Citigroup Inc.

Exchange

NYSE

Sector

Finance

Industry

Major Banks

Market Cap.

193.01B

Current Price

$70.84
-0.56 (-0.78%)

Book Price

$196.28
Undervalued by 177.07%
Financial Institution

Company Metrics

  • P/E 14.18
  • P/S 3.02
  • P/B 0.92
  • EPS 4.99
  • Dividend 0.8 / 1.12%
  • Avg. Vol. 16.47M
  • Shares 2.72B
  • Market Cap. 193.01B

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

Analyst's Predictions on Citigroup Inc. (C), Marathon Oil Corporation (MRO)
StockNewsJournal - 1 hour ago
Citigroup Inc. (C) have shown a high EPS growth of 5.70% in the last 5 years and has earnings decline of -12.50% yoy. Analysts have a mean recommendation of 2.30 on this stock (A rating of less than 2 means buy, “hold” within the 3 range, “sell” within ...
Citigroup: Still Vulnerable Despite Break Higher
Seeking Alpha - Sep 22, 2017
But recent moves in Citigroup (C) have led many dividend investors to question whether this period has run its course, as a relatively predictable part of the summer trading season.
Citigroup: This Won't End Well
Seeking Alpha - Sep 1, 2017
One stock that is now looking particularly vulnerable is Citigroup, Inc. (C), which has yet to overcome its revenue headwinds and still manages to trade near long-term highs.
Citigroup sees third-quarter markets revenue down 15 percent vs year-earlier
Reuters - Sep 11, 2017
NEW YORK (Reuters) - Citigroup Inc (C.N) third-quarter total markets revenue is running about 15 percent less than a year earlier when volatility was boosted by reactions to the Brexit vote and U.S.
Citi sees trading revenue down 15% in Q3 - Seeking Alpha
Citigroup Sees Third-Quarter Trading Revenue Declining 15% - Bloomberg
Citigroup to Pay a Fine for Swap Data Reporting Violations - US CFTC
New York Times - 23 hours ago
WASHINGTON - Citigroup Inc has agreed to pay a $550,000 (406,654.34 pounds) penalty for swap data reporting violations and improve such reporting, the U.S.
Citigroup Inc. (C) is up 2.82% on its 20 DMA while Wright Medical Group NV ...
NY Stock News - 4 hours ago
Citigroup Inc. (NYSE:C) traded at an unexpectedly low on Friday, posting a -0.78% after which it closed the day' session at $70.84.
Strategas: Buy industrials, banks over energy
Seeking Alpha - Sep 25, 2017
While energy staged a bit of a comeback last week, and it was the best-performing sector, Strategas's Chris Verrone and his team think investors shouldn't get too excited.
Citigroup: Back In The Race
Seeking Alpha - Aug 28, 2017
In an article I wrote on the bank quite a while back, I made the argument that Citigroup's efficiency ratio, or operating expenses as a proportion of revenue, was at a high level and at risk of increasing due to rises in the bank's cost base over time ...
Citi Is Bringing Back One of the Most Infamous Bets of the Credit Crisis
Bloomberg - 5 hours ago
The 35-year-old Citigroup Inc. director has spent the past two years meeting clients, speaking at industry panels and becoming the face of a resurgent market for synthetic CDOs -- complex derivatives that let buyers make big, leveraged bets on the ...
Why You Need To Buy This Citi Breakout
Seeking Alpha - Sep 15, 2017
Citigroup (C) has had a strong run higher in recent months, but still remains well below its financial crisis highs. The has a strong global presence, and should benefit as the global economy improves.
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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