Citigroup Inc.

Exchange

NYSE

Sector

Finance

Industry

Major Banks

Market Cap.

194.33B

Current Price

$73.50
-0.28 (-0.38%)

Book Price

$196.28
Undervalued by 167.05%
Financial Institution

Company Metrics

  • P/E 14.19
  • P/S 3.05
  • P/B 0.94
  • EPS 5.18
  • Dividend 1.28 / 1.73%
  • Avg. Vol. 15.47M
  • Shares 2.64B
  • Market Cap. 194.33B

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 Faces Saudi Setback as Billionaire Backer Arrested
Bloomberg - Nov 6, 2017
Alwaleed's arrest is “likely to make things more difficult for Citigroup in Saudi due to companies and individuals being cautious of any association,” said Emad Mostaque, co-chief investment officer of emerging-markets hedge fund Capricorn Fund ...
Citigroup, UBS Are Among the Banks Most Exposed to Wealthy Saudi
Bloomberg - Nov 14, 2017
Citigroup Inc. and UBS Group AG are among international banks managing the largest share of assets for wealthy Saudis, some of whom are being investigated as part of a government probe into alleged corruption, according to people familiar with the ...
Citigroup: It Can Rise To $80
Seeking Alpha - Oct 30, 2017
With the earnings beat of Citigroup Inc. (C) and news of tax reform, yields have pushed higher and so too have bank stocks.
Citigroup's Corbat Sees Saudi Progress Despite Alwaleed's Arrest
Bloomberg - Nov 8, 2017
Citigroup, which lost its Saudi investment banking license by selling its stake in Samba Financial Group in 2004, got a new license in April.
Citigroup: The Risks Are Growing
Seeking Alpha - Oct 27, 2017
In terms of volatility, stocks like Citigroup (C) find themselves in a position where the Federal Reserve could significantly alter interest rate expectations and any major changes here could bring an end to the strong rally that is currently in place ...
Citigroup: Undervalued Stock With Improving Fundamentals
Seeking Alpha - Nov 10, 2017
What can be better than an undervalued stock? An undervalued stocks that is also showing improving financial performance. Introducing a quantitative system focused on cheap stocks that are also enjoying upward revisions to earnings estimates ...
Analyst's Predictions on PayPal Holdings, Inc. (PYPL), Citigroup Inc. (C)
StockNewsJournal - Nov 20, 2017
Citigroup Inc. (NYSE:C), maintained return on investment for the last twelve months at 0.00, higher than what Reuters data shows regarding industry's average.
PayPal Holdings, Inc. (PYPL) Receives “Buy” Rating from Citigroup Inc. - The Ledger Gazette
3 Big Stock Charts for Friday: Bank of America Corp, Citigroup Inc and ...
Investorplace.com - Nov 10, 2017
Today's three big stock charts looks at Bank of America Corp (NYSE:BAC), Citigroup Inc (NYSE:C) and JPMorgan Chase & Co.
Davis Capital Partners, Llc Buys Signature Bank, Citigroup Inc, People's Utah ...
Nasdaq - Nov 14, 2017
Davis Capital Partners, Llc initiated holdings in Citigroup Inc. The purchase prices were between $65.95 and $72.74, with an estimated average price of $68.28.
Lipe & Dalton Buys Citigroup Inc, Synchrony Financial, McKesson Corp, Sells ...
Nasdaq - Nov 3, 2017
Lipe & Dalton initiated holdings in Citigroup Inc. The purchase prices were between $65.95 and $72.74, with an estimated average price of $68.28.
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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