Flagstar Financial (FLG) AI Stock Analysis

• Market Cap: $5.28B
• Dividend Yield: 0.31%
• Average Volume (3M): 5.06M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.03
• Revenue Growth: -18.33%
• EPS Growth: 92.89%
• Country: US
• Employees: 6,993
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.05
• Shares Outstanding: 415,755,900
• 10 Day Avg. Volume: 5,177,860
• 30 Day Avg. Volume: 5,061,633
• PEG Ratio: 0.35
• Price to Book (P/B): 0.64
• Price to Sales (P/S): 1.11
• P/FCF Ratio: -28.89
• Enterprise Value/Market Cap: 3.20
• Enterprise Value/Revenue: 3.57
• Enterprise Value/Gross Profit: 9.34
• Enterprise Value/Ebitda: -198.91
• 1Y Price Target: $14.91
• Price Target Upside: 17.49% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): 0.55
• Revenue Forecast (FY): $2.49B

• Rating: 47 Neutral
• Price Target: $12.50 ▼(-1.50% Downside)
• Action: Reiterated Date: 02/28/26
• Date: Action: Reiterated 02/28/26

The score is held down primarily by weak financial performance (recent losses and negative 2025 operating/free cash flow) and bearish technicals. Partially offsetting this are a more positive earnings-call outlook (profitability trajectory, stronger capital and de-risking) and some valuation support from a high dividend yield despite a loss-making P/E.

Positive Factors

Return to profitability

A return to adjusted profitability after recent losses indicates the company’s restructuring and expense controls are translating into durable operating improvements. Sustained profitability supports reserve rebuilding, capital retention and reinvestment capacity over the next 2–6 months, reducing solvency risk and enabling strategic flexibility.

Stronger capital and CRE de‑risking

Material CET1 buildup and a meaningful reduction in CRE exposure improve loss-absorbing capacity and concentration risk profile. This structural capital cushion and targeted de‑risking lower regulatory and credit tail risks and support measured lending growth and loss tolerance over coming quarters.

C&I origination momentum

Growing C&I pipeline and origination capacity diversifies loan mix away from stressed CRE, supporting more stable interest income and fee streams. A sustained shift toward middle‑market and commercial lending can reduce cyclical volatility and enhance medium‑term net interest income resilience.

Negative Factors

Negative operating and free cash flow

A move to negative operating and free cash flow materially weakens internal funding capacity, forcing greater reliance on external funding or asset sales. Over 2–6 months this elevates execution risk for growth plans, constrains capital deployment and increases sensitivity to deposit and market funding volatility.

NYC multifamily / CRE concentration

Significant exposure and clustered maturities in NYC multifamily create structural refinancing and credit risk as rates reset and regulatory rent pressures linger. High single‑market concentration can produce sustained volatility in asset quality and capital needs across the next 2–6 months and into 2027 maturity waves.

Retail CD rollover and funding risk

Large near‑term CD maturities create structural funding rollover exposure; if retention falls or reprice dynamics worsen, NII and liquidity will be pressured. Persistent reliance on retaining maturing deposits at lower rates reduces margin flexibility and raises the chance of higher‑cost funding needs.

Flagstar Financial Business Overview & Revenue Model

Company Description

Flagstar Financial, Inc. operates as the bank holding company for Flagstar Bank, N.A. that provides banking products and services in the United States. The company's deposit products include interest-bearing checking and money market, savings, non-interest-bearing, and retirement accounts, as well as certificates of deposit. Its loan products comprise multi-family loans; commercial real estate loans; acquisition, development, and construction loans; commercial and industrial loans; one-to-four family loans; specialty finance loans and leases; warehouse loans; and other loans, such as home equity lines of credit, boat and recreational vehicle indirect lending, point of sale consumer loans, and other consumer loans, including overdraft loans. The company offers cash management products; non-deposit investment and insurance products; and online banking, mobile banking, and bank-by-phone services. It primarily serves individuals, small and mid-size businesses, and professional associations. The company was formerly known as New York Community Bancorp, Inc. and changed its name to Flagstar Financial, Inc. in October 2024. Flagstar Financial, Inc. was founded in 1859 and is headquartered in Hicksville, New York.

How the Company Makes Money

Flagstar Financial generates revenue through multiple key streams, primarily from interest income earned on loans and mortgages, which constitute a significant portion of its earnings. The company also generates fee income from various banking services, including account maintenance fees, transaction fees, and wealth management services. Additionally, Flagstar earns revenue from its mortgage origination and servicing activities, including gains on loan sales and servicing fees. Strategic partnerships with real estate agencies and other financial institutions enhance its lending capabilities and market reach, contributing to its overall profitability. Market conditions, interest rates, and loan demand are significant factors influencing the company's financial performance.

Flagstar Financial Financial Statement Overview

Summary

Income statement and cash flow are the key drags: profitability flipped to losses in 2023–2025 and 2025 operating/free cash flow turned negative. The balance sheet has improved via deleveraging and steadier equity, but negative ROE signals earnings pressure remains the core issue.

Income Statement

Performance has weakened materially versus earlier years. After strong profitability in 2020–2022 (healthy net margins and positive operating earnings), results flipped to losses in 2023–2025, with 2025 showing negative operating profit and a negative net margin. Revenue has also turned down recently (2025 revenue decline), offset only partially by a rebound in gross margin in 2025. Overall: improving from the deep 2024 loss, but profitability remains structurally challenged.

Balance Sheet

Leverage remains meaningful but has improved. Debt relative to equity has come down sharply from very elevated levels in 2022–2023 to lower (though still notable) levels in 2024–2025, and equity has been relatively stable across the period. The key weakness is returns: return on equity is negative in 2023–2025, reflecting ongoing losses despite a sizable capital base. Overall: better balance-sheet risk posture than two years ago, but earnings pressure undermines balance-sheet quality.

Cash Flow

Cash generation has deteriorated. Operating cash flow and free cash flow were strong in 2022, modestly positive in 2023–2024, and turned negative in 2025, indicating weaker underlying cash earnings and/or working-capital swings. While free cash flow tracked net income in some years, the recent shift to negative operating and free cash flow increases funding and execution risk. Overall: cash flow stability is the main pressure point in the latest period.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.70B	6.38B	6.05B	2.18B	1.75B
Gross Profit	1.77B	1.49B	2.80B	1.35B	1.35B
EBITDA	-198.00M	-1.19B	115.00M	849.00M	827.00M
Net Income	-177.00M	-1.12B	-79.00M	650.00M	596.00M
Balance Sheet
Total Assets	87.51B	100.16B	114.06B	90.14B	59.53B
Cash, Cash Equivalents and Short-Term Investments	16.25B	25.83B	20.62B	10.66B	6.82B
Total Debt	12.18B	14.43B	28.62B	31.66B	20.56B
Total Liabilities	79.37B	91.99B	105.69B	81.32B	52.48B
Stockholders Equity	8.14B	8.17B	8.37B	8.82B	7.04B
Cash Flow
Free Cash Flow	-181.00M	50.00M	197.00M	1.02B	286.00M
Operating Cash Flow	-181.00M	86.00M	263.00M	1.03B	290.00M
Investing Cash Flow	2.69B	15.45B	20.67B	-6.32B	-2.76B
Financing Cash Flow	-12.09B	-11.59B	-11.41B	5.17B	2.73B

Flagstar Financial Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 12.69
• 50DMA: Negative
• 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 FLG, the sentiment is Negative. The current price of 12.69 is below the 20-day moving average (MA) of 13.75, below the 50-day MA of 13.25, and above the 200-day MA of 12.14, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 38.17 is Neutral, neither overbought nor oversold. The STOCH value of 25.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FLG.

Flagstar Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AX	78 Outperform	$4.92B	10.99	16.75%	―	1.66%	-9.31%
FFIN	73 Outperform	$4.43B	17.50	13.89%	2.42%	12.90%	16.92%
HWC	70 Outperform	$5.50B	11.62	11.28%	2.74%	-0.78%	25.39%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
AUB	63 Neutral	$5.28B	18.28	6.72%	3.83%	43.53%	-21.74%
UBSI	61 Neutral	$5.80B	12.64	8.84%	3.77%	8.83%	15.49%
FLG	47 Neutral	$5.28B	―	-2.17%	0.31%	-18.33%	92.89%

Flagstar Financial Corporate Events

Flagstar Financial Sets Date for 2026 Virtual Meeting

On February 27, 2026, Flagstar Bank, N.A. announced that its 2026 Annual Meeting of Shareholders will be held on June 9, 2026, starting at 10:00 a.m. Eastern Time, and conducted exclusively via live virtual webcast. The bank set April 10, 2026 as the record date, with shareholders of record on that date entitled to receive notice of, and vote at, the meeting.

Flagstar said further information on how to participate in the virtual meeting will be provided in its proxy materials and posted on regulatory and company websites. The announcement underscores the bank’s continued use of virtual-only formats for shareholder engagement, aligning with broader market practice for large, regulated financial institutions.

The most recent analyst rating on (FLG) stock is a Buy with a $15.00 price target. To see the full list of analyst forecasts on Flagstar Financial stock, see the FLG Stock Forecast page.

Flagstar Financial Returns to Profitability Amid Strategic Transformation

On January 30, 2026, Flagstar Bank reported that for the fourth quarter of 2025 it had returned to profitability, supported by a nearly 900-basis-point improvement in adjusted operating leverage, a rise in adjusted pre-provision net revenue to $65 million, net interest margin expansion, and strict cost controls that reduced operating expenses by about $700 million, or 26%, through operational efficiencies. Over the course of 2025, management executed on its transformation strategy by growing C&I loans by $343 million, strengthening primary bank relationships and regional and focus-industry positions, and expanding offerings in middle-market, corporate, and specialized verticals, while proactively de-risking its CRE book—cutting its CRE concentration ratio to 381%, driving sizable payoffs and reductions in multi-family and broader CRE exposures, and improving credit quality metrics including lower net charge-offs, reduced nonaccrual loans, and a significant decline in criticized and classified loans, signaling a normalized credit environment and a more resilient earnings profile going forward.

The most recent analyst rating on (FLG) stock is a Hold with a $13.50 price target. To see the full list of analyst forecasts on Flagstar Financial stock, see the FLG Stock Forecast page.