Liabilities Breakdown
| Deposit Liabilities | 167.05 Billion | |
| Total Liabilities | 188.43 Billion | |
| Tax Liabilities | 726.27 Million |
Chances of Citizens (USA Stocks:CFG) to drop in August
 | By Aina Ster | Macroaxis Story |
In the midst of August's market fluctuations, Citizens Financial Group (USA: CFG), a prominent player in the Banks-Regional industry, presents potential investment opportunities. The company, listed on the NYSE, has demonstrated a robust financial performance with a net income applicable to common shares of $2B and an EBITDA of $4.3B. Citizens Financial Group's total operating expenses stand at $585M, with selling, general and administrative expenses accounting for $2.5B. Despite these costs, the company has managed to maintain a healthy cash flow. The end period cash flow is reported at $10.5B, with total cash from operating activities at $4.1B and total cash from financing activities at $9.9B. The company's balance sheet remains strong with total current assets of $316M, net receivables of $1.5B, and cash and cash equivalents changes of $1.4B. The company's retained earnings total equity is $9.2B, contributing to a total equity that includes $2B in preferred stock and $17.1B in other stockholder equity. Citizens Financial Group's forward dividend rate is $1.68, slightly higher than its dividend per share of $1.65, indicating a potential for increased returns for shareholders. The company's valuation market value is $29.11, with a naive expected forecast value of $31.3. Analysts have a highest estimated target price of $44 for the stock, with a possible upside price of $34.11 and a possible downside price of $28.49. The analyst overall consensus for the stock is a 'Buy', with six holds. In conclusion, Citizens Financial Group's strong financial performance and positive analyst consensus present potential opportunities for investors, despite the current market fluctuations. Citizens Financial Group is set to announce its earnings today. The subsequent financial report is anticipated on October 18, 2023. It is projected that the Free Cash Flow of Citizens Financial Group will significantly increase in the forthcoming years. The Free Cash Flow was reported at $3.99 billion last year. The current Market Capitalization is predicted to grow to approximately $20 billion, whereas Average Assets are expected to decline to roughly $208.8 billion. While many traders may be overly focused on analyzing the banking sector, it is sensible to consider Citizens Financial Group as a potential investment option. So, what can Citizens Financial shareholders expect in August?
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Reviewed by Vlad Skutelnik
Citizens Financial Group carries a debt of $15.89 billion, with a debt to equity (D/E) ratio of 6.04. This indicates that Citizens Financial may struggle to generate enough cash to meet all of its financial obligations. While debt can be beneficial for a company like Citizens Financial, it becomes problematic when the company faces difficulties in repaying it, either through raising new capital or generating free cash flow. In such a scenario, shareholders could potentially lose their entire investment if the company fails to meet its legal debt repayment obligations. However, a more common scenario is when companies like Citizens Financial issue additional shares at discounted prices, resulting in dilution for existing shareholders. In this context, debt can be a superior tool for Citizens Financial to invest in high-return growth opportunities. When evaluating Citizens Financial's debt, it is crucial to consider it in conjunction with the company's cash and equity positions.
Detailed assessment
Citizens Financial Group (CFG) presents an interesting investment opportunity in the face of August market fluctuations. With a coefficient of variation of 7.3K and a downside variance of 8.27, CFG exhibits a relatively high risk-return trade-off. Despite this, the company's strong financial position, reflected by its total revenue of $8B and net borrowings of $4.8B, could provide the leverage needed for potential gains. Furthermore, the company's cash and cash equivalents changes of $1.4B and a forward dividend rate of 1.68 suggest potential for future growth and income. However, investors should be mindful of the company's high selling, general and administrative expenses of $2.5B and a net debt of $5B, which could impact its financial stability and profitability. Citizens Financial financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Citizens Financial, including all of Citizens Financial's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Citizens Financial assets, the company is considered highly leveraged. Understanding the composition and structure of overall Citizens Financial debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.Understanding Citizens Total Liabilities
Citizens Financial liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Citizens Financial has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Citizens Financial balance sheet include debt obligations and money owed to different Citizens Financial vendors, workers, and loan providers. Below is the chart of Citizens short long-term liabilities accounts currently reported on its balance sheet. You can use Citizens Financial Group financial leverage analysis tool to get a better grip on understanding its financial positionHow important is Citizens Financial's Liquidity
Citizens Financial financial leverage refers to using borrowed capital as a funding source to finance Citizens Financial Group ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Citizens Financial financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Citizens Financial's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Citizens Financial's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Citizens Financial's total debt and its cash.
What is driving Citizens Financial Investor Appetite?
Citizens Financial reported the last year's revenue of 8.02 B. Total Income to common stockholders was 2.07 B with profit before taxes, overhead, and interest of 7.55 B.
The August market fluctuations present potential opportunities in Citizens Financial Group Stock (USA: CFG). With an impressive EBITDA of $4.27B and Ebit of $3.7B, the company has demonstrated strong operational efficiency. Despite the market volatility, the company has managed to maintain a positive five-year return of 3.60%. Citizens Financial Group has a strong balance sheet with retained earnings total equity of $9.2B and net tangible assets of $13.3B. However, the company carries a substantial debt load with short long term debt total of $15.9B and long term debt of $7.4B.The company's total debt stands at $15.89B. Despite the high debt, the company's price to book ratio of 0.91X and price to earnings to growth of 0.26X indicate that the stock is undervalued. The company's net income stands at $2.07B, indicating profitability. The company's risk-adjusted performance of 0.017 and total risk alpha of -0.11 suggest that the stock has a low risk profile. However, the company's kurtosis of -0.25 and skewness of -0.08 indicate a distribution with lighter tails and less risk of extreme outcomes. In conclusion, Citizens Financial Group Stock presents potential opportunities for investors looking for undervalued stocks with a low risk profile amidst the current market fluctuations. .
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