Flagstar Financial (FLG) AI Stock Analysis

• Market Cap: $4.55B
• Dividend Yield: 0.36%
• Average Volume (3M): 6.67M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.93
• Revenue Growth: -8.17%
• EPS Growth: 73.59%
• Country: US
• Employees: 6,993
• Sector: Financial
• Sector Strength: 81
• Industry: Banks - Regional
• EPS (TTM): -0.26
• Shares Outstanding: 415,079,900
• 10 Day Avg. Volume: 9,892,327
• 30 Day Avg. Volume: 6,668,044
• PEG Ratio: -0.19
• Price to Book (P/B): 0.59
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -21.83
• Enterprise Value/Market Cap: 1.40
• Enterprise Value/Revenue: 0.25
• Enterprise Value/Gross Profit: 4.35
• Enterprise Value/Ebitda: -0.70
• 1Y Price Target: $13.83
• Price Target Upside: 26.19% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 50 Neutral
• Price Target: $11.00 ▲(0.36%Upside)

Flagstar Financial's overall stock score reflects significant financial challenges, with declining revenues and profitability being major concerns. Although the earnings call presented some positive strategic initiatives, ongoing net losses and liquidity issues overshadow these efforts. The technical analysis indicates bearish momentum, and valuation metrics suggest limited appeal for investors.

Positive Factors

Earnings Potential

Increasing confidence in C&I growth drives up our forward NII estimates.

Financial Performance

FLG's balance sheet is significantly stronger, which positions it well to handle potential increases in reserves.

Valuation

The current price presents an attractive opportunity.

Negative Factors

Credit Concerns

Concerns regarding a potential 'freeze the rent' campaign promise could lead to incremental credit concerns.

Election Impact

Shares are likely to see incremental downside pressure over the near-term due to the NYC mayoral election results.

Regulatory Risks

Mamdani's campaign promise to freeze rents is a key reason for the selloff.

Flagstar Financial Business Overview & Revenue Model

Company Description

Flagstar Financial (FLG) is a diversified financial services company that operates primarily in banking, mortgage lending, and financial advisory sectors. The company offers a wide range of products and services, including personal and commercial banking, mortgage loans, wealth management, and investment services, catering to both individual and institutional clients.

How the Company Makes Money

Flagstar Financial makes money through a diverse revenue model that includes interest income from loans and mortgages, fee-based income from banking services, and commissions from wealth management and advisory services. A significant portion of its earnings is derived from the interest rate spread between the interest it pays on deposits and the interest it earns on loans. Additionally, the company benefits from strategic partnerships with financial institutions and real estate companies, enhancing its capabilities to offer comprehensive financial solutions. Revenue is further supplemented by service fees associated with account management, transaction processing, and investment advisory services.

Flagstar Financial Financial Statement Overview

Summary

Flagstar Financial is struggling with declining revenue and profitability as evidenced by its income statement. The balance sheet reveals high leverage with an elevated debt-to-equity ratio, though liquidity is bolstered by substantial cash reserves. Cash flow shows resilience with positive free cash flow, suggesting efficient capital management despite reduced operating cash flow.

Income Statement

Flagstar Financial has experienced declining revenue and profitability in recent years. The company's gross profit margin remains steady at 100%, but it is operating at a net loss, with significant negative EBIT and EBITDA margins. Revenue decreased significantly from 2023 to 2024, indicating potential challenges in maintaining revenue streams.

Balance Sheet

The balance sheet of Flagstar Financial shows high leverage with a debt-to-equity ratio that remains elevated. Stockholders' equity has remained relatively stable, but the equity ratio has decreased over time. The company has a substantial amount of cash and equivalents, which provides some liquidity buffer.

Cash Flow

Flagstar Financial's cash flow shows some resilience with positive operating and free cash flows, although they have decreased from the prior year. The company has managed to maintain positive free cash flow despite lower operating cash flow, indicating some efficiency in capital expenditure management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.99B	6.38B	6.05B	2.18B	1.75B	1.77B
Gross Profit	1.46B	1.49B	2.80B	1.35B	1.35B	1.10B
EBITDA	-941.00M	-1.19B	115.00M	849.00M	827.00M	612.00M
Net Income	-891.00M	-1.12B	-79.00M	650.00M	596.00M	511.00M
Balance Sheet
Total Assets	97.63B	100.16B	114.06B	90.14B	59.53B	56.31B
Cash, Cash Equivalents and Short-Term Investments	25.44B	25.83B	20.62B	10.66B	6.82B	6.48B
Total Debt	14.18B	14.43B	28.62B	31.66B	20.56B	16.35B
Total Liabilities	89.47B	91.99B	105.69B	81.32B	52.48B	49.46B
Stockholders Equity	8.15B	8.17B	8.37B	8.82B	7.04B	6.84B
Cash Flow
Free Cash Flow	-220.00M	50.00M	197.00M	1.02B	286.00M	334.00M
Operating Cash Flow	-210.00M	86.00M	263.00M	1.03B	290.00M	334.00M
Investing Cash Flow	13.07B	15.45B	20.67B	-6.32B	-2.76B	-1.02B
Financing Cash Flow	-13.24B	-11.59B	-11.41B	5.17B	2.73B	1.90B

Flagstar Financial Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 10.96
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FLG, the sentiment is Neutral. The current price of 10.96 is below the 20-day moving average (MA) of 11.25, below the 50-day MA of 11.64, and below the 200-day MA of 11.18, indicating a bearish trend. The MACD of -0.20 indicates Positive momentum. The RSI at 48.12 is Neutral, neither overbought nor oversold. The STOCH value of 50.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FLG.

Flagstar Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FNB	78 Outperform	$5.52B	12.09	7.40%	3.13%	10.34%	2.54%
OZK	76 Outperform	$5.78B	8.34	12.85%	3.38%	13.85%	2.43%
COLB	73 Outperform	$5.27B	10.59	9.73%	5.74%	-0.17%	1.69%
GBCI	73 Outperform	$5.26B	24.82	6.63%	2.85%	8.10%	6.95%
VLY	71 Outperform	$5.23B	13.61	5.48%	4.71%	1.48%	-18.84%
Sector *	61 Neutral	C$14.56B	6.16	20.17%	5.70%	26.93%	-38.21%
FLG	50 Neutral	$4.55B	―	-10.40%	0.36%	-8.17%	73.59%

Flagstar Financial Corporate Events

Flagstar Financial Holds Virtual Shareholders’ Meeting

On June 4, 2025, Flagstar Financial, Inc. held its annual shareholders’ meeting virtually. At this meeting, shareholders elected three directors for three-year terms and ratified KPMG LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025. Additionally, the shareholders approved, on a non-binding advisory basis, the compensation of the company’s named executive officers.

The most recent analyst rating on (FLG) stock is a Hold with a $13.00 price target. To see the full list of analyst forecasts on Flagstar Financial stock, see the FLG Stock Forecast page.

Flagstar Financial Reports Strong Q1 2025 Results

On April 25, 2025, Flagstar Financial announced its first quarter results, highlighting significant growth in credit commitments and loan originations, driven by strategic focus areas such as expanding product offerings and reducing operating expenses. The company is actively managing its commercial real estate portfolio and aims to improve its earnings profile by reducing costs and enhancing operational efficiencies, with over 80% of targeted efficiencies already realized.