Flagstar Financial (FLG) AI Stock Analysis

• Market Cap: $5.57B
• Dividend Yield: 0.3%
• Average Volume (3M): 4.82M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.83
• Revenue Growth: -18.33%
• EPS Growth: 92.89%
• Country: US
• Employees: 6,993
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): -0.11
• Shares Outstanding: 415,755,900
• 10 Day Avg. Volume: 5,400,498
• 30 Day Avg. Volume: 4,821,921
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.37
• Price to Sales (P/S): 0.47
• P/FCF Ratio: 59.78
• Enterprise Value/Market Cap: 1.86
• Enterprise Value/Revenue: 2.38
• Enterprise Value/Gross Profit: 7.16
• Enterprise Value/Ebitda: -33.87
• 1Y Price Target: $14.23
• Price Target Upside: 6.27% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): -0.53
• Revenue Forecast (FY): $2.03B

• Rating: 55 Neutral
• Price Target: $13.00 ▼(-2.91% Downside)

Flagstar Financial's overall score is primarily impacted by its weak financial performance, which is a significant concern. However, positive technical indicators and strategic corporate events provide some optimism. The valuation remains unattractive, and while the earnings call shows some improvements, ongoing challenges persist.

Positive Factors

Strategic Reorganization

The reorganization is expected to enhance operational efficiency and maintain focus on becoming a top-performing regional bank, improving long-term competitiveness.

C&I Loan Growth

Growth in C&I lending indicates a strategic focus on expanding business segments, which can drive future revenue and strengthen market position.

Cost Control

Effective cost management enhances profitability and financial health, providing more resources for strategic investments and growth initiatives.

Negative Factors

High Leverage

Significant leverage poses risks to financial stability, potentially limiting flexibility in operations and increasing vulnerability to economic downturns.

Declining Revenue

A substantial decline in revenue indicates challenges in maintaining market share and competitiveness, impacting long-term growth prospects.

Weak Cash Flow

Weak cash generation limits the company's ability to invest in growth opportunities and manage debt, affecting overall financial sustainability.

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

Flagstar Financial faces significant financial challenges, including declining revenue and profitability, high leverage, and weak cash flow generation. The company needs strategic initiatives to improve revenue growth, manage debt, and enhance cash flow to stabilize its financial position.

Income Statement

Flagstar Financial's income statement reveals significant challenges. The TTM data shows a negative revenue growth rate of -21.5%, indicating a substantial decline in revenue. The net profit margin is also negative at -9.05%, reflecting ongoing losses. Historical data shows a downward trend in profitability, with EBIT and EBITDA margins turning negative. The company needs to address these issues to improve financial health.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 1.63 in TTM, indicating significant leverage. Return on equity is negative, reflecting poor profitability. The equity ratio is relatively stable, but the high leverage poses risks. The company must manage its debt levels to enhance financial stability.

Cash Flow

Cash flow analysis highlights concerns with a negative free cash flow growth rate of -192.7% in TTM. The operating cash flow to net income ratio is low, suggesting weak cash generation relative to earnings. While the free cash flow to net income ratio is close to 1, indicating efficient cash conversion, overall cash flow performance is weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.35B	6.38B	6.05B	2.18B	1.75B	1.77B
Gross Profit	1.45B	1.49B	2.80B	1.35B	1.35B	1.10B
EBITDA	-306.00M	-1.19B	115.00M	849.00M	827.00M	612.00M
Net Income	-394.00M	-1.12B	-79.00M	650.00M	596.00M	511.00M
Balance Sheet
Total Assets	91.67B	100.16B	114.06B	90.14B	59.53B	56.31B
Cash, Cash Equivalents and Short-Term Investments	8.48B	25.83B	20.62B	10.66B	6.82B	6.48B
Total Debt	13.18B	14.43B	28.62B	31.66B	20.56B	16.35B
Total Liabilities	83.56B	91.99B	105.69B	81.32B	52.48B	49.46B
Stockholders Equity	8.11B	8.17B	8.37B	8.82B	7.04B	6.84B
Cash Flow
Free Cash Flow	599.00M	50.00M	197.00M	1.02B	286.00M	334.00M
Operating Cash Flow	631.00M	86.00M	263.00M	1.03B	290.00M	334.00M
Investing Cash Flow	5.38B	15.45B	20.67B	-6.32B	-2.76B	-1.02B
Financing Cash Flow	-20.60B	-11.59B	-11.41B	5.17B	2.73B	1.90B

Flagstar Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.39
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FLG, the sentiment is Positive. The current price of 13.39 is above the 20-day moving average (MA) of 12.64, above the 50-day MA of 11.83, and above the 200-day MA of 11.71, indicating a bullish trend. The MACD of 0.46 indicates Negative momentum. The RSI at 70.01 is Negative, neither overbought nor oversold. The STOCH value of 80.23 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FLG.

Flagstar Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UBSI	80 Outperform	$5.61B	13.10	8.24%	3.73%	8.83%	15.49%
AUB	79 Outperform	$5.22B	19.62	5.42%	3.80%	43.53%	-21.74%
AX	78 Outperform	$4.96B	11.71	16.65%	―	1.66%	-9.31%
HWC	72 Outperform	$5.50B	11.80	11.11%	2.73%	-0.78%	25.39%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
FFIN	63 Neutral	$4.45B	18.36	13.89%	2.41%	12.90%	16.92%
FLG	55 Neutral	$5.57B	-13.02	-4.72%	0.30%	-18.33%	92.89%

Flagstar Financial Corporate Events

Flagstar Financial Reports Q3 2025 Financial Results

Flagstar Bank, National Association, reported its third-quarter 2025 financial results, highlighting a strategic focus on expanding commercial and industrial (C&I) loans, which grew by $448 million or 3% quarter-over-quarter. The bank also emphasized improvements in credit quality, with a reduction in net charge-offs and a decrease in new problem loan formation. The management’s focus on proactive management of the commercial real estate (CRE) portfolio and cost control measures contributed to an improved earnings profile, despite challenges in specialty finance and leasing sectors.

Flagstar Financial Completes Internal Reorganization

On October 17, 2025, Flagstar Bank, N.A. completed an internal reorganization, merging with its holding company, Flagstar Financial Inc., to simplify its corporate structure and reduce regulatory burdens. The reorganization, which was approved by shareholders, allows Flagstar Bank to continue as a publicly traded entity on the New York Stock Exchange under the symbol ‘FLG’. This strategic move is expected to enhance operational efficiency and maintain the bank’s focus on becoming a top-performing regional bank while ensuring continuity in client services and operations.

Flagstar Financial Approves Corporate Reorganization

On October 15, 2025, Flagstar Financial, Inc. held a virtual special meeting of shareholders where key proposals were approved. The shareholders voted in favor of an internal corporate reorganization, merging the company with its subsidiary, Flagstar Bank, N.A., and converting the company into a federal savings association. These decisions are expected to streamline operations and potentially enhance the company’s market positioning.

Flagstar Financial Gains Approval for Major Reorganization

On October 3, 2025, Flagstar Financial, Inc. received approval from the Office of the Comptroller of the Currency to reorganize as a federal interim savings bank and merge with Flagstar Bank, N.A., making Flagstar Bank the surviving entity and publicly traded on the New York Stock Exchange. The transaction, pending shareholder approval at a meeting on October 15, 2025, is expected to close by late October 2025, potentially impacting the company’s market presence and shareholder value.