Now trading at a price of $42.0, Citigroup has moved -0.7% so far today.
Citigroup returned losses of -6.0% last year, with its stock price reaching a high of $53.23 and a low of $40.01. Over the same period, the stock underperformed the S&P 500 index by -23.0%. As of April 2023, the company's 50-day average price was $44.03. Citigroup Inc., a diversified financial services holding company, provides various financial products and services to consumers, corporations, governments, and institutions in North America, Latin America, Asia, Europe, the Middle East, and Africa. Based in New York, NY, the large-cap Finance company has 240,000 full time employees. Citigroup has offered a 4.8% dividend yield over the last 12 months.
EPS Trend Sustained Primarily by Reducing the Number of Shares Outstanding:
2017-02-24 | 2018-02-23 | 2019-02-22 | 2020-02-21 | 2021-02-26 | 2022-02-28 | |
---|---|---|---|---|---|---|
Revenue (MM) | $69,875 | $72,444 | $72,854 | $75,067 | $75,501 | $71,884 |
Operating Margins | 31% | 31% | 32% | 32% | 18% | 38% |
Net Margins | 21% | -9% | 25% | 26% | 15% | 31% |
Net Income (MM) | $14,912 | -$6,798 | $18,045 | $19,401 | $11,047 | $21,952 |
Earnings Per Share | $5.16 | -$2.52 | $7.23 | $8.56 | $5.26 | $10.97 |
EPS Growth | n/a | -148.84% | 386.9% | 18.4% | -38.55% | 108.56% |
Diluted Shares (MM) | 2,888 | 2,698 | 2,495 | 2,265 | 2,099 | 2,002 |
Free Cash Flow (MM) | $56,021 | -$5,790 | $40,514 | -$7,760 | -$17,225 | $65,178 |
Capital Expenditures (MM) | -$2,089 | -$2,984 | -$3,562 | -$5,077 | -$3,396 | -$3,929 |
Long Term Debt (MM) | $206,178 | $236,709 | $231,999 | $248,760 | $271,686 | $254,374 |
Citigroup has weak revenue growth and a flat capital expenditure trend, decent net margins with a stable trend, and irregular cash flows. We also note that the company has low debt levels working in its favor. However, the firm has EPS growth achieved by reducing the number of outstanding shares.
The Market May Be Undervaluing Citigroup's Assets and Equity:
Citigroup has a trailing twelve month P/E ratio of 7.0, compared to an average of 14.34 for the Finance sector. Based on its EPS guidance of $5.92, the company has a forward P/E ratio of 7.4. The company doesn't issue forward earnings guidance, and the compound average growth rate of its last 6 years of reported EPS is 3.4%. On this basis, the company's PEG ratio is 2.05, which suggests that it is overpriced. In contrast, the market is likely undervaluing Citigroup in terms of its equity because its P/B ratio is 0.43 while the sector average is 1.57. The company's shares are currently trading -73.4% below their Graham number.
Analysts Give Citigroup an Average Rating of Buy:
The 24 analysts following Citigroup have set target prices ranging from $43.0 to $95.0 per share, for an average of $54.06 with a buy rating. As of April 2023, the company is trading -18.6% away from its average target price, indicating that there is an analyst consensus of strong upside potential.
Citigroup has a very low short interest because 1.2% of the company's shares are sold short. Institutions own 72.6% of the company's shares, and the insider ownership rate stands at 0.2%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 9% stake in the company is worth $7,141,519,056.