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

Fundamentals

Flawless balance sheet established dividend payer.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

5.1%

CBSH

2.7%

US Banks

0.5%

US Market


1 Year Return

5.7%

CBSH

2.9%

US Banks

6.8%

US Market

Return vs Industry: CBSH exceeded the US Banks industry which returned 2.9% over the past year.

Return vs Market: CBSH underperformed the US Market which returned 6.8% over the past year.


Shareholder returns

CBSHIndustryMarket
7 Day5.1%2.7%0.5%
30 Day3.5%1.1%-0.8%
90 Day7.5%2.7%-0.9%
1 Year7.5%5.7%5.8%2.9%9.2%6.8%
3 Year53.8%46.7%52.0%41.5%45.6%36.2%
5 Year102.4%85.8%69.2%50.7%63.2%45.4%

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?

16.74x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CBSH ($62.78) is trading above our estimate of fair value ($60.92)

Significantly Below Fair Value: CBSH is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CBSH is poor value based on its PE Ratio (16.7x) compared to the Banks industry average (12.5x).

PE vs Market: CBSH is good value based on its PE Ratio (16.7x) compared to the US market (17.7x).


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 (2.3x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Commerce Bancshares forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

-5.2%

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 (-5.2% per year).

Earnings vs Market: CBSH's earnings are forecast to decline over the next 3 years (-5.2% 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 (7.2% 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 (12.1%).


Next Steps

Past Performance

How has Commerce Bancshares performed over the past 5 years?

12.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CBSH's earnings have grown by 12.7% per year over the past 5 years.

Accelerating Growth: CBSH's earnings growth over the past year (1.4%) is below its 5-year average (12.7% per year).

Earnings vs Industry: CBSH earnings growth over the past year (1.4%) underperformed the Banks industry 29.7%.


Return on Equity

High ROE: CBSH's Return on Equity (13.7%) is considered low.


Return on Assets

ROA vs Industry: CBSH has a higher Return on Assets than the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate CBSH's Return on Capital Employed to determine if it has improved over the past 3 years.


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

Inventory Level: CBSH has a low level of unsold assets or inventory.

Debt Coverage by Assets: CBSH's debt is not covered by short term assets (assets are 0.9x debt).


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 (0.08%)


Next Steps

Dividend

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

1.66%

Current Dividend Yield


Dividend Yield vs Market

company1.7%marketbottom25%1.4%markettop25%3.7%industryaverage3.0%forecastin3Years1.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: CBSH's dividend (1.66%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: CBSH's dividend (1.66%) is low compared to the top 25% of dividend payers in the US market (3.73%).

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 (26.8%), 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 (33.7% payout ratio).


Next Steps

Management

What is the CEO of Commerce Bancshares's salary, the management and board of directors tenure and is there insider trading?

3.0yrs

Average management tenure


CEO

John Kemper (41yo)

1.2yrs

Tenure

US$2,723,441

Compensation

Mr. John W. Kemper has been the President and Chief Operating Officer at Commerce Bancshares, Inc. since February 8, 2013. He serves as CEO of Commerce Bancshares, Inc. since August 01, 2018 and Vice Presi ...


CEO Compensation Analysis

Compensation vs. Market: John has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

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


Management Age and Tenure

3.0yrs

Average Tenure

55yo

Average Age

Experienced Management: CBSH's management team is considered experienced (3 years average tenure).


Board Age and Tenure

14.6yrs

Average Tenure

66yo

Average Age

Experienced Board: CBSH's board of directors are seasoned and experienced ( 14.6 years average tenure).


Insider Trading

Insider Buying: CBSH insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$195,08518 Sep 19
Jeffery Burik
EntityIndividual
Shares3,200
Max PriceUS$60.96
SellUS$12,76919 Jun 19
Patricia Kellerhals
EntityIndividual
Shares218
Max PriceUS$58.58
SellUS$218,80108 May 19
John Handy
EntityIndividual
Role
Unit Chairman
Executive VP & Chairman of Commerce Trust Company
Shares3,541
Max PriceUS$61.79
SellUS$52,05619 Mar 19
Patricia Kellerhals
EntityIndividual
Shares851
Max PriceUS$61.17
SellUS$48,95512 Mar 19
Douglas Neff
EntityIndividual
Role
Unit Chairman
Senior VP and Chairman & CEO of Commerce Bank - Springfield Region
Shares807
Max PriceUS$60.66
SellUS$625,78028 Feb 19
Kevin Barth
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Commercial Line of Business
Shares10,000
Max PriceUS$62.58
SellUS$104,08027 Feb 19
John Handy
EntityIndividual
Role
Unit Chairman
Executive VP & Chairman of Commerce Trust Company
Shares1,634
Max PriceUS$63.70
SellUS$448,59325 Feb 19
John Kemper
EntityIndividual
Role
Chief Executive Officer
President
Shares7,075
Max PriceUS$63.41
SellUS$473,32119 Feb 19
David Kemper
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares7,681
Max PriceUS$61.62
SellUS$70,54513 Feb 19
Daniel Callahan
EntityIndividual
Shares1,156
Max PriceUS$61.03
SellUS$366,35313 Feb 19
Kevin Barth
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Commercial Line of Business
Shares6,001
Max PriceUS$61.05
SellUS$1,666,89606 Feb 19
David Kemper
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares27,728
Max PriceUS$60.12
SellUS$1,196,25805 Feb 19
David Kemper
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares20,000
Max PriceUS$59.81
SellUS$246,57530 Jan 19
Daniel Callahan
EntityIndividual
Shares4,018
Max PriceUS$61.52
SellUS$427,37630 Jan 19
Kevin Barth
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Commercial Line of Business
Shares6,976
Max PriceUS$61.26
SellUS$201,67024 Jan 19
Daniel Callahan
EntityIndividual
Shares3,300
Max PriceUS$61.11
SellUS$98,86926 Nov 18
Daniel Callahan
EntityIndividual
Shares1,575
Max PriceUS$62.77
SellUS$149,74506 Nov 18
Jeffery Burik
EntityIndividual
Shares2,418.15
Max PriceUS$61.93
SellUS$496,95402 Nov 18
Jeffery Burik
EntityIndividual
Shares8,123.85
Max PriceUS$61.17

Ownership Breakdown


Management Team

  • David Kemper (68yo)

    Executive Chairman

    • Tenure: 27.9yrs
    • Compensation: US$4.55m
  • Chuck Kim (58yo)

    Executive VP & CFO

    • Tenure: 10.3yrs
    • Compensation: US$1.47m
  • Kevin Barth (58yo)

    Executive Vice President of Commercial Line of Business

    • Tenure: 14.5yrs
    • Compensation: US$1.47m
  • Sara Foster (58yo)

    Executive Vice President of Talent & Corporate Administration

    • Tenure: 7.7yrs
  • John Handy (55yo)

    Executive VP & Chairman of Commerce Trust Company

    • Tenure: 1.6yrs
    • Compensation: US$1.62m
  • John Kemper (41yo)

    President

    • Tenure: 1.2yrs
    • Compensation: US$2.72m
  • Thomas Noack

    VP, Secretary & General Counsel

    • Tenure: 0yrs
  • Robert Holmes (55yo)

    Executive Vice President

    • Tenure: 4.5yrs
    • Compensation: US$1.26m
  • David Roller (48yo)

    Senior VP & Chief Information Officer

    • Tenure: 3yrs
  • Paul Steiner (47yo)

    Controller & Chief Accounting Officer

    • Tenure: 0.5yrs

Board Members

  • W. Grant (68yo)

    Independent Director

    • Tenure: 36.3yrs
    • Compensation: US$145.50k
  • David Kemper (68yo)

    Executive Chairman

    • Tenure: 27.9yrs
    • Compensation: US$4.55m
  • Jonathan Kemper (65yo)

    Director

    • Tenure: 22.7yrs
    • Compensation: US$1.82m
  • Andy Taylor (71yo)

    Lead Director

    • Tenure: 1.8yrs
    • Compensation: US$160.17k
  • John Capps (68yo)

    Independent Director

    • Tenure: 19.8yrs
    • Compensation: US$154.00k
  • Benjamin Rassieur (64yo)

    Independent Director

    • Tenure: 22.2yrs
    • Compensation: US$157.50k
  • John Handy (55yo)

    Executive VP & Chairman of Commerce Trust Company

    • Tenure: 1.6yrs
    • Compensation: US$1.62m
  • Trace Devanny (67yo)

    Independent Director

    • Tenure: 9.5yrs
    • Compensation: US$163.00k
  • John Kemper (41yo)

    President

    • Tenure: 1.2yrs
    • Compensation: US$2.72m
  • Doug Neff (50yo)

    Senior VP and Chairman & CEO of Commerce Bank - Springfield Region

    • Tenure: 6.5yrs

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$6.740b
  • Shares outstanding: 107.36m
  • 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 individu ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 23:34
End of Day Share Price2019/10/18 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.