Considering a strategic move to Citizens Financial Group could be appealing for Regions Financial shareholders, especially with Citizens' robust market capitalization of
19.4B and a solid net income of
1.6B. With a target price of 45.56, there's potential for growth, making it a compelling option for those looking to diversify within the regional banking sector.
Main Points
By examining the technical and fundamental indicators of Citizens Financial and Regions, you can assess how market fluctuations impact their stock prices. This analysis can help determine if combining these stocks in your portfolio might reduce market risk. Additionally, you might consider a pair trading strategy by taking a long position in Regions and a short position in Citizens Financial. For more insights, check out our [pair correlation module]( '/invest/pair-correlation/CFG/RF/Citizens-vs-Regions').
Let's dive into asset analysis. Asset utilization measures the revenue generated for each dollar of assets a company holds. As of October, Citizens Financial's return on assets suggests they aren't using their assets as efficiently as possible.
Investment perspective, in general, refers to a viewpoint or opinion regarding investment opportunity in Citizens Financial. It encompasses the assessment of an investment's potential risks and rewards, and expectations for its
performance over time. Several factors influence the investment perspective on Citizens Financial, including investment goals, risk tolerance, time horizon, market conditions, and research and analysis. Investors have varying goals, such as capital preservation, income generation, or long-term growth. Risk tolerance plays a significant role in shaping an investor's perspective, with some being more risk-averse and others willing to take on higher risks for potential returns.
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.
What is driving Citizens Financial Investor Appetite?
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Lets now take a look at Citizens Financial revenue. Based on the latest financial disclosure, Citizens Financial Group, reported 8.22
B of revenue.
This is 26.64% lower than that of the Banks sector and significantly higher than that of the
Financials industry. The revenue for all United States stocks is 12.83% higher than that of Citizens Financial. As for Regions Financial we see revenue of 8.9
B, which is much higher than that of the Financials
| Citizens | 8.22 Billion |
| Sector | 0.0 |
| Regions | 8.9 Billion |
Warren Buffett once said, "Price is what you pay. Value is what you get." This sentiment resonates with the potential strategic move for Regions Financial shareholders considering Citizens Financial Group (NYSE: CFG). With a market capitalization of $19.4 billion and a price-to-book ratio of 0.89, CFG presents an intriguing value proposition. Despite a modest quarterly revenue growth decline of 7%, the company's robust net income of $1.61 billion and a book value per share of $48.03 suggest underlying strength. As CFG's stock hovers near its 52-week high, shareholders might find the potential upside of 3.31% appealing, especially given the company's solid institutional backing with 94.24% of shares owned by institutions..
Will Citizens pull back in November 2024?
Citizens Financial Group is experiencing a semi-deviation of 1.49, indicating moderate downside volatility in its stock price. This suggests some stability amid market fluctuations, but potential price adjustments could occur in November 2024. As the year closes, investors should watch for changes in economic indicators or company news that might impact Citizens' market performance, possibly leading to a pullback.
As of October 15, 2024, Citizens Financial shows a Risk Adjusted Performance of 0.1115, a downside deviation of 1.64, and a Mean Deviation of 1.27. Technical analysis of Citizens Financial uses historical prices and volume patterns to predict future price directions. Check the Treynor Ratio and the relationship between potential upside and expected shortfall to assess if the stock is correctly priced at $43.48 per share. With a Jensen Alpha of 0.0634, evaluate the company's current market performance to ensure its future sustainability.
Our Bottom Line On Citizens Financial Group,
While some firms within the banks—regional industry are still a little expensive, even after the recent corrections, Citizens Financial may offer a potential longer-term growth to stockholders. The inconsistency in the assessment between current Citizens valuation and our trade advice on Citizens Financial is due to the recent market swings and your selection of investing horizon. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Citizens Financial.
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Citizens Financial Group,. Please refer to our
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