Citigroup Inc.

Exchange

NYSE

Sector

Finance

Industry

Major Banks

Market Cap.

180.10B

Current Price

$66.10
+0.10 (+0.15%)

Book Price

$196.28
Undervalued by 196.94%
Financial Institution

Company Metrics

  • P/E 13.23
  • P/S 2.81
  • P/B 0.85
  • EPS 4.99
  • Dividend 0.8 / 1.21%
  • Avg. Vol. 16.70M
  • Shares 2.72B
  • Market Cap. 180.10B

Company Description

Citigroup, Inc., a global financial services company, provides consumers, corporations, governments, and institutions with a range of financial products and services. The company operates through two segments, Citicorp and Citi Holdings. The Citicorp segment operates as a global bank for businesses and consumers with two primary businesses, Regional Consumer Banking and Institutional Clients Group... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

Citigroup sets new focus on growth at first investor day since crisis
Reuters - 19 hours ago
NEW YORK (Reuters) - Citigroup Inc (C.N) management outlined an ambitious plan on Tuesday to grow profits and return at least $60 billion to shareholders, setting a new tone at the first major conference the bank has held for investors in over nine years.
Citigroup shares pop 3% as bank kicks off first investor day since financial ... - CNBC
Citigroup Post CCAR Is A Lean, Mean, Buyback Machine
Seeking Alpha - Jul 24, 2017
Citigroup's (C) CCAR results exceeded most analysts' expectations arriving at a total capital return of ~$19 billion with approximately $15.6 billion allocated to EPS accretive share buybacks.
Citigroup tops profit and revenue estimates
MarketWatch - Jul 14, 2017
Citigroup Inc. C, -0.54% said Friday it had net income of $3.9 billion, or $1.28 a share, in the second quarter, down from $4.0 billion, or $1.24 a share, in the year-earlier period.
Citigroup Chooses Frankfurt as New European Trading Hub
Bloomberg - Jul 17, 2017
Follow @Brexit for all the latest news, and sign up to our daily Brexit Bulletin newsletter. Citigroup Inc. has chosen Frankfurt as its newest trading hub in the European Union and plans to present that option to its board of directors this week for ...
Citigroup to Pick Frankfurt as EU Base This Week: Sources - New York Times
Citigroup Needs To Regroup
Seeking Alpha - Jul 17, 2017
The paper edition Wall Street Journal headline on the second quarter earnings of Citigroup, Inc. (NYSE:C) reads “Citigroup Revenue Beats Estimates.
Citigroup Has Done It
Seeking Alpha - Jul 20, 2017
Citigroup (NYSE:C) has just declared its dividend and I have to say, "finally." What do I mean? After facing such financial calamity for so many years and having to pass all sorts of government tests, the company had recently begun to pay a 'real ...
Citigroup Profit Beats on Smaller Drop in Trading Revenue
New York Times - Jul 14, 2017
(Reuters) - Citigroup Inc reported a quarterly profit that beat analysts' estimates as trading revenue held up better than the company's forecast and loans grew.
Citigroup revenue up despite slowdown in trading - MarketWatch
Drilling Down Into Citigroup Inc. (C)
StockNewsJournal - 6 hours ago
Citigroup Inc. (C) is an interesting player in the Financial space, with a focus on Money Center Banks. The stock has been active on the tape, currently trading at $66.10, up from yesterday's close by 0.15%.
Citigroup: Let Me Be Clear About These Results
Seeking Alpha - Jul 14, 2017
Earlier I had this feeling that we would have expected one heck of a rally today in the financials, and this feeling is further bolstered by Citigroup's (NYSE:C) just reported earnings. Like others in the sector, the outperformance relative to ...
Citigroup: Fed Stance Spells Trouble
Seeking Alpha - Jul 17, 2017
This, along with share buybacks and a boost in dividends, has propelled Citigroup Inc. (NYSE:C) to highs near $66.95 and brought renewed attention to a stock that has become increasingly overlooked in the last few months.
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for C to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate C's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

Poor Cash Return on Invested Capital over the past 5 years

C has been unable to consistently generate sufficient returns from its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

C has only created $- of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20122013201420152016
Free Cash Flow - - - - -
divided by
Invested Capital 1.86T 1.88T 1.84T 1.73T 1.79T
Cash ROIC - - - - -

Poor Return on Equity over the past 5 years

C has shown an inability to deliver strong results for shareholders. This could be due to poor management, C operating in a highly competitive industry, or having a weak business in general.

C has only generated $5.71 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20122013201420152016
Net Income 7.54B 13.67B 7.31B 17.24B 14.91B
divided by
Stockholders' Equity 189.05B 204.34B 210.53B 221.86B 225.12B
Return on Equity 3.99% 6.69% 3.47% 7.77% 6.62%

Poor Business Performance over the past 10 years

C's inability to produce positive free cash flow for the majority of the past 10 years is concerning. It should be a red flag, since this company does not have a track record of delivering results for shareholders. This could be due to poor management or the nature of its business.

C has been losing money for the majority of the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Free Cash Flow - - - - - - - - - -

Low or No Reinvestment of Profits over the past 10 years

C has either been retaining a small amount of their earnings or has done so inconsistently. A lack of consistency could be due to C operating at a loss or them having such a strong economic moat they feel comfortable spending profits on growth. Be wary of future prospects and if applicable, inspect the moat's sustainability.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Retained Earnings 121.92B 86.52B 77.44B 79.56B 90.52B 97.81B 111.17B 118.20B 133.84B 146.48B
Retained Earnings Growth - -29.03% -10.50% 2.74% 13.78% 8.05% 13.66% 6.33% 13.23% 9.44%

Highly Competitive Industry over the past 10 years

It's likely that C is in an industry with low barriers to entry, spurring high competition. If Gross Margins are at least satisfactory, it's likely C invests heavily in R&D and Sales, General & Administrative expenses.

Only $- of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Net Income 3.62B -27.68B -1.61B 10.60B 11.07B 7.54B 13.67B 7.31B 17.24B 14.91B
divided by
Revenue - - - - - - - - - -
Net Profit Margin - - - - - - - - - -

Weak Pricing Power over the past 10 years

C is likely in a highly competitive industry, due to low barriers to entry. It's because of this, that C has been unable to raise prices and increase their profitability. This puts them in a poor position if inflation becomes an issue, as they would struggle to pass higher costs onto consumers.

Only $- of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Gross Profit - - - - - - - - - -
divided by
Revenue - - - - - - - - - -
Gross Margin - - - - - - - - - -

Low Capital Intensity over the past 10 years

C has consistently used a small portion of their Net Income buying new equipment or investing in new facilities. This indicates that C may require minimal investment to stay competitive. This leaves them with extra money to spend on growing their business and potentially buying back stock.

-% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Capital Expenditure - - - - - - - - - -
divided by
Net Income 3.62B -27.68B -1.61B 10.60B 11.07B 7.54B 13.67B 7.31B 17.24B 14.91B
Capital Expenditure Ratio - - - - - - - - - -

Very Strong Dividend History over the past 10 years

C has consistently distributed a dividend for at least the past 10 years. Such a long dividend history suggests C is very established in its market and that its dividend distribution is likely to continue for a significant period of time.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Dividend Paid 10.78B 7.53B 3.24B 9.00M 107.00M 143.00M 314.00M 633.00M 1.25B 2.29B
divided by
Shares Outstanding 5.00B 5.80B 12.10B 29.68B 3.00B 3.02B 3.04B 3.04B 3.01B 2.89B
Dividend Paid Per Share 2.16 1.30 0.27 0.00 0.04 0.05 0.10 0.21 0.42 0.79
Price at Year End 276.55 67.76 33.16 47.54 26.30 39.01 51.92 54.84 52.30 59.43
Dividend Yield 0.78% 1.92% 0.81% 0.00% 0.14% 0.12% 0.20% 0.38% 0.80% 1.33%

History of Stock Buybacks over the past 10 years

C has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Shares Outstanding 5.00B 5.80B 12.10B 29.68B 3.00B 3.02B 3.04B 3.04B 3.01B 2.89B
Stock Bought Back - -13.80% -52.10% -59.23% 889.67% -0.55% -0.86% 0.15% 0.97% 4.13%
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