Citizens Financial Stock Fair Value – CITIZENS FINANCIAL Falls Short of Expectations in Q4 Earnings
April 20, 2023
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Citizens Financial ($NYSE:CFG) Group, Inc., a Rhode Island-based regional bank, reported a disappointing fourth quarter earnings report. Additionally, revenue came in at $2.13B, $10M lower than the forecast. This marks the second consecutive quarter where Citizens Financial has failed to meet its expected earnings. Its stock is traded on the New York Stock Exchange under the ticker symbol CFG.
Stock Price
On Wednesday, CITIZENS FINANCIAL announced its fourth-quarter earnings, disappointing investors with its performance. The stock opened at $29.1 and closed at $30.5, up by 0.2% from the last closing price of $30.4. This was lower than analysts’ expectations and fell short of the company’s own expected performance. CITIZENS FINANCIAL’s performance in the fourth quarter was not as strong as hoped, but the company remains determined to push forward and increase shareholder value in the coming year. To achieve this, the company will focus on increasing operational efficiency and launching new products to remain competitive in the market. The company has already taken steps to implement cost saving initiatives which it hopes will improve profits over time.
In addition, CITIZENS FINANCIAL will continue to invest in customer service initiatives, such as enhanced digital banking services, in order to stay ahead of trends and maintain its competitive edge. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Citizens Financial. More…
| Total Revenues | Net Income | Net Margin |
| – | 1.96k | – |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Citizens Financial. More…
| Operations | Investing | Financing |
| 4.12k | -12.64k | 9.91k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Citizens Financial. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 226.73k | 203.04k | – |
Key Ratios Snapshot
Some of the financial key ratios for Citizens Financial are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 7.5% | – | – |
| FCF Margin | ROE | ROA |
| – | – | – |
Analysis – Citizens Financial Stock Fair Value
At GoodWhale, we have recently conducted an analysis of CITIZENS FINANCIAL’s wellbeing. We believe our proprietary Valuation Line gives us a good insight into the intrinsic value of CITIZENS FINANCIAL’s shares, which is currently estimated to be around $39.2. Interestingly, this value is notably greater than the current market rate of CITIZENS FINANCIAL stock traded at $30.5, representing a 22.2% undervaluation. This gap between intrinsic value and market rate could be a valuable opportunity for investors looking to gain from the perceived mispricing. More…
Peers
In recent years, the banking industry has become increasingly competitive. This is especially true for regional banks, which are facing increased competition from larger banks as well as online-only banks. Citizens Financial Group is one of the largest regional banks in the United States, with over $150 billion in assets. The company operates in more than 20 states and has over 1,200 branches. Its main competitors are NBT Bancorp, Keiyo Bank, and Southern Missouri Bancorp. All three of these banks are smaller than Citizens, but they have been growing rapidly in recent years.
– NBT Bancorp Inc ($NASDAQ:NBTB)
NBT Bancorp Inc. is a financial holding company that operates through its subsidiaries, which include NBT Bank, NBT Insurance Agency, and Penn Square Partners. The company has a market capitalization of $1.84 billion as of 2022. NBT Bancorp is headquartered in Norwich, New York and has more than 160 branches across upstate New York, northwestern Vermont, western Massachusetts, and northeastern Pennsylvania. The company’s primary business activities include commercial banking, retail banking, and asset management.
– Keiyo Bank Ltd ($TSE:8544)
Keiyo Bank Ltd is a Japanese bank with a market cap of 62.52B as of 2022. The company has over 2,000 branches and provides banking services to individuals and businesses. Services include savings and checking accounts, loans, credit cards, and investment products.
– Southern Missouri Bancorp Inc ($NASDAQ:SMBC)
Southern Missouri Bancorp Inc is a bank holding company that operates through its subsidiary, Southern Bank. The company offers a range of banking services to clients in Missouri, Arkansas, and Tennessee. As of 2022, the company had a market cap of 499 million dollars.
Summary
Citizens Financial reported earnings of $1.10 non-GAAP earnings per share, missing analyst estimates by $0.03.
Additionally, revenue of $2.13B missed analysts estimates by $10M. Investors may view this as reason for caution, as the company’s performance is falling short of expectations. Additionally, any further dips in performance could result in decreased stock prices. It is important to monitor the company’s performance over the coming months to ensure that Citizens Financial is able to recuperate its losses. Investors should also consider researching the company’s competitors in order to identify potential opportunities for investment.
