Citigroup Inc. (C)
Financials · NYSE · US
Fundamentals
Valuation and ratings
Citigroup Inc. trades at $131.71, which is 135% below the $309.74 our discounted cash flow model puts on the business. On that measure alone it screens as undervalued, though a DCF is an argument rather than a measurement, and the market is frequently right about why something is cheap.
Our moat model scores it 49 out of 100, which is a moat, but not a deep one. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 17.4 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Citigroup Inc.
Citigroup Inc., a diversified financial service holding company, provides various financial products and services to consumers, corporations, governments, and institutions. It operates through five segments: Services, Markets, Banking, U.S. Personal Banking, and Wealth. The Services segment includes treasury and trade solutions, which provides cash management, trade, and working capital solutions to multinational corporations, financial institutions, and public sector organizations; and securities services, such as cross-border support for clients, local market expertise, post-trade technologies, data solutions, and various securities services solutions. The Markets segment offers sales and trading services for equities, foreign exchange, rates, spread products, and commodities to corporate, institutional, and public sector clients; and market-making services, including asset classes, risk management solutions, financing, and prime brokerage. The Banking segment includes investment banking services comprising equity and debt capital markets-related strategic financing solutions; advisory services related to mergers and acquisitions, divestitures, restructurings, and corporate defense activities; and corporate lending consists of corporate and commercial banking. The U.S. Personal Banking segment provides proprietary and co-branded card portfolios; and traditional banking services to retail and small business customers. The Wealth segment offers financial services to high-net-worth clients through banking, lending, mortgages, investment, custody, and trust product offerings; professional industries, including law firms, consulting groups, accounting, and asset management; and affluent and high net worth clients. The company operates in North America, the United Kingdom, Japan, North and South Asia, Australia, Europe, the Middle East, and Africa. Citigroup Inc. was founded in 1812 and is headquartered in New York, New York.
C passes 3 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Smart money ownership
27 of the funds we track reported a position in their latest SEC 13F filing. Largest first:
- Ken Fisher, Fisher Asset Management, LLC$3.99B · 1.4% of book
- Bill Nygren, HARRIS ASSOCIATES L P$2.10B · 1.5% of book
- Richard Pzena, PZENA INVESTMENT MANAGEMENT LLC$927.17M · 3.0% of book
- Cliff Asness, AQR CAPITAL MANAGEMENT LLC$604.26M · 0.3% of book
- D. E. Shaw, D. E. Shaw & Co., Inc.$603.72M · 0.4% of book
A word of warning on reading these figures: a 13F reports the market value of a holding, so a fund that traded nothing at all still appears to have sold when the price fell. We found 102 companies where the standard reading gives the opposite answer. Only the share count is honest.
Common questions
Is Citigroup Inc. (C) undervalued?
Against our discounted cash flow estimate of $309.74, C at $131.71 is 135% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
Which funds own C?
27 of the institutions we track reported a position in C in their most recent SEC 13F filing. A 13F is filed up to 45 days after quarter end, so it tells you what a fund held then, not what it holds now.
What is C's P/E ratio?
C trades at 17.4 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
The full research page for C, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.
Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.