Citigroup Inc.

Exchange

NYSE

Sector

Finance

Industry

Major Banks

Market Cap.

170.89B

Current Price

$62.07
+0.12 (+0.19%)

Book Price

$196.28
Undervalued by 216.22%
Financial Institution

Company Metrics

  • P/E 12.51
  • P/S 2.67
  • P/B 0.82
  • EPS 4.96
  • Dividend 0.64 / 1.03%
  • Avg. Vol. 17.05M
  • Shares 2.75B
  • Market Cap. 170.89B

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 CCAR: U.S. Tax Reform And Dividend Vs. Buyback Question
Seeking Alpha - 22 hours ago
I will cover this topic at length for Citigroup and Bank of America (NYSE:BAC) in future articles - but in this piece, I would like to focus on an important decision Mr. Corbat had to take on the mix between dividends and buybacks, in its capital plan ...
Citigroup Is Outperforming The Big Banks
Seeking Alpha - May 26, 2017
Citigroup's (NYSE:C) stock has outperformed its U.S. money center peers [Bank of America (NYSE:BAC), JPMorgan (NYSE:JPM), Goldman Sachs (NYSE:GS) and Morgan Stanley (NYSE:MS)] in the last three months.
Citigroup to Tap Nasdaq for Blockchain Payment Technology
Wall Street Journal (subscription) - May 22, 2017
The two companies said they have been working together, along with technology startup Chain Inc., for months to link Citigroup's business payments services to Nasdaq's blockchain platform that has been used for activities such as buying and selling shares.
Citi to partner with Nasdaq on blockchain banking integration - Seeking Alpha
Citigroup Inc (NYSE:C) HEFFX Highlights
Live Trading News - May 18, 2017
Citigroup Inc. (Citi) is a financial services holding company. The Company's whose businesses provide consumers, corporations, governments and institutions with a range of financial products and services, including consumer banking and credit ...
Analysts' Activity to Watch: Citigroup Inc (NYSE:C)
ExpertGazette - 22 hours ago
Citigroup Inc (NYSE:C) shares traded 0.19% up during most recent session to reach at the closing price of $62.07. The stock exchanged hands 10.85 Million shares versus average trading capacity of 17.15 Million shares, yielding a market cap of $170.89 ...
Citigroup Offers The Best Big Bank Buying Opportunity Today
Seeking Alpha - May 17, 2017
A healthy banking system is one of the three pillars of economic growth. I'm bullish on Citigroup (NYSE: C) due to President Trump's bank friendly policies, a rising rate environment, and the bank's legal and regulatory issues coming to an end ...
Citigroup Inc. (C): From Top to Bottom
StockNewsJournal - May 25, 2017
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 $62.27, up from yesterday's close by 0.91%.
Citigroup Inc. closed with a change of 0.91% in the Previous Trading Session - Free Observer
14654 Shares in Citigroup Inc (C) Acquired by Advisory Services Network LLC
The Cerbat Gem - 22 hours ago
Citigroup logo Advisory Services Network LLC purchased a new position in Citigroup Inc (NYSE:C) during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC).
Citigroup Inc (C) is Aquamarine Capital Management LLC's 10th Largest Position - Chaffey Breeze
Citigroup Inc (C) Short Interest Down 12.1% in April - BBNS
US Justice Dept., Citigroup settle probe into Banamex USA
Reuters - May 22, 2017
NEW YORK The U.S. Department of Justice and Citigroup Inc (C.N) said on Monday that they have settled a criminal investigation into violations of anti-money laundering rules and the Bank Secrecy Act at the bank's Banamex USA unit.
Citigroup Settles With Justice Department Over Money Laundering - Wall Street Journal (subscription)
Citigroup (C) Settles Money Laundering Probe, To Pay $97M - Zacks.com
Today Analysts Focus on The Manitowoc Company, Inc. (MTW), Citigroup Inc. (C)
StockNewsJournal - May 26, 2017
Citigroup Inc. (NYSE:C), maintained return on investment for the last twelve months at -, higher than what Reuters data shows regarding industry's average.
Today Analysts Focus on The Manitowoc Company, Inc. (MTW), Citigroup Inc - AppsforPCdaily
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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