• Twitter
• Facebook
• Snapchat
• Pinterest
• LinkedIn
• Tumblr

---

Fundamental analysis: Citizens Financial Group, Inc. (CFG)

Awarener score: 5.1

Conclusion

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 6.0

• Business growth has been almost stagnant. It's been similar to peer companies.
• Citizens Financial Group, Inc. business trend stability is good. The higher the stability, the lower the risk. It looks slightly better than rivals.

Margins score: 8.3

• CFG profit margins -on goods and services sold- are usually meagre. They stand slightly worse than rival companies.
• Business profit on sales tends to be very good. It's below average when measured against competitors.
• Profits on sales made -available to repay debt and purchase properties- are usually huge. They remain rather normal in relation to peers.
• Earnings -before income taxes and interests on loans taken- tend to be huge in relation to total revenues. They're still somewhat worse than similar companies.
• Profits -before income taxes- are usually excellent considering total sales, and remain below average when measured against rivals.
• Total net profit tends to be excellent when confronted to sales. Company stands below average when measured against comparable firms.

Growth score: 5.6

• Citizens Financial Group, Inc. profit -on goods and services sold- has been growing at an extremely fast pace. It's been excellent in relation to competitors.
• In recent years, earnings -on operations- have been growing at an extremely fast step, which has been better than most comparable firms.
• Profits -available to repay debt and purchase properties- have been growing at a very low pace, which compares almost average when measured against peer enterprises.
• Earnings -before income taxes and interests on loans taken- have been growing at a very low tempo. It turns to be close to average when compared to similar stocks.
• In past years, profits -before income taxes- grew at a very low speed. It was somewhat worse than rivals.
• In the previous years, growth on total net profit has been very low, and below average when measured against peer companies.
• Earnings per share have been almost stagnant in past years. It's been lacking compared to industry peers.

Miscellaneous score: 6.0

• CFG had to pay sparse income taxes in relation to profits made in the past years. It's been slightly better than peers.
• The company does not report R&D expenses. It's meaningless to measure in relation to competitors.
• We have insufficient data to estimate how effective is research and development effort. It stands unknown against rival companies.

Profitability score: 6.0

• Citizens Financial Group, Inc. usually gets hardly sufficient returns on the resources it controls. It proves almost average when measured against peer firms.
• The company normally gets good proceeds -on the resources directly invested in the business-. They remain in a weak position compared to similar companies.
• Profitability -in relation to owned resources- is usually quite good. It ranks weak when measured against competitors.
• In the past, got barely sufficient returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's almost average when measured against comparable enterprises.

Usage of Funds score: 3.6

• CFG on average doesn't generate genuine funds, so to buy or replace property, plants and equipment must either burn existing cash or increase debt. It stands almost average when measured against rival firms.
• The company is usually replacing part of the property, plant, and equipment that gets old, keeping some funds for something else. It can't keep forever, which is substantially worse when measured against industry peers.
• In the past twelve months it paid excellent dividends, considering the current stock price. It came top-notch against competitors.
• Has increased dividend payments in the past years. Business prospects may have improved. The company has behaved a slight improvement compared to similar firms.
• The company generates very few genuine funds. Dividend payments are usually on borrowed money, which isn't sustainable in the long run. Unless business prospects improve greatly, future payments could be at risk. Sustainability looks bottom tier against comparable companies.
• The company somewhat enlarges a bit the pool of investors, resulting in more mouths feeding on the pie of profits. It remains lacking compared to peer enterprises.
• Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands a disappointment compared to rivals.
• The company generates very few genuine funds. Investor rewards must be paid burning existing cash or by borrowing money, which isn't sustainable in the long run. Unless business prospects improve greatly, stockholder compensation could be at risk. It still looks last-in-rank when measured against competitors.

Balance Sheet score: 6.3

• Citizens Financial Group, Inc. intangible assets (like brands and goodwill) represent some portion of resources controlled, according to accounting books. There could be some difficulties in liquidating them if the company ever gets in financial distress. It happens to be substantially worse when measured against peer companies.
• The company has plenty short-term resources to face short-term obligations. There're no liquidity concerns. It turns to be a slight improvement compared to similar firms.
• A very minor portion of resources controlled were provided for with financial debt. Financial strength is solid. Company could increase debt if it wished so, to reinvest in business, to buy a smaller company or to reward stockholders. It remains somewhat worse than rival firms.
• Most controlled resources might be only slowly turned into cash and equivalents, which is risky. It looks similar to rivals.
• For every dollar of short-term obligations, the company has plenty of dollars in cash and short-term receivables. It's a slight improvement compared to peer firms.
• For every dollar of short-term obligations, the company has plenty of dollars in cash and equivalents, which is well ranked against similar enterprises.
• Usually, sales are on slightly higher than two months credit. It still ranks below average when measured against peers.
• Normally has no inventories. It comes up as impressive in relation to competitors.
• On average, it takes less than three months from the purchase to charging customers. It happens to be worse than most peers.
• Pays suppliers mostly in cash. It ranks last-in-rank when measured against industry peers.
• The company pays its suppliers roughly two months before charging its customers, so there's some money invested in working capital. It's a disappointment compared to similar companies.
• Company earns net interest income on its investments and therefore is in a quite comfortable financial position. It stands top-notch against rival firms.
• Business earnings have usually been reasonable when measured against loans taken. Cutting back reinvesting in the business, it could take more than five years to repay the obligations with current profitability. It ranks almost average when measured against comparable enterprises.
• Revenues are very good in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. Low property, plant, and equipment requirements allows the company to keep more money to reward stockholders in the long run. It looks impressive in relation to similar firms.
• Resources exploitation is virtually zero, as the firm hardly reports any sales. It's still well ranked against peer companies.

Valuation score: 7.8

• Citizens Financial Group, Inc. looks extremely cheap in relation to profits and financial position. It happens to be top tier when measured against competitors.
• Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains in good shape compared to peers.
• In the past twelve months, the company generated extraordinary free funds in relation to the stock price, which stands top-notch against similar companies.
• The company usually consumes plenty more funds than can genuinely generate. Business needs are meet by borrowing money or consuming preexistent cash, which can only keep up until a certain limit. Unless the company is driving outstanding business growth, genuine profitability may be brought into question. It's still last-in-rank when measured against industry firms.
• In the past twelve months, the company has significantly enlarged the pool of investors by issuing new shares. Future profits need to be high enough to justify the measure, as the pie of earnings will now be split among numerous more stockholders. It came up in a very weak position compared to peer ventures.
• This company is sitting in a mountain of cash. It's very well poised to substantially increase stockholder payments, or to fund new business projects. It looks top-notch against similar enterprises.
• Considering the past twelve months, traditional Price-to-Earnings relation looks very cheap. Possible reasons are that the market might be betting current earnings will be hard to sustain through time, or that the company has very high fund needs, or a weak financial position, among others. If that isn't the case, the current stock price might be very attractive. It ranks more than average in relation to peer companies.
• Comparing the current stock price with the past twelve-months revenues gives a roughly two to one relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks excellent in relation to rival firms.
• The stock price is at or below the accounting book value. Unless profitability is really low, the stock may be selling a t a discount. Pay attention to the other key indicators for hints. The company remains top-notch against peer firms.
• In the past twelve months, the operating business earned huge money when compared to the current stock price and financial position. It happens to be top tier when measured against industry peers.
• In an alternate metric of bang for the buck, the company has usually shown an extreme earnings power ability when measured against the current stock price and financial position. Further analysis is recommended, as the stock might currently be significantly undervalued. It's still impressive in relation to peer companies.

Total score: 6.2

---

Awarener score: 5.1

Conclusion

Support us!

We are an independent project. No ads, no suscription, no registration required.

• Donate!