LSE:0HYP

Stock Analysis Report

Citizens Financial Group

Executive Summary

Citizens Financial Group, Inc. operates as the bank holding company for Citizens Bank, National Association and Citizens Bank of Pennsylvania that provides retail and commercial banking products and services in the United States.


Snowflake Analysis

Flawless balance sheet and fair value.


Similar Companies

Share Price & News

How has Citizens Financial Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 0HYP has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

7.5%

0HYP

-3.6%

GB Banks

0.05%

GB Market


1 Year Return

12.5%

0HYP

-6.0%

GB Banks

7.1%

GB Market

Return vs Industry: 0HYP exceeded the UK Banks industry which returned -6% over the past year.

Return vs Market: 0HYP exceeded the UK Market which returned 7.1% over the past year.


Shareholder returns

0HYPIndustryMarket
7 Day7.5%-3.6%0.05%
30 Day2.5%-3.6%-1.7%
90 Day9.9%-2.3%4.1%
1 Year16.9%12.5%-1.2%-6.0%12.6%7.1%
3 Yearn/a-6.7%-17.4%18.4%3.6%
5 Yearn/a-2.6%-21.1%35.2%4.2%

Price Volatility Vs. Market

How volatile is Citizens Financial Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Citizens Financial Group undervalued compared to its fair value and its price relative to the market?

44.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 0HYP ($41.89) is trading below our estimate of fair value ($75.08)

Significantly Below Fair Value: 0HYP is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 0HYP is poor value based on its PE Ratio (10.2x) compared to the Banks industry average (9.2x).

PE vs Market: 0HYP is good value based on its PE Ratio (10.2x) compared to the UK market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: 0HYP's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: 0HYP is overvalued based on its PB Ratio (0.8x) compared to the GB Banks industry average (0.6x).


Next Steps

Future Growth

How is Citizens Financial Group forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

-0.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 0HYP's earnings are forecast to decline over the next 3 years (-0.5% per year).

Earnings vs Market: 0HYP's earnings are forecast to decline over the next 3 years (-0.5% per year).

High Growth Earnings: 0HYP's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 0HYP's revenue (5.5% per year) is forecast to grow faster than the UK market (3.5% per year).

High Growth Revenue: 0HYP's revenue (5.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 0HYP's Return on Equity is forecast to be low in 3 years time (8.2%).


Next Steps

Past Performance

How has Citizens Financial Group performed over the past 5 years?

19.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 0HYP has high quality earnings.

Growing Profit Margin: 0HYP's current net profit margins (28.2%) are lower than last year (29.2%).


Past Earnings Growth Analysis

Earnings Trend: 0HYP's earnings have grown by 19.2% per year over the past 5 years.

Accelerating Growth: 0HYP's earnings growth over the past year (1.5%) is below its 5-year average (19.2% per year).

Earnings vs Industry: 0HYP earnings growth over the past year (1.5%) underperformed the Banks industry 28.3%.


Return on Equity

High ROE: 0HYP's Return on Equity (8.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Citizens Financial Group's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: 0HYP has a low level of unsold assets or inventory.

Debt Coverage by Assets: 0HYP's debt is not covered by short term assets (assets are 0.6x debt).


Financial Institutions Analysis

Asset Level: 0HYP's level of assets compared to its equity is low.

Allowance for Bad Loans: 0HYP has a sufficient allowance for bad loans.

Low Risk Liabilities: 0HYP's liabilities are made up of primarily low risk sources of funding.

Loan Level: 0HYP has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 0HYP's loans are broadly funded by customer deposits.

Level of Bad Loans: 0HYP has an appropriate level of bad loans (0.59%)


Next Steps

Dividend

What is Citizens Financial Group's current dividend yield, its reliability and sustainability?

4.02%

Current Dividend Yield


Dividend Yield vs Market

company4.0%marketbottom25%1.8%markettop25%5.1%industryaverage6.4%forecastin3Years4.2%

Current dividend yield vs market & industry

Notable Dividend: 0HYP's dividend (4.02%) is higher than the bottom 25% of dividend payers in the UK market (1.79%).

High Dividend: 0HYP's dividend (4.02%) is low compared to the top 25% of dividend payers in the UK market (5.09%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 0HYP has been paying a dividend for less than 10 years.

Growing Dividend: 0HYP's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (35.6%), 0HYP's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 0HYP's dividends in 3 years are forecast to be well covered by earnings (39% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.1yrs

Average management tenure


CEO

Bruce Van Saun (62yo)

6.3yrs

Tenure

US$9,405,933

Compensation

Mr. Bruce Winfield Van Saun has been an Independent Director of Moody's Corporation since March 01, 2016. He has been the Chairman and Chief Executive Officer of Citizens Financial Group, Inc. since Octobe ...


CEO Compensation Analysis

Compensation vs Market: Bruce's total compensation ($USD9.41M) is above average for companies of similar size in the UK market ($USD4.68M).

Compensation vs Earnings: Bruce's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Bruce Van Saun
Chairman6.3yrsUS$9.41m0.19% $32.0m
John Woods
Vice Chairman & CFO1yrsUS$3.55m0.024% $4.0m
Donald McCree
Vice Chairman & Head of Commercial Banking Division4.5yrsUS$3.93m0.045% $7.6m
Malcolm Griggs
Chief Risk Officer & Executive VP5.2yrsUS$2.18m0.018% $3.0m
Craig Read
Executive VP1.5yrsno data0.0031% $525.7k
Theodore Swimmer
Executive VP and Head of Corporate Finance & Capital Markets for Citizens Commercial Banking1.5yrsno datano data
Michael Ruttledge
Group Chief Information Officer1.1yrsno datano data
Ellen Taylor
Head of Investor Relations0yrsno datano data
Stephen Gannon
Chief Legal Officer0yrsUS$2.02m0.022% $3.7m
Scott Essex
Executive VP and Chief Compliance & Ethics Officer3.3yrsno datano data

3.1yrs

Average Tenure

57.5yo

Average Age

Experienced Management: 0HYP's management team is considered experienced (3.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Bruce Van Saun
Chairman6.3yrsUS$9.41m0.19% $32.0m
John Woods
Vice Chairman & CFO1yrsUS$3.55m0.024% $4.0m
Charles Koch
Independent Director15.4yrsUS$251.00k0.016% $2.7m
Leo Higdon
Independent Director5.5yrsUS$226.00k0.0018% $293.9k
William Hankowsky
Independent Director13.3yrsUS$221.00k0.0047% $796.2k
Marita Zuraitis
Independent Director8.8yrsUS$211.00k0.0017% $292.3k
Howard Hanna
Independent Director10.7yrsUS$221.00k0.0034% $564.4k
Mark Casady
Independent Director5.7yrsUS$216.00k0.0022% $377.9k
Shivan Subramaniam
Lead Director1.1yrsUS$236.00k0.0066% $1.1m
Wendy Watson
Independent Director9.3yrsUS$261.00k0.0013% $215.0k

7.5yrs

Average Tenure

69yo

Average Age

Experienced Board: 0HYP's board of directors are considered experienced (7.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Citizens Financial Group, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Citizens Financial Group, Inc.
  • Ticker: 0HYP
  • Exchange: LSE
  • Founded: 1828
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$16.796b
  • Shares outstanding: 433.12m
  • Website: https://www.citizensbank.com

Number of Employees


Location

  • Citizens Financial Group, Inc.
  • One Citizens Plaza
  • Providence
  • Rhode Island
  • 2903
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CFGNYSE (New York Stock Exchange)YesCommon StockUSUSDSep 2014
1C5DB (Deutsche Boerse AG)YesCommon StockDEEURSep 2014
0HYPLSE (London Stock Exchange)YesCommon StockGBUSDSep 2014
CFG.PRDNYSE (New York Stock Exchange)6.350% DEP PFD DUSUSDJan 2019
CFG.PRENYSE (New York Stock Exchange)5% DP RP PFD EUSUSDOct 2019
C1FG34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COMBRBRLDec 2019

Biography

Citizens Financial Group, Inc. operates as the bank holding company for Citizens Bank, National Association and Citizens Bank of Pennsylvania that provides retail and commercial banking products and services in the United States. The company operates in two segments, Consumer Banking and Commercial Banking. The Consumer Banking segment offers traditional banking products and services, including checking and savings accounts, home and education loans, credit cards, business loans, mortgage and home equity lending, and unsecured product finance and personal loans, as well as wealth management and investment services to retail customers and small businesses. This segment also provides indirect auto finance for new and used vehicles through auto dealerships. The Commercial Banking segment offers various financial products and solutions, such as loans and leasing, trade finance, deposit and treasury management, cash management, and foreign exchange and interest rate risk management solutions; and corporate finance, merger and acquisition, and debt and equity capital markets capabilities. It serves government banking, not-for-profit, healthcare, technology, professionals, oil and gas, asset finance, franchise finance, asset-based lending, commercial real estate, private equity, and sponsor finance industries. Citizens Financial Group, Inc. operates approximately 1,100 branches and 2,900 ATMs in 11 states in the New England, Mid-Atlantic, and Midwest regions, as well as through online, telephone, and mobile banking services; and maintains approximately 140 retail and commercial non-branch offices in its banking footprint and in other states, and the District of Columbia. The company was formerly known as RBS Citizens Financial Group, Inc. and changed its name to Citizens Financial Group, Inc. in April 2014. Citizens Financial Group, Inc. was founded in 1828 and is headquartered in Providence, Rhode Island. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 23:39
End of Day Share Price2020/02/18 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.