Flagstar Financial (FLG)
NYSE:FLG
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Flagstar Financial
(NYSE:FLG)
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Rating:48Neutral
Price Target:
$12.50
▼(-10.97% Downside)
Action:ReiteratedDate:03/24/26
FLG scores below average primarily due to weak underlying financial performance (multi-year losses and negative recent operating/free cash flow). The earnings call adds support via improving profitability trajectory, capital strength, and de-risking progress, but technicals remain soft and valuation is constrained by the negative P/E despite a high dividend yield.
Positive Factors
Capital strength (CET1 12.83%)
A materially higher CET1 ratio and roughly $2.1B of pretax excess capital create durable loss-absorbing capacity. This strengthens regulatory standing, supports continued asset run-off or selective growth, and gives management flexibility to fund loan originations or shore up reserves through credit cycles.
Negative Factors
Weak cash generation and multi-year losses
Negative operating and free cash flow in 2025, following multi-year losses, undermines financial flexibility. Persistent cash burn constrains capital deployment, limits ability to rebuild reserves organically, and increases reliance on funding or asset sales to support lending and regulatory capital targets.
Read all positive and negative factors
Positive Factors
Negative Factors
Capital strength (CET1 12.83%)
A materially higher CET1 ratio and roughly $2.1B of pretax excess capital create durable loss-absorbing capacity. This strengthens regulatory standing, supports continued asset run-off or selective growth, and gives management flexibility to fund loan originations or shore up reserves through credit cycles.
Read all positive factors
Flagstar Financial (FLG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.84B
Dividend Yield0.31%
Average Volume (3M)4.89M
Price to Earnings (P/E)―
Beta (1Y)1.06
Revenue Growth-18.33%
EPS Growth92.89%
CountryUS
Employees6,993
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.05
Shares Outstanding415,993,070
10 Day Avg. Volume4,188,689
30 Day Avg. Volume4,886,189
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 Cap2.99
Enterprise Value/Revenue3.69
Enterprise Value/Gross Profit9.65
Enterprise Value/Ebitda-205.55
Forecast
1Y Price Target
$15.41Price Target Upside9.76% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
EPS Forecast (FY)0.52
Revenue Forecast (FY)$2.48B
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...
Flagstar Financial Earnings Call Summary
Earnings Call Date:Jan 30, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 24, 2026
Earnings Call Sentiment Positive
The call conveyed a clear positive trajectory: the bank returned to profitability, delivered meaningful pre‑provision revenue improvement and operating leverage, expanded NIM (adjusted), strengthened capital and liquidity, materially reduced CRE exposure, and showed momentum in C&I origination. Key challenges include elevated payoff activity that reduced near-term NII and balance sheet size, concentrated risks and maturities in the NYC multifamily/CRE portfolio, near-term delinquency volatility, and sizable CD maturities that create funding rollover risk. Management presented concrete remediation and growth plans (further deleveraging of wholesale funding, continued ACL strength, expense controls, and targeted C&I growth), and emphasized that many credit metrics are improving.Positive Updates
Return to Profitability
Adjusted net income of $30 million in Q4 2025 (adjusted EPS $0.06 per diluted share) versus a net loss of $0.07 per diluted share in the prior quarter; unadjusted net income reported as $0.05 per diluted share. Management emphasized this as the first profitable quarter since Q3 2023.
Negative Updates
High Payoff Activity Reducing NII and Balance Sheet Size
Management lowered NII guidance by ~$100 million due to elevated payoff activity and a smaller balance sheet. Q4 par payoffs were ~ $1.8 billion (50% substandard); management expects $3.5 billion–$5.0 billion of payoffs in 2026, which can depress NII despite improving NIM dynamics.
Read all updates
Q4-2025 Updates
Positive
Negative
Return to Profitability
Adjusted net income of $30 million in Q4 2025 (adjusted EPS $0.06 per diluted share) versus a net loss of $0.07 per diluted share in the prior quarter; unadjusted net income reported as $0.05 per diluted share. Management emphasized this as the first profitable quarter since Q3 2023.
Read all positive updates
Company Guidance
Management's 2026–2027 guidance centers on returning to sustained profitability with EPS now targeted at $0.65–$0.70 for 2026 and $1.90–$2.00 for 2027, year‑end assets for 2026 guided to $93.5B–$95.5B (with 2027 nearer $103B), and par payoffs expected of $3.5B–$5.0B in 2026; they also trimmed NII guidance (driven by higher payoffs and a smaller 2026 balance sheet) and noted a $100M reduction versus prior views. Key operating assumptions include continued NIM expansion (Q4 NIM 2.14% including a $20M hedge gain, 2.05% ex‑one‑time, +14 bps QoQ), adjusted pre‑provision pretax net revenue up $45M QoQ (unadjusted +$51M), ~900 bps of positive operating leverage, C&I momentum (net C&I loans +2% QoQ/~9% annualized; commitments $3.0B +28%, originations $2.1B +22%), and expense control with a 2026 expense target of $1.5B–$1.8B. Capital, liquidity and credit targets supporting the plan include CET1 at 12.83% (≈400 bps higher), ACL coverage 1.79%, CRE down ~25% since YE‑2023 to ~$36B (CRE concentration 381%), Q4 nonaccruals $3.0B (down $267M), and Q4 net charge‑offs $46M.Flagstar Financial Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
54
Neutral
Cash Flow
29
Negative
| 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 | -601.00M | 50.00M | 197.00M | 1.02B | 286.00M |
| Operating Cash Flow | -534.00M | 86.00M | 263.00M | 1.03B | 290.00M |
| Investing Cash Flow | 3.04B | 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
Positive
14.04
Price Trends
13.28
Positive
12.92
Positive
12.31
Positive
Market Momentum
0.27
Negative
66.54
Neutral
77.69
Neutral
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 14.04 is above the 20-day moving average (MA) of 13.09, above the 50-day MA of 13.28, and above the 200-day MA of 12.31, indicating a bullish trend. The MACD of 0.27 indicates Negative momentum. The RSI at 66.54 is Neutral, neither overbought nor oversold. The STOCH value of 77.69 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $4.46B | 16.86 | 14.16% | 2.42% | 12.90% | 16.92% | |
70 Outperform | $5.49B | 10.54 | 11.06% | 2.74% | -0.78% | 25.39% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $5.24B | 9.54 | 16.59% | ― | 1.66% | -9.31% | |
63 Neutral | $5.42B | 11.17 | 6.10% | 3.83% | 43.53% | -21.74% | |
61 Neutral | $6.11B | 11.61 | 8.60% | 3.77% | 8.83% | 15.49% | |
48 Neutral | $5.84B | -29.54 | -2.18% | 0.31% | -18.33% | 92.89% |
* Financial Sector Average
FLG
Flagstar Financial
14.04
3.91
38.64%
AX
Axos Financial
92.50
34.17
58.58%
FFIN
First Financial Bankshares
31.16
0.15
0.47%
HWC
Hancock Whitney
67.23
21.02
45.47%
AUB
Atlantic Union Bankshares
38.03
14.95
64.77%
UBSI
United Bankshares
43.84
12.81
41.27%
Flagstar Financial Corporate Events
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 ...
Shareholder Meetings
Flagstar Financial Sets Date for 2026 Virtual Meeting
Neutral
Feb 27, 2026
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 ...
Business Operations and StrategyFinancial Disclosures
Flagstar Financial Returns to Profitability Amid Strategic Transformation
Positive
Jan 30, 2026
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...
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.