CULLEN/FROST BANKERS INC (CFR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CFR - US2298991090 - Common Stock
136.33 USD
-1.09 (-0.79%)
136.33 USD
0 (0%)
Taking everything into account, CFR scores 3 out of 10 in our fundamental rating. CFR was compared to 383 industry peers in the Banks industry. While CFR is still in line with the averages on profitability rating, there are concerns on its financial health. CFR is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year CFR was profitable.
- CFR had a positive operating cash flow in the past year.
- CFR had positive earnings in each of the past 5 years.
- Each year in the past 5 years CFR had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 1.19%, CFR is in the better half of the industry, outperforming 75.46% of the companies in the same industry.
- The Return On Equity of CFR (14.00%) is better than 91.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.19% | ||
| ROE | 14% | ||
| 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's Profit Margin of 28.50% is fine compared to the rest of the industry. CFR outperforms 72.06% of its industry peers.
- CFR's Profit Margin has declined in the last couple of years.
- 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) | 28.5% | ||
| 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.
- Compared to 5 years ago, CFR has more shares outstanding
- CFR has a worse debt/assets ratio than last year.
2.2 Solvency
- CFR has a debt to FCF ratio of 305.69. This is a negative value and a sign of low solvency as CFR would need 305.69 years to pay back of all of its debts.
- CFR has a Debt to FCF ratio of 305.69. This is amonst the worse of the industry: CFR underperforms 86.42% of its industry peers.
- A Debt/Equity ratio of 1.08 is on the high side and indicates that CFR has dependencies on debt financing.
- CFR's Debt to Equity ratio of 1.08 is on the low side compared to the rest of the industry. CFR is outperformed by 84.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.08 | ||
| Debt/FCF | 305.69 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC10.97%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 20.60% over the past year.
- CFR shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.34% yearly.
- CFR shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -13.43%.
- Measured over the past years, CFR shows a quite strong growth in Revenue. The Revenue has been growing by 8.57% on average per year.
EPS 1Y (TTM)20.6%
EPS 3Y9.48%
EPS 5Y5.34%
EPS Q2Q%19.2%
Revenue 1Y (TTM)-13.43%
Revenue growth 3Y14.59%
Revenue growth 5Y8.57%
Sales Q2Q%29.77%
3.2 Future
- CFR is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.15% yearly.
- The Revenue is expected to grow by 3.58% on average over the next years.
EPS Next Y12.06%
EPS Next 2Y5.77%
EPS Next 3Y4.65%
EPS Next 5Y4.15%
Revenue Next Year8.2%
Revenue Next 2Y6.28%
Revenue Next 3Y5.69%
Revenue Next 5Y3.58%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less 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
- Based on the Price/Earnings ratio of 14.03, the valuation of CFR can be described as correct.
- Compared to the rest of the industry, the Price/Earnings ratio of CFR indicates a slightly more expensive valuation: CFR is more expensive than 61.10% of the companies listed in the same industry.
- CFR is valuated rather cheaply when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 13.74, 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 71.54% of the companies in the same industry.
- CFR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.03 | ||
| Fwd PE | 13.74 |
4.2 Price Multiples
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of CFR indicates a rather expensive valuation: CFR more expensive than 84.60% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 553 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.16
PEG (5Y)2.63
EPS Next 2Y5.77%
EPS Next 3Y4.65%
5. Dividend
5.1 Amount
- CFR has a Yearly Dividend Yield of 2.82%.
- CFR's Dividend Yield is comparable with the industry average which is at 2.64.
- CFR's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.82% |
5.2 History
- The dividend of CFR has a limited annual growth rate of 5.72%.
- CFR has paid a dividend for at least 10 years, which is 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 41.55% of its income as dividend. This is a bit on the high side, but may be sustainable.
- The dividend of CFR is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP41.55%
EPS Next 2Y5.77%
EPS Next 3Y4.65%
CULLEN/FROST BANKERS INC / CFR FAQ
What is the ChartMill fundamental rating of CULLEN/FROST BANKERS INC (CFR) stock?
ChartMill assigns a fundamental rating of 3 / 10 to CFR.
What is the valuation status for CFR stock?
ChartMill assigns a valuation rating of 2 / 10 to CULLEN/FROST BANKERS INC (CFR). This can be considered as Overvalued.
What is the profitability of CFR stock?
CULLEN/FROST BANKERS INC (CFR) has a profitability rating of 4 / 10.
What is the financial health of CULLEN/FROST BANKERS INC (CFR) stock?
The financial health rating of CULLEN/FROST BANKERS INC (CFR) is 0 / 10.
How sustainable is the dividend of CULLEN/FROST BANKERS INC (CFR) stock?
The dividend rating of CULLEN/FROST BANKERS INC (CFR) is 6 / 10 and the dividend payout ratio is 41.55%.