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Citigroup Inc C

Morningstar Rating
$58.63 +1.02 (1.77%)
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Company Report

Maintaining Our Fair Value Estimate of $66 for Citigroup

Citigroup has an international commercial banking franchise and a domestically focused retail banking unit. Within the bank's commercial operations (called the institutional clients group, or ICG), Citi has large trading, investment banking, international corporate banking, and custody operations. ICG is Citi's most unique business unit, as its global footprint is hard to replicate. This international presence will help Citigroup remain a bank of choice for companies with cross-border needs. While this global presence offers some advantages, there are weaknesses. It is expensive and complicated to maintain, and the bank's markets desk also produces low returns. As a result, returns for ICG have been mixed.

Price vs Fair Value

C is trading at a 11% discount.
Price
$58.63
Fair Value
$79.00
Uncertainty
Medium
1-Star Price
$45.50
5-Star Price
$22.60
Economic Moat
Tsnn
Capital Allocation
Qqczcyy

Bulls Say, Bears Say

Bulls

Citigroup is in the middle of a strategic repositioning, making major moves such as spinning off its consumer business in Mexico and reinvesting in ICG and wealth. Citigroup may finally emerge as a structurally improved franchise.

Bears

Management doesn't expect to hit its return targets until two to four years from now, and the bank has historically underperformed. It's not worth waiting around for this historical value trap.

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News

Trading Information

Previous Close Price
$57.61
Day Range
$57.5658.66
52-Week Range
$38.1758.67
Bid/Ask
$58.50 / $58.63
Market Cap
$112.06 Bil
Volume/Avg
14.0 Mil / 16.6 Mil

Key Statistics

Price/Earnings (Normalized)
11.46
Price/Sales
1.46
Dividend Yield (Trailing)
3.58%
Dividend Yield (Forward)
3.58%
Total Yield
5.35%

Company Profile

Citigroup is a global financial-services company doing business in more than 100 countries and jurisdictions. Citigroup's operations are organized into two primary segments: the institutional clients group and the personal banking and wealth-management group. The bank's primary services include cross-border banking needs for multinational corporates, investment banking and trading, and credit card services in the United States.
Sector
Financial Services
Industry
Banks - Diversified
Stock Style Box
Large Value
Total Number of Employees
239,000

Competitors

Valuation

Metric
C
WFC
BAC
Price/Earnings (Normalized)
11.4611.2011.64
Price/Book Value
0.591.251.08
Price/Sales
1.462.602.95
Price/Cash Flow
4.426.136.89
Price/Earnings
C
WFC
BAC

Financial Strength

Metric
C
WFC
BAC
Quick Ratio
Current Ratio
Interest Coverage
Quick Ratio
No chart available

Profitability

Metric
C
WFC
BAC
Return on Assets (Normalized)
0.41%1.04%0.99%
Return on Equity (Normalized)
5.31%12.17%12.26%
Return on Invested Capital (Normalized)
Return on Assets
C
WFC
BAC
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Banks - Diversified Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
JPM
JPMorgan Chase & CoXspsb$554.9 Bil
BAC
Bank of America CorpNzkz$284.1 Bil
WFC
Wells Fargo & CoXfxth$206.7 Bil
HSBC
HSBC Holdings PLC ADRGmjfz$144.8 Bil
RY
Royal Bank of CanadaYdcl$140.2 Bil
MUFG
Mitsubishi UFJ Financial Group Inc ADRJyqj$121.5 Bil
TD
The Toronto-Dominion BankXyqc$104.7 Bil
UBS
UBS Group AGVhwcsn$101.9 Bil
SAN
Banco Santander SA ADRZwtxr$70.8 Bil

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