CULLEN/FROST BANKERS INC (CFR) Stock Fundamental Analysis
NYSE:CFR - New York Stock Exchange, Inc. - US2298991090 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to CFR. CFR was compared to 404 industry peers in the Banks industry. CFR has a medium profitability rating, but doesn't score so well on its financial health evaluation. CFR is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year CFR was profitable.
In the past year CFR had a positive cash flow from operations.
Each year in the past 5 years CFR has been profitable.
CFR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.34%, CFR belongs to the top of the industry, outperforming 85.64% of the companies in the same industry.
CFR has a Return On Equity of 18.01%. This is amongst the best in the industry. CFR outperforms 96.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.34% | ||
| ROE | 18.01% | ||
| ROIC | N/A |
ROA(3y)1.1%
ROA(5y)0.98%
ROE(3y)16.15%
ROE(5y)13.13%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
CFR has a Profit Margin of 27.37%. This is in the better half of the industry: CFR outperforms 72.03% of its industry peers.
In the last couple of years the Profit Margin of CFR has declined.
CFR does not have Operating Margin and Gross Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 27.37% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-4.3%
PM growth 5Y-2.65%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
CFR does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, CFR has about the same amount of shares outstanding.
The number of shares outstanding for CFR has been increased compared to 5 years ago.
Compared to 1 year ago, CFR has a worse debt to assets ratio.
2.2 Solvency
CFR has a debt to FCF ratio of 5.33. This is a neutral value as CFR would need 5.33 years to pay back of all of its debts.
CFR has a Debt to FCF ratio of 5.33. This is in the lower half of the industry: CFR underperforms 66.83% of its industry peers.
A Debt/Equity ratio of 1.18 is on the high side and indicates that CFR has dependencies on debt financing.
The Debt to Equity ratio of CFR (1.18) is worse than 87.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 5.33 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC10.99%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The earnings per share for CFR have decreased by -2.53% in the last year.
Measured over the past 5 years, CFR shows a small growth in Earnings Per Share. The EPS has been growing by 5.34% on average per year.
Looking at the last year, CFR shows a small growth in Revenue. The Revenue has grown by 2.92% in the last year.
The Revenue has been growing by 8.57% on average over the past years. This is quite good.
EPS 1Y (TTM)-2.53%
EPS 3Y9.48%
EPS 5Y5.34%
EPS Q2Q%52.26%
Revenue 1Y (TTM)2.92%
Revenue growth 3Y14.59%
Revenue growth 5Y8.57%
Sales Q2Q%6.28%
3.2 Future
The Earnings Per Share is expected to grow by 4.78% on average over the next years.
Based on estimates for the next years, CFR will show a small growth in Revenue. The Revenue will grow by 2.32% on average per year.
EPS Next Y2.26%
EPS Next 2Y1.67%
EPS Next 3Y1.98%
EPS Next 5Y4.78%
Revenue Next Year5.22%
Revenue Next 2Y4.93%
Revenue Next 3Y3.47%
Revenue Next 5Y2.32%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 14.56, CFR is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of CFR indicates a slightly more expensive valuation: CFR is more expensive than 65.10% of the companies listed in the same industry.
CFR's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.35.
Based on the Price/Forward Earnings ratio of 14.24, the valuation of CFR can be described as correct.
CFR's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. CFR is more expensive than 66.58% of the companies in the same industry.
CFR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.56 | ||
| Fwd PE | 14.24 |
4.2 Price Multiples
68.56% of the companies in the same industry are more expensive than CFR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.63 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CFR does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)6.45
PEG (5Y)2.73
EPS Next 2Y1.67%
EPS Next 3Y1.98%
5. Dividend
5.1 Amount
CFR has a Yearly Dividend Yield of 2.97%.
Compared to an average industry Dividend Yield of 3.34, CFR has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.33, CFR pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.97% |
5.2 History
The dividend of CFR has a limited annual growth rate of 5.72%.
CFR has been paying a dividend for at least 10 years, so it has a reliable track record.
CFR has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)5.72%
Div Incr Years31
Div Non Decr Years31
5.3 Sustainability
CFR pays out 35.49% of its income as dividend. This is a sustainable payout ratio.
CFR's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP35.49%
EPS Next 2Y1.67%
EPS Next 3Y1.98%
129.13
+1.27 (+0.99%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners89.36%
Inst Owner Change-1.77%
Ins Owners1.32%
Ins Owner Change1.03%
Market Cap8.30B
Analysts67
Price Target145.66 (12.8%)
Short Float %4.29%
Short Ratio5.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.97% |
Yearly Dividend3.88
Dividend Growth(5Y)5.72%
DP35.49%
Div Incr Years31
Div Non Decr Years31
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.09%
Min EPS beat(2)2%
Max EPS beat(2)8.19%
EPS beat(4)3
Avg EPS beat(4)3.02%
Min EPS beat(4)-3.85%
Max EPS beat(4)8.19%
EPS beat(8)6
Avg EPS beat(8)0.57%
EPS beat(12)10
Avg EPS beat(12)2.19%
EPS beat(16)14
Avg EPS beat(16)5.27%
Revenue beat(2)1
Avg Revenue beat(2)-7.44%
Min Revenue beat(2)-17.35%
Max Revenue beat(2)2.47%
Revenue beat(4)3
Avg Revenue beat(4)-3.25%
Min Revenue beat(4)-17.35%
Max Revenue beat(4)2.47%
Revenue beat(8)7
Avg Revenue beat(8)-0.09%
Revenue beat(12)9
Avg Revenue beat(12)6.6%
Revenue beat(16)9
Avg Revenue beat(16)3.94%
PT rev (1m)4.01%
PT rev (3m)7.74%
EPS NQ rev (1m)0.93%
EPS NQ rev (3m)2.88%
EPS NY rev (1m)5.04%
EPS NY rev (3m)5.38%
Revenue NQ rev (1m)0.42%
Revenue NQ rev (3m)1.47%
Revenue NY rev (1m)0.41%
Revenue NY rev (3m)2.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.56 | ||
| Fwd PE | 14.24 | ||
| P/S | 3.23 | ||
| P/FCF | 9.63 | ||
| P/OCF | 8.38 | ||
| P/B | 2.13 | ||
| P/tB | 2.13 | ||
| EV/EBITDA | N/A |
EPS(TTM)8.87
EY6.87%
EPS(NY)9.07
Fwd EY7.02%
FCF(TTM)13.4
FCFY10.38%
OCF(TTM)15.4
OCFY11.93%
SpS39.93
BVpS60.69
TBVpS60.69
PEG (NY)6.45
PEG (5Y)2.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.34% | ||
| ROE | 18.01% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 27.37% | ||
| GM | N/A | ||
| FCFM | 33.57% |
ROA(3y)1.1%
ROA(5y)0.98%
ROE(3y)16.15%
ROE(5y)13.13%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-4.3%
PM growth 5Y-2.65%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 5.33 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 155.14% | ||
| Cap/Sales | 5.01% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 122.66% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score6
WACC10.99%
ROIC/WACCN/A
Cap/Depr(3y)168.8%
Cap/Depr(5y)149.93%
Cap/Sales(3y)6.75%
Cap/Sales(5y)6.33%
Profit Quality(3y)105.07%
Profit Quality(5y)116.76%
High Growth Momentum
Growth
EPS 1Y (TTM)-2.53%
EPS 3Y9.48%
EPS 5Y5.34%
EPS Q2Q%52.26%
EPS Next Y2.26%
EPS Next 2Y1.67%
EPS Next 3Y1.98%
EPS Next 5Y4.78%
Revenue 1Y (TTM)2.92%
Revenue growth 3Y14.59%
Revenue growth 5Y8.57%
Sales Q2Q%6.28%
Revenue Next Year5.22%
Revenue Next 2Y4.93%
Revenue Next 3Y3.47%
Revenue Next 5Y2.32%
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y168.9%
FCF growth 3Y13.92%
FCF growth 5Y15.04%
OCF growth 1Y106.65%
OCF growth 3Y15.14%
OCF growth 5Y9.31%