Citigroup Inc.

Exchange

NYSE

Sector

Finance

Industry

Major Banks

Market Cap.

165.12B

Current Price

$59.56
-1.06 (-1.75%)

Book Price

$304.40
Undervalued by 411.08%
Financial Institution

Company Metrics

  • P/E 12.62
  • P/S 2.66
  • P/B 0.82
  • EPS 4.72
  • Dividend 0.64 / 1.06 %
  • Avg. Vol. 20.06M
  • Shares 2.77B
  • Market Cap. 165.12B

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 Inc.: Gain An Annual 7+%
Seeking Alpha - Feb 1, 2017
(Editor's Note: Updated 2/1/2017 12:00 p.m. to correct the return calculation.) Opinions on Citigroup Inc. (NYSE:C) are divided.
Citigroup Is Cheap
Seeking Alpha - Feb 15, 2017
Citi has such a PE: similar profitability and risk to peers, lower price for its earnings. From this level of PE Citi offers re-rating risk as well as decent EPS growth.
Just the Facts on Citigroup Inc. (C)
StockNewsJournal - 23 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 $60.62, up from yesterday's close by 0.00%.
Stock on the Move: Citigroup Inc. (NYSE:C) - TopChronicle
OPEC Needs to Prolong Cuts After Swelling Surplus, Citi Says
Bloomberg - Feb 23, 2017
OPEC and its partners probably need to prolong production cuts simply to counteract the glut they created just prior to the deal, according to Citigroup Inc. The Organization of Petroleum Exporting Countries and allies including Russia don't need to ...
Citigroup, Inc. Stock: Its Price Range Likely In Next 3 Months As Seen By Big ...
Seeking Alpha - Feb 14, 2017
Price and Value is not the same thing. Most investing tries to find Value to be bought at a lesser Price, then be held until sold at greater Value.
Analyst Downgrades – Cerner Corporation (NASDAQ:CERN) Stock Gets Downgraded By ...
Market Exclusive - Feb 24, 2017
Today, Cerner Corporation (NASDAQ:CERN) stock was downgraded by Citigroup Inc. from Buy to Neutral. There are 2 sell ratings, 11 hold ratings, 10 buy ratings on the stock.
Citigroup Inc. Lowers Cerner Co. (CERN) to Neutral - Sports Perspectives
Citigroup Inc. downgraded Cerner Corporation (NASDAQ:CERN) to Neutral in a ... - Breaking Finance News
Analyst Upgrades – Danaher (NYSE:DHR) Stock Gets Upgraded By Citigroup Inc ...
Market Exclusive - 15 hours ago
Today, Danaher (NYSE:DHR) stock received an upgrade by Citigroup Inc. from Neutral to Buy with a price target of $98.00. There are 4 hold ratings, 14 buy ratings on the stock.
The Danaher Corp.'s (DHR) “Neutral” Rating Reaffirm at the Citigroup Inc. - DailyQuint
Danaher Co. (DHR) Upgraded to Buy by Citigroup Inc. - The Cerbat Gem
Analyst Downgrades – Equal Energy (NYSE:ENT) Stock Gets Downgraded By ...
Market Exclusive - Feb 22, 2017
Today, Equal Energy (NYSE:ENT) stock was downgraded by Citigroup Inc. from Buy to Neutral. There are 4 hold ratings, 2 buy ratings on the stock.
Equal Energy Ltd. (ENT) Downgraded by Citigroup Inc. to “Neutral” - Community Financial News
Beware, Citigroup Is Not Cheap
Seeking Alpha - Feb 13, 2017
The bank appears to be massively undervalued, trading at a discount to its U.S. peers on key valuation metrics. Analysts generally attribute the discount to Citi's exposure to Asia and LatAm.
Citigroup sets up shop in DC
Seeking Alpha - Feb 23, 2017
The banking giant of course already has plenty of lobbyists in the nation's capital, and this new global regulatory affair team will work alongside.
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
20112012201320142015
Free Cash Flow - - - - -
divided by
Invested Capital 1.87T 1.86T 1.88T 1.84T 1.73T
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 $5.63 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20112012201320142015
Net Income 11.07B 7.54B 13.67B 7.31B 17.24B
divided by
Stockholders' Equity 177.81B 189.05B 204.34B 210.53B 221.86B
Return on Equity 6.22% 3.99% 6.69% 3.47% 7.77%

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
2006200720082009201020112012201320142015
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
2006200720082009201020112012201320142015
Retained Earnings 129.27B 121.92B 86.52B 77.44B 79.56B 90.52B 97.81B 111.17B 118.20B 133.84B
Retained Earnings Growth - -5.68% -29.03% -10.50% 2.74% 13.78% 8.05% 13.66% 6.33% 13.23%

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
2006200720082009201020112012201320142015
Net Income 21.54B 3.62B -27.68B -1.61B 10.60B 11.07B 7.54B 13.67B 7.31B 17.24B
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
2006200720082009201020112012201320142015
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
2006200720082009201020112012201320142015
Capital Expenditure - - - - - - - - - -
divided by
Net Income 21.54B 3.62B -27.68B -1.61B 10.60B 11.07B 7.54B 13.67B 7.31B 17.24B
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
2006200720082009201020112012201320142015
Dividend Paid 9.83B 10.78B 7.53B 3.24B 9.00M 107.00M 143.00M 314.00M 633.00M 1.25B
divided by
Shares Outstanding 4.99B 5.00B 5.80B 12.10B 29.68B 3.00B 3.02B 3.04B 3.04B 3.01B
Dividend Paid Per Share 1.97 2.16 1.30 0.27 0.00 0.04 0.05 0.10 0.21 0.42
Price at Year End 503.06 276.55 67.76 33.16 47.54 26.30 39.01 51.92 54.84 52.30
Dividend Yield 0.39% 0.78% 1.92% 0.81% 0.00% 0.14% 0.12% 0.20% 0.38% 0.80%

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
2006200720082009201020112012201320142015
Shares Outstanding 4.99B 5.00B 5.80B 12.10B 29.68B 3.00B 3.02B 3.04B 3.04B 3.01B
Stock Bought Back - -0.18% -13.80% -52.10% -59.23% 889.67% -0.55% -0.86% 0.15% 0.97%
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