Flagstar Financial, Inc. (FLG)
NYSE:FLG
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Flagstar Financial
(NYSE:FLG)
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Rating:63Neutral
Price Target:
$15.50
▲(5.80% Upside)
Action:Reiterated
Date:06/12/26
FLG’s score is driven primarily by improving but still weak financial performance (revenue decline and slightly negative TTM profitability despite better cash flow and leverage), partially offset by a constructive technical uptrend and a positive earnings outlook with improving margin, deposits, and credit metrics. Valuation benefits from a very high dividend yield, while negative earnings and CRE/reset risks cap the score.
Positive Factors
Capital Strength
A CET1 ratio around 13.2% and roughly $1.6B of excess capital provide a durable buffer against credit losses and support regulatory flexibility. This strengthens the bank's ability to absorb shocks, pursue organic growth, and consider capital returns once sustained profitability is achieved.
Negative Factors
Negative Profitability
Trailing profitability remains negative, which constrains ROE, internal capital generation, and discretionary actions. Until earnings sustain the guided recovery, the bank must rely on capital buffers and cost cuts to fund reserves and growth, limiting strategic flexibility over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Capital Strength
A CET1 ratio around 13.2% and roughly $1.6B of excess capital provide a durable buffer against credit losses and support regulatory flexibility. This strengthens the bank's ability to absorb shocks, pursue organic growth, and consider capital returns once sustained profitability is achieved.
Read all positive factors
Flagstar Financial (FLG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.28B
Dividend Yield0.31%
Average Volume (3M)3.95M
Price to Earnings (P/E)―
Beta (1Y)1.08
Revenue Growth-24.45%
EPS Growth91.93%
CountryUS
Employees6,993
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)-0.22
Shares Outstanding416,815,120
10 Day Avg. Volume4,611,759
30 Day Avg. Volume3,950,254
Financial Highlights & Ratios
PEG Ratio0.35
Price to Book (P/B)0.64
Price to Sales (P/S)1.11
P/FCF Ratio-8.70
Enterprise Value/Market Cap2.71
Enterprise Value/Revenue3.75
Enterprise Value/Gross Profit8.97
Enterprise Value/Ebitda171.80
Forecast
1Y Price Target
$15.92Price Target Upside8.69% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
EPS Forecast (FY)0.44
Revenue Forecast (FY)$2.28B
Flagstar Financial Business Overview & Revenue Model
Company Description
Flagstar Financial, Inc. serves as the holding company for Flagstar Bank, N.A., delivering a wide array of banking solutions and services throughout the United States. Its deposit portfolio features interest-bearing checking, money market, savings...
How the Company Makes Money
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Flagstar Financial Earnings Call Summary
Earnings Call Date:Apr 24, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Positive
The call presented meaningful operational progress—notably strong C&I growth, deposit gains, NIM expansion (adjusted), expense discipline, capital strength and rating upgrades—alongside deliberate portfolio de-risking (CRE/multifamily paydowns) and remediation of controls. Headwinds are primarily timing-related: elevated CRE payoffs reduced near-term NII, allowance levels declined with portfolio shrinkage, and material 2027 loan resets (including rent-regulated multifamily) create forward-looking rollover risk. Management framed the challenges as expected elements of its strategic transition and remains confident in returning sustainable profitability and considering capital actions in the back half of the year.Positive Updates
Strong C&I Loan Growth
Net C&I loans grew $1.4 billion during the quarter, +9% linked-quarter and +12% year-over-year; C&I originations were $2.6 billion with $2.0 billion funded, demonstrating traction in the bank's strategic growth focus.
Negative Updates
NIM and Near-Term NII Headwinds from CRE Payoffs
Elevated CRE and multifamily par payoffs ($1.6 billion Q1; $1.1 billion par payoffs of which 42% were substandard) reduced short-term interest income and pressured NIM outlook; management noted payoffs could push NII benefits into later quarters.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong C&I Loan Growth
Net C&I loans grew $1.4 billion during the quarter, +9% linked-quarter and +12% year-over-year; C&I originations were $2.6 billion with $2.0 billion funded, demonstrating traction in the bank's strategic growth focus.
Read all positive updates
Company Guidance
Management guided adjusted EPS of $0.60–$0.65 for 2026 and $1.80–$1.90 for 2027, and expects total assets of about $94B at year‑end 2026 and $102B at year‑end 2027; Q1 metrics included adjusted EPS $0.04 (GAAP $0.03), NIM 2.15% (up ~10 bps QoQ adj.), CET1 13.24% with roughly $1.6B of excess capital above the 10.5% target floor, and a Board discussion of capital distributions targeted for H2 after several quarters of sustainable profitability and further NPA improvement (goal to get nonaccruals to ~$2B by year‑end). On funding and growth, C&I loans rose $1.4B (9% linked‑quarter, 12% YoY) on $2.6B originations ($2.0B funded), core deposits ex‑broker increased $1.1B while deposit costs fell 21 bps, the bank paid down $1.0B of FHLB advances and $300M of brokered deposits ( ~$1.3B total wholesale reduction), plans to buy $1–1.5B of securities in Q2 to build to ~ $16B, and expects to pay down another $2–3B of advances this year; credit trends/ reserves showed nonaccruals at $2.7B (down $323M, -11%), criticized/classified loans down $385M (-3%), substandard loans down ~ $700M, ACL down $78M with coverage including unfunded commitments at 1.67% and multifamily reserve coverage 1.83% (rent‑regulated tranche coverage 3.20%), while CRE/multifamily balances fell $1.6B QoQ (par payoffs $1.1B, 42% substandard) and are down $13.4B (28%) since YE‑2023 to ~ $34B.Flagstar Financial Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
44
Neutral
Cash Flow
49
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.53B | 4.70B | 6.38B | 6.05B | 2.18B | 1.75B |
| Gross Profit | 1.90B | 1.77B | 1.49B | 2.80B | 1.35B | 1.35B |
| EBITDA | 99.00M | -50.00M | -1.19B | 115.00M | 849.00M | 827.00M |
| Net Income | -56.00M | -177.00M | -1.12B | -79.00M | 650.00M | 596.00M |
Balance Sheet | ||||||
| Total Assets | 87.13B | 87.51B | 100.16B | 114.06B | 90.14B | 59.53B |
| Cash, Cash Equivalents and Short-Term Investments | 401.00M | 16.25B | 25.83B | 20.62B | 10.66B | 6.82B |
| Total Debt | 11.19B | 12.18B | 14.43B | 28.62B | 31.66B | 20.56B |
| Total Liabilities | 79.01B | 79.37B | 91.99B | 105.69B | 81.32B | 52.48B |
| Stockholders Equity | 8.12B | 8.14B | 8.17B | 8.37B | 8.82B | 7.04B |
Cash Flow | ||||||
| Free Cash Flow | 212.00M | -601.00M | 50.00M | 197.00M | 1.02B | 286.00M |
| Operating Cash Flow | 287.00M | -534.00M | 86.00M | 263.00M | 1.03B | 290.00M |
| Investing Cash Flow | 4.53B | 3.04B | 15.45B | 20.67B | -6.32B | -2.76B |
| Financing Cash Flow | -10.38B | -12.09B | -11.59B | -11.41B | 5.17B | 2.73B |
Flagstar Financial Technical Analysis
Positive
14.65
Price Trends
14.07
Positive
13.63
Positive
12.88
Positive
Market Momentum
0.27
Negative
65.36
Neutral
85.57
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 14.65 is above the 20-day moving average (MA) of 14.13, above the 50-day MA of 14.07, and above the 200-day MA of 12.88, indicating a bullish trend. The MACD of 0.27 indicates Negative momentum. The RSI at 65.36 is Neutral, neither overbought nor oversold. The STOCH value of 85.57 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FLG.
Flagstar Financial Risk Analysis
Flagstar Financial disclosed 44 risk factors in its most recent earnings report. Flagstar Financial reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Flagstar Financial Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $4.78B | 18.13 | 14.20% | 2.42% | 10.27% | 13.77% | |
72 Outperform | $5.10B | 10.63 | 16.60% | ― | 8.53% | 12.29% | |
71 Outperform | $5.66B | 16.23 | 6.99% | 3.83% | 60.27% | 7.08% | |
69 Neutral | $6.18B | 12.46 | 9.26% | 3.77% | 10.93% | 32.14% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | $5.78B | 14.11 | 9.35% | 2.74% | -5.31% | -9.60% | |
63 Neutral | $6.28B | -110.95 | -0.69% | 0.31% | -24.45% | 91.93% |
* Financial Sector Average
FLG
Flagstar Financial
14.93
4.03
37.02%
AX
Axos Financial
89.42
19.64
28.15%
FFIN
First Financial Bankshares
33.39
-0.86
-2.52%
HWC
Hancock Whitney
71.00
19.34
37.45%
AUB
Atlantic Union Bankshares
39.61
10.77
37.34%
UBSI
United Bankshares
45.05
11.73
35.20%
Flagstar Financial Corporate Events
Business Operations and StrategyExecutive/Board ChangesFinancial DisclosuresShareholder Meetings
Flagstar Financial Shareholders Back Governance and Compensation Moves
Positive
Jun 11, 2026
Flagstar Bank, N.A., a major regional lender headquartered in Hicksville, N.Y., operates roughly 340 branches across nine states and reported $87.1 billion in assets, $60.7 billion in loans, $66.8 billion in deposits, and $8.1 billion in equity as...
Business Operations and StrategyExecutive/Board Changes
Flagstar Financial extends CEO contract, names co-presidents
Positive
May 18, 2026
Effective May 18, 2026, Flagstar Bank extended Executive Chairman and Chief Executive Officer Joseph M. Otting’s employment agreement by one year to March 6, 2028, underscoring the board’s confidence in his leadership and the bank̵...
Business Operations and StrategyFinancial Disclosures
Flagstar Financial Posts Strong, Profitable First Quarter 2026
Positive
Apr 24, 2026
Flagstar Bank reported first-quarter 2026 results on April 24, 2026, marking a second consecutive profitable quarter with net income attributable to common stockholders of $13 million, or $0.03 per diluted share, and adjusted earnings of $20 milli...
Executive/Board ChangesShareholder Meetings
Flagstar Financial announces board changes and new director
Neutral
Mar 27, 2026
On March 25, 2026, director Alessandro DiNello informed Flagstar Bank that he would not stand for re-election at the company’s 2026 annual shareholder meeting expected on June 9, 2026, and his board term will therefore end at the conclusion ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.