Citigroup, Inc. (C)

- 3.84 (USD)

(+0.3 %) 9/8/2010 4:00:00 PM

C Stock Report

Ockham Rating: Rating Withheld
Motley Fool Crowd Sentiment: Fairly Valued
NYSE: C 3.84 (USD) (0.3 % ) 09/08 4:00 PM
Open 3.85
Day's Range 3.83 - 3.86
52Wk Range 3.11 - 5.07
Mkt Cap 108.9 Billion
Vol/Avg 247721512/428.0 Million
Div/Yield 0.00%

Key Fundamentals

Citigroup, Inc. Fundamentals
Price (9/8/2010) 3.84
Volume (9/8/2010) 247721512
Last Close Price 3.84
10 Day Average Volume 428.0 Million
13 Week Price Range 3.62 - 4.30
52 Week Price Range 3.11 - 5.07
LTM Revenue 68.1 Billion
 
Shares Outstanding (12/31/2009) 29.0 Billion
Market Capitalization 108.9 Billion
Shares Held By Institutions 1.4 Billion
Institutional Holders 1,609
% Shares Held By Institutions 36.08%
Earnings Per Share (EPS) -0.8
P/E Ratio
Book Value Per Share 5.3322
 
Gross Margin N/A
Annual Dividend 0
Dividend Yield 0.00%
Beta 2.633026
Fiscal Year Ends December

About Citigroup, Inc.

Citigroup, Inc.is considered to operate in the Financial Services sector. They specifically operate in the Money Center Banks business segment contained within the Money Center Banks industry.

Citigroup Inc. was incorporated in 1988 under the laws of the State of Delaware. It is a global financial services holding company, whose businesses provide consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking, credit cards, corporate and investment banking, securities brokerage and wealth management. Citigroup has more than 200 million customer accounts and does business in more than 140 countries. Citigroup currently operates, for management reporting purposes, via two primary business segments: Citicorp, consisting of our Regional Consumer Banking businesses and Institutional Clients Group; and Citi Holdings, consisting of our Brokerage and Asset Management and Local Consumer Lending businesses, and a Special Asset Pool. There is also a third segment, Corporate/Other. In response to the dramatic and profound changes in the market environment that became increasingly apparent through 2008, in early 2009, Citigroup decided to increase the focus on its core businesses and reorganized into three business segments for management and reporting purposes: Citicorp (Regional Consumer Banking and Institutional Clients Group); Citi Holdings (Brokerage and Asset Management, Local Consumer Lending, and Special Asset Pool); and Corporate/Other (Treasury, corporate expenses).Regional Consumer Banking (RCB) consists of Citigroup's four regional consumer banks that provide traditional banking services to retail customers. RCB also contains Citigroup's branded cards business and small commercial banking business. North America Regional Consumer Banking (NA RCB) provides traditional banking and Citi-branded card services to retail customers and small to mid-size businesses in the U.S.EMEA Regional Consumer Banking (EMEA RCB) provides traditional banking and Citi-branded card services to retail customers and small to mid-size businesses, primarily in Central and Eastern Europe, the Middle East and Africa.Latin America Regional Consumer Banking (LATAM RCB) provides traditional banking and Citi-branded card services to retail customers and small to mid-size businesses, with the largest presence in Mexico and Brazil.Institutional Clients Group (ICG) includes Securities and Banking and Transaction Services. ICG provides corporate, institutional and high-net-worth clients with a full range of products and services, including cash management, trading, underwriting, lending and advisory services, around the world.Securities and Banking (S&B) offers a wide array of investment and commercial banking services and products for corporations, governments, institutional and retail investors, and ultra-high-net worth individuals.Citigroup is subject to the risk-based capital guidelines issued by the Federal Reserve Board

Ockham's Rating/Recommendation Summary

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C Revenue

Cash earnings is the most important factor in our analysis, but it goes without saying that if a company cannot produce sales then there is no ability to generate cash flow. By that logic we look very closely at revenue numbers as our second most important factor in valuing a company's stock. We have established reasonable Price to Sales per share ranges based on historical data of the last 7 years. For, C the high and low end of the Price to Sales per share ratios are 3.15x and 1.07x respectively.

Notice that C's current Price to Sales per share ratio is 1.47x, which is quite a bit below what we consider a normal Price to Sales ratio for this stock. Given normal conditions and a price of 4.12, C is 31% below where we would expect to see it. This will beneficially factor into our final analysis of C as it is not often that this stock sinks to these levels.

C Cash Earnings

Cash (and the ability of a company to generate it) is a pivotal analysis at Ockham Research. With C, we have found that we don't have as many years of positive Cash Earnings as we would like in order to run an analysis. When a company like C has had several years of negative Cash Earnings mixed in with their positive years, it can be difficult to really get a good analysis of their potential. At Ockham, we always advise that Cash is key to any investment, so investors should consider the lack of positive years available as a signal that other types of analysis may need to be more heavily relied upon in C's case.

C Dividends

When determining a company's future prospects for success, Ockham Research sees analysis of dividend payments as a key additional factor. Even though it isn't imperative for C to shell out a dividend in order to receive a positive rating, it can be helpful to further our analysis.