Citizens Financial Group, Inc.
Citizens Financial Group, Inc. Fundamental Analysis
Citizens Financial Group, Inc. (CFG) shows weak financial fundamentals with a PE ratio of 15.31, profit margin of 16.42%, and ROE of 7.16%. The company generates $11.1B in annual revenue with weak year-over-year growth of 1.31%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 48.8/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze CFG's fundamental strength across five key dimensions:
Efficiency Score
WeakCFG struggles to generate sufficient returns from assets.
Valuation Score
ExcellentCFG trades at attractive valuation levels.
Growth Score
WeakCFG faces weak or negative growth trends.
Financial Health Score
ExcellentCFG maintains a strong and stable balance sheet.
Profitability Score
ModerateCFG maintains healthy but balanced margins.
Key Financial Metrics
Is CFG Expensive or Cheap?
P/E Ratio
CFG trades at 15.31 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, CFG's PEG of 1.84 indicates fair valuation.
Price to Book
The market values Citizens Financial Group, Inc. at 1.07 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 10.90 times EBITDA. This signals the market has high growth expectations.
How Well Does CFG Make Money?
Net Profit Margin
For every $100 in sales, Citizens Financial Group, Inc. keeps $16.42 as profit after all expenses.
Operating Margin
Core operations generate 20.88 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.16 in profit for every $100 of shareholder equity.
ROA
Citizens Financial Group, Inc. generates $0.81 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Citizens Financial Group, Inc. produces operating cash flow of $2.20B, showing steady but balanced cash generation.
Free Cash Flow
Citizens Financial Group, Inc. generates strong free cash flow of $2.03B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.72 in free cash annually.
FCF Yield
CFG converts 7.26% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
15.31
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.84
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.07
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.50
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.43
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.04
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.07
vs 25 benchmark
ROA
Return on assets percentage
0.008
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How CFG Stacks Against Its Sector Peers
| Metric | CFG Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 15.31 | 18.86 | Better (Cheaper) |
| ROE | 7.16% | 847.00% | Weak |
| Net Margin | 16.42% | 4202.00% | Weak |
| Debt/Equity | 0.43 | 0.91 | Strong (Low Leverage) |
| Current Ratio | 1.04 | 667.17 | Neutral |
| ROA | 0.81% | -21543.00% (disorted) | Weak |
CFG outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Citizens Financial Group, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
52.75%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
-15.92%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
17.67%
Industry Style: Value, Dividend, Cyclical
High Growth