DB:UMB

Stock Analysis Report

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UMB Financial

Executive Summary

UMB Financial Corporation operates as the bank holding company for the UMB Bank that provides various banking and other financial services.


Snowflake Analysis

Flawless balance sheet established dividend payer.


Similar Companies

Share Price & News

How has UMB Financial's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: UMB's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-4.7%

UMB

5.6%

DE Banks

0.7%

DE Market


1 Year Return

-30.7%

UMB

-12.4%

DE Banks

3.9%

DE Market

Return vs Industry: UMB underperformed the German Banks industry which returned -14.9% over the past year.

Return vs Market: UMB underperformed the German Market which returned 3% over the past year.


Shareholder returns

UMBIndustryMarket
7 Day-4.7%5.6%0.7%
30 Day-22.7%3.0%1.4%
90 Day-11.5%26.4%17.3%
1 Year-29.3%-30.7%-12.4%-12.4%6.2%3.9%
3 Year-34.2%-37.6%-41.8%-44.0%1.8%-6.2%
5 Year-15.2%-22.2%-37.0%-49.1%9.3%-5.4%

Price Volatility Vs. Market

How volatile is UMB Financial's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is UMB Financial undervalued compared to its fair value and its price relative to the market?

17.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: UMB (€40.2) is trading below our estimate of fair value (€48.51)

Significantly Below Fair Value: UMB is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: UMB is good value based on its PE Ratio (12.3x) compared to the DE Banks industry average (20x).

PE vs Market: UMB is good value based on its PE Ratio (12.3x) compared to the German market (21x).


Price to Earnings Growth Ratio

PEG Ratio: UMB is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: UMB's PB Ratio (0.8x) is in line with the DE Banks industry average.


Next Steps

Future Growth

How is UMB Financial forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

17.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: UMB's forecast earnings growth (17.4% per year) is above the savings rate (0.2%).

Earnings vs Market: UMB's earnings (17.4% per year) are forecast to grow slower than the German market (22.4% per year).

High Growth Earnings: UMB's earnings are forecast to grow, but not significantly.

Revenue vs Market: UMB's revenue (3.3% per year) is forecast to grow slower than the German market (6% per year).

High Growth Revenue: UMB's revenue (3.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: UMB's Return on Equity is forecast to be low in 3 years time (6.5%).


Next Steps

Past Performance

How has UMB Financial performed over the past 5 years?

13.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: UMB has high quality earnings.

Growing Profit Margin: UMB's current net profit margins (18.4%) are lower than last year (20.5%).


Past Earnings Growth Analysis

Earnings Trend: UMB's earnings have grown by 13.6% per year over the past 5 years.

Accelerating Growth: UMB's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: UMB had negative earnings growth (-7.2%) over the past year, making it difficult to compare to the Banks industry average (4%).


Return on Equity

High ROE: UMB's Return on Equity (6.8%) is considered low.


Next Steps

Financial Health

How is UMB Financial's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: UMB's Assets to Equity ratio (9.9x) is low.

Allowance for Bad Loans: UMB has a sufficient allowance for bad loans (194%).

Low Risk Liabilities: 90% of UMB's liabilities are made up of primarily low risk sources of funding.

Loan Level: UMB has an appropriate level of Loans to Assets ratio (52%).

Low Risk Deposits: UMB's Loans to Deposits ratio (65%) is appropriate.

Level of Bad Loans: UMB has an appropriate level of bad loans (0.7%).


Next Steps

Dividend

What is UMB Financial current dividend yield, its reliability and sustainability?

2.70%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: UMB's dividend (2.7%) is higher than the bottom 25% of dividend payers in the German market (1.25%).

High Dividend: UMB's dividend (2.7%) is low compared to the top 25% of dividend payers in the German market (3.85%).


Stability and Growth of Payments

Stable Dividend: UMB's dividends per share have been stable in the past 10 years.

Growing Dividend: UMB's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (32.6%), UMB's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: UMB's dividends in 3 years are forecast to be well covered by earnings (33.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.8yrs

Average management tenure


CEO

J. Kemper (47yo)

16.17yrs

Tenure

US$4,101,491

Compensation

Mr. J. Mariner Kemper has been the Chairman and Chief Executive Officer of UMB Financial Corporation since May 12, 2004 and has been its President since November 2, 2015. Mr. Kemper serves as Chairman and  ...


CEO Compensation Analysis

Compensation vs Market: J.'s total compensation ($USD4.10M) is above average for companies of similar size in the German market ($USD1.48M).

Compensation vs Earnings: J.'s compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
J. Kemper
Chairman16.17yrsUS$4.10m4.88% $91.5m
Ram Shankar
Executive VP & CFO3.92yrsUS$847.63k0.011% $197.2k
Thomas Terry
Executive VP & Chief Credit Officerno dataUS$746.87k0.065% $1.2m
James Rine
President & CEO of UMB Bank1.75yrsUS$1.53m0.029% $539.7k
David Odgers
Senior VP0.50yrno data0.0056% $105.4k
Shannon Johnson
Executive VP & Chief Administrative Officer0.75yrno data0.018% $333.9k
Kay Gregory
Director of Investor Relations & Senior VPno datano datano data
John Pauls
Executive VP4.08yrsno data0.010% $194.9k
Heather Miller
Executive Vice President of Salesno datano datano data
Robert Beaird
Chief HR Officer & Executive VP0.75yrno data0.0023% $42.8k

1.8yrs

Average Tenure

48yo

Average Age

Experienced Management: UMB's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
J. Kemper
Chairman16.17yrsUS$4.10m4.88% $91.5m
Andrew Iseman
Chairmanno dataUS$1.47mno data
Alexander Kemper
Director28.5yrsUS$104.98k0.081% $1.5m
L. Sosland
Independent Director22.5yrsUS$107.98k0.020% $374.3k
Kris Robbins
Independent Director20.5yrsUS$132.98k0.016% $297.7k
Paul Uhlmann
Independent Director20.5yrsUS$112.98k0.033% $623.2k
Kevin Gallagher
Independent Director12.75yrsUS$118.98k0.036% $676.1k
Robin Beery
Independent Director5.5yrsUS$134.98k0.0077% $144.1k
Gregory Graves
Independent Lead Director3.25yrsUS$147.98k0.053% $994.1k
Gordon Lansford
Independent Director3.25yrsUS$132.98k0.0045% $83.9k

16.2yrs

Average Tenure

55yo

Average Age

Experienced Board: UMB's board of directors are seasoned and experienced ( 16.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: UMB insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

UMB Financial Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: UMB Financial Corporation
  • Ticker: UMB
  • Exchange: DB
  • Founded: 1913
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$2.122b
  • Listing Market Cap: US$1.876b
  • Shares outstanding: 48.14m
  • Website: https://www.umb.com

Number of Employees


Location

  • UMB Financial Corporation
  • 1010 Grand Boulevard
  • Kansas City
  • Missouri
  • 64106
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
UMBFNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJan 1980
UMBDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1980

Biography

UMB Financial Corporation operates as the bank holding company for the UMB Bank that provides various banking and other financial services. The company operates through four segments: Commercial Banking, Institutional Banking, Personal Banking, and Healthcare Services. The Commercial Banking segment provides commercial loans and credit cards, letters of credit; loan syndication, consultative services, and various financial options; capital markets services, including asset-based financing, asset securitization, equity and mezzanine financing, factoring, and private and public placement of senior debt, as well as merger and acquisition consulting; and depository, account reconciliation, electronic fund transfer, controlled disbursements, lockbox, and remote deposit capture services. The Institutional Banking segment offers bond trading transactions, cash letter collections, investment portfolio accounting and safekeeping, asset/liability management reporting, and federal funds transactions; and fund administration and accounting, investor services and transfer agency, marketing and distribution, custody, and alternative investment services. The Personal Banking segment provides deposit accounts, retail credit cards, installment loans, home equity lines of credit, residential mortgages, and small business loans, as well as call center, internet banking and ATM network, private banking, brokerage, insurance, investment advisory, trust, and custody services. The Healthcare Services segment offers healthcare payment solutions comprising custodial services for health savings accounts, as well as private label and multipurpose debit cards. The company operates through a network of branches and offices in the states of Missouri, Kansas, Colorado, Illinois, Oklahoma, Texas, Arizona, Nebraska, Iowa, Pennsylvania, South Dakota, Indiana, Utah, Minnesota, California, and Wisconsin. UMB Financial Corporation was founded in 1913 and is headquartered in Kansas City, Missouri. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/10 21:27
End of Day Share Price2020/07/10 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.