Flagstar Financial (FLG)
NYSE:FLG
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Flagstar Financial
(NYSE:FLG)
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Rating:59Neutral
Price Target:
$15.00
▲(2.39% Upside)
Action:ReiteratedDate:04/24/26
The score is held back primarily by weak financial performance (recent losses and negative 2025 operating/free cash flow), despite balance-sheet de-risking. Offsetting this, technicals are strong (price above key moving averages with positive MACD), and the earnings call pointed to improving profitability and solid capital—though CRE-related headwinds and 2027 reset risk remain meaningful. Valuation is mixed: very high yield, but a negative P/E due to recent losses.
Positive Factors
Capital Strength
A CET1 ratio materially above the target with ~$1.6B of excess capital provides a durable regulatory and loss-absorption cushion. Upgraded deposit ratings expand funding options and credibility with counterparties, supporting strategic actions and potential future capital distributions once profitability stabilizes.
Negative Factors
Weak Cash Generation
The switch to negative operating and free cash flow represents an enduring constraint on financial flexibility. Persistent cash burn limits the bank's ability to rebuild reserves, invest in growth or execute discretionary capital returns, and raises reliance on improving core earnings to sustainably cover operating needs.
Read all positive and negative factors
Positive Factors
Negative Factors
Capital Strength
A CET1 ratio materially above the target with ~$1.6B of excess capital provides a durable regulatory and loss-absorption cushion. Upgraded deposit ratings expand funding options and credibility with counterparties, supporting strategic actions and potential future capital distributions once profitability stabilizes.
Read all positive factors
Flagstar Financial (FLG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.77B
Dividend Yield0.31%
Average Volume (3M)4.76M
Price to Earnings (P/E)65.2
Beta (1Y)1.08
Revenue Growth-24.45%
EPS Growth91.93%
CountryUS
Employees6,993
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)-0.51
Shares Outstanding415,993,070
10 Day Avg. Volume4,023,603
30 Day Avg. Volume4,755,984
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 Cap2.87
Enterprise Value/Revenue3.50
Enterprise Value/Gross Profit9.15
Enterprise Value/Ebitda-194.91
Forecast
1Y Price Target
$15.79Price Target Upside7.75% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
EPS Forecast (FY)0.45
Revenue Forecast (FY)$2.28B
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...
How the Company Makes Money
null...
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
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
14.65
Price Trends
13.34
Positive
13.09
Positive
12.40
Positive
Market Momentum
0.37
Negative
74.94
Negative
84.76
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 13.55, above the 50-day MA of 13.34, and above the 200-day MA of 12.40, indicating a bullish trend. The MACD of 0.37 indicates Negative momentum. The RSI at 74.94 is Negative, neither overbought nor oversold. The STOCH value of 84.76 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | $4.55B | 14.74 | 14.20% | 2.42% | 10.26% | 13.77% | |
69 Neutral | $4.96B | 9.65 | 16.59% | ― | 8.53% | 12.29% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $5.41B | 27.58 | 9.35% | 2.74% | -5.16% | ― | |
64 Neutral | $5.32B | 10.37 | 6.99% | 3.83% | 60.27% | 7.08% | |
61 Neutral | $6.02B | 11.64 | 9.26% | 3.77% | 10.95% | 32.19% | |
59 Neutral | $5.77B | 65.25 | -0.69% | 0.31% | -24.45% | 91.93% |
* Financial Sector Average
FLG
Flagstar Financial
13.86
1.96
16.46%
AX
Axos Financial
87.28
20.13
29.98%
FFIN
First Financial Bankshares
31.79
-1.66
-4.95%
HWC
Hancock Whitney
66.39
14.61
28.20%
AUB
Atlantic Union Bankshares
37.21
9.96
36.57%
UBSI
United Bankshares
43.10
9.49
28.24%
Flagstar Financial Corporate Events
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 ...
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.