CITIZENS FINANCIAL GROUP (CFG) Stock Fundamental Analysis
NYSE:CFG - New York Stock Exchange, Inc. - US1746101054 - Common Stock - Currency: USD
Overall CFG gets a fundamental rating of 3 out of 10. We evaluated CFG against 398 industry peers in the Banks industry. CFG has a bad profitability rating. Also its financial health evaluation is rather negative. CFG scores decently on growth, while it is valued quite cheap. This could make an interesting combination. CFG also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year CFG was profitable.
CFG had a positive operating cash flow in the past year.
In the past 5 years CFG has always been profitable.
CFG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 0.63%, CFG is not doing good in the industry: 63.82% of the companies in the same industry are doing better.
CFG has a Return On Equity of 5.66%. This is in the lower half of the industry: CFG underperforms 70.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.63% | ||
| ROE | 5.66% | ||
| ROIC | N/A |
ROA(3y)0.72%
ROA(5y)0.77%
ROE(3y)6.69%
ROE(5y)6.73%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of CFG (17.57%) is worse than 67.84% of its industry peers.
CFG's Profit Margin has declined in the last couple of years.
CFG does not have Operating Margin and Gross Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 17.57% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-19.1%
PM growth 5Y-7.87%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
CFG does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for CFG has been reduced compared to 1 year ago.
Compared to 5 years ago, CFG has more shares outstanding
The debt/assets ratio for CFG is higher compared to a year ago.
2.2 Solvency
CFG has a debt to FCF ratio of 6.57. This is a slightly negative value and a sign of low solvency as CFG would need 6.57 years to pay back of all of its debts.
CFG has a worse Debt to FCF ratio (6.57) than 72.11% of its industry peers.
CFG has a Debt/Equity ratio of 0.45. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.45, CFG is doing worse than 74.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 6.57 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC17.63%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 14.13% over the past year.
CFG shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -4.53% yearly.
CFG shows a decrease in Revenue. In the last year, the revenue decreased by -3.35%.
Measured over the past years, CFG shows a small growth in Revenue. The Revenue has been growing by 3.77% on average per year.
EPS 1Y (TTM)14.13%
EPS 3Y-16.26%
EPS 5Y-4.53%
EPS Q2Q%18.46%
Revenue 1Y (TTM)-3.35%
Revenue growth 3Y5.52%
Revenue growth 5Y3.77%
Sales Q2Q%-1.23%
3.2 Future
CFG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.25% yearly.
CFG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.05% yearly.
EPS Next Y25.41%
EPS Next 2Y27.71%
EPS Next 3Y27.01%
EPS Next 5Y8.25%
Revenue Next Year4.89%
Revenue Next 2Y6.68%
Revenue Next 3Y6.78%
Revenue Next 5Y4.05%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 10.95, the valuation of CFG can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of CFG is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 27.63. CFG is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 6.98, the valuation of CFG can be described as very cheap.
90.20% of the companies in the same industry are more expensive than CFG, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.85, CFG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.95 | ||
| Fwd PE | 6.98 |
4.2 Price Multiples
CFG's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CFG is cheaper than 72.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.03 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
CFG's earnings are expected to grow with 27.01% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.43
PEG (5Y)N/A
EPS Next 2Y27.71%
EPS Next 3Y27.01%
5. Dividend
5.1 Amount
CFG has a Yearly Dividend Yield of 4.74%, which is a nice return.
The stock price of CFG dropped by -27.33% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 3.66, CFG pays a better dividend. On top of this CFG pays more dividend than 80.15% of the companies listed in the same industry.
CFG's Dividend Yield is rather good when compared to the S&P500 average which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.74% |
5.2 History
The dividend of CFG has a limited annual growth rate of 5.59%.
CFG has paid a dividend for at least 10 years, which is a reliable track record.
CFG has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.59%
Div Incr Years2
Div Non Decr Years10
5.3 Sustainability
CFG pays out 65.82% of its income as dividend. This is not a sustainable payout ratio.
The dividend of CFG is growing, but earnings are growing more, so the dividend growth is sustainable.
DP65.82%
EPS Next 2Y27.71%
EPS Next 3Y27.01%
34.49
-0.96 (-2.71%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners97.49%
Inst Owner Change0.12%
Ins Owners0.66%
Ins Owner Change3.81%
Market Cap15.10B
Analysts76
Price Target52.51 (52.25%)
Short Float %2.29%
Short Ratio2.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.74% |
Yearly Dividend1.99
Dividend Growth(5Y)5.59%
DP65.82%
Div Incr Years2
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.17%
Min EPS beat(2)-3.78%
Max EPS beat(2)-0.57%
EPS beat(4)0
Avg EPS beat(4)-4.68%
Min EPS beat(4)-12.71%
Max EPS beat(4)-0.57%
EPS beat(8)0
Avg EPS beat(8)-12.55%
EPS beat(12)1
Avg EPS beat(12)-10.56%
EPS beat(16)5
Avg EPS beat(16)-3.46%
Revenue beat(2)1
Avg Revenue beat(2)-1.33%
Min Revenue beat(2)-2.86%
Max Revenue beat(2)0.2%
Revenue beat(4)1
Avg Revenue beat(4)-0.96%
Min Revenue beat(4)-2.86%
Max Revenue beat(4)0.2%
Revenue beat(8)1
Avg Revenue beat(8)-1.29%
Revenue beat(12)2
Avg Revenue beat(12)-1.04%
Revenue beat(16)4
Avg Revenue beat(16)-0.75%
PT rev (1m)-3.44%
PT rev (3m)1.98%
EPS NQ rev (1m)-1.81%
EPS NQ rev (3m)-2.32%
EPS NY rev (1m)-2.38%
EPS NY rev (3m)-2.58%
Revenue NQ rev (1m)-0.31%
Revenue NQ rev (3m)-0.56%
Revenue NY rev (1m)-0.31%
Revenue NY rev (3m)0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.95 | ||
| Fwd PE | 6.98 | ||
| P/S | 1.93 | ||
| P/FCF | 8.03 | ||
| P/OCF | 7.54 | ||
| P/B | 0.62 | ||
| P/tB | 0.95 | ||
| EV/EBITDA | N/A |
EPS(TTM)3.15
EY9.13%
EPS(NY)4.94
Fwd EY14.33%
FCF(TTM)4.29
FCFY12.45%
OCF(TTM)4.57
OCFY13.26%
SpS17.84
BVpS55.42
TBVpS36.38
PEG (NY)0.43
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.63% | ||
| ROE | 5.66% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 17.57% | ||
| GM | N/A | ||
| FCFM | 24.06% |
ROA(3y)0.72%
ROA(5y)0.77%
ROE(3y)6.69%
ROE(5y)6.73%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-19.1%
PM growth 5Y-7.87%
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 6.57 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 24.5% | ||
| Cap/Sales | 1.56% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 136.95% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score5
WACC17.63%
ROIC/WACCN/A
Cap/Depr(3y)27.59%
Cap/Depr(5y)24.61%
Cap/Sales(3y)1.74%
Cap/Sales(5y)1.76%
Profit Quality(3y)175.91%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)14.13%
EPS 3Y-16.26%
EPS 5Y-4.53%
EPS Q2Q%18.46%
EPS Next Y25.41%
EPS Next 2Y27.71%
EPS Next 3Y27.01%
EPS Next 5Y8.25%
Revenue 1Y (TTM)-3.35%
Revenue growth 3Y5.52%
Revenue growth 5Y3.77%
Sales Q2Q%-1.23%
Revenue Next Year4.89%
Revenue Next 2Y6.68%
Revenue Next 3Y6.78%
Revenue Next 5Y4.05%
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year18.19%
EBIT Next 3Y16.22%
EBIT Next 5YN/A
FCF growth 1Y-32.63%
FCF growth 3Y-4.41%
FCF growth 5Y7.14%
OCF growth 1Y-32.42%
OCF growth 3Y-4.19%
OCF growth 5Y3.35%