Citizens (CIA) AI Stock Analysis

• Market Cap: $287.40M
• Dividend Yield: N/A
• Average Volume (3M): 160.99K
• Price to Earnings (P/E): 25.8
• Beta (1Y): 1.23
• Revenue Growth: -0.04%
• EPS Growth: -49.18%
• Country: US
• Employees: 247
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Life
• EPS (TTM): 0.08
• Shares Outstanding: 50,245,365
• 10 Day Avg. Volume: 199,179
• 30 Day Avg. Volume: 160,986
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.62
• Enterprise Value/Revenue: 0.72
• Enterprise Value/Gross Profit: 2.27
• Enterprise Value/Ebitda: 14.27
• 1Y Price Target: $5.00
• Price Target Upside: -12.59% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 65 Neutral
• Price Target: $5.00 ▼(-12.59% Downside)

The stock's overall score is driven by strong technical momentum and a solid financial base with no debt. However, the valuation appears stretched, and declining profitability and cash flow generation are concerns. The absence of dividend yield further impacts the valuation score.

Citizens Business Overview & Revenue Model

Company Description

Citizens, Inc., through its subsidiaries, provides life insurance products in the United States and internationally. It operates in two segments, Life Insurance and Home Service Insurance. The Life Insurance segment issues ordinary whole life insurance and endowment policies in the United States dollar-denominated amounts to non-U.S. residents in through independent marketing agencies and consultants. The Home Service Insurance segment offers final expense life insurance and property insurance policies to middle-and lower-income households, as well as whole life products in Louisiana, Mississippi, and Arkansas. This segment provides its products and services through funeral homes and independent agents. The company also provides health insurance policies. Citizens, Inc. was founded in 1969 and is headquartered in Austin, Texas.

How the Company Makes Money

Citizens generates revenue through several key streams, including interest income from loans and mortgages, fees from banking services such as account maintenance and transaction processing, and premiums from insurance products. The company also earns revenue from wealth management services, which may include advisory fees and commissions on investment products. Significant partnerships with other financial institutions and technology providers enhance its service offerings and customer reach, contributing to its overall earnings.

Citizens Financial Statement Overview

Summary

Citizens exhibits a stable revenue trend with a strong equity base and no debt, indicating financial strength. However, profitability metrics have declined, and cash flow generation has weakened, highlighting areas for improvement in maintaining profitability and enhancing cash flow efficiency.

Income Statement

The revenue has shown a relatively stable trend with a slight growth in the recent year by 1.79%. The gross profit margin remains at 100% due to the nature of the insurance industry, where total revenue equals gross profit. However, the net profit margin has fluctuated, showing a decline in the most recent year to 6.09% from 10.15% in the previous year. The EBIT and EBITDA margins are not meaningful in the most recent year due to zero EBIT and EBITDA.

Balance Sheet

The company exhibits a strong equity position with a high equity ratio of 94.73% in the most recent year. The absence of total debt in the latest fiscal year indicates a conservative capital structure. The debt-to-equity ratio is 0, which reflects no leverage risk. Return on equity is positive at 7.09%, signaling profitability but has decreased from the previous year. The company's balance sheet is robust but shows a decrease in total assets and stockholders' equity.

Cash Flow

The free cash flow growth rate dropped significantly by 72.94% compared to the previous year, reflecting a decrease in cash generation. The operating cash flow to net income ratio is 0.40, indicating that operating cash flow covers net income. The free cash flow to net income ratio is 0.39, pointing to decent cash conversion, but overall cash flow generation has decreased.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	245.94M	245.00M	240.68M	232.52M	250.55M	238.86M
Gross Profit	78.48M	245.00M	240.68M	232.52M	250.55M	238.86M
EBITDA	12.47M	15.60M	27.29M	27.91M	-5.55M	0.00
Net Income	11.25M	14.91M	24.44M	-7.50M	-50.16M	-10.99M
Balance Sheet
Total Assets	0.00	1.69B	1.67B	1.57B	1.85B	1.84B
Cash, Cash Equivalents and Short-Term Investments	0.00	20.60M	27.00M	1.20B	1.50B	1.52B
Total Debt	0.00	7.79M	9.07M	10.12M	10.83M	11.97M
Total Liabilities	1.43B	1.47B	1.50B	1.57B	1.53B	1.54B
Stockholders Equity	229.03M	210.35M	172.13M	1.04M	320.57M	300.94M
Cash Flow
Free Cash Flow	12.01M	31.25M	21.61M	56.82M	39.45M	48.61M
Operating Cash Flow	12.51M	31.92M	22.06M	56.92M	40.45M	48.83M
Investing Cash Flow	-23.61M	-27.17M	-14.50M	-60.74M	-41.08M	-61.81M
Financing Cash Flow	-4.83M	-2.47M	-3.54M	-499.00K	-6.21M	904.00K

Citizens Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.72
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CIA, the sentiment is Positive. The current price of 5.72 is above the 20-day moving average (MA) of 5.47, above the 50-day MA of 4.93, and above the 200-day MA of 4.42, indicating a bullish trend. The MACD of 0.24 indicates Positive momentum. The RSI at 61.14 is Neutral, neither overbought nor oversold. The STOCH value of 76.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CIA.

Citizens Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CNO	73 Outperform	$3.88B	14.77	16.17%	1.65%	0.82%	-29.29%
BHF	71 Outperform	$3.19B	6.02	7.82%	―	59.27%	―
GNW	67 Neutral	$3.74B	20.59	3.52%	―	2.61%	465.03%
CIA	65 Neutral	$287.40M	25.79	5.35%	―	-0.04%	-49.18%
ABL	59 Neutral	$568.01M	-92.15	-5.65%	―	69.59%	38.07%
AAME	53 Neutral	$59.15M	29.23	-4.28%	0.69%	6.98%	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Citizens Corporate Events

Citizens Inc. Shareholders Approve Key Proposals at Annual Meeting

On June 17, 2025, Citizens, Inc. held its Annual Meeting of Shareholders where Class A shareholders voted on several key proposals. The shareholders elected eight directors to the board, ratified Grant Thornton LLP as the independent auditor for 2025, and approved executive compensation on a non-binding advisory basis. These decisions are crucial for the company’s governance and financial oversight, impacting its strategic direction and stakeholder confidence.