Citizens Financial Group
Market Cap
US$16.8b
Last Updated
2020/02/21 01:42 UTC
Data Sources
Company Financials +
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.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -0.5% per year for the next 3 years
Snowflake Analysis
Flawless balance sheet, undervalued and pays a dividend.
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: CFG has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
0.3%
CFG
-0.3%
US Banks
0.06%
US Market
1 Year Return
4.2%
CFG
11.1%
US Banks
19.3%
US Market
Return vs Industry: CFG underperformed the US Banks industry which returned 11.1% over the past year.
Return vs Market: CFG underperformed the US Market which returned 19.3% over the past year.
Shareholder returns
| CFG | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.3% | -0.3% | 0.06% |
| 30 Day | -3.4% | -0.5% | 1.7% |
| 90 Day | 0.5% | 0.6% | 9.0% |
| 1 Year | 8.3%4.2% | 14.4%11.1% | 21.8%19.3% |
| 3 Year | 15.3%5.8% | 24.7%15.7% | 49.5%39.9% |
| 5 Year | 76.3%56.1% | 74.9%55.1% | 73.1%54.1% |
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
1 week ago | Simply Wall St
What To Know Before Buying Citizens Financial Group, Inc. (NYSE:CFG) For Its Dividend4 weeks ago | Simply Wall St
Citizens Financial Group, Inc. (NYSE:CFG) Looks Interesting, And It's About To Pay A Dividend1 month ago | Simply Wall St
Read This Before You Buy Citizens Financial Group, Inc. (NYSE:CFG) Because Of Its P/E RatioValuation
Is Citizens Financial Group undervalued compared to its fair value and its price relative to the market?
33.5%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: CFG ($38.78) is trading below our estimate of fair value ($58.28)
Significantly Below Fair Value: CFG is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: CFG is good value based on its PE Ratio (10.2x) compared to the Banks industry average (12.6x).
PE vs Market: CFG is good value based on its PE Ratio (10.2x) compared to the US market (18.5x).
Price to Earnings Growth Ratio
PEG Ratio: CFG's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: CFG is good value based on its PB Ratio (0.8x) compared to the US Banks industry average (1.2x).
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: CFG's earnings are forecast to decline over the next 3 years (-0.5% per year).
Earnings vs Market: CFG's earnings are forecast to decline over the next 3 years (-0.5% per year).
High Growth Earnings: CFG's earnings are forecast to decline over the next 3 years.
Revenue vs Market: CFG's revenue (5.5% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: CFG'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: CFG'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: CFG has high quality earnings.
Growing Profit Margin: CFG's current net profit margins (28.2%) are lower than last year (29.2%).
Past Earnings Growth Analysis
Earnings Trend: CFG's earnings have grown by 19.2% per year over the past 5 years.
Accelerating Growth: CFG's earnings growth over the past year (1.5%) is below its 5-year average (19.2% per year).
Earnings vs Industry: CFG earnings growth over the past year (1.5%) underperformed the Banks industry 12.2%.
Return on Equity
High ROE: CFG'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: CFG has a low level of unsold assets or inventory.
Debt Coverage by Assets: CFG's debt is not covered by short term assets (assets are 0.6x debt).
Financial Institutions Analysis
Asset Level: CFG's level of assets compared to its equity is low.
Allowance for Bad Loans: CFG has a sufficient allowance for bad loans.
Low Risk Liabilities: CFG's liabilities are made up of primarily low risk sources of funding.
Loan Level: CFG has an acceptable proportion of non-loan assets held.
Low Risk Deposits: CFG's loans are broadly funded by customer deposits.
Level of Bad Loans: CFG 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
Current dividend yield vs market & industry
Notable Dividend: CFG's dividend (4.02%) is higher than the bottom 25% of dividend payers in the US market (1.44%).
High Dividend: CFG's dividend (4.02%) is in the top 25% of dividend payers in the US market (3.71%)
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, CFG has been paying a dividend for less than 10 years.
Growing Dividend: CFG'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%), CFG's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: CFG'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 about average for companies of similar size in the US market ($USD10.79M).
Compensation vs Earnings: Bruce's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 6.3yrs | US$9.41m | 0.19% $32.0m | |
| Vice Chairman & CFO | 1yrs | US$3.55m | 0.024% $4.0m | |
| Vice Chairman & Head of Commercial Banking Division | 4.5yrs | US$3.93m | 0.045% $7.6m | |
| Chief Risk Officer & Executive VP | 5.2yrs | US$2.18m | 0.018% $3.0m | |
| Executive VP | 1.5yrs | no data | 0.0031% $525.7k | |
| Executive VP and Head of Corporate Finance & Capital Markets for Citizens Commercial Banking | 1.5yrs | no data | no data | |
| Group Chief Information Officer | 1.1yrs | no data | no data | |
| Head of Investor Relations | 0yrs | no data | no data | |
| Chief Legal Officer | 0yrs | US$2.02m | 0.022% $3.7m | |
| Executive VP and Chief Compliance & Ethics Officer | 3.3yrs | no data | no data |
3.1yrs
Average Tenure
57.5yo
Average Age
Experienced Management: CFG's management team is considered experienced (3.1 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 6.3yrs | US$9.41m | 0.19% $32.0m | |
| Vice Chairman & CFO | 1yrs | US$3.55m | 0.024% $4.0m | |
| Independent Director | 15.4yrs | US$251.00k | 0.016% $2.7m | |
| Independent Director | 5.5yrs | US$226.00k | 0.0018% $293.9k | |
| Independent Director | 13.3yrs | US$221.00k | 0.0047% $796.2k | |
| Independent Director | 8.8yrs | US$211.00k | 0.0017% $292.3k | |
| Independent Director | 10.7yrs | US$221.00k | 0.0034% $564.4k | |
| Independent Director | 5.7yrs | US$216.00k | 0.0022% $377.9k | |
| Lead Director | 1.1yrs | US$236.00k | 0.0066% $1.1m | |
| Independent Director | 9.3yrs | US$261.00k | 0.0013% $215.0k |
7.5yrs
Average Tenure
69yo
Average Age
Experienced Board: CFG'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: CFG
- Exchange: NYSE
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| CFG | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Sep 2014 |
| 1C5 | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Sep 2014 |
| 0HYP | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Sep 2014 |
| CFG.PRD | NYSE (New York Stock Exchange) | 6.350% DEP PFD D | US | USD | Jan 2019 | |
| CFG.PRE | NYSE (New York Stock Exchange) | 5% DP RP PFD E | US | USD | Oct 2019 | |
| C1FG34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH REPR 1 COM | BR | BRL | Dec 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/21 01:42 |
| End of Day Share Price | 2020/02/20 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.