Citigroup Profitability Analysis

C Stock  USD 50.95  1.27  2.43%   
For Citigroup profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Citigroup to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Citigroup utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Citigroup's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Citigroup over time as well as its relative position and ranking within its peers. Continue to Trending Equities.
  
The current year Price to Sales Ratio is expected to grow to 2.17, whereas Return on Sales is forecasted to decline to 0.38. Citigroup Net Income is projected to increase significantly based on the last few years of reporting. The past year's Net Income was at 19.76 Billion. The current year Net Income to Non Controlling Interests is expected to grow to about 81 M, whereas Accumulated Other Comprehensive Income is forecasted to decline to (37.6 B).

Citigroup Revenues

102.17 Billion

Is Citigroup's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Citigroup. If investors know Citigroup will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Citigroup listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.21) 
Market Capitalization
101.1 B
Quarterly Revenue Growth
(0.08) 
Return On Assets
0.0064
Return On Equity
0.075
The market value of Citigroup is measured differently than its book value, which is the value of Citigroup that is recorded on the company's balance sheet. Investors also form their own opinion of Citigroup's value that differs from its market value or its book value, called intrinsic value, which is Citigroup's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Citigroup's market value can be influenced by many factors that don't directly affect Citigroup's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Citigroup's value and its price as these two are different measures arrived at by different means. Investors typically determine Citigroup value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Citigroup's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Citigroup Operating Margin vs. Book Value Per Share Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Citigroup's current stock value. Our valuation model uses many indicators to compare Citigroup value to that of its competitors to determine the firm's financial worth.
Citigroup is number one stock in book value per share category among related companies. It is number one stock in operating margin category among related companies . The ratio of Book Value Per Share to Operating Margin for Citigroup is about  352.95 . Citigroup Book Value per Share is projected to increase significantly based on the last few years of reporting. The past year's Book Value per Share was at 114.25. Comparative valuation analysis is a catch-all model that can be used if you cannot value Citigroup by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Citigroup's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Citigroup's earnings, one of the primary drivers of an investment's value.

Citigroup Operating Margin vs. Book Value Per Share

Book Value per Share (B/S) can be calculated by subtracting liabilities from assets, and then dividing it by the total number of currently outstanding shares. It indicates the level of safety associated with each common share after removing the effects of liabilities. In other words, a shareholder can use this ratio to see how much he or she can sell the stake in the company in the event of a liquidation.
Citigroup 
Book Value per Share 
 = 
Common Equity 
Average Shares 
94.06 X
The naive approach to look at Book Value per Share is to compare it to current stock price. If Book Value per Share is higher than the currently traded stock price, the company can be considered undervalued. However, investors must be aware that conventional calculation of Book Value does not include intangible assets such as goodwill, intellectual property, trademarks or brands and may not be an appropriate measure for many firms.
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
Citigroup 
Operating Margin 
 = 
Operating Income 
Revenue 
X
100 
0.27 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.

Citigroup Operating Margin Comparison

Citigroup is currently under evaluation in operating margin category among related companies.

Citigroup Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Citigroup, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Citigroup will eventually generate negative long term returns. The profitability progress is the general direction of Citigroup's change in net profit over the period of time. It can combine multiple indicators of Citigroup, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.

Citigroup Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Citigroup. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Citigroup position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Citigroup's important profitability drivers and their relationship over time.

Citigroup Profitability Trends

Citigroup profitability trend refers to the progression of profit or loss within a business. An upward trend means that Citigroup's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Citigroup's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

Citigroup Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Citigroup different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Citigroup in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Citigroup's future profitability.

Use Citigroup in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Citigroup position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Citigroup will appreciate offsetting losses from the drop in the long position's value.

Citigroup Pair Trading

Citigroup Pair Trading Analysis

The ability to find closely correlated positions to Citigroup could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Citigroup when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Citigroup - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Citigroup to buy it.
The correlation of Citigroup is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Citigroup moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Citigroup moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Citigroup can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Citigroup position

In addition to having Citigroup in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Restaurants
Restaurants Theme
Entities that are involved in restaurant business, as well as coffee shop chains and other eateries. The Restaurants theme has 16 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Restaurants Theme or any other thematic opportunities.
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Continue to Trending Equities. Note that the Citigroup information on this page should be used as a complementary analysis to other Citigroup's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Watchlist Optimization module to optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm.

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To fully project Citigroup's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Citigroup at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Citigroup's income statement, its balance sheet, and the statement of cash flows.
Potential Citigroup investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Citigroup investors may work on each financial statement separately, they are all related. The changes in Citigroup's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Citigroup's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.