NYSE:C

Stock Analysis Report

Executive Summary

Citigroup Inc., a diversified financial services holding company, provides various financial products and services for consumers, corporations, governments, and institutions in North America, Latin America, Asia, Europe, the Middle East, and Africa.

Rewards

Trading at 32.7% below its fair value

Risk Analysis

Earnings are forecast to decline by an average of -1% per year for the next 3 years

Unstable dividend track record



Snowflake Analysis

Flawless balance sheet and undervalued.


Similar Companies

Share Price & News

How has Citigroup's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

0.1%

C

0.5%

US Banks

1.8%

US Market


1 Year Return

22.6%

C

12.1%

US Banks

20.1%

US Market

Return vs Industry: C exceeded the US Banks industry which returned 12.1% over the past year.

Return vs Market: C exceeded the US Market which returned 20.1% over the past year.


Shareholder returns

CIndustryMarket
7 Day0.1%0.5%1.8%
30 Day-2.9%-1.2%1.4%
90 Day5.9%1.5%8.8%
1 Year26.0%22.6%15.4%12.1%22.7%20.1%
3 Year40.2%30.9%25.2%16.2%50.1%40.4%
5 Year65.3%52.2%76.0%56.0%72.9%53.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Citigroup undervalued compared to its fair value and its price relative to the market?

32.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: C ($78.79) is trading below our estimate of fair value ($117.09)

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


Price To Earnings Ratio

PE vs Industry: C is good value based on its PE Ratio (9.8x) compared to the Banks industry average (12.6x).

PE vs Market: C is good value based on its PE Ratio (9.8x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: C is good value based on its PB Ratio (1x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Citigroup forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

-1.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: C's earnings are forecast to decline over the next 3 years (-1% per year).

Earnings vs Market: C's earnings are forecast to decline over the next 3 years (-1% per year).

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

Revenue vs Market: C's revenue (6.4% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: C's revenue (6.4% 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 (10.4%).


Next Steps

Past Performance

How has Citigroup performed over the past 5 years?

-1.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: C has high quality earnings.

Growing Profit Margin: C's current net profit margins (27.5%) are higher than last year (25.5%).


Past Earnings Growth Analysis

Earnings Trend: C's earnings have declined by -1% per year over the past 5 years.

Accelerating Growth: C's earnings growth over the past year (9%) exceeds its 5-year average (-1% per year).

Earnings vs Industry: C earnings growth over the past year (9%) underperformed the Banks industry 12.1%.


Return on Equity

High ROE: C's Return on Equity (10%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Citigroup'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: C has a low level of unsold assets or inventory.

Debt Coverage by Assets: C's debt is covered by short term assets (assets are 1.7x debt).


Financial Institutions Analysis

Asset Level: C's level of assets compared to its equity is moderate.

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

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

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

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

Level of Bad Loans: C has an appropriate level of bad loans (0.57%)


Next Steps

Dividend

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

2.59%

Current Dividend Yield


Dividend Yield vs Market

company2.6%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years3.0%

Current dividend yield vs market & industry

Notable Dividend: C's dividend (2.59%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: C's dividend (2.59%) is low compared to the top 25% of dividend payers in the US market (3.68%).


Stability and Growth of Payments

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

Growing Dividend: C's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (23.8%), 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 (32.4% payout ratio).


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Mike Corbat (59yo)

7.3yrs

Tenure

US$24,183,714

Compensation

Mr. Michael L. Corbat, also known as Mike, has been the Chief Executive Officer of Citigroup Inc. since October 16, 2012. Mr. Corbat served as the Chief Executive Officer at Nikko Citi Holdings, Inc. (also ...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD24.18M) is above average for companies of similar size in the US market ($USD10.82M).

Compensation vs Earnings: Mike's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Michael Corbat
CEO & Director7.3yrsUS$24.18m0.026% $42.9m
Jane Fraser
President & CEO of Global Consumer Banking0.3yrsUS$9.49m0.0095% $15.8m
Sanford Weill
Chairman Emeritus and Senior Advisor13.8yrsUS$21.52mno data
Mark Mason
Chief Financial Officer1yrsno data0.0024% $4.0m
Michael Whitaker
Head of Enterprise Infrastructure1.3yrsno data0.0048% $7.9m
Raja Akram
Controller & Chief Accounting Officer2.3yrsno data0.00047% $782.9k
Manuel Falco
Global Co-Head of Banking0yrsno datano data
Elizabeth Lynn
Interim Head of Investor Relations0.7yrsno datano data
Rohan Weerasinghe
General Counsel & Corporate Secretary7.7yrsno data0.0069% $11.4m
Mark Carawan
Chief Compliance Officer3yrsno datano data

1.8yrs

Average Tenure

55yo

Average Age

Experienced Management: C's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Michael Corbat
CEO & Director7.3yrsUS$24.18m0.026% $42.9m
Sanford Weill
Chairman Emeritus and Senior Advisor13.8yrsUS$21.52mno data
Laurence Parisot
Chairwoman & MD of French Unit1.4yrsno datano data
John Hastings
Chairman & CEO of Citibank Canada and Country Officer of Canada9.6yrsno datano data
Eugene McQuade
Independent Non-Executive Director4.6yrsUS$330.00k0.0061% $10.2m
Victor Menezes
Chairman of the Advisory Board for Citi India0yrsUS$4.84mno data
James Turley
Independent Director6.6yrsUS$410.00k0.00093% $1.5m
Kazuyoshi Kimura
Co-Chairman & Director of Securities Co. - Nikko Cordial Corp0yrsno datano data
John Dugan
Independent Chairman1.1yrsUS$315.00k0.00041% $683.0k
Diana Taylor
Independent Director10.6yrsUS$370.00k0.0016% $2.7m

7.0yrs

Average Tenure

64yo

Average Age

Experienced Board: C's board of directors are considered experienced (7 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

Citigroup Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Citigroup Inc.
  • Ticker: C
  • Exchange: NYSE
  • Founded: 1812
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: US$166.577b
  • Shares outstanding: 2.11b
  • Website: https://www.citigroup.com

Number of Employees


Location

  • Citigroup Inc.
  • 388 Greenwich Street
  • New York
  • New York
  • 10013
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CNYSE (New York Stock Exchange)YesCommon StockUSUSDOct 1986
CBVL (Bolsa de Valores de Lima)YesCommon StockPEUSDOct 1986
TRVCDB (Deutsche Boerse AG)YesCommon StockDEEUROct 1986
C *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNOct 1986
CSWX (SIX Swiss Exchange)YesCommon StockCHCHFOct 1986
0R01LSE (London Stock Exchange)YesCommon StockGBUSDOct 1986
TRVCXTRA (XETRA Trading Platform)YesCommon StockDEEUROct 1986
CBVC (Bolsa de Valores de Colombia)YesCommon StockCOCOPOct 1986
CSNSE (Santiago Stock Exchange)YesCommon StockCLUSDOct 1986
CIT-UETLX (Eurotlx)YesCommon StockITEUROct 1986
CITIWBAG (Wiener Boerse AG)YesCommon StockATEUROct 1986
CBASE (Buenos Aires Stock Exchange)CEDEAR EACH REP 0.33333 COM USD0.01ARARSNov 2002
C PRPCLNYSE (New York Stock Exchange)DEP SHS PFD AAUSUSDJan 2008
C PRICLNYSE (New York Stock Exchange)DEP SH 1/1000USUSDJan 2008
CTGP34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COMBRBRLJul 2011
C.PRJNYSE (New York Stock Exchange)DEP SHS 1/1000 JUSUSDSep 2013
C.PRKNYSE (New York Stock Exchange)DEP SHS RP PFD KUSUSDOct 2013
CFU8BST (Boerse-Stuttgart)PERP SUB GLBL -MDEUSDApr 2014
C.PRSNYSE (New York Stock Exchange)DEP SHS PFD SUSUSDJan 2016

Biography

Citigroup Inc., a diversified financial services holding company, provides various financial products and services for consumers, corporations, governments, and institutions in North America, Latin America, Asia, Europe, the Middle East, and Africa. The company operates through two segments, Global Consumer Banking (GCB) and Institutional Clients Group (ICG). The GCB segment offers traditional banking services to retail customers through retail banking, commercial banking, Citi-branded cards, and Citi retail services. It also provides various banking, credit card lending, and investment services through a network of local branches, offices, and electronic delivery systems. The ICG segment provides wholesale banking products and services, including fixed income and equity sales and trading, foreign exchange, prime brokerage, derivative services, equity and fixed income research, corporate and consumer loans, investment banking and advisory services, private banking, cash management, trade finance, and securities services to corporate, institutional, public sector, and high-net-worth clients. As of December 31, 2018, it operated 2,410 branches in the United States, Mexico, and Asia. Citigroup Inc. was founded in 1812 and is headquartered in New York, New York. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 00:06
End of Day Share Price2020/02/14 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.