Citigroup Inc (C.PR) stock analysis

P/E above its 5-year median

Citigroup's P/E of 13.3 is above its own 5-year median of 12.0.

P/E above the industry

Citigroup's P/E of 13.3 is above the Commercial Banks median of 12.3.

P/S below the industry

Citigroup's price-to-sales of 2.25 is below the Commercial Banks median of 3.64.

P/B below the industry

Citigroup's price-to-book of 0.97 is below the Commercial Banks median of 1.27.

Trading above fair value

The share price of $122.64 is above our fair value estimate of $114.77.

Margin of safety under 20%

The price is 6.9% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 4.2% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -0.0% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 25.8% over the last twelve months, against a 5-year average of 5.3% a year.

Growing slower than the industry

Revenue grew 10.2% over the last twelve months; the Commercial Banks median is 11.4%.

Guidance unchanged

The latest outlook (this year RoTCE, Apr 14, 2026) was maintained, so it neither adds nor takes away points.

Gross margin trend

Banks and insurers do not report gross profit.

Return on equity under 15%

Return on equity was 8.4% over the last twelve months and averaged 7.2% over five years; we look for 15% on both.

Return on assets under 1%

Return on assets was 0.6%; for a bank or insurer, 1% or more is considered good.

Return on equity below the industry

Citigroup's return on equity of 8.4% is below the Commercial Banks median of 11.2%.

Earnings grew over 5 years

Net income grew 5.3% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 19.5% over the last twelve months, against a 5-year average of 18.9%.

Net margin below the industry

Citigroup's net margin of 19.5% is below the Commercial Banks median of 30.0%.

Thin capital

Equity is 7.3% of total assets; 8% or more is a comfortable cushion.

Loans funded by deposits

Loans equal 51.8% of deposits, so lending is funded by customer deposits.

Adequate loan-loss reserve

The allowance for credit losses is 2.6% of loans; we look for at least 1%.

High cost base

Non-interest expense takes 62.0% of revenue; under 60% is efficient for a bank.

Deposits growing

Deposits grew 9.9% over the past year.

Modest borrowings

Borrowings other than deposits are 32.5% of equity.

Pays a dividend

Citigroup paid dividends worth 2.0% of the share price over the last twelve months.

Yield below Treasuries

The 2.0% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 4.0% or more; Citigroup yields 2.0%.

Dividend stability

Fewer than five years of dividend history.

Covered by earnings

Dividends take 30.5% of net income.

Cash-flow cover

Needs dividends paid and free cash flow.