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Citigroup (C)
NYSE:C
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Citigroup
(NYSE:C)73Outperform
Positive Factors
Earnings
4Q24 earnings beat on surge in investment banking fees and trading revenue.
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
Regulatory Concerns
Ongoing regulatory concerns continue to weigh on investor sentiment despite the group’s commitment to enhancing shareholder value.
Citigroup (C) vs. S&P 500 (SPY)
Market Cap
$136.34B
Dividend Yield2.86%
Average Volume (3M)14.80M
Price to Earnings (P/E)12.2
Beta (1Y)1.24
Revenue Growth8.20%
EPS Growth49.26%
CountryUS
Employees229,000
SectorFinancial
Sector Strength93
IndustryBanking
Share Statistics
EPS (TTM)5.94
Shares Outstanding1,884,479,500
10 Day Avg. Volume16,278,189
30 Day Avg. Volume14,797,419
Financial Highlights & Ratios
PEG Ratio0.25
Price to Book (P/B)N/A
Price to Sales (P/S)2.04
Price to Cash Flow (P/CF)1.50
P/FCF Ratio0.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$90.68Price Target Upside24.29% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering17
Citigroup Business Overview & Revenue Model
Company DescriptionFounded in 1812, New York-based Citigroup, Inc. is a financial services holding company, which provides financial products and services. It operates through the following segments: Global Consumer Banking; Institutional Clients Group; and Corporate/Other.
How the Company Makes MoneyCitigroup 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's financial performance shows mixed results. The income statement indicates operational efficiency with room for profitability improvement. The balance sheet is stable but heavily leveraged, and cash flow metrics highlight volatility with challenges in maintaining positive free cash flow. Overall, Citigroup needs to enhance profitability and cash flow management.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.65
Positive
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.70
Positive
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.50
Neutral
| 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 | 0.00 | 0.00 | 0.00 | 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 | |||
| 0.00 | -80.00B | 19.44B | 57.13B | -24.07B | Operating Cash Flow |
| 0.00 | -73.42B | 25.07B | 61.25B | -20.62B | Investing Cash Flow |
| 0.00 | -8.46B | -79.45B | -124.91B | -95.31B | Financing Cash Flow |
| 0.00 | 687.00M | 137.76B | 17.27B | 233.59B |
Citigroup Technical Analysis
Negative
72.96
Price Trends
77.04
Negative
71.97
Positive
66.27
Positive
Market Momentum
-0.78
Positive
34.12
Neutral
15.00
Positive
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 72.96 is below the 20-day moving average (MA) of 80.00, below the 50-day MA of 77.04, and above the 200-day MA of 66.27, indicating a neutral trend. The MACD of -0.78 indicates Positive momentum. The RSI at 34.12 is Neutral, neither overbought nor oversold. The STOCH value of 15.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for C.
Citigroup Risk Analysis
Citigroup disclosed 29 risk factors in its most recent earnings report. Citigroup reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Citigroup Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $699.73B | 12.67 | 16.96% | 1.84% | 17.07% | 21.78% | |
77 Outperform | $196.32B | 15.32 | 12.79% | 2.81% | 9.17% | 53.77% | |
74 Outperform | $241.02B | 13.66 | 11.01% | 2.01% | 7.87% | 11.69% | |
74 Outperform | $181.34B | 14.33 | 11.70% | 2.02% | 14.80% | 77.97% | |
73 Outperform | $136.34B | 12.17 | 6.08% | 2.86% | 8.20% | 49.26% | |
72 Outperform | $324.49B | 13.28 | 9.18% | 2.34% | 13.06% | 4.94% | |
64 Neutral | $14.34B | 10.61 | 9.28% | 4.07% | 18.04% | -9.54% |
* Financial Sector Average
Performance Comparison
C
Citigroup
72.96
17.58
31.74%
BAC
Bank of America
42.29
7.51
21.59%
JPM
JPMorgan Chase & Co.
251.53
66.24
35.75%
MS
Morgan Stanley
123.75
40.84
49.26%
WFC
Wells Fargo
74.16
18.41
33.02%
GS
Goldman Sachs Group
593.07
211.91
55.60%
Citigroup Earnings Call Summary
Earnings Call Date: Jan 15, 2025 | % Change Since: -0.04% | Next Earnings Date: Apr 15, 2025
Earnings Call Sentiment Positive
Citi reported strong financial results for 2024 with significant revenue and net income growth, supported by successful strategic initiatives. However, the adjustment of the 2026 RoTCE target and challenges in the banking segment indicate areas requiring attention. Despite these issues, the overall sentiment leans positive, driven by robust market performance and strategic clarity.Highlights
Strong Full Year Performance
Net income was up nearly 40% to $12.7 billion, with revenues up 5% ex-divestitures and fee revenue up 17%.
Record Market Performance
Markets were up 6%, with equities up 26%, marking a record year for Citi in a low volatility environment.
Successful Share Repurchase Program
Citi returned almost $7 billion in capital to shareholders in 2024 and announced a $20 billion share repurchase program.
Positive Operating Leverage Across Businesses
All five core businesses generated positive operating leverage for the full year.
Wealth Management Growth
Revenue was up 7% for the year, including fee growth of 18%, with net new investment asset flows growing by 40%.
Lowlights
Lower Than Expected 2026 Return Target
The 2026 RoTCE target was adjusted to between 10% and 11%, indicating a slower path to improved returns.
Challenges in Banking Segment
Corporate lending revenues decreased by 24%, driven by lower revenue share and volumes.
High Transformation Costs
Transformation investments were up 1%, with increased expenses for technology and transformation expected to continue.
Impact of Catastrophic Wildfires
Citi acknowledged the impact of wildfires in Los Angeles on clients and colleagues, which may affect future credit and operational costs.
Company Guidance
During Citi's Q4 2024 earnings call, the management provided comprehensive guidance on various metrics and financial targets. They reported a full-year net income increase of nearly 40% to $12.7 billion, with revenues rising 5% excluding divestitures. The return on tangible common equity (RoTCE) grew by over 200 basis points. For 2025, they anticipate revenues to be around $83.5 to $84.5 billion, representing a 3% to 4% increase, while expenses are expected to slightly decline from the 2024 level. They also aim to achieve a RoTCE of 10% to 11% by 2026, emphasizing that this is a waypoint rather than a final destination. Additionally, Citi announced a $20 billion share repurchase program, demonstrating their confidence in ongoing earnings momentum and commitment to returning capital to shareholders.Citigroup Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Citigroup Appoints Nicole Giles as Chief Accounting Officer
Positive
Feb 18, 2025
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.
Executive/Board Changes
Citigroup Appoints Titilope Cole to Board of Directors
Neutral
Feb 3, 2025
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.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.