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Relative valuation derived from Financials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 49.7GRADE C
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
6.4%
Sector: 8.5%
Dividend Analysis audit
INCOME
3.19%
Trailing Yield
$3.19
Per $100 Invested
Solid dividend yield for income-focused strategies.
Est. Payout Ratio
51%SAFE
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, CITIZENS FINANCIAL GROUP INC/RI (CFG) receives a "Hold" rating with a composite score of 52.2/100, ranked #1068 out of 4446 stocks. Key factor scores: Quality 50/100, Value 65/100, Momentum 60/100. This is quantitative analysis only — not investment advice.
CITIZENS FINANCIAL GROUP INC/RI (CFG) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does CITIZENS FINANCIAL GROUP INC/RI Do?
Citizens Financial Group, Inc. operates as the bank holding company for Citizens Bank, National Association that provides retail and commercial banking products and services to individuals, small businesses, middle-market companies, corporations, and institutions in the United States. The company operates in two segments, Consumer Banking and Commercial Banking. The Consumer Banking segment offers deposit products, mortgage and home equity lending products, credit cards, business loans, wealth management, and investment services; and auto, education, and point-of-sale finance loans, as well as digital deposit products. This segment serves its customers through telephone service centers, as well as through its online and mobile platforms. The Commercial Banking segment provides various financial products and solutions, including lending and leasing, deposit and treasury management services, foreign exchange, and interest rate and commodity risk management solutions, as well as syndicated loans, corporate finance, mergers and acquisitions, and debt and equity capital markets services. This segment serves government banking, not-for-profit, healthcare, technology, professionals, oil and gas, asset finance, franchise finance, asset-based lending, commercial real estate, private equity, and sponsor finance industries. It operates approximately 900 branches in 11 states in the New England, as well as Mid-Atlantic and Midwest regions; 114 retail and commercial non-branch offices in national markets; and approximately 3,000 automated teller machines. The company was formerly known as RBS Citizens Financial Group, Inc. and changed its name to Citizens Financial Group, Inc. in April 2014. Citizens Financial Group, Inc. was founded in 1828 and is headquartered in Providence, Rhode Island. CITIZENS FINANCIAL GROUP INC/RI (CFG) is classified as a large-cap stock in the Financials sector, specifically within the Banking industry. The company is led by CEO Bruce Winfield van Saun and employs approximately 18,900 people, headquartered in PROVIDENCE, Rhode Island. With a market capitalization of $25.7B, CFG is one of the prominent companies in the Financials sector.
CITIZENS FINANCIAL GROUP INC/RI (CFG) Stock Rating — Hold (April 2026)
As of April 2026, CITIZENS FINANCIAL GROUP INC/RI receives a Hold rating with a composite score of 52.2/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.CFG ranks #1,068 out of 4,446 stocks in our coverage universe. Within the Financials sector, CITIZENS FINANCIAL GROUP INC/RI ranks #330 of 891 stocks, placing it in the upper half of its Financials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
CFG Stock Price and 52-Week Range
CITIZENS FINANCIAL GROUP INC/RI (CFG) currently trades at $64.17. The stock lost $0.80 (1.2%) in the most recent trading session. The 52-week high for CFG is $68.79, which means the stock is currently trading -6.7% from its annual peak. The 52-week low is $32.60, putting the stock 96.8% above its annual trough. Recent trading volume was 4.0M shares, reflecting moderate market activity.
Is CFG Overvalued or Undervalued? — Valuation Analysis
CITIZENS FINANCIAL GROUP INC/RI (CFG) carries a value factor score of 65/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 16.09x, compared to the Financials sector average of 14.88x — a premium of 8%. The price-to-book ratio stands at 1.03x, versus the sector average of 1.22x. The price-to-sales ratio is 3.39x, compared to 0.90x for the average Financials stock. On an enterprise value basis, CFG trades at 17.07x EV/EBITDA, versus 3.26x for the sector.
Overall, CFG's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
CITIZENS FINANCIAL GROUP INC/RI Profitability — ROE, Margins, and Quality Score
CITIZENS FINANCIAL GROUP INC/RI (CFG) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 6.4%, compared to the Financials sector average of 8.5%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at 0.7% versus the sector average of 1.2%.
On a margin basis, CITIZENS FINANCIAL GROUP INC/RI reports gross margins of 0.0%. The operating margin is 26.2% (sector: 21.8%). Net profit margin stands at 21.0%, versus 17.7% for the average Financials stock. Revenue growth is running at 7.9% on a trailing basis, compared to 9.4% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
CFG Debt, Balance Sheet, and Financial Health
CITIZENS FINANCIAL GROUP INC/RI has a debt-to-equity ratio of 43.0%, compared to the Financials sector average of 121.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 1.13x, suggesting adequate working capital coverage. Total debt on the balance sheet is $11.22B. Cash and equivalents stand at $11.65B.
CFG has a beta of 1.24, meaning it is more volatile than the broader market — a $10,000 investment in CFG would be expected to move 24.4% more than the S&P 500 on any given day. The stability factor score for CITIZENS FINANCIAL GROUP INC/RI is 70/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
CITIZENS FINANCIAL GROUP INC/RI Revenue and Earnings History — Quarterly Trend
In TTM 2026, CITIZENS FINANCIAL GROUP INC/RI reported revenue of $7.99B and earnings per share (EPS) of $3.90. Net income for the quarter was $1.69B. Gross margin was 0.0%. Operating income came in at $2.17B.
In FY 2025, CITIZENS FINANCIAL GROUP INC/RI reported revenue of $8.25B and earnings per share (EPS) of $3.90. Net income for the quarter was $1.83B. Revenue grew 5.6% year-over-year compared to FY 2024. Operating income came in at $2.33B.
In Q3 2025, CITIZENS FINANCIAL GROUP INC/RI reported revenue of $2.12B and earnings per share (EPS) of $1.06. Net income for the quarter was $494M. Revenue grew 11.4% year-over-year compared to Q3 2024. Operating income came in at $629M.
In Q2 2025, CITIZENS FINANCIAL GROUP INC/RI reported revenue of $2.04B and earnings per share (EPS) of $0.93. Net income for the quarter was $436M. Gross margin was 70.5%. Revenue grew 3.8% year-over-year compared to Q2 2024. Operating income came in at $600M.
Over the past 8 quarters, CITIZENS FINANCIAL GROUP INC/RI has demonstrated a growth trajectory, with revenue expanding from $1.96B to $7.99B. Investors analyzing CFG stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
CFG Dividend Yield and Income Analysis
CITIZENS FINANCIAL GROUP INC/RI (CFG) currently pays a dividend yield of 3.2%. At this yield, a $10,000 investment in CFG stock would generate approximately $$319.00 in annual dividend income. This compares to the Financials sector average dividend yield of 2.5%, meaning CFG offers above-average income for its sector. With a net margin of 21.0%, the dividend appears well-covered by earnings, suggesting sustainable payouts going forward.
CFG Momentum and Technical Analysis Profile
CITIZENS FINANCIAL GROUP INC/RI (CFG) has a momentum factor score of 60/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 30/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 26/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
CFG vs Competitors — Financials Sector Ranking and Peer Comparison
Comparing CFG against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full CFG vs S&P 500 (SPY) comparison to assess how CITIZENS FINANCIAL GROUP INC/RI stacks up against the broader market across all factor dimensions.
CFG Next Earnings Date
No upcoming earnings date has been announced for CITIZENS FINANCIAL GROUP INC/RI (CFG) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy CFG? — Investment Thesis Summary
CITIZENS FINANCIAL GROUP INC/RI presents a balanced picture with arguments on both sides. The value score of 65/100 suggests attractive pricing relative to fundamentals. Price momentum is positive at 60/100, suggesting the trend favors buyers. Low volatility (stability score 70/100) reduces downside risk.
In summary, CITIZENS FINANCIAL GROUP INC/RI (CFG) earns a Hold rating with a composite score of 52.2/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on CFG stock.
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Institutional Research Dossier
CITIZENS FINANCIAL GROUP INC/RI (CFG) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
Citizens Financial Group (CFG) receives a Hold rating, reflecting a balanced view of its financial performance and strategic positioning within the banking sector. While CFG demonstrates solid profitability metrics and operates with efficiency, its growth prospects appear moderate compared to its peers, and its capital allocation strategy warrants closer scrutiny. The current valuation seems fair, but not compelling enough to warrant a Buy rating given the inherent risks in the banking industry and CFG's specific challenges.
The primary takeaway is that CFG is a well-managed regional bank with a stable business model, but its ability to outperform its peers and generate significant shareholder value is uncertain. Investors should carefully weigh the company's strengths against its weaknesses and consider alternative investment opportunities within the financial sector before making a decision.
Business Strategy & Overview
Citizens Financial Group operates as a regional bank, providing a range of financial products and services to individuals, small businesses, and commercial clients. The company's strategy centers on expanding its presence in key markets, enhancing its digital capabilities, and optimizing its operational efficiency. CFG's two main segments, Consumer Banking and Commercial Banking, cater to diverse customer needs, offering everything from deposit accounts and loans to wealth management and investment services. The bank's geographic footprint is concentrated in the New England, Mid-Atlantic, and Midwest regions, with a network of approximately 900 branches and 3,000 ATMs.
CFG's strategic focus includes growing its fee-based income streams, such as wealth management and investment services, to diversify its revenue base and reduce its reliance on net interest income. The company is also investing in technology to improve its customer experience and streamline its operations. This includes enhancing its online and mobile banking platforms, as well as implementing new digital tools for its employees. Furthermore, CFG is actively managing its capital base, returning capital to shareholders through dividends and share repurchases, while also maintaining a strong balance sheet.
The banking industry is highly competitive, with numerous national and regional players vying for market share. CFG faces competition from larger national banks, smaller community banks, and non-bank financial institutions. To differentiate itself, CFG emphasizes its local market expertise, its commitment to customer service, and its ability to provide customized financial solutions. The company also leverages its strong brand reputation and its long-standing relationships with its customers.
CFG's product pipeline includes new digital banking services, enhanced wealth management offerings, and specialized lending products for specific industries. The company is also exploring opportunities to expand its presence in new markets through strategic acquisitions and partnerships. However, the success of these initiatives will depend on CFG's ability to execute its strategy effectively and adapt to changing market conditions.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
7.9%
Sector: 9.4%
-16% VS SCTR
Economic Moat Analysis
Citizens Financial Group possesses a narrow economic moat, primarily derived from its established regional presence and customer relationships. While not insurmountable, these factors create some barriers to entry for new competitors and provide CFG with a degree of pricing power. The bank's long-standing history in its core markets has allowed it to build a loyal customer base, which is a valuable asset in the highly competitive banking industry.
Switching costs, while not exceptionally high, contribute to CFG's moat. Customers who have established banking relationships with CFG, including direct deposit accounts, loans, and other financial services, may be reluctant to switch to a new bank due to the inconvenience and potential disruption. This inertia provides CFG with some protection against customer attrition.
Intangible assets, such as brand reputation and regulatory licenses, also play a role in CFG's moat. The Citizens Bank brand is well-recognized in its core markets, and the bank's regulatory licenses are essential for its operations. These assets are difficult to replicate and provide CFG with a competitive advantage.
However, CFG's moat is not particularly wide. The banking industry is characterized by intense competition, and customers have numerous alternatives to choose from. Larger national banks have greater scale and resources, while smaller community banks may offer more personalized service. Non-bank financial institutions are also increasingly encroaching on the traditional banking space, offering alternative lending and payment solutions.
Furthermore, the rise of digital banking has reduced the importance of physical branches, making it easier for customers to switch banks. Online and mobile banking platforms have leveled the playing field, allowing smaller banks and non-bank financial institutions to compete more effectively with larger players. As a result, CFG's moat is vulnerable to disruption from new technologies and innovative business models.
In conclusion, CFG's narrow moat provides it with some competitive advantages, but it is not impenetrable. The company must continue to invest in its customer relationships, its digital capabilities, and its brand reputation to maintain its competitive position in the long term.
Financial Health & Profitability
Citizens Financial Group exhibits a mixed financial profile. The company's revenue has shown moderate growth, increasing from $7.81 billion in FY2024 to $8.25 billion in FY2025, representing a growth rate of approximately 5.6%. This growth is slightly below the sector average of 9.3%, indicating that CFG is not growing as rapidly as its peers. Net income has also increased, from $1.51 billion in FY2024 to $1.83 billion in FY2025, reflecting improved profitability.
CFG's profitability metrics are generally strong. The company's operating margin of 26.2% and net margin of 21.0% are both higher than the sector averages of 22.0% and 17.8%, respectively. This suggests that CFG is operating efficiently and generating healthy profits. However, its return on equity (ROE) of 6.4% is lower than the sector average of 8.5%, indicating that CFG is not generating as much profit from its equity as its peers.
CFG's balance sheet is relatively healthy. The company has a current ratio of 1.13, indicating that it has sufficient liquid assets to cover its short-term liabilities. Its debt-to-equity ratio of 43.00 is significantly lower than the sector average of 115.00, suggesting that CFG is not overly leveraged. The company also has a substantial amount of cash on hand, with total cash of $11.65 billion.
Analyzing the quarterly financial history reveals some trends. Revenue has been relatively stable over the past few quarters, with some fluctuations due to seasonal factors and market conditions. Net income has also been relatively consistent, although there have been some variations due to changes in interest rates and loan loss provisions. The operating margin has remained relatively stable, indicating that CFG is maintaining its operational efficiency.
Free cash flow generation is a key indicator of financial health. While the available data only shows one quarter with negative free cash flow (-$620 million in Q2 FY2025), a more comprehensive analysis of historical free cash flow trends would be necessary to assess CFG's long-term cash flow generation capabilities. Consistent positive free cash flow is essential for CFG to fund its growth initiatives, pay dividends, and repurchase shares.
Overall, CFG's financial health is sound, but there are some areas that warrant closer attention. The company's revenue growth is slightly below the sector average, and its ROE is lower than its peers. However, its profitability metrics are strong, and its balance sheet is healthy. Investors should monitor CFG's financial performance closely to assess its ability to maintain its financial health and generate sustainable growth.
Valuation Assessment
Citizens Financial Group's valuation appears to be fair relative to its peers and its historical performance. The company's price-to-earnings (P/E) ratio of 14.6x is slightly below the sector average of 15.5x, suggesting that CFG is modestly undervalued compared to its peers. However, this difference is not substantial enough to warrant a strong Buy rating.
The company's enterprise value-to-EBITDA (EV/EBITDA) ratio of 3.8x is slightly higher than the sector average of 3.5x, indicating that CFG is slightly overvalued on an enterprise value basis. This suggests that the market is assigning a premium to CFG's earnings, potentially due to its strong profitability metrics or its stable business model.
A free cash flow (FCF) yield analysis would provide further insights into CFG's valuation. However, the available data only includes one quarter with negative free cash flow, making it difficult to calculate a meaningful FCF yield. A more comprehensive analysis of historical free cash flow trends would be necessary to assess CFG's valuation based on its cash flow generation capabilities.
Considering CFG's growth prospects, its current valuation seems reasonable. The company's revenue growth is moderate, and its earnings are expected to grow at a similar pace. Given these growth expectations, a P/E ratio of 14.6x and an EV/EBITDA ratio of 3.8x appear to be fair.
However, it is important to note that the banking industry is subject to significant regulatory and economic risks, which can impact valuations. Changes in interest rates, loan loss provisions, and regulatory requirements can all affect CFG's earnings and its valuation. Investors should carefully consider these risks when assessing CFG's valuation.
In conclusion, CFG's valuation appears to be fair, but not compelling. The company is modestly undervalued compared to its peers based on its P/E ratio, but slightly overvalued based on its EV/EBITDA ratio. Given its moderate growth prospects and the inherent risks in the banking industry, the current valuation does not warrant a strong Buy rating. The Hold rating reflects a balanced view of CFG's valuation and its potential for future growth.
Risk & Uncertainty
Citizens Financial Group faces several risks and uncertainties that could impact its financial performance and its stock price. One of the most significant risks is interest rate risk. As a bank, CFG's profitability is highly sensitive to changes in interest rates. A rapid increase in interest rates could negatively impact CFG's net interest margin, which is the difference between the interest income it earns on loans and the interest expense it pays on deposits. This could lead to lower earnings and a decline in its stock price.
Another significant risk is credit risk. CFG is exposed to the risk that its borrowers will default on their loans. An economic downturn or a deterioration in credit quality could lead to higher loan losses, which would negatively impact CFG's earnings. The company's exposure to specific industries, such as commercial real estate or energy, could also increase its credit risk.
Regulatory risk is also a concern for CFG. The banking industry is heavily regulated, and changes in regulations could negatively impact CFG's operations and its profitability. For example, new capital requirements or restrictions on lending activities could increase CFG's costs and reduce its ability to generate revenue.
Competition is another significant risk. The banking industry is highly competitive, and CFG faces competition from larger national banks, smaller community banks, and non-bank financial institutions. Increased competition could lead to lower interest rates, higher deposit costs, and reduced market share, which would negatively impact CFG's earnings.
Finally, cybersecurity risk is a growing concern for all financial institutions, including CFG. A successful cyberattack could disrupt CFG's operations, compromise customer data, and damage its reputation. The costs associated with preventing and responding to cyberattacks could also be significant.
Bulls Say / Bears Say
The Bull Case
BULL VIEWCitizens Financial Group's strong regional presence and focus on customer service will drive sustainable growth and profitability.
BULL VIEWThe company's efficient operations and healthy balance sheet position it well to navigate economic challenges and capitalize on growth opportunities.
BULL VIEWCFG's investments in digital banking and wealth management will enhance its competitive position and generate higher fee income.
The Bear Case
BEAR VIEWCitizens Financial Group's reliance on net interest income makes it vulnerable to interest rate fluctuations and economic downturns.
BEAR VIEWThe company's lower ROE compared to peers indicates that it is not generating as much profit from its equity, limiting shareholder returns.
BEAR VIEWIncreased competition from larger national banks and non-bank financial institutions could erode CFG's market share and profitability.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score CFG and 4,400+ other equities.
CITIZENS FINANCIAL GROUP INC/RI exhibits a 173% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
0.7%
Sector: 1.2%
Gross Margin
Pricing power and cost efficiency
0.0%
Sector: 0.0%
Operating Margin
Core business profitability
26.2%
Sector: 21.8%
Net Margin
Bottom-line profitability
21.0%
Sector: 17.7%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield2.48%
Yield Delta+29%
Income Projection audit
A $10,000 investment would generate approximately $319 annually in dividends at the current trailing rate.
