Flagstar Financial (FLG) AI Stock Analysis

• Market Cap: $5.65B
• Dividend Yield: 0.31%
• Average Volume (3M): 5.06M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.99
• 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: 5,159,470
• 30 Day Avg. Volume: 5,059,884
• PEG Ratio: 0.35
• Price to Book (P/B): 0.64
• Price to Sales (P/S): 1.11
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 3.06
• Enterprise Value/Revenue: 3.65
• Enterprise Value/Gross Profit: 9.55
• Enterprise Value/Ebitda: -203.31
• 1Y Price Target: $14.91
• Price Target Upside: 9.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: $14.00 ▲(3.02% Upside)
• Action: Reiterated Date: 01/30/26
• Date: Action: Reiterated 01/30/26

The score is held back primarily by weak financial performance (declining revenue, ongoing losses, high leverage, and weak cash flow trends). Offsetting positives include improving operational/margin trends and credit metrics discussed on the earnings call, along with constructive technical momentum and a very high dividend yield, though the negative P/E underscores profitability risk.

Positive Factors

Net interest margin expansion

Sustained NIM expansion across multiple quarters indicates improving core earning power from lending activities. Persistently higher margins, driven by funding-cost reductions and loan mix shifts, support more durable net interest income and help the bank move toward consistent profitability over months.

Commercial & Industrial loan growth

Material C&I origination growth signals a strategic shift into higher-yield, relationship-driven lending and diversification away from stressed CRE/multifamily exposure. Durable expansion of the C&I book can raise recurring interest income and strengthen core deposit and fee relationships over the medium term.

Significant expense reductions

Large, structural cost cuts materially improve operating leverage and adjusted pre-provision earnings. If maintained, lower expense run-rate enhances the bank’s ability to absorb credit volatility, accelerate return to profitability, and redeploy capital into lending or balance-sheet repair over coming quarters.

Negative Factors

Sharp revenue decline and negative margins

Sustained revenue contraction and negative net margins reflect persistent demand and profitability pressures. These trends erode capital generation, strain ability to self-fund growth or loss absorption, and require continued structural improvements before earnings durability can be relied upon.

Elevated leverage on the balance sheet

High debt-to-equity magnifies sensitivity to credit losses and interest-rate moves, and limits strategic flexibility. Elevated leverage increases refinancing and covenant risk, making capital preservation and deleveraging necessary to stabilize credit metrics and support long-term lending growth.

Very weak cash flow trends

A severe drop in free cash flow growth undermines the bank’s internal funding capacity for loan growth, dividends, or debt reduction. Persistent negative FCF pressures reliance on external financing, increasing funding cost sensitivity and constraining durable capital allocation choices.

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

Financial statements indicate material pressure: revenue declined sharply (TTM revenue growth -21.5%), profitability is negative (net margin -9.05% with negative EBIT/EBITDA trends), leverage is elevated (debt-to-equity 1.63 with negative ROE), and cash flow trends are weak (TTM free cash flow growth -192.7%).

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	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	0.00	50.00M	197.00M	1.02B	286.00M
Operating Cash Flow	0.00	86.00M	263.00M	1.03B	290.00M
Investing Cash Flow	0.00	15.45B	20.67B	-6.32B	-2.76B
Financing Cash Flow	0.00	-11.59B	-11.41B	5.17B	2.73B

Flagstar Financial Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 13.59
• 50DMA: Positive
• 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 Neutral. The current price of 13.59 is below the 20-day moving average (MA) of 13.74, above the 50-day MA of 13.24, and above the 200-day MA of 12.12, indicating a neutral trend. The MACD of 0.16 indicates Positive momentum. The RSI at 50.66 is Neutral, neither overbought nor oversold. The STOCH value of 41.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	$5.98B	13.01	8.84%	3.77%	8.83%	15.49%
AX	78 Outperform	$5.17B	11.55	16.75%	―	1.66%	-9.31%
AUB	77 Outperform	$5.48B	19.17	6.72%	3.83%	43.53%	-21.74%
FFIN	73 Outperform	$4.61B	18.07	13.89%	2.42%	12.90%	16.92%
HWC	73 Outperform	$5.66B	11.94	11.28%	2.74%	-0.78%	25.39%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
FLG	54 Neutral	$5.65B	-26.61	-2.17%	0.31%	-18.33%	92.89%

Flagstar Financial Corporate Events

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.