Citigroup (C) AI Stock Analysis

• Market Cap: $118.67B
• Dividend Yield: 3.5%
• Average Volume (3M): 16.67M
• Price to Earnings (P/E): 10.6
• Beta (1Y): 1.43
• Revenue Growth: 8.20%
• EPS Growth: 49.26%
• Country: US
• Employees: 226,710
• Sector: Financial
• Sector Strength: 85
• Industry: Banks - Diversified
• EPS (TTM): 5.94
• Shares Outstanding: 1,882,160,000
• 10 Day Avg. Volume: 16,281,079
• 30 Day Avg. Volume: 16,670,486
• PEG Ratio: 0.22
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.90
• Price to Cash Flow (P/CF): 1.40
• P/FCF Ratio: 0.50
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $89.47
• Price Target Upside: 53.91% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 16

Citigroup's stock score reflects a mix of strengths and challenges. Positive financial results and strategic initiatives highlighted in the earnings call are significant factors. However, technical indicators show bearish trends, and cash flow challenges pose risks. The fair valuation and strategic leadership changes offer support for the stock's potential.

Positive Factors

Financial Performance

Citi's 4Q24 earnings beat on surge in investment banking fees and trading revenue.

Operational Efficiency

Expected efficiency improvements with expenses projected to beat expectations, supported by a potential $2 billion benefit from simplification and reduced transformation expenses.

Shareholder Value

Citi raised its quarterly dividend to 56 UScts from 53 UScts per share and announced a USD20bn common share repurchase program.

Negative Factors

Economic Sensitivity

A recession could negatively impact Citi due to its exposure to credit cards and sensitivity to short-term rates.

Profitability

High expenses from ongoing investments continue to weigh on profitability and ROE.

Regulatory Concerns

Ongoing regulatory concerns continue to weigh on investor sentiment despite the group’s commitment to enhancing shareholder value.

Citigroup Business Overview & Revenue Model

Company Description

Citigroup Inc., a diversified financial services holding company, provides various financial products and services to consumers, corporations, governments, and institutions in North America, Latin America, Asia, Europe, the Middle East, and Africa. The company operates in two segments, Global Consumer Banking (GCB) and Institutional Clients Group (ICG). The GCB segment offers traditional banking services to retail customers through retail banking, Citi-branded cards, and Citi retail services. It also provides various banking, credit card, lending, and investment services through a network of local branches, offices, and electronic delivery systems. The ICG segment offers wholesale banking products and services, including fixed income and equity sales and trading, foreign exchange, prime brokerage, derivative, equity and fixed income research, corporate lending, investment banking and advisory, private banking, cash management, trade finance, and securities services to corporate, institutional, public sector, and high-net-worth clients. As of December 31, 2020, it operated 2,303 branches primarily in the United States, Mexico, and Asia. Citigroup Inc. was founded in 1812 and is headquartered in New York, New York.

How the Company Makes Money

Citigroup makes money through its diversified range of financial services across its key segments. The Global Consumer Banking segment generates revenue from consumer loans, deposits, and credit card services. This includes interest income from loans and fees from credit card transactions. The Institutional Clients Group segment earns revenue through investment banking activities such as underwriting and advisory services, trading revenue from market-making activities, and treasury and trade solutions providing liquidity management. Additionally, Citigroup generates income from asset management and wealth management services. Partnerships with other financial entities and strategic investments further contribute to its revenue streams.

Citigroup Financial Statement Overview

Summary

Citigroup shows moderate financial performance. The income statement indicates operational efficiency but highlights the need for improved profitability. The balance sheet is stable with a solid equity base yet carries the risk of high leverage. Cash flow reflects volatility and challenges in maintaining positive free cash flow, impacting long-term liquidity.

Income Statement

Citigroup's income statement reveals a moderate financial performance. The gross profit margin is robust due to a strong revenue base. However, the net profit margin is relatively low, indicating controlled profitability. The revenue growth rate has been inconsistent over the years, with a recent decline. EBIT and EBITDA margins suggest operational efficiency but highlight the need for improved earnings growth.

Balance Sheet

The balance sheet of Citigroup is relatively strong, with a solid equity position. The debt-to-equity ratio is high, typical for banks, indicating significant leverage. The return on equity reflects moderate profitability for equity holders, while the equity ratio suggests a stable financial structure. Overall, the balance sheet demonstrates financial strength but carries potential risks from high debt levels.

Cash Flow

Citigroup's cash flow statement shows a mixed picture. Operating cash flow is volatile, reflecting fluctuating net income and operational activities. Free cash flow has been negative in recent years, impacting the cash flow to net income ratios. The free cash flow growth rate indicates challenges in maintaining positive cash flow, which could affect long-term liquidity.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
71.36B	78.49B	75.31B	71.89B	75.49B
	Gross Profit
71.36B	78.49B	75.31B	71.89B	75.49B
	EBIT
30.23B	22.81B	18.81B	27.47B	13.63B
	EBITDA
17.74B	27.37B	23.07B	31.43B	0.00
	Net Income Common Stockholders
12.68B	9.23B	14.85B	21.95B	11.05B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
22.78B	241.91B	325.05B	248.61B	282.24B
	Total Assets
2.36T	2.41T	2.42T	2.29T	2.26T
	Total Debt
287.30B	324.08B	318.70B	282.35B	301.20B
	Net Debt
264.52B	63.14B	-6.35B	33.74B	18.96B
	Total Liabilities
2.15T	2.21T	2.21T	2.09T	2.06T
	Stockholders Equity
208.60B	205.45B	201.19B	201.97B	199.76B
Cash Flow		Free Cash Flow
-26.17B	-80.00B	19.44B	57.13B	-24.07B
	Operating Cash Flow
-19.67B	-73.42B	25.07B	61.25B	-20.62B
	Investing Cash Flow
86.25B	-8.46B	-79.45B	-124.91B	-95.31B
	Financing Cash Flow
-38.30B	687.00M	137.76B	17.27B	233.59B

Citigroup Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 58.13
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For C, the sentiment is Negative. The current price of 58.13 is below the 20-day moving average (MA) of 69.63, below the 50-day MA of 75.50, and below the 200-day MA of 67.29, indicating a bearish trend. The MACD of -1.16 indicates Negative momentum. The RSI at 41.68 is Neutral, neither overbought nor oversold. The STOCH value of 28.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for C.

Citigroup Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HSBC	81 Outperform	$183.61B	8.57	13.74%	6.13%	6.79%	8.57%
JPM	79 Outperform	$639.44B	11.58	17.28%	2.10%	17.07%	21.78%
MUFG	71 Outperform	$140.35B	11.05	9.70%	2.93%	13.21%	-12.06%
WFC	71 Outperform	$214.42B	12.24	10.81%	2.36%	7.87%	11.69%
BAC	70 Neutral	$283.05B	11.58	9.24%	2.74%	13.06%	4.94%
C	66 Neutral	$118.67B	10.61	6.04%	3.50%	8.20%	49.26%
Sector *	63 Neutral	$14.39B	9.81	8.95%	4.37%	16.38%	-11.64%

Citigroup Corporate Events

Citigroup Appoints Nicole Giles as Chief Accounting Officer

On February 13, 2025, Citigroup announced the appointment of Nicole Giles as the Chief Accounting Officer effective February 21, 2025, and Controller effective immediately. Ms. Giles, with a strong background from J.P. Morgan Chase & Co., will replace Robert Walsh and Patrick Scally in their interim roles at Citi. This strategic appointment is part of Citi’s ongoing efforts to strengthen its financial leadership, potentially impacting its operational efficiency and stakeholder relations.

Citigroup Appoints Titilope Cole to Board of Directors

On January 31, 2025, Citigroup’s Board of Directors appointed Titilope Cole as a new director and assigned her to several key committees, reflecting her significant experience in financial services and her previous role as Head of Legacy Franchises. This strategic move comes ahead of Barbara Desoer’s planned departure from the Board, with Cole’s expertise expected to contribute significantly to Citi’s governance and strategic initiatives.