Flagstar Financial (FLG) AI Stock Analysis

• Market Cap: $5.00B
• Dividend Yield: 0.33%
• Average Volume (3M): 6.84M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.94
• Revenue Growth: -8.17%
• EPS Growth: 73.59%
• Country: US
• Employees: 6,993
• Sector: Financial
• Sector Strength: 72
• Industry: Banks - Regional
• EPS (TTM): -0.19
• Shares Outstanding: 415,079,900
• 10 Day Avg. Volume: 5,617,595
• 30 Day Avg. Volume: 6,842,555
• 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: 1.27
• Enterprise Value/Revenue: 0.25
• Enterprise Value/Gross Profit: 4.35
• Enterprise Value/Ebitda: -0.70
• 1Y Price Target: $13.55
• Price Target Upside: 12.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 51 Neutral
• Price Target: $11.50 ▼(-4.56%Downside)

Flagstar Financial's overall stock score reflects significant financial difficulties and operational losses, balanced by some positive strategic initiatives and moderate technical indicators. The bank's valuation is hindered by negative earnings, and while there are promising signs in loan growth and cost management, risks remain prevalent, impacting the overall stability and attractiveness of the stock.

Positive Factors

Financial Performance

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

Operational Outlook

Given the deeply discounted valuation and improving operational outlook, the shares have a meaningfully positive risk/reward skew at current levels.

Valuation

The current price presents an attractive opportunity.

Negative Factors

Election Risks

There is expected headline risk for the stock in the weeks leading up to the New York City's general mayoral election.

Regulatory Risks

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

Reserves Impact

Increases in reserves negatively impact EPS and CET1 ratio.

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 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: Positive
• Last Price: 12.05
• 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 FLG, the sentiment is Positive. The current price of 12.05 is above the 20-day moving average (MA) of 11.35, above the 50-day MA of 11.56, and above the 200-day MA of 11.20, indicating a bullish trend. The MACD of 0.19 indicates Negative momentum. The RSI at 58.52 is Neutral, neither overbought nor oversold. The STOCH value of 86.80 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
OZK	79 Outperform	$5.91B	8.53	12.68%	3.26%	7.12%	2.56%
FNB	79 Outperform	$5.80B	12.51	7.41%	3.08%	7.51%	8.42%
GBCI	74 Outperform	$5.21B	24.55	6.63%	2.96%	8.10%	6.95%
VLY	74 Outperform	$5.34B	12.49	6.33%	4.62%	0.20%	9.86%
COLB	72 Outperform	$4.91B	10.30	9.73%	6.17%	-0.17%	1.69%
Sector *	68 Neutral	$17.10B	11.44	9.70%	3.58%	11.11%	-4.78%
FLG	51 Neutral	$5.00B	―	-10.40%	0.33%	-8.17%	73.59%

Flagstar Financial Corporate Events

Flagstar Financial Plans to Streamline Operations

Flagstar Financial, Inc. announced plans to streamline its operations by eliminating its bank holding company structure, aiming to reduce duplicative supervision and regulation, and achieve annual cost savings of approximately $15 million. The company intends to issue a preliminary proxy in August 2025, with a shareholder meeting scheduled for October 2025, and expects to complete the merger by the fourth quarter of 2025, pending necessary approvals.

The most recent analyst rating on (FLG) stock is a Buy with a $14.00 price target. To see the full list of analyst forecasts on Flagstar Financial stock, see the FLG Stock Forecast page.

Flagstar Financial Announces Merger with Flagstar Bank

On July 24, 2025, Flagstar Financial, Inc. announced an internal reorganization plan to merge with its wholly-owned subsidiary, Flagstar Bank, N.A. This merger, approved by the boards of both entities, aims to streamline the corporate structure, reduce costs, and eliminate redundant activities. The merger will result in Flagstar Bank, N.A. continuing as the surviving entity, maintaining the same brand name, management, and board of directors. The reorganization is subject to regulatory and shareholder approval, with expectations to complete it by the end of 2025. The move is intended to enhance the company’s focus on its customers and communities, while also maintaining its position as a publicly traded company on the NYSE under the ticker symbol ‘FLG’.

The most recent analyst rating on (FLG) stock is a Buy with a $14.00 price target. To see the full list of analyst forecasts on Flagstar Financial stock, see the FLG Stock Forecast page.

Flagstar Financial Appoints New Executive Vice President

On July 1, 2025, Flagstar Bank entered into an employment agreement with Richard Raffetto, appointing him as the Senior Executive Vice President and President of Commercial and Private Banking. The agreement includes a base salary of $700,000, eligibility for a cash bonus, and participation in the company’s long-term equity incentive program. It also outlines conditions for termination and post-employment covenants, impacting the company’s executive management and potentially its strategic direction.

The most recent analyst rating on (FLG) stock is a Buy with a $14.00 price target. To see the full list of analyst forecasts on Flagstar Financial stock, see the FLG Stock Forecast page.

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.