If you have been watching Citizens Financial Group (CFG), the latest announcement may have caught your eye. On October 6, 2025, the company will redeem all outstanding shares of its Series F Preferred Stock. This move marks the end of related dividend payments for that issue. Decisions like this reshape the capital structure and can send a clear signal to investors about management’s evolving priorities around dividends, balance sheet, and capital efficiency.
This decision comes amid a year of solid upward momentum for the stock. The total return is up nearly 30% over the last twelve months and over 18% for the year-to-date. Investors have also seen remarkable gains of more than 23% in just the past three months. With revenue and net income growth both in the double digits annually, Citizens Financial Group is showing signs of operational strength, even as it looks to refine its approach to capital management through actions like this recent redemption.
After this run higher and a potential reduction in dividend outflows, is Citizens Financial Group offering investors a compelling entry point, or is the market already pricing in future growth?
The current consensus narrative views Citizens Financial Group as undervalued relative to its future earnings and growth outlook, suggesting potential upside for investors if projected performance materializes.
The build-out of Citizens’ Private Bank and expansion into high-growth markets (New York Metro, Florida, California) is scaling well, with rising deposits, robust loan growth, and an increasing share of fee-based assets under management. These factors are likely to provide sustainable revenue diversification and accretive impacts to net earnings and ROE over the next several years.
Curious about what’s fueling bold valuation targets? Discover the core assumptions and ambitious growth predictions fueling this narrative’s fair value. What do analysts see in Citizens’ roadmap for margin expansion and share reduction? Get the insider projections driving the numbers behind today’s price target.
Result: Fair Value of $55.47 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, significant exposure to commercial real estate and the risk of lagging behind in digital innovation could present challenges to these optimistic projections.
Find out about the key risks to this Citizens Financial Group narrative.
Looking at Citizens Financial Group through the lens of the price-to-earnings ratio against industry averages, the market paints a less optimistic picture. This view suggests shares may be more expensive than they appear based on fundamentals. Is the premium deserved, or is it a warning for those chasing the rally?
