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

-1.1%

CBSH

-1.1%

US Banks

-0.6%

US Market


1 Year Return

-7.7%

CBSH

-6.9%

US Banks

0.6%

US Market

CBSH underperformed the Banks industry which returned -6.4% over the past year.

CBSH underperformed the Market in United States of America which returned 1.1% over the past year.


Share holder returns

CBSHIndustryMarket
7 Day-1.1%-1.1%-0.6%
30 Day6.1%8.5%2.2%
90 Day4.8%4.6%1.1%
1 Year-6.1%-7.7%-4.2%-6.9%2.9%0.6%
3 Year49.1%42.2%53.6%43.1%44.6%35.2%
5 Year86.7%71.4%63.8%46.1%61.9%44.2%

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 based on future cash flows and its price relative to the stock market?

0.296%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Commerce Bancshares's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Commerce Bancshares's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Commerce Bancshares is overvalued based on earnings compared to the US Banks industry average.

Commerce Bancshares is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Commerce Bancshares earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

Commerce Bancshares is overvalued based on assets compared to the US Banks industry average.


Next Steps

Future Growth

How is Commerce Bancshares expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

-3.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Commerce Bancshares's revenue is expected to grow by 2.9% yearly, however this is not considered high growth (20% yearly).

Commerce Bancshares's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Commerce Bancshares's revenue growth is positive but not above the United States of America market average.

Commerce Bancshares's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.

Commerce Bancshares's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Commerce Bancshares is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Commerce Bancshares performed over the past 5 years?

11.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Commerce Bancshares's year on year earnings growth rate has been positive over the past 5 years.

Commerce Bancshares's 1-year earnings growth exceeds its 5-year average (12.8% vs 11.8%)

Commerce Bancshares's earnings growth has not exceeded the US Banks industry average in the past year (12.8% vs 32%).


Return on Equity

Commerce Bancshares has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Commerce Bancshares used its assets more efficiently than the US Banks industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if Commerce Bancshares improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.


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

Information is not available.

Information is not available.


Financial Institutions Analysis

Commerce Bancshares has an acceptable proportion of non-loan assets held.

Commerce Bancshares has a sufficient allowance for bad loans.

Commerce Bancshares's liabilities are made up of primarily low risk sources of funding.

Commerce Bancshares's level of assets compared to its equity is low (i.e. an appropriate level of borrowing to fund lending).

Loans at Commerce Bancshares are broadly funded by customer deposits.

Commerce Bancshares has an acceptable level of bad loans (less than 2%).


Next Steps

Dividend

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

1.82%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Commerce Bancshares's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

Commerce Bancshares's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3.9x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3.1x coverage).


Next Steps

Management

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

2.9yrs

Average management tenure


CEO

John Kemper (41yo)

1.1yrs

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

John's remuneration is lower than average for companies of similar size in United States of America.

John's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.9yrs

Average Tenure

55yo

Average Age

The tenure for the Commerce Bancshares management team is about average.


Board Age and Tenure

14.5yrs

Average Tenure

66yo

Average Age

The average tenure for the Commerce Bancshares board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

Commerce Bancshares individual 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
BuyUS$9,67514 Feb 19
Daniel Callahan
EntityIndividual
Shares170
Max PriceUS$66.09
BuyUS$22,01114 Feb 19
Sara Foster
EntityIndividual
Role
Chief Administrative Officer
Executive Vice President of Talent & Corporate Administration
Shares380.84
Max PriceUS$66.09
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: 27.8yrs
    • Compensation: US$4.55m
  • Chuck Kim (58yo)

    Executive VP & CFO

    • Tenure: 10.2yrs
    • Compensation: US$1.47m
  • Kevin Barth (58yo)

    Executive Vice President of Commercial Line of Business

    • Tenure: 14.4yrs
    • Compensation: US$1.47m
  • Sara Foster (58yo)

    Executive Vice President of Talent & Corporate Administration

    • Tenure: 7.6yrs
  • John Handy (55yo)

    Executive VP & Chairman of Commerce Trust Company

    • Tenure: 1.5yrs
    • Compensation: US$1.62m
  • John Kemper (41yo)

    President

    • Tenure: 1.1yrs
    • Compensation: US$2.72m
  • Thomas Noack

    VP, Secretary & General Counsel

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

    Executive Vice President

    • Tenure: 4.4yrs
    • Compensation: US$1.26m
  • David Roller (48yo)

    Senior VP & Chief Information Officer

    • Tenure: 2.9yrs
  • Paul Steiner (47yo)

    Controller & Chief Accounting Officer

    • Tenure: 0.4yrs

Board Members

  • W. Grant (68yo)

    Director

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

    Executive Chairman

    • Tenure: 27.8yrs
    • Compensation: US$4.55m
  • Jonathan Kemper (65yo)

    Director

    • Tenure: 22.6yrs
    • Compensation: US$1.82m
  • Andy Taylor (71yo)

    Lead Director

    • Tenure: 1.7yrs
    • Compensation: US$160.17k
  • John Capps (68yo)

    Independent Director

    • Tenure: 19.7yrs
    • Compensation: US$154.00k
  • Benjamin Rassieur (64yo)

    Director

    • Tenure: 22.1yrs
    • Compensation: US$157.50k
  • John Handy (55yo)

    Executive VP & Chairman of Commerce Trust Company

    • Tenure: 1.5yrs
    • Compensation: US$1.62m
  • Trace Devanny (67yo)

    Director

    • Tenure: 9.4yrs
    • Compensation: US$163.00k
  • John Kemper (41yo)

    President

    • Tenure: 1.1yrs
    • Compensation: US$2.72m
  • Doug Neff (50yo)

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

    • Tenure: 6.4yrs

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$6.654b
  • Shares outstanding: 109.75m
  • 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 Analysis2019/09/20 23:33
End of Day Share Price2019/09/20 00:00
Earnings2019/06/30
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.