Citizens Financial Group, Inc. (NYSE: CFG) has announced the appointment of Tracy A. Atkinson to its Board of Directors, effective March 1, 2024. Atkinson's appointment will temporarily expand the Citizens Board to 14 directors, and she will serve on the Board's Audit Committee. Citizens also disclosed that Edward J. (Ned) Kelly III, a current board member, will be appointed as the company's lead independent director, succeeding Shivan Subramaniam, who will retire from the Board after his current term expires at the annual meeting of shareholders in April 2024.
Bruce Van Saun, Chairman, and Chief Executive Officer of Citizens Financial Group, expressed his pleasure at welcoming Tracy to the board, citing her deep financial expertise and significant experience serving on U.S. boards. He also expressed his anticipation of Ned's continued contributions to the company in his expanded role, while acknowledging Shivan's strong counsel and invaluable service during a highly successful and transformative period for Citizens.
Atkinson brings extensive financial experience, having served in senior finance and risk management roles in her 30-plus year career in financial services. She currently serves on the boards of RTX Corporation (formerly, Raytheon Technologies), US Steel, and Affiliated Managers Group. Her appointment comes with high accolades, having been named to WomenInc Magazine’s List of Most Influential Corporate Directors in 2018 and 2023, and being recognized for her leadership and service to the community.
Citizens Financial Group, Inc. is one of the nation’s oldest and largest financial institutions, with $222.0 billion in assets as of December 31, 2023. The company offers a broad range of retail and commercial banking products and services to individuals, small businesses, middle-market companies, large corporations, and institutions.
In response to the news, the company's shares have moved -1.7% and are now trading at a price of $31.2.
The company's full 8-K submission is available here.
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $5,758 | $6,189 | $5,357 | $4,851 | $7,060 | $9,780 |
| Interest Income (M) | $4,532 | $4,614 | $4,586 | $4,512 | $6,012 | $6,448 |
| Operating Margins | 38% | 36% | 24% | 61% | 38% | 27% |
| Net Margins | 30% | 28% | 20% | 48% | 28% | 21% |
| Net Income (M) | $1,721 | $1,791 | $1,057 | $2,319 | $2,073 | $2,072 |
| Depreciation & Amort. (M) | $486 | $633 | $578 | $625 | $565 | $469 |
| Diluted Shares (M) | 480 | 451 | 428 | 427 | 478 | 471 |
| Earnings Per Share | $3.52 | $3.81 | $2.22 | $5.16 | $4.1 | $4.04 |
| EPS Growth | n/a | 8.24% | -41.73% | 132.43% | -20.54% | -1.46% |
| Avg. Price | $32.84 | $29.78 | $24.67 | $41.82 | $42.68 | $31.74 |
| P/E Ratio | 9.28 | 7.8 | 11.11 | 8.07 | 10.36 | 7.84 |
| Free Cash Flow (M) | $1,535 | $1,571 | -$7 | $2,151 | $3,993 | $3,623 |
| CAPEX (M) | $232 | $126 | $118 | $124 | $126 | $109 |
| EV / EBITDA | 10.44 | 8.45 | 3.28 | 4.32 | 7.25 | 5.55 |
| Total Debt (M) | $15,925 | $14,047 | $8,346 | $6,932 | $15,887 | $17,354 |
| Net Debt / EBITDA | 4.44 | 3.7 | -2.34 | -0.62 | 1.66 | 0.63 |
Citizens Financial stock at a price of $31.2 appears undervalued. The company's revenues are rapidly growing at an annualized rate of 10.4%, and its earnings per share have grown at an annualized rate of 2.3% over the last 6 years. However, there are some negatives to consider. Citizens Financial's capital expenditures are decreasing at a rate of -9.4%, and its net margins are no better than the industry average of 26.96%.
