Citigroup (NYSE:C) - Share price, News & Analysis

Q: What is the Fair Price of C when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

C ($43.84) is trading below our estimate of [[fair value]] ($67.64)

C fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	0/6
Past Performance	2/6
Financial Health	6/6
Dividends	6/6

C Stock Overview

Rewards

Trading at 35.2% below our estimate of its fair value

Pays a high and reliable dividend of 4.65%

Trading at good value vs. peer average Price-To-Earnings ratio

Trading at good value vs. industry average Price-To-Earnings ratio

Trading below our calculated fair Price-To-Earnings ratio

Risk Analysis

No risks detected for C from our risk checks.

Citigroup Competitors

U.S. Bancorp

NYSE:USB

US$62.7b

Wells Fargo

NYSE:WFC

US$164.3b

Bank of America

NYSE:BAC

US$256.5b

JPMorgan Chase

NYSE:JPM

US$324.7b

Price History & Performance

Summary of all time highs, changes and price drops for Citigroup
Historical stock prices
Current Share Price	US$43.84
52 Week High	US$73.73
52 Week Low	US$41.06
Beta	1.6
1 Month Change	-10.24%
3 Month Change	-6.58%
1 Year Change	-39.46%
3 Year Change	-34.98%
5 Year Change	-41.50%
Change since IPO	79.09%

Recent News & Updates

Sep 23

Citi plans to scale back lending to asset managers amid new capital rules - report

Citigroup (NYSE:C) is said to plan to cut back the amount it lends to asset managers, including private equity firms, amid new capital rules. Citi (C) plans to cut its lending for what is known as "subscription-line financing" to about $20 billion in coming months from about $65 billion, according to a Financial Times report, citing people familiar. The bank is said to have alerted some of its biggest private equity clients about the changes. The news comes after an Apollo (APO) executive earlier this month said that he doesn't expect banks to to start financing debt for leveraged buyouts anytime soon.

Shareholder Returns

	C	US Banks	US Market
7D	1.0%	6.3%	4.4%
1Y	-39.5%	-21.8%	-18.2%

Return vs Industry: C underperformed the US Banks industry which returned -21.8% over the past year.

Return vs Market: C underperformed the US Market which returned -18.2% over the past year.

Price Volatility

Is C's price volatile compared to industry and market?
C volatility
C Average Weekly Movement	5.4%
Banks Industry Average Movement	3.5%
Market Average Movement	6.9%
10% most volatile stocks in US Market	15.5%
10% least volatile stocks in US Market	2.8%

Stable Share Price: C is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: C's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1812	231,000	Jane Fraser	https://www.citigroup.com

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. The company operates in two segments, Global Consumer Banking (GCB) and Institutional Clients Group (ICG). The GCB segment offers traditional banking services to retail customers through retail banking, Citi-branded cards, and Citi retail services.

Citigroup Fundamentals Summary

How do Citigroup's earnings and revenue compare to its market cap?
C fundamental statistics
Market Cap	US$84.91b
Earnings (TTM)	US$15.78b
Revenue (TTM)	US$72.12b

5.4x

P/E Ratio

0.5x

P/B Ratio

Is C overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
C income statement (TTM)
Revenue	US$72.12b
Cost of Revenue	US$0
Gross Profit	US$72.12b
Other Expenses	US$56.35b
Earnings	US$15.78b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Oct 14, 2022

Earnings per share (EPS)	8.15
Gross Margin	100.00%
Net Profit Margin	21.87%
Debt/Equity Ratio	279.9%

How did C perform over the long term?

See historical performance and comparison

Dividends

4.7%

Current Dividend Yield

26%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is C undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for C?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for C. This is calculated by dividing C's market cap by their current preferred multiple.
What is C's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$84.91b

C key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	3.6x

Price to Earnings Ratio vs Peers

How does C's PE Ratio compare to its peers?

C PE Ratio vs Peers

The above table shows the PE ratio for C vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	9.5x
USB U.S. Bancorp	9.7x	13.8%	US$62.7b
WFC Wells Fargo	10x	15.1%	US$164.3b
BAC Bank of America	9.7x	9.6%	US$256.5b
JPM JPMorgan Chase	8.7x	6.7%	US$324.7b
C Citigroup	5.4x	1.5%	US$84.9b

Price-To-Earnings vs Peers: C is good value based on its Price-To-Earnings Ratio (5.4x) compared to the peer average (9.5x).

Price to Earnings Ratio vs Industry

How does C's PE Ratio compare vs other companies in the US Banks Industry?

Price-To-Earnings vs Industry: C is good value based on its Price-To-Earnings Ratio (5.4x) compared to the US Banks industry average (9.7x)

Price to Earnings Ratio vs Fair Ratio

What is C's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

C PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	5.4x
Fair PE Ratio	14.1x

Price-To-Earnings vs Fair Ratio: C is good value based on its Price-To-Earnings Ratio (5.4x) compared to the estimated Fair Price-To-Earnings Ratio (14.1x).

Share Price vs Fair Value

What is the Fair Price of C when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: C ($43.84) is trading below our estimate of fair value ($67.64)

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

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

Discover undervalued companies

Future Growth

How is Citigroup forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

1.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: C's forecast earnings growth (1.5% per year) is below the savings rate (1.9%).

Earnings vs Market: C's earnings (1.5% per year) are forecast to grow slower than the US market (14.8% per year).

High Growth Earnings: C's earnings are forecast to grow, but not significantly.

Revenue vs Market: C's revenue (1.2% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: C's revenue (1.2% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: C's Return on Equity is forecast to be low in 3 years time (7.5%).

Discover growth companies

Past Performance

How has Citigroup performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

24.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: C has high quality earnings.

Growing Profit Margin: C's current net profit margins (21.9%) are lower than last year (27.4%).

Past Earnings Growth Analysis

Earnings Trend: C's earnings have grown significantly by 24.9% per year over the past 5 years.

Accelerating Growth: C's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: C had negative earnings growth (-22.4%) over the past year, making it difficult to compare to the Banks industry average (8.4%).

Return on Equity

High ROE: C's Return on Equity (8.5%) is considered low.

Discover strong past performing companies

Financial Health

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

Financial Health Score

6/6

Financial Health Score 6/6

Asset Level
Allowance for Bad Loans
Low Risk Liabilities
Loan Level
Low Risk Deposits
Level of Bad Loans

Financial Position Analysis

Debt to Equity History and Analysis

Balance Sheet

Financial Institutions Analysis

Asset Level: C's Assets to Equity ratio (11.9x) is moderate.

Allowance for Bad Loans: C has a sufficient allowance for bad loans (526%).

Low Risk Liabilities: 61% of C's liabilities are made up of primarily low risk sources of funding.

Loan Level: C has an appropriate level of Loans to Assets ratio (27%).

Low Risk Deposits: C's Loans to Deposits ratio (49%) is appropriate.

Level of Bad Loans: C has an appropriate level of bad loans (0.5%).

Discover healthy companies

Dividend

What is Citigroup current dividend yield, its reliability and sustainability?

Dividend Score

6/6

Dividend Score 6/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

4.65%

Current Dividend Yield

Dividend Yield vs Market

Citigroup Dividend Yield vs Market

How does Citigroup dividend yield compare to the market?
Segment	Dividend Yield
Company (Citigroup)	4.7%
Market Bottom 25% (US)	1.6%
Market Top 25% (US)	4.5%
Industry Average (Banks)	3.2%
Analyst forecast in 3 Years (Citigroup)	4.9%

Notable Dividend: C's dividend (4.65%) is higher than the bottom 25% of dividend payers in the US market (1.6%).

High Dividend: C's dividend (4.65%) is in the top 25% of dividend payers in the US market (4.53%)

Stability and Growth of Payments

Stable Dividend: C's dividends per share have been stable in the past 10 years.

Growing Dividend: C's dividend payments have increased over the past 10 years.

Current Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (25.6%), C's dividend payments are well covered by earnings.

Future Payout to Shareholders

Future Dividend Coverage: C's dividends in 3 years are forecast to be well covered by earnings (30.6% payout ratio).

Discover strong dividend paying companies

Management

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

3.0yrs

Average management tenure

CEO

Jane Fraser (54 yo)

2.08yrs

Tenure

US$20,541,324

Compensation

Ms. Jane Nind Fraser, Ph D., is the Chief Executive Officer of Citigroup Inc. since March 2021. During her 18-year career at Citigroup Inc., she has held leadership roles across Citigroup Inc.'s consume...

CEO Compensation Analysis

Jane Fraser's Compensation vs Citigroup Earnings

How has Jane Fraser's remuneration changed compared to Citigroup's earnings?
Date	Total Comp.	Salary	Company Earnings
Jun 30 2022	n/a	n/a	US$16b
Mar 31 2022	n/a	n/a	US$17b
Dec 31 2021	US$21m	US$1m	US$21b
Sep 30 2021	n/a	n/a	US$22b
Jun 30 2021	n/a	n/a	US$20b
Mar 31 2021	n/a	n/a	US$15b
Dec 31 2020	US$17m	US$500k	US$10b
Sep 30 2020	n/a	n/a	US$11b
Jun 30 2020	n/a	n/a	US$12b
Mar 31 2020	n/a	n/a	US$16b
Dec 31 2019	US$17m	US$500k	US$18b
Sep 30 2019	n/a	n/a	US$17b
Jun 30 2019	n/a	n/a	US$17b
Mar 31 2019	n/a	n/a	US$17b
Dec 31 2018	US$9m	US$500k	US$17b
Sep 30 2018	n/a	n/a	-US$6b
Jun 30 2018	n/a	n/a	-US$7b
Mar 31 2018	n/a	n/a	-US$7b
Dec 31 2017	US$9m	US$500k	-US$8b
Sep 30 2017	n/a	n/a	US$14b
Jun 30 2017	n/a	n/a	US$14b
Mar 31 2017	n/a	n/a	US$14b
Dec 31 2016	US$8m	US$500k	US$14b

Compensation vs Market: Jane's total compensation ($USD20.54M) is above average for companies of similar size in the US market ($USD13.00M).

Compensation vs Earnings: Jane's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.

Leadership Team

Experienced Management: C's management team is considered experienced (3 years average tenure).

Board Members

Experienced Board: C's board of directors are considered experienced (9.3 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

NYSE:C Recent Insider Transactions by Companies or Individuals
Date	Value	Name	Entity	Shares	Max Price
11 Feb 22	SellUS$1,014,614	Sara Wechter	Individual	14,800	US$68.56
11 Feb 22	SellUS$650,405	Michael Whitaker	Individual	9,474	US$68.66
11 Feb 22	SellUS$549,468	Zdenek Turek	Individual	8,000	US$68.68
11 Feb 22	SellUS$343,300	Mary McNiff	Individual	5,000	US$68.66
19 Oct 21	SellUS$2,014,268	Ernesto Torres Cantú	Individual	27,783	US$72.50

Ownership Breakdown

What is the ownership structure of C?
Owner Type	Number of Shares	Ownership Percentage
State or Government	889,190	0.05%
Individual Insiders	2,911,325	0.2%
Public Companies	55,155,797	2.8%
General Public	514,340,685	26.6%
Institutions	1,363,412,626	70.4%

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

Top Shareholders

Top 25 shareholders own 44.8% of the company

Ownership	Name	Shares	Current Value	Change %	Portfolio %
8.49%	The Vanguard Group, Inc.	164,361,727	$7.2b	-2.56%	0.16%
8.41%	BlackRock, Inc.	162,806,013	$7.1b	-1.25%	0.17%
4.43%	State Street Global Advisors, Inc.	85,817,215	$3.8b	-8.03%	0.2%
2.85%	Berkshire Hathaway Inc.	55,155,797	$2.4b	0%	no data
1.75%	Geode Capital Management, LLC	33,951,697	$1.5b	0.2%	0.19%
1.39%	BNY Mellon Asset Management	26,826,565	$1.2b	-3.69%	0.26%
1.34%	Harris Associates L.P.	26,016,567	$1.1b	-3.18%	1.46%
1.13%	Capital Research and Management Company	21,969,204	$963.1m	-15.01%	0.06%
1.12%	Hotchkis and Wiley Capital Management, LLC	21,682,658	$950.6m	0.52%	3.57%
1.12%	Northern Trust Global Investments	21,600,933	$947.0m	-0.52%	0.19%
1.11%	J.P. Morgan Asset Management, Inc.	21,457,251	$940.7m	-8.24%	0.17%
1.08%	Eagle Capital Management LLC	20,934,756	$917.8m	-1.79%	3.96%
1.04%	Morgan Stanley, Investment Banking and Brokerage Investments	20,199,225	$885.5m	-28.08%	0.17%
0.98%	Massachusetts Financial Services Company	18,981,579	$832.2m	-10.33%	0.21%
0.98%	Sanders Capital, LLC	18,971,916	$831.7m	0.11%	2.1%
0.88%	UBS Asset Management	16,993,095	$745.0m	17.17%	0.14%
0.86%	T. Rowe Price Group, Inc.	16,565,095	$726.2m	3.28%	0.08%
0.81%	Artisan Partners Limited Partnership	15,631,074	$685.3m	9.76%	0.68%
0.79%	Legal & General Investment Management Limited	15,342,406	$672.6m	3.75%	0.2%
0.79%	Pzena Investment Management, Inc.	15,334,377	$672.3m	27.99%	2.05%
0.74%	Norges Bank Investment Management	14,284,899	$626.2m	0%	0.08%
0.73%	Bank of America Corporation, Asset Management Arm	14,218,916	$623.4m	49.2%	0.24%
0.73%	Susquehanna International Group, LLP, Asset Management Arm	14,058,905	$616.3m	31.12%	1.39%
0.65%	Putnam LLC	12,596,397	$552.2m	-3.09%	0.9%
0.62%	Charles Schwab Investment Management, Inc.	11,982,321	$525.3m	0.14%	0.14%

Ticker	Exchange	Primary Security	Security Type	Country	Currency	Listed on
C	NYSE (New York Stock Exchange)	Yes	Common Stock	US	USD	Oct 1986
C	BVL (Bolsa de Valores de Lima)	Yes	Common Stock	PE	USD	Oct 1986
TRVC	DB (Deutsche Boerse AG)	Yes	Common Stock	DE	EUR	Oct 1986
C *	BMV (Bolsa Mexicana de Valores)	Yes	Common Stock	MX	MXN	Oct 1986
C	SWX (SIX Swiss Exchange)	Yes	Common Stock	CH	CHF	Oct 1986
0R01	LSE (London Stock Exchange)	Yes	Common Stock	GB	USD	Oct 1986
TRVC	XTRA (XETRA Trading Platform)	Yes	Common Stock	DE	EUR	Oct 1986
C	BVC (Bolsa de Valores de Colombia)	Yes	Common Stock	CO	COP	Oct 1986
C	SNSE (Santiago Stock Exchange)	Yes	Common Stock	CL	USD	Oct 1986
CIT-U	ETLX (Eurotlx)	Yes	Common Stock	IT	EUR	Oct 1986
CITI	WBAG (Wiener Boerse AG)	Yes	Common Stock	AT	EUR	Oct 1986
CCL	SNSE (Santiago Stock Exchange)	Yes	Common Stock	CL	CLP	Oct 1986
C_KZ	KAS (Kazakhstan Stock Exchange)	Yes	Common Stock	KZ	USD	Oct 1986
C	BASE (Buenos Aires Stock Exchange)		CEDEAR EA RE COM(USD)	AR	ARS	Nov 2002
C.D	BASE (Buenos Aires Stock Exchange)		CEDEAR EA RE COM(USD)	AR	USD	Nov 2002
CTGP34	BOVESPA (Bolsa de Valores de Sao Paulo)		BDR EACH 6 REP 1 COM	BR	BRL	Jul 2011
C.PRJ	NYSE (New York Stock Exchange)		DEP SHS 1/1000 J	US	USD	Sep 2013
C.PRK	NYSE (New York Stock Exchange)		DEP SHS RP PFD K	US	USD	Oct 2013
CFU8	BST (Boerse-Stuttgart)		6.3%-FRN PERP USD1000 'M'	DE	USD	Apr 2014
A2R7P9	DB (Deutsche Boerse AG)		PERP JR SB GLBL	DE	USD	Sep 2019
A28SHS	DB (Deutsche Boerse AG)		TIER I PERP GLBL	DE	USD	Jan 2020
A3KL1L	DB (Deutsche Boerse AG)		3.875%-FRN PERP USD1000 'X'	DE	USD	Feb 2021

Data	Last Updated (UTC time)
Company Analysis	2022/10/05 00:00
End of Day Share Price	2022/10/05 00:00
Earnings	2022/06/30
Annual Earnings	2021/12/31