NYSE:CFG

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

Fundamentals

Flawless balance sheet average dividend payer.


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


Market Performance


7 Day Return

3.8%

NYSE:CFG

2.4%

US Banks

2.9%

US Market


1 Year Return

-20.6%

NYSE:CFG

-14.8%

US Banks

0.2%

US Market

CFG underperformed the Banks industry which returned -15.3% over the past year.

CFG underperformed the Market in United States of America which returned -0.7% over the past year.


Share holder returns

CFGIndustryMarket
7 Day3.8%2.4%2.9%
30 Day-12.3%-6.3%-2.3%
90 Day-5.3%-2.1%3.1%
1 Year-17.7%-20.6%-12.4%-14.8%2.4%0.2%
3 Year48.5%37.9%41.7%32.0%41.7%32.4%
5 Yearn/a52.2%35.7%55.1%37.9%

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

Valuation

Is Citizens Financial Group undervalued based on future cash flows and its price relative to the stock market?

14%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Citizens Financial Group's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Citizens Financial Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Citizens Financial Group is good value based on earnings compared to the US Banks industry average.

Citizens Financial Group is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Citizens Financial Group is poor value based on expected growth next year.


Price Based on Value of Assets

Citizens Financial Group is good value based on assets compared to the US Banks industry average.


Next Steps

Future Growth

How is Citizens Financial Group expected to perform in the next 1 to 3 years based on estimates from 17 analysts?

0.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Citizens Financial Group's revenue is expected to grow by 3.3% yearly, however this is not considered high growth (20% yearly).

Citizens Financial Group's earnings are expected to grow by 0.9% yearly, however this is not considered high growth (20% yearly).

Citizens Financial Group's revenue growth is positive but not above the United States of America market average.

Citizens Financial Group's earnings growth is positive but not above the United States of America market average.

Citizens Financial Group's earnings growth is positive but not above the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Citizens Financial Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

20.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Citizens Financial Group has delivered over 20% year on year earnings growth in the past 5 years.

Citizens Financial Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Citizens Financial Group's 1-year earnings growth is negative, it can't be compared to the US Banks industry average.


Return on Equity

Citizens Financial Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Citizens Financial Group used its assets more efficiently than the US Banks industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if Citizens Financial Group improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.


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

Information is not available.

Information is not available.


Financial Institutions Analysis

Citizens Financial Group has an acceptable proportion of non-loan assets held.

Citizens Financial Group has a sufficient allowance for bad loans.

Citizens Financial Group's liabilities are made up of primarily low risk sources of funding.

Citizens Financial Group's level of assets compared to its equity is low (i.e. an appropriate level of borrowing to fund lending).

Loans at Citizens Financial Group are broadly funded by customer deposits.

Citizens Financial Group has an acceptable level of bad loans (less than 2%).


Next Steps

Dividend

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

4.56%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Citizens Financial Group's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Citizens Financial Group's dividend is above the markets top 25% of dividend payers in United States of America (3.85%).

Whilst dividend payments have been stable, Citizens Financial Group has been paying a dividend for less than 10 years.

Dividend payments have increased, but Citizens Financial Group only paid a dividend in the past 5 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3.2x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.6x coverage).


Next Steps

Management

What is the CEO of Citizens Financial Group's salary, the management and board of directors tenure and is there insider trading?

2.4yrs

Average management tenure


CEO

Bruce Van Saun (62yo)

5.8yrs

Tenure

US$9,405,933

Compensation

Mr. Bruce W. 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 October 1, 2 ...


CEO Compensation Analysis

Bruce's remuneration is about average for companies of similar size in United States of America.

Bruce's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.4yrs

Average Tenure

57yo

Average Age

The tenure for the Citizens Financial Group management team is about average.


Board Age and Tenure

7.0yrs

Average Tenure

69yo

Average Age

The tenure for the Citizens Financial Group board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyUS$105,96023 Nov 18
Shivan Subramaniam
EntityIndividual
Role
Lead Director
Lead Director
Shares3,000
Max PriceUS$35.32
BuyUS$508,48025 Oct 18
Charles Koch
EntityIndividual
Role
Member of the Board of Directors
Director
Shares14,000
Max PriceUS$36.32

Ownership Breakdown


Management Team

  • Bruce Van Saun (62yo)

    Chairman

    • Tenure: 5.8yrs
    • Compensation: US$9.41m
  • Malcolm Griggs (58yo)

    Chief Risk Officer & Executive VP

    • Tenure: 4.7yrs
    • Compensation: US$2.18m
  • Don McCree (57yo)

    Vice Chairman & Head of Commercial Banking Division

    • Tenure: 4.0yrs
    • Compensation: US$3.93m
  • John Woods (55yo)

    Vice Chairman & CFO

    • Tenure: 0.5yrs
    • Compensation: US$3.55m
  • Brad Conner (57yo)

    Vice Chairman of Consumer Banking

    • Tenure: 0.0yrs
    • Compensation: US$3.13m
  • Ellen Taylor

    Head of Investor Relations & Executive VP

    • Tenure: 0.0yrs
  • Stephen Gannon (66yo)

    Chief Legal Officer

    • Tenure: 0.0yrs
    • Compensation: US$2.02m
  • Craig Read (50yo)

    Executive VP

    • Tenure: 1.0yrs
  • Ted Swimmer

    Executive VP and Head of Corporate Finance & Capital Markets for Citizens Commercial Banking

    • Tenure: 1.0yrs
  • Michael Ruttledge

    Group Chief Information Officer

    • Tenure: 0.6yrs

Board Members

  • Bud Koch (72yo)

    Director

    • Tenure: 14.9yrs
    • Compensation: US$251.00k
  • Lee Higdon (73yo)

    Director

    • Tenure: 5.0yrs
    • Compensation: US$226.00k
  • Bruce Van Saun (62yo)

    Chairman

    • Tenure: 5.8yrs
    • Compensation: US$9.41m
  • Bill Hankowsky (68yo)

    Director

    • Tenure: 12.8yrs
    • Compensation: US$221.00k
  • Marita Zuraitis (59yo)

    Director

    • Tenure: 8.3yrs
    • Compensation: US$211.00k
  • Hoddy Hanna (72yo)

    Director

    • Tenure: 10.2yrs
    • Compensation: US$221.00k
  • John Woods (55yo)

    Vice Chairman & CFO

    • Tenure: 0.5yrs
    • Compensation: US$3.55m
  • Mark Casady (59yo)

    Director

    • Tenure: 5.2yrs
    • Compensation: US$216.00k
  • Shivan Subramaniam (70yo)

    Lead Director

    • Tenure: 0.6yrs
    • Compensation: US$236.00k
  • Wendy Watson (71yo)

    Director

    • Tenure: 8.8yrs
    • Compensation: US$261.00k

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$14.575b
  • Shares outstanding: 447.09m
  • 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

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 servic ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/22 00:45
End of Day Share Price2019/08/21 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.