| 2021 | 2022 | 2023 | 2024 (projected) | Interest Expense | 339M | 1.0B | 4.0B | 4.2B | Depreciation And Amortization | 625M | 565M | 478M | 424.3M |
What May volatility we project for Citizens (USA Stocks:CFG)?
 | By Raphi Shpitalnik | Macroaxis Story |
Citizens Financial Group (NYSE: CFG) has demonstrated a low-risk profile with a Coefficient of Variation at 9.3K and a Mean Deviation of 1.51, indicating a relatively stable performance. However, the Total Risk Alpha of 0.033 suggests a slight potential for unexpected risk. The company's stock price has seen a minor decrease of 0.59, but the overall market risk adjusted performance remains positive at 0.0183. Investors should monitor the situation closely through May to see if the bank maintains its low-risk outlook.
Main Points
Citizens Financial Group holds approximately $9.77 billion in cash, with a positive cash flow from operations of $2.96 billion. This results in a cash-per-share (CPS) ratio of 19.71.Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.
Reviewed by Michael Smolkin
The calm before the storm? Citizens Financial Group (NYSE: CFG), a prominent player in the domestic primary banks sector, continues to maintain a low-risk profile as we enter May. The company, which wrapped up its fiscal year in December, currently trades at a typical day price of $32.44, slightly above its real value of $32.28 and marginally higher than its valuation hype value of $32.39. Despite a daily balance of power leaning towards the negative at -0.74 and a period momentum indicator showing a loss of 0.59, the stock's volatility seems relatively subdued. The accumulation distribution of 151.3K also indicates a steady flow of the stock. However, with a possible upside price of $34.24 and a downside of $30.3, investors need to keep a close eye on this stock. The analyst consensus leans towards a 'Buy', with 8 strong buys, 2 buys, and 11 holds. With an estimated target price of $31.68, and a range from $28.83 to $35.16, Citizens Financial Group seems to be on a steady path, at least for now. Citizens Financial Group is generating daily returns of 0.0725%, assuming a volatility of 1.9709% over a 90-day investment horizon. Despite many traditional traders steering clear of the banking sector, it's worthwhile to delve deeper into Citizens Financial Group to understand its current volatility patterns. We'll examine the potential for this volatility to persist through May. The company's very low volatility is unlikely to significantly impact its stock value. Our estimation suggests that Citizens Financial is currently fairly valued, with the real value nearing $32.28 per share.Volatility is a rate at which the price of Citizens Financial or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Citizens Financial may increase or decrease. In other words, similar to Citizens's beta indicator, it measures the risk of Citizens Financial and helps estimate the fluctuations that may happen in a short period of time. So if prices of Citizens Financial fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility. Please read more on our technical analysis page.
How 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.
Citizens Financial Gross Profit
Citizens Financial Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Citizens Financial previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Citizens Financial Gross Profit growth over the last 10 years. Please check Citizens Financial's gross profit and other fundamental indicators for more details.
Citizens Financial Volatility Drivers
Citizens Financial unsystematic risk is unique to Citizens Financial and usually not directly affected by the market or economic environment. An example of unsystematic risk is the possibility of poor earnings or a layoff due to coronavirus. One may mitigate nonsystematic risk by buying different securities in the same industry or by buying in different sectors. For example, if you have a position in Citizens Financial you can also buy Regions Financial. You can also mitigate this risk by investing in the financials sector as well as in companies having nothing to do with it. This type of risk is also called diversifiable risk and can be understood from analyzing Citizens Financial important indicators over time. Here we run a correlation analysis between relevant fundamental ratios over at least ten year period to find a relationship in the way they react to changes in Citizens Financial income statement and balance sheet. Here are more details about Citizens volatility.Click cells to compare fundamentals
What is driving Citizens Financial Investor Appetite?
The current indifference towards the small price fluctuations of Citizens Financial could raise concerns from stockholders as the firm is trading at a share price of 32.41 on 6,216,309 in volume. The company executives did not add any value to Citizens Financial investors in March. However, most investors can still diversify their portfolios with Citizens Financial to hedge their inherited risk against high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 1.97. The below-average Stock volatility is a good sign for longer-term investment options and for buy-and-hold investors.
A smooth sea never made a skilled sailor, and Citizens Financial Group (NYSE: CFG) is showing its ability to navigate volatile waters. Despite a high Coefficient Of Variation at 9.3K and a Probability Of Bankruptcy standing at 45.90%, the company has maintained a steady Price To Earnings ratio of 11.73X, which is indicative of its relative undervaluation. With a healthy Earnings Per Share at 3.13X and a robust Net Income of 1.61B, CFG seems poised to maintain its low-risk outlook through May. The firm's control over its debt is also noteworthy, with Total Debt standing at 13.97B against Total Assets of 221.96B. Investors would do well to monitor CFG's performance closely, as its resilience in these challenging times could provide a reliable anchor in their portfolios. .
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