Flagstar Financial (FLG) AI Stock Analysis

• Market Cap: $4.96B
• Dividend Yield: 0.33%
• Average Volume (3M): 5.82M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.99
• Revenue Growth: -8.17%
• EPS Growth: 73.59%
• Country: US
• Employees: 6,993
• Sector: Financial
• Sector Strength: 77
• Industry: Banks - Regional
• EPS (TTM): -0.26
• Shares Outstanding: 415,079,900
• 10 Day Avg. Volume: 5,173,240
• 30 Day Avg. Volume: 5,815,705
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.37
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 59.78
• Enterprise Value/Market Cap: 0.40
• Enterprise Value/Revenue: 0.08
• Enterprise Value/Gross Profit: 1.33
• Enterprise Value/Ebitda: -0.19
• 1Y Price Target: $13.83
• Price Target Upside: 21.32% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 49 Neutral
• Price Target: $11.50 ▲(0.88%Upside)

Flagstar Financial's overall stock score reflects significant financial performance challenges, including declining revenues and profitability, as well as high leverage. Despite some technical and valuation concerns, the recent earnings call provides a more optimistic outlook due to strategic cost reductions and loan growth.

Positive Factors

C&I Loan Growth

Increasing confidence in C&I growth drives up our forward NII estimates.

Operational Performance

Flagstar is reaching a positive inflection point on credit quality, setting up for a more positive 2025.

Valuation

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

Negative Factors

Credit and Capital Concerns

Despite improvements, concerns persist around capital and credit issues, affecting investor confidence.

Income Guidance

Flagstar reduced their net interest income guidance for 2025 from a range of midpoint partly driven by the miss in the first quarter.

Investor Sentiment

Investor sentiment remains negative with short interest around 13% due to concerns about capital and credit issues.

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 primarily generates revenue through interest income on loans and mortgages, as well as fees and service charges associated with its banking operations. The company earns a substantial portion of its income from the interest rate spread between what it charges borrowers and what it pays to depositors. Additionally, Flagstar Financial makes money through mortgage origination and servicing fees, where it acts as an intermediary in the home-buying process. Key partnerships with real estate companies and financial institutions enhance its market reach and contribute to its earnings. The company also benefits from cross-selling financial products to its existing customer base, further strengthening its revenue streams.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
6.38B	6.05B	2.18B	1.75B	1.77B
	Gross Profit
1.49B	2.80B	1.35B	1.35B	1.10B
	EBIT
-1.38B	-50.00M	826.00M	806.00M	588.00M
	EBITDA
-1.19B	115.00M	849.00M	827.00M	612.00M
	Net Income Common Stockholders
-1.12B	-79.00M	650.00M	596.00M	511.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
25.83B	20.62B	10.66B	6.82B	6.48B
	Total Assets
100.16B	114.06B	90.14B	59.53B	56.31B
	Total Debt
14.43B	28.62B	31.66B	20.56B	16.35B
	Net Debt
-1.00B	17.14B	29.63B	18.35B	14.40B
	Total Liabilities
91.99B	105.69B	81.32B	52.48B	49.46B
	Stockholders Equity
8.17B	8.37B	8.82B	7.04B	6.84B
Cash Flow		Free Cash Flow
50.00M	197.00M	1.02B	286.00M	334.00M
	Operating Cash Flow
86.00M	263.00M	1.03B	290.00M	334.00M
	Investing Cash Flow
15.45B	20.67B	-6.32B	-2.76B	-1.02B
	Financing Cash Flow
-11.59B	-11.41B	5.17B	2.73B	1.90B

Flagstar Financial Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 11.40
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 11.4 is below the 20-day moving average (MA) of 11.83, below the 50-day MA of 11.49, and above the 200-day MA of 11.14, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 42.92 is Neutral, neither overbought nor oversold. The STOCH value of 56.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FLG.

Flagstar Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OZK	81 Outperform	$5.26B	7.59	12.85%	3.76%	13.85%	2.43%
FNB	78 Outperform	$5.12B	11.23	7.40%	3.37%	10.34%	2.54%
GBCI	74 Outperform	$4.95B	23.32	6.63%	3.03%	8.10%	6.95%
VLY	71 Outperform	$5.09B	13.24	5.48%	4.84%	1.48%	-18.84%
COLB	67 Neutral	$5.06B	10.17	9.73%	5.98%	-0.21%	1.69%
Sector *	65 Neutral	$12.93B	9.81	7.84%	78.03%	12.20%	-7.74%
FLG	49 Neutral	$4.96B	―	-10.40%	0.33%	-8.17%	73.59%

Flagstar Financial Corporate Events

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.