth in deposits and loans reflects strong customer trust and demand for services, which can drive future interest income and financial stability.

Fee Income Growth

Rising fee income from capital markets and wealth management diversifies revenue streams, reducing reliance on interest income and enhancing resilience.

Negative Factors

Revenue Growth Challenges

Declining revenue growth suggests potential difficulties in expanding market share or product offerings, which could impact long-term earnings potential.

Commercial Loan Pricing Spreads

Tightening loan pricing spreads may pressure net interest margins, potentially reducing profitability and affecting competitive positioning.

Non-Core Loan Runoff

The runoff in non-core loans could signal challenges in maintaining asset levels, impacting future interest income and overall financial health.

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 areas of concern.

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: Positive
• Last Price: 52.24
• 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 52.24 is above the 20-day moving average (MA) of 50.76, above the 50-day MA of 51.43, and above the 200-day MA of 44.78, indicating a bullish trend. The MACD of 0.21 indicates Negative momentum. The RSI at 57.21 is Neutral, neither overbought nor oversold. The STOCH value of 86.45 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	$24.67B	11.03	10.37%	3.91%	5.73%	38.39%
RF	76 Outperform	$21.96B	11.02	11.43%	4.05%	4.00%	28.54%
MTB	74 Outperform	$28.93B	11.60	9.60%	2.97%	-0.81%	20.34%
FITB	72 Outperform	$28.34B	12.82	11.52%	3.51%	4.09%	11.62%
CFG	71 Outperform	$22.48B	14.69	6.71%	3.29%	-3.93%	40.62%
KEY	69 Neutral	$19.80B	22.37	5.82%	4.54%	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.