NasdaqGS:UMBF

Stock Analysis Report

Executive Summary

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

Rewards

Trading at 14.1% below its fair value

Pays a high and reliable dividend of 1.84%

Risk Analysis

Earnings are forecast to decline by an average of -2.5% per year for the next 3 years

Significant insider selling over the past 3 months



Snowflake Analysis

Flawless balance sheet established dividend payer.

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: UMBF has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.4%

UMBF

1.1%

US Banks

0.7%

US Market


1 Year Return

7.4%

UMBF

21.0%

US Banks

18.2%

US Market

Return vs Industry: UMBF underperformed the US Banks industry which returned 21% over the past year.

Return vs Market: UMBF underperformed the US Market which returned 18.2% over the past year.


Shareholder returns

UMBFIndustryMarket
7 Day1.4%1.1%0.7%
30 Day0.3%0.8%1.5%
90 Day5.5%10.5%5.0%
1 Year9.5%7.4%24.6%21.0%20.8%18.2%
3 Year-10.6%-14.9%31.6%22.4%45.2%35.8%
5 Year37.1%26.0%79.1%59.2%71.6%52.7%

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

Valuation

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

14.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: UMBF ($67.37) is trading below our estimate of fair value ($78.39)

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


Price To Earnings Ratio

PE vs Industry: UMBF is poor value based on its PE Ratio (16.2x) compared to the Banks industry average (12.7x).

PE vs Market: UMBF is good value based on its PE Ratio (16.2x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: UMBF is overvalued based on its PB Ratio (1.3x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is UMB Financial forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

-2.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: UMBF's earnings are forecast to decline over the next 3 years (-2.5% per year).

Earnings vs Market: UMBF's earnings are forecast to decline over the next 3 years (-2.5% per year).

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

Revenue vs Market: UMBF's revenue (3.3% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: UMBF'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: UMBF's Return on Equity is forecast to be low in 3 years time (8.1%).


Next Steps

Past Performance

How has UMB Financial performed over the past 5 years?

13.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: UMBF has high quality earnings.

Growing Profit Margin: UMBF's current net profit margins (20.4%) are lower than last year (22.3%).


Past Earnings Growth Analysis

Earnings Trend: UMBF's earnings have grown by 13.8% per year over the past 5 years.

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

Earnings vs Industry: UMBF had negative earnings growth (-7.2%) over the past year, making it difficult to compare to the Banks industry average (27.1%).


Return on Equity

High ROE: UMBF's Return on Equity (7.9%) is considered low.


Return on Assets


Return on Capital Employed


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

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

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


Financial Institutions Analysis

Asset Level: UMBF's level of assets compared to its equity is low.

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

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

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

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

Level of Bad Loans: UMBF has an appropriate level of bad loans (0.55%)


Next Steps

Dividend

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

1.84%

Current Dividend Yield


Dividend Yield vs Market

company1.8%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years1.8%

Current dividend yield vs market & industry

Notable Dividend: UMBF's dividend (1.84%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: UMBF's dividend (1.84%) is low compared to the top 25% of dividend payers in the US market (3.7%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (28.9%), UMBF's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: UMBF's dividends in 3 years are forecast to be well covered by earnings (28.6% payout ratio).


Next Steps

Management

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

4.1yrs

Average management tenure


CEO

J. Kemper (46yo)

15.6yrs

Tenure

US$3,662,353

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 ($USD3.66M) is about average for companies of similar size in the US market ($USD5.09M).

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


Management Age and Tenure

4.1yrs

Average Tenure

46yo

Average Age

Experienced Management: UMBF's management team is considered experienced (4.1 years average tenure).


Board Age and Tenure

15.6yrs

Average Tenure

54.5yo

Average Age

Experienced Board: UMBF's board of directors are seasoned and experienced ( 15.6 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUS$1,00004 Dec 19
Gregory Graves
EntityIndividual
Role
Lead Director
Lead Director
Shares14.93
Max PriceUS$66.97
SellUS$102,00006 Nov 19
Brian Walker
EntityIndividual
Role
Chief Accounting Officer
Executive VP & Chief Accounting Officer
Shares1,500
Max PriceUS$68.00
SellUS$441,87206 Nov 19
J. Kemper
EntityIndividual
Role
Chief Executive Officer
President
Shares6,600
Max PriceUS$67.11
BuyUS$22,50004 Nov 19
Gregory Graves
EntityIndividual
Role
Lead Director
Lead Director
Shares342.31
Max PriceUS$65.73
SellUS$50,05409 Sep 19
Kris Robbins
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares800
Max PriceUS$62.57
SellUS$1,590,59705 Aug 19
J. Kemper
EntityIndividual
Role
Chief Executive Officer
President
Shares24,200
Max PriceUS$65.96
BuyUS$22,50005 Aug 19
Gregory Graves
EntityIndividual
Role
Lead Director
Lead Director
Shares333.48
Max PriceUS$67.47
BuyUS$1,00005 Jun 19
Gregory Graves
EntityIndividual
Role
Lead Director
Lead Director
Shares16.08
Max PriceUS$62.17
SellUS$498,61209 May 19
J. Kemper
EntityIndividual
Role
Chief Executive Officer
President
Shares7,000
Max PriceUS$71.27
SellUS$313,35306 May 19
J. Kemper
EntityIndividual
Role
Chief Executive Officer
President
Shares4,400
Max PriceUS$71.30
SellUS$207,71102 May 19
J. Kemper
EntityIndividual
Role
Chief Executive Officer
President
Shares3,000
Max PriceUS$69.33
BuyUS$22,55602 May 19
Gregory Graves
EntityIndividual
Role
Lead Director
Lead Director
Shares323.99
Max PriceUS$69.62
SellUS$55,50226 Apr 19
James Cornelius
EntityIndividual
Shares800
Max PriceUS$69.40
SellUS$100,11507 Mar 19
Shannon Johnson
EntityIndividual
Role
Head of Human Resources
Chief Human Resources Officer & Executive VP
Shares1,504
Max PriceUS$66.57
BuyUS$1,00005 Mar 19
Gregory Graves
EntityIndividual
Role
Lead Director
Lead Director
Shares14.48
Max PriceUS$69.06
BuyUS$22,50004 Feb 19
Gregory Graves
EntityIndividual
Role
Lead Director
Lead Director
Shares348.89
Max PriceUS$64.49
BuyUS$258,52001 Feb 19
Timothy Murphy
EntityIndividual
Shares4,000
Max PriceUS$64.63

Ownership Breakdown

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


Management Team

  • J. Kemper (46yo)

    President

    • Tenure: 15.6yrs
    • Compensation: US$3.66m
  • Brian Kaufman

    Managing Director of Prairie Capital Management

    • Tenure: 0yrs
  • Heather Miller

    Executive Vice President of Sales

    • Tenure: 0yrs
  • Ram Shankar (46yo)

    Executive VP & CFO

    • Tenure: 3.3yrs
    • Compensation: US$735.37k
  • Brian Walker (47yo)

    Executive VP & Chief Accounting Officer

    • Tenure: 12.5yrs
    • Compensation: US$471.55k
  • Shannon Johnson (39yo)

    Chief Human Resources Officer & Executive VP

    • Tenure: 4.7yrs
  • Kevin Macke (46yo)

    Executive VP & Director of Operations of UMB bank

    • Tenure: 0yrs
    • Compensation: US$748.70k
  • John Pauls (54yo)

    Executive VP

    • Tenure: 3.5yrs
  • Jim Rine (48yo)

    President & CEO of UMB Bank

    • Tenure: 1.2yrs
    • Compensation: US$898.29k
  • Kay Gregory

    Director of Investor Relations & Senior VP

    • Tenure: 0yrs

Board Members

  • Sandy Kemper (53yo)

    Director

    • Tenure: 27.9yrs
    • Compensation: US$95.03k
  • J. Kemper (46yo)

    President

    • Tenure: 15.6yrs
    • Compensation: US$3.66m
  • L. Sosland (58yo)

    Independent Director

    • Tenure: 21.9yrs
    • Compensation: US$102.03k
  • Kris Robbins (60yo)

    Independent Director

    • Tenure: 19.9yrs
    • Compensation: US$123.03k
  • Paul Uhlmann (68yo)

    Independent Director

    • Tenure: 19.9yrs
    • Compensation: US$104.03k
  • Kevin Gallagher (50yo)

    Independent Director

    • Tenure: 12.2yrs
    • Compensation: US$115.03k
  • Robin Beery (51yo)

    Independent Director

    • Tenure: 4.9yrs
    • Compensation: US$126.03k
  • Greg Graves (61yo)

    Lead Director

    • Tenure: 2.7yrs
    • Compensation: US$138.03k
  • Andy Iseman (55yo)

    Chairman

    • Tenure: 0yrs
    • Compensation: US$1.47m
  • Leroy Williams (54yo)

    Independent Director

    • Tenure: 3.9yrs
    • Compensation: US$105.03k

Company Information

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


Key Information

  • Name: UMB Financial Corporation
  • Ticker: UMBF
  • Exchange: NasdaqGS
  • Founded: 1913
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$3.307b
  • Shares outstanding: 49.09m
  • Website: https://umbfinancial.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. It operates through four segments: Commercial Banking, Institutio ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/09 23:43
End of Day Share Price2019/12/09 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.