Now trading at a price of $25.6, Citizens Financial has moved -1.8% so far today.
Citizens Financial returned losses of -27.8% last year, with its stock price reaching a high of $44.82 and a low of $23.37. Over the same period, the stock underperformed the S&P 500 index by -42.0%. As of April 2023, the company's 50-day average price was $27.34. Citizens Financial Group, Inc. operates as the bank holding company for Citizens Bank, National Association that provides retail and commercial banking products and services to individuals, small businesses, middle-market companies, corporations, and institutions in the United States. Based in Providence, RI, the large-cap Finance company has 18,547 full time employees. Citizens Financial has offered a 6.3% dividend yield over the last 12 months.
The Business Runs With Low Leverage Levels:
| 2019-12-31 | 2020-12-31 | 2021-12-31 | 2022-12-31 | |
|---|---|---|---|---|
| Revenue (MM) | $6,491 | $6,905 | $6,647 | $8,021 |
| Interest Income (MM) | $4,614 | $4,586 | $4,512 | $6,012 |
| Net Margins | 27.59% | 15.31% | 34.89% | 25.84% |
| Net Income (MM) | $1,791 | $1,057 | $2,319 | $2,073 |
| Depreciation & Amort. (MM) | -$633 | -$578 | -$625 | -$565 |
| Earnings Per Share | $3.81 | $2.22 | $5.16 | $4.17 |
| EPS Growth | n/a | -41.73% | 132.43% | -19.19% |
| Diluted Shares (MM) | 451 | 428 | 427 | 484 |
| Free Cash Flow (MM) | $1,331 | -$7 | $2,151 | $3,993 |
| Capital Expenditures (MM) | -$366 | -$118 | -$124 | -$126 |
| Long Term Debt (MM) | $14,047 | $8,346 | $6,932 | $15,887 |
| Net Debt / EBITDA | 1.38 | -0.69 | -0.3 | 0.55 |
Citizens Financial has low leverage and growing revenues and decreasing reinvestment in the business. Additionally, the company's financial statements display positive EPS growth and generally positive cash flows. Furthermore, Citizens Financial has average net margins with a stable trend.
Citizens Financial Is Potentially Undervalued and Trades Below Its Graham Number:
Citizens Financial has a trailing twelve month P/E ratio of 6.6, compared to an average of 14.34 for the Finance sector. Based on its EPS guidance of $4.18, the company has a forward P/E ratio of 6.5. The 1.9% compound average growth rate of Citizens Financial's historical and projected earnings per share yields a PEG ratio of 3.5. This suggests that these shares are overvalued. In contrast, the market is likely undervaluing Citizens Financial in terms of its equity because its P/B ratio is 0.56 while the sector average is 1.57. The company's shares are currently trading -59.3% below their Graham number.
Citizens Financial Has an Average Rating of Buy:
The 19 analysts following Citizens Financial have set target prices ranging from $28.0 to $52.0 per share, for an average of $35.21 with a buy rating. As of April 2023, the company is trading -22.4% away from its average target price, indicating that there is an analyst consensus of strong upside potential.
Citizens Financial has an average amount of shares sold short because 7.3% of the company's shares are sold short. Institutions own 94.1% of the company's shares, and the insider ownership rate stands at 0.52%, suggesting a small amount of insider investors. The largest shareholder is the Vanguard Group, Inc., whose 12% stake in the company is worth $1,487,784,393.
