The entity has accumulated 507.59
B in total debt with debt to equity ratio (D/E) of 0.91, which looks OK as compared to the sector. Citigroup is UNDERVALUED at 83.37 per share with modest projections ahead. The company has Profit Margin of
25.37 %, which may indicate that it has good control over its costs or executes well on its competitive strategies. This is very large.
We determine the current worth of Citigroup using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Citigroup based exclusively on its
fundamental and basic
technical indicators. By analyzing Citigroup's
financials, quarterly and monthly indicators, and related drivers such as
dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of
Citigroup's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Citigroup. We calculate exposure to Citigroup's
market risk, different
technical and
fundamental indicators, relevant financial multiples and ratios, and then
comparing them to Citigroup's related companies.
Citigroup Investment Alerts
Citigroup investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Citigroup performance across your portfolios.Please check all
investment alerts for Citigroup
Citigroup Valuation Ratios as Compared to Competition
Our valuation model uses many indicators to compare Citigroup value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Citigroup competition to find
correlations between indicators driving the intrinsic value of Citigroup.
Citigroup Gross Profit
Citigroup Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Citigroup previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Citigroup Gross Profit growth over the last 10 years. Please check Citigroup's
gross profit and other
fundamental indicators for more details.
Is Citigroup valued correctly by the market?
The firm reported the annual revenue of 64.84
B. Net Income to common stockholders was 15.24
B with gross profit before all taxes, overhead, and interest of 58.37
B.
| 2018 | 2019 | 2020 | 2021 (projected) |
Operating Income | 23.45 B | 23.9 B | 13.63 B | 17.72 B | Operating Expenses | 41.84 B | 42 B | 43.17 B | 42.1 B |
Margins Breakdown
Citigroup profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Citigroup itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Citigroup profit margins.
| EBITDA Margin | 0.29 |
| Gross Margin | 0.9 |
| Profit Margin | 0.17 |
Citigroup Net Income Per Employee is increasing over the last 8 years. The previous year's value of Citigroup Net Income Per Employee was 48,419. Also, Citigroup Earnings Before Interest Taxes and Depreciation Amortization USD is increasing over the last 8 years. The previous year's value of Citigroup Earnings Before Interest Taxes and Depreciation Amortization USD was 21,648,210,526.
Citigroup technical analysis suggests possible bounce-back
Citigroup current semi deviation builds up over 1.21. Citigroup has relatively low volatility with skewness of 0.43 and kurtosis of 0.73. However, we advise all investors to independently investigate Citigroup to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Citigroup's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Citigroup's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Our Final Perspective on Citigroup
Whereas some companies under the banks—diversified industry are still a bit expensive, Citigroup may offer a potential longer-term growth to investors. All things considered, as of the 15th of May 2021, we believe that at this point, Citigroup is very steady with
below average chance of distress within the next 2 years. From a slightly different point of view, the entity appears to be
undervalued. Our primary 90 days 'Buy-Sell' recommendation on the company is
Strong Buy.
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial Staff
Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Citigroup. Please refer to our
Terms of Use for any information regarding our disclosure principles.
Would you like to provide feedback on the content of this article?
You can get in touch with us directly or send us a quick note via email to
editors@macroaxis.com
