C Stock Report

2-Year Price History

A Word Of Caution

The Ockham Research Team has placed an alert on this security because there have been significant developments associated with Citigroup, Inc. (C). Eventually, these externalities may have an impact on our valuation but these recent events have not yet been fully factored into our analysis.

Please take a moment to look at the RazorWire feed on the right hand side of the report. Each mention of Citigroup, Inc. on business television will be displayed to the right of the report. This should help bring you up to speed on any major issues they are facing right now.

Of course, you may proceed to review our research report for this security, but please be aware that our model may not reflect these significant factors surrounding this company as our data sources are still being updated. This alert shall remain in effect until the situation surrounding this security normalizes substantially.

Therefore, (and as always), check additional sources and available information regarding C before making an investment decision.

Ockham's Rating

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C Revenue

As we have often noted, in our valuation methodology, "Cash is King." Well, 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 10 years. For, C the high and low end of the Price to Sales per share ratios are 2.04x and 1.20x respectively.

Notice that C's current Price to Sales per share ratio is 0.13x, 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 $3.03, C is 92% 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

When reviewing a company and their prospects for success, it is necessary to analyze their ability to generate positive Cash Earnings. This is a vital component to our analysis, because as a long term investment research firm, there are few factors more closely tied to the valuation of a company as Cash Earnings. In the case of C, it appears that either the current estimate for Cash Earnings is negative or C is not likely to generate positive Cash Earnings based upon their prior performance in the last several quarters. Remember that Cash Earnings is not the only way to value a company's potential, but in our analysis it is the most important. Thus, for our analysis C receives a negative score from a Cash perspective. At Ockham, we are fond of saying "Cash is King," and in this case the company is not generating any. If a company is not able to generate a profit then there is no reason to invest in them. Unless of course you believe in the story, and hope it will eventually lead to a profitable enterprise.

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.

The estimated annual dividend for C is $0.04 producing a current dividend yield of 1.32%. Much like our evaluation of Sales and Cash Earnings per share, we review dividend yields from C against the historic high and low levels over all available dividend history. Because dividends are a decision made exclusively by management, we view a healthy and rising dividend as a sign of confidence and strength. The highest dividend yield from C over previous years was 36.72% while the lowest dividend yield was 0.17%. It is never a good sign for a company to pay significantly lower dividends, in this case 92.84% below the median yield. Although, dividends are a relatively small portion of our analysis framework, we still see this as a negative factor.