Citizens Financial Group Inc (CFG, Financial) has recently demonstrated a robust performance in the stock market, with a notable 9.09% increase in the past week and an impressive 23.67% gain over the last three months. As of today, the market capitalization stands at $18.71 billion, with the current stock price at $41.11. This recent surge has brought the stock to a valuation that GuruFocus considers fairly valued, with a current GF Value of $40.78, closely aligning with its current market price. This is a shift from three months ago when the stock was considered modestly undervalued with a GF Value of $43.43.
Overview of Citizens Financial Group
Citizens Financial Group Inc, a prominent player in the banking industry, is headquartered in Providence, Rhode Island. The company operates primarily through its two segments: consumer banking and commercial banking. With over 1,100 branches across 14 states and more than $220 billion in total assets, Citizens Financial Group is a key institution in the Northeastern U.S. The bank's primary revenue generator is its Consumer Banking Segment, which offers a variety of retail and commercial products, including capital markets and wealth management options.
Assessing Profitability
Citizens Financial Group's Profitability Rank currently stands at 6/10. The bank's Return on Equity (ROE) is 6.02%, which is better than 28.51% of 1,512 companies in the same sector. Additionally, its Return on Assets (ROA) is 0.64%, surpassing 34.83% of 1,513 companies. Notably, Citizens has maintained profitability for the past 10 years, a feat better than 99.93% of 1,525 companies, showcasing its consistent performance and financial stability.
Growth Metrics and Future Prospects
The Growth Rank for Citizens Financial Group is 6/10. Over the past three years, the company has seen a revenue growth rate per share of 2.30%, which is better than 26.56% of 1,472 companies. Its five-year revenue growth rate per share stands at 5.70%, outperforming 46.54% of 1,401 companies. Looking ahead, the estimated total revenue growth rate for the next three to five years is 3.77%, which is better than 35.28% of 309 companies. The EPS without NRI has grown at 17.20% over the past three years, surpassing 54.85% of 1,360 companies, and the future 3 to 5-year estimated growth rate for EPS is 11.02%, better than 63.31% of 308 companies.
Significant Shareholders and Market Influence
Among the notable shareholders, HOTCHKIS & WILEY holds 15,872,051 shares, accounting for 3.49% of the shares outstanding. Steven Cohen (Trades, Portfolio) owns 2,340,400 shares (0.51%), and Sarah Ketterer (Trades, Portfolio) holds 1,310,199 shares (0.29%). These major investors play a significant role in the company's market activities and investor relations.
Competitive Landscape
Citizens Financial Group competes with several other banks in the industry. Credicorp Ltd (BAP, Financial) has a market cap of $13.51 billion, KeyCorp (KEY, Financial) holds a market cap of $15.42 billion, and Regions Financial Corp (RF, Financial) has a market cap of $20.14 billion. These competitors are closely matched in terms of market capitalization, making the banking sector highly competitive.
Conclusion
In conclusion, Citizens Financial Group Inc's recent stock performance can be attributed to its solid profitability metrics, consistent growth in revenue and EPS, and strategic positioning in the competitive banking industry. The company's ability to maintain a strong financial base, coupled with positive growth projections, makes it a noteworthy contender in the market. As it continues to navigate the challenges and opportunities ahead, CFG remains a significant player to watch in the banking sector.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
