Citigroup Inc. (C, Financial), an investment bank and financial services company, will release its second-quarter 2017 financial results before the market opens on July 14.
For the quarter, Citigroup is forecasted to report EPS of $1.21 on average. This is three cents or 2.4% lower than the EPS of second-quarter 2016. The estimate is the mean of 23 analysts surveyed. The estimates range between a low of $1.16 and a high of $1.25 per share.
Source: Yahoo Finance
Revenue is expected to come in at $17.37 billion, a 1% decline from the comparable quarter of fiscal 2016. The figure is a mean of 20 estimates. The estimates range between a low of $16.8 billion and a high of $17.86 billion.
Source: Yahoo Finance
As of March 31, Citigroup had $422.974 billion in cash on hand and securities and $1,207.301 billion in long-term investments. The bank’s total assets were valued at $1,821.635 billion at the end of the first quarter.
The total liabilities are $1,593.503 billion.
Citigroup has a net profit margin - which measures the bank's overall profitability – of 22.21% versus the industry’s average of 27.56% and the sector’s average of 27.19%. This means the bank is underperfoming its peers in regard to profitability.
With a loan-to-assets ratio of 34%, Citigroup’s assets management and trading activities have a greater weight on its income generation compared to Wells Fargo & Co. (WF) (49%) and Bank of America (BAC, Financial) (40%). Concerning this aspect of the company’s profitability, Citigroup is more similar to JPMorgan (JPM, Financial) than the other two banks.
In addition, the bank has a return on assets (ROA) of 0.86% versus an industry average ratio of 2.36% and a sector average ratio of 2.51%. The ratio measures how profitable the company’s loan activity is compared to its peers.
GuruFocus gives Citigroup a financial strength rating of 5 out of 10 and a profitability and growth rating of 4 out of 10.
Citigroup is currently trading at $66.92 per share versus an average target price per share of $68.16, which ranges between a low of $53 and a high of $81 per share. The recommendation rating is 2.4 out of a total of 5.
The financial services company has a market capitalization of $184.248 billion, a price-book (P/B) ratio of 0.88, a price-earnings (P/E) ratio of 13.49 and a price-sales (P/S) ratio of 2.88.
The forward P/E ratio is 11.30 and the forecasted EPS for fiscal 2017 is $5.17. The forward P/E ratio multiplied by the forecasted EPS yields a value of $58.42 per share.
Citigroup distributes an annual dividend of 64 cents per share through quarterly payments of 16 cents, for a dividend yield of 0.96% based on the most recent closing share price.
Disclosure: I have no positions in any stock mentioned in this article.
