NasdaqGS:CBSH

Stock Analysis Report

Executive Summary

Commerce Bancshares, Inc. operates as the bank holding company for Commerce Bank that provides retail, mortgage banking, corporate, investment, trust, and asset management products and services to individuals and businesses.


Snowflake Analysis

Flawless balance sheet established dividend payer.


Similar Companies

Share Price & News

How has Commerce Bancshares's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

9.4%

CBSH

0.7%

US Banks

2.4%

US Market


1 Year Return

-5.3%

CBSH

-28.9%

US Banks

-10.0%

US Market

Return vs Industry: CBSH exceeded the US Banks industry which returned -28.9% over the past year.

Return vs Market: CBSH exceeded the US Market which returned -10% over the past year.


Shareholder returns

CBSHIndustryMarket
7 Day9.4%0.7%2.4%
30 Day3.3%-18.9%-11.0%
90 Day-19.8%-39.2%-19.4%
1 Year-3.7%-5.3%-26.8%-28.9%-8.1%-10.0%
3 Year21.4%15.7%-17.2%-23.3%17.3%9.6%
5 Year74.8%60.7%8.1%-4.4%36.1%21.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Commerce Bancshares undervalued compared to its fair value and its price relative to the market?

7.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CBSH ($54.22) is trading below our estimate of fair value ($58.34)

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


Price To Earnings Ratio

PE vs Industry: CBSH is poor value based on its PE Ratio (15.1x) compared to the Banks industry average (8.7x).

PE vs Market: CBSH is poor value based on its PE Ratio (15.1x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: CBSH's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: CBSH is overvalued based on its PB Ratio (2x) compared to the US Banks industry average (0.8x).


Next Steps

Future Growth

How is Commerce Bancshares forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

-17.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CBSH's earnings are forecast to decline over the next 3 years (-17.5% per year).

Earnings vs Market: CBSH's earnings are forecast to decline over the next 3 years (-17.5% per year).

High Growth Earnings: CBSH's earnings are forecast to decline over the next 3 years.

Revenue vs Market: CBSH's revenue (1.5% per year) is forecast to grow slower than the US market (7% per year).

High Growth Revenue: CBSH's revenue (1.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CBSH's Return on Equity is forecast to be low in 3 years time (11.7%).


Next Steps

Past Performance

How has Commerce Bancshares performed over the past 5 years?

13.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CBSH has high quality earnings.

Growing Profit Margin: CBSH's current net profit margins (31.4%) are lower than last year (32.8%).


Past Earnings Growth Analysis

Earnings Trend: CBSH's earnings have grown by 13.2% per year over the past 5 years.

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

Earnings vs Industry: CBSH had negative earnings growth (-2.8%) over the past year, making it difficult to compare to the Banks industry average (10.8%).


Return on Equity

High ROE: CBSH's Return on Equity (13.5%) is considered low.


Next Steps

Financial Health

How is Commerce Bancshares'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: CBSH's level of assets compared to its equity is low.

Allowance for Bad Loans: CBSH has a sufficient allowance for bad loans.

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

Loan Level: CBSH has an acceptable proportion of non-loan assets held.

Low Risk Deposits: CBSH's loans are broadly funded by customer deposits.

Level of Bad Loans: CBSH has an appropriate level of bad loans (0.07%)


Next Steps

Dividend

What is Commerce Bancshares's current dividend yield, its reliability and sustainability?

1.99%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CBSH's dividend (1.99%) is higher than the bottom 25% of dividend payers in the US market (1.93%).

High Dividend: CBSH's dividend (1.99%) is low compared to the top 25% of dividend payers in the US market (5.46%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (27.6%), CBSH's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CBSH's dividends in 3 years are forecast to be well covered by earnings (33.4% payout ratio).


Next Steps

Management

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

2.9yrs

Average management tenure


CEO

John Kemper (41yo)

1.67s

Tenure

US$3,692,831

Compensation

Mr. John W. Kemper has been Chairman and Chief Executive Officer of Commerce Bank since August 2018 and has been Chief Executive Officer of Commerce Bancshares, Inc. since August 01, 2018. He was the Presi ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD3.69M) is below average for companies of similar size in the US market ($USD7.52M).

Compensation vs Earnings: John's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
David Kemper
Executive Chairman28.42yrsUS$2.15m1.17% $71.3m
John Kemper
President1.67yrsUS$3.69m0.14% $8.4m
Charles Kim
Executive VP & CFO10.75yrsUS$1.41m0.091% $5.5m
Kevin Barth
Executive Vice President of Commercial Line of Business15yrsUS$1.41m0.10% $6.1m
John Handy
Executive Vice President2.25yrsUS$1.12m0.042% $2.5m
Paul Steiner
Controller & Chief Accounting Officer1yrno data0.0050% $302.7k
David Roller
Senior VP & Chief Information Officer3.5yrsno data0.019% $1.2m
Sara Foster
Executive Vice President of Talent & Corporate Administration8.17yrsno data0.046% $2.8m
Thomas Noack
Senior VPno datano datano data
Jeffrey Missman
Vice Presidentno datano datano data

2.9yrs

Average Tenure

56.5yo

Average Age

Experienced Management: CBSH's management team is considered experienced (2.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Kemper
Executive Chairman28.42yrsUS$2.15m1.17% $71.3m
John Kemper
President1.67yrsUS$3.69m0.14% $8.4m
W. Grant
Independent Director36.83yrsUS$101.00k0.028% $1.7m
Jonathan Kemper
Director23.17yrsUS$1.82m1.11% $67.6m
Andrew Taylor
Lead Independent Director2.25yrsUS$111.00k0.051% $3.1m
John Capps
Independent Director20.25yrsUS$104.00k0.0079% $481.9k
Benjamin Rassieur
Independent Director22.67yrsUS$115.00k0.033% $2.0m
Todd Schnuck
Independent Director10yrsUS$96.50k0.013% $789.4k
Kimberly Walker
Independent Director13.17yrsUS$104.00k0.017% $1.0m
Earl Devanny
Independent Director10yrsUS$112.00k0.015% $892.8k

16.7yrs

Average Tenure

66yo

Average Age

Experienced Board: CBSH's board of directors are seasoned and experienced ( 16.7 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: CBSH insiders have only sold shares 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

Commerce Bancshares, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Commerce Bancshares, Inc.
  • Ticker: CBSH
  • Exchange: NasdaqGS
  • Founded: 1865
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$6.077b
  • Shares outstanding: 112.09m
  • Website: https://www.commercebank.com

Number of Employees


Location

  • Commerce Bancshares, Inc.
  • 1000 Walnut
  • Kansas City
  • Missouri
  • 64106
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CBSHNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJan 1969
CB5DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1969
CBSH.PNasdaqGS (Nasdaq Global Select)DEP SHS RP PFD BUSUSDJun 2014

Biography

Commerce Bancshares, Inc. operates as the bank holding company for Commerce Bank that provides retail, mortgage banking, corporate, investment, trust, and asset management products and services to individuals and businesses. It operates through three segments: Consumer, Commercial, and Wealth. The Consumer segment offers various banking products and services, including consumer deposits; consumer loans, such as automobile, motorcycle, marine, tractor/trailer, recreational vehicle, fixed rate and revolving home equity, and other consumer loans; patient health care financing; real estate loans; indirect and other consumer financing; personal mortgage banking; consumer installment lending; and consumer debit and credit bank cards, as well as provides online banking services. The Commercial segment provides corporate lending, merchant and commercial bank card, leasing, international, and investment safekeeping and bond accounting services; and business products, government deposits, and related commercial cash management services, as well as sells fixed-income securities to individuals, corporations, correspondent banks, public institutions, and municipalities. The Wealth segment provides traditional trust and estate planning services, brokerage services, and advisory and discretionary investment management services, as well as private banking accounts. The company also offers private equity investment, securities brokerage, and insurance agency services. It operates through a network of 316 locations in Missouri, Kansas, Illinois, Oklahoma, and Colorado, as well as commercial offices. Commerce Bancshares, Inc. was founded in 1865 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 Analysis2020/04/08 07:17
End of Day Share Price2020/04/07 00:00
Earnings2019/12/31
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.