CITIZENS FINANCIAL GROUP (CFG)
US1746101054 - Common Stock
Overall CFG gets a fundamental rating of 3 out of 10. We evaluated CFG against 412 industry peers in the Banks industry. Both the profitability and financial health of CFG have multiple concerns. CFG is valued correctly, but it does not seem to be growing. 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.
Each year in the past 5 years CFG has been profitable.
In the past 5 years CFG always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.67%, CFG is doing worse than 66.50% of the companies in the same industry.
Looking at the Return On Equity, with a value of 6.13%, CFG is doing worse than 74.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.67% | ||
| ROE | 6.13% | ||
| ROIC | N/A |
ROA(3y)0.9%
ROA(5y)0.85%
ROE(3y)7.94%
ROE(5y)7.15%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of CFG (18.13%) is worse than 72.33% of its industry peers.
In the last couple of years the Profit Margin of CFG has declined.
The Operating Margin and Gross Margin are not available for CFG so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 18.13% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y9.63%
PM growth 5Y-8.07%
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.
CFG has less shares outstanding than it did 1 year ago.
The number of shares outstanding for CFG remains at a similar level compared to 5 years ago.
CFG has a worse debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of CFG is 3.65, which is a good value as it means it would take CFG, 3.65 years of fcf income to pay off all of its debts.
CFG has a Debt to FCF ratio (3.65) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.40 indicates that CFG is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.40, CFG is not doing good in the industry: 66.02% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 3.65 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC15.39%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
CFG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -23.77%.
CFG shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.61% yearly.
Looking at the last year, CFG shows a small growth in Revenue. The Revenue has grown by 2.53% in the last year.
The Revenue has been growing slightly by 6.06% on average over the past years.
EPS 1Y (TTM)-23.77%
EPS 3Y11.73%
EPS 5Y-2.61%
EPS growth Q2Q-72.8%
Revenue 1Y (TTM)2.53%
Revenue growth 3Y6%
Revenue growth 5Y6.06%
Revenue growth Q2Q-9.64%
3.2 Future
CFG is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.56% yearly.
Based on estimates for the next years, CFG will show a small growth in Revenue. The Revenue will grow by 2.14% on average per year.
EPS Next Y4.66%
EPS Next 2Y14.47%
EPS Next 3Y18.32%
EPS Next 5Y6.56%
Revenue Next Year-4.35%
Revenue Next 2Y1.04%
Revenue Next 3Y3.2%
Revenue Next 5Y2.14%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 11.38 indicates a reasonable valuation of CFG.
Based on the Price/Earnings ratio, CFG is valued a bit more expensive than 62.14% of the companies in the same industry.
When comparing the Price/Earnings ratio of CFG to the average of the S&P500 Index (28.28), we can say CFG is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.87, the valuation of CFG can be described as reasonable.
The rest of the industry has a similar Price/Forward Earnings ratio as CFG.
CFG is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.38 | ||
| Fwd PE | 10.87 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, CFG is valued cheaper than 83.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.82 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CFG does not grow enough to justify the current Price/Earnings ratio.
CFG's earnings are expected to grow with 18.32% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.44
PEG (5Y)N/A
EPS Next 2Y14.47%
EPS Next 3Y18.32%
5. Dividend
5.1 Amount
CFG has a Yearly Dividend Yield of 4.80%, which is a nice return.
Compared to an average industry Dividend Yield of 3.81, CFG pays a bit more dividend than its industry peers.
CFG's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.8% |
5.2 History
The dividend of CFG is nicely growing with an annual growth rate of 13.82%!
CFG has been paying a dividend for at least 10 years, so it has a reliable track record.
CFG has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)13.82%
Div Incr Years2
Div Non Decr Years9
5.3 Sustainability
62.24% of the earnings are spent on dividend by CFG. This is not a sustainable payout ratio.
The dividend of CFG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP62.24%
EPS Next 2Y14.47%
EPS Next 3Y18.32%
CITIZENS FINANCIAL GROUP
NYSE:CFG (5/3/2024, 7:04:00 PM)
After market: 35.39 0 (0%)35.39
+0.4 (+1.14%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap16.22B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.8% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.38 | ||
| Fwd PE | 10.87 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.44
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.67% | ||
| ROE | 6.13% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | 18.13% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-23.77%
EPS 3Y11.73%
EPS 5Y
EPS growth Q2Q
EPS Next Y4.66%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)2.53%
Revenue growth 3Y6%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y