* Note: Prices are in Million (M) USD.
Description:
Citizens Financial Group, Inc. is an American bank headquartered in Providence, Rhode Island.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $8,548 M
Debt : $12,775 M
EBITDA : $2,376 M
Net Debt (Debt - Cash): $4,227 M
Since Net Debt is covered by EBITDA within 2 years, 2 points assigned.
This criteria used industry in which company operates:
Sector: Financial services
Industry: Banks - regional - us
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 11.92
Since Forward PE Ratio is less than 15, 5 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 14 overlapping fiscal years (max 20).Average Free Cash Flow: $1,718 M
Average Revenue: $7,342 M
Revenue Converted To Free Cash Flow (%): 23.4%
Since Free Cash Flow (FCF) to Revenue percentage is greater than 15, 3 points assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $12,347 M
Revenue 4 Years Ago (2020-12-31): $7,676 M
Last 5 Years Average Revenue Growth: 12%
Since Revenue Growth is between 10 - 15, 3 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $454 M
Share Count 5 Years Ago (2020-12-31): $428 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $4.94
Trailing 12-Month Earnings Per Share (EPS): $3.81
Average Earnings Per Share (EPS): $4.38
Dividend Per Share (DPS): $2
Payout Ratio: 38%
Dividend Yield: 3%
Since company Payout Ratio is less than 50, 2 points assigned.
Since Dividend Yield is greater than 3, 3 points assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 13 valid ROE years (max 20).Average ROE: 4.6%
Since Average ROE is less than 10, 1 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $52
52-Week Low: $32
Threshold Price (15% Above 52-Week Low): $37
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $20,826 M
Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 3% exposure of Total Portfolio.
Value-Trade has assigned 24 points to above Citizens Financial Group, Inc. (CFG) stock.
Heads up: One or more P/E inputs look exaggerated and may skew the blend.
• RCFC Based PE
28.71 (>2× median)
Further research is recommended; please use your own due diligence.In such cases, multiplying earnings by the long-run average P/E typically gives a closer, more reliable fair value.
Rule of thumb: Last 11 Years Avg P/E (13.87)
× EPS ($4.38) = $60.69.
Last 11 Years Avg PE 13.87, Fair Value PE 15, Industry Based PE 13, Growth Based PE 12, RCFC Based PE 28.71, ROE Based PE 13.66, Risk-Free Anchored PE (25% MoS) 17.08. Based on these 7 values, average assigned is 16.19. Value-Trades has assined P/E value 16.19. Since an average (Current Year EPS + Next Year EPS) earning per share is $4.37585.
The fair value of Citizens Financial Group, Inc. (CFG) stock should be (16.19 x $4.37585) = $70.84.
