NYSE:CBU

Stock Analysis Report

Community Bank System

Executive Summary

Community Bank System, Inc. operates as the bank holding company for Community Bank, N.A.


Snowflake Analysis

Flawless balance sheet established dividend payer.


Similar Companies

Share Price & News

How has Community Bank System's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CBU has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.8%

CBU

-1.6%

US Banks

0.8%

US Market


1 Year Return

14.7%

CBU

15.3%

US Banks

25.1%

US Market

Return vs Industry: CBU matched the US Banks industry which returned 15.3% over the past year.

Return vs Market: CBU underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

CBUIndustryMarket
7 Day-0.8%-1.6%0.8%
30 Day-0.7%-2.6%3.1%
90 Day4.1%5.4%10.9%
1 Year17.5%14.7%18.6%15.3%27.7%25.1%
3 Year21.1%12.7%31.4%22.1%51.3%41.6%
5 Year138.4%108.8%85.5%64.7%77.2%57.6%

Price Volatility Vs. Market

How volatile is Community Bank System's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Community Bank System undervalued compared to its fair value and its price relative to the market?

21.73x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CBU ($71.36) is trading above our estimate of fair value ($64.48)

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


Price To Earnings Ratio

PE vs Industry: CBU is poor value based on its PE Ratio (22.1x) compared to the Banks industry average (12.8x).

PE vs Market: CBU is poor value based on its PE Ratio (22.1x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: CBU is poor value based on its PEG Ratio (5.2x)


Price to Book Ratio

PB vs Industry: CBU is overvalued based on its PB Ratio (2x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Community Bank System forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

4.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CBU's forecast earnings growth (4.3% per year) is above the savings rate (1.7%).

Earnings vs Market: CBU's earnings (4.3% per year) are forecast to grow slower than the US market (14.3% per year).

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

Revenue vs Market: CBU's revenue (5.2% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: CBU's revenue (5.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CBU's Return on Equity is forecast to be low in 3 years time (8.9%).


Next Steps

Past Performance

How has Community Bank System performed over the past 5 years?

18.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CBU has high quality earnings.

Growing Profit Margin: CBU's current net profit margins (29.1%) are lower than last year (35.9%).


Past Earnings Growth Analysis

Earnings Trend: CBU's earnings have grown by 18% per year over the past 5 years.

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

Earnings vs Industry: CBU had negative earnings growth (-16.4%) over the past year, making it difficult to compare to the Banks industry average (27.1%).


Return on Equity

High ROE: CBU's Return on Equity (9.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Community Bank System'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: CBU has a low level of unsold assets or inventory.

Debt Coverage by Assets: CBU's debt is covered by short term assets (assets are 3.2x debt).


Financial Institutions Analysis

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

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

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

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

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

Level of Bad Loans: CBU has an appropriate level of bad loans (0.42%)


Next Steps

Dividend

What is Community Bank System's current dividend yield, its reliability and sustainability?

2.34%

Current Dividend Yield


Dividend Yield vs Market

company2.3%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years2.4%

Current dividend yield vs market & industry

Notable Dividend: CBU's dividend (2.3%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: CBU's dividend (2.3%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (48%), CBU's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CBU's dividends in 3 years are forecast to be well covered by earnings (49.3% payout ratio).


Next Steps

Management

What is the CEO of Community Bank System's salary, the management and board of directors tenure and is there insider trading?

6.6yrs

Average management tenure


CEO

Mark Tryniski (59yo)

13.4yrs

Tenure

US$2,962,791

Compensation

Mr. Mark E. Tryniski has been the President and Chief Executive Officer at Community Bank System Inc., and its subsidiary, Community Bank, National Association (DeWitt, NY) since August 1, 2006. Mr. Trynis ...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD2.96M) is below average for companies of similar size in the US market ($USD4.99M).

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


Management Age and Tenure

6.6yrs

Average Tenure

57yo

Average Age

Experienced Management: CBU's management team is seasoned and experienced (6.6 years average tenure).


Board Age and Tenure

7.0yrs

Average Tenure

58.5yo

Average Age

Experienced Board: CBU's board of directors are considered experienced (7 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$103,83916 Dec 19
Michael Kallet
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,500
Max PriceUS$69.23
SellUS$99,93004 Dec 19
Michael Kallet
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,500
Max PriceUS$66.62
BuyUS$24,88427 Nov 19
Kerrie MacPherson
EntityIndividual
Shares368
Max PriceUS$67.62
SellUS$204,37004 Nov 19
Eric Stickels
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,000
Max PriceUS$68.12
SellUS$200,96122 May 19
Michael Kallet
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,100
Max PriceUS$64.83
SellUS$420,21220 Mar 19
Michael Kallet
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares6,725
Max PriceUS$62.49
SellUS$706,07608 Feb 19
Mark Tryniski
EntityIndividual
Role
Chief Executive Officer
President
Shares11,369
Max PriceUS$62.88

Ownership Breakdown

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


Management Team

  • Mark Tryniski (59yo)

    President

    • Tenure: 13.4yrs
    • Compensation: US$2.96m
  • Joe Sutaris (52yo)

    Executive VP

    • Tenure: 1.6yrs
    • Compensation: US$824.96k
  • Scott Kingsley (54yo)

    Executive VP & COO

    • Tenure: 1.6yrs
    • Compensation: US$1.33m
  • Joe Getman (62yo)

    Executive VP & General Counsel

    • Tenure: 12yrs
    • Compensation: US$881.93k
  • Hal Wentworth (54yo)

    Senior Vice President of Retail Banking & Marketing

    • Joseph Lemchak (57yo)

      Senior VP & Chief Investment Officer

      • Tenure: 28.7yrs
    • Joe Serbun (58yo)

      Executive VP & Chief Credit Officer

      • Tenure: 10yrs
      • Compensation: US$673.34k
    • Susan Fox

      Senior VP & Chief Information Officer

      • Tenure: 3.3yrs
    • Aaron Friot

      Senior VP & CTO

      • Tenure: 2.2yrs
    • Dorothy Quarltere

      Chief Compliance Officer


      Board Members

      • Michael Kallet (69yo)

        Independent Director

        • Tenure: 4.1yrs
        • Compensation: US$99.17k
      • Rick Stickels (58yo)

        Independent Director

        • Tenure: 4.1yrs
        • Compensation: US$99.17k
      • Mark Tryniski (59yo)

        President

        • Tenure: 13.4yrs
        • Compensation: US$2.96m
      • Brian Ace (64yo)

        Independent Director

        • Tenure: 16.2yrs
        • Compensation: US$106.17k
      • Sally Steele (63yo)

        Chair of the Board

        • Tenure: 3yrs
        • Compensation: US$134.17k
      • Mark Bolus (53yo)

        Independent Director

        • Tenure: 9.9yrs
        • Compensation: US$103.67k
      • Neil Fesette (53yo)

        Independent Director

        • Tenure: 9.9yrs
        • Compensation: US$103.17k
      • John Parente (52yo)

        Independent Director

        • Tenure: 9.9yrs
        • Compensation: US$104.39k
      • John Whipple (63yo)

        Lead Director

        • Tenure: 2yrs
        • Compensation: US$114.39k
      • Trey Pecor (49yo)

        Independent Director

        • Tenure: 2.7yrs
        • Compensation: US$96.17k

      Company Information

      Community Bank System, Inc.'s company bio, employee growth, exchange listings and data sources


      Key Information

      • Name: Community Bank System, Inc.
      • Ticker: CBU
      • Exchange: NYSE
      • Founded: 1866
      • Industry: Regional Banks
      • Sector: Banks
      • Market Cap: US$3.627b
      • Shares outstanding: 51.70m
      • Website: https://cbna.com

      Number of Employees


      Location

      • Community Bank System, Inc.
      • 5790 Widewaters Parkway
      • DeWitt
      • New York
      • 13214
      • United States

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      CBUNYSE (New York Stock Exchange)YesCommon StockUSUSDNov 1985
      CBYDB (Deutsche Boerse AG)YesCommon StockDEEURNov 1985

      Biography

      Community Bank System, Inc. operates as the bank holding company for Community Bank, N.A. that provides various banking and other financial services to retail, commercial, and municipal customers. It operates through three segments: Banking, Employee Benefit Services, and All Other. The company offers various deposits products, such as checking, savings, and money market accounts, as well as time deposits. It also provides loans comprising consumer mortgages; general purpose commercial and industrial loans, and mortgages on commercial properties; installment loans that are originated through selected dealerships and are secured by automobiles, marine, and other recreational vehicles; personal installment loans and lines of credit for consumers; and home equity products. In addition, the company offers broker-dealer and investment advisory services; and asset management services to individuals, corporations, corporate pension and profit sharing plans, and foundations, as well as operates as a full-service insurance agency that offers personal and commercial property insurance, and other risk management products and services. Further, it offers contribution plan administration services, actuarial and benefits consulting services, and collective investment fund administration and institutional trust services, as well as employee benefit trust, retirement plan administration, VEBA/HRA, and health and welfare consulting services. Additionally, the company provides wealth management, higher educational planning, fiduciary, risk management, and personal financial planning services; and investment alternatives, including stocks, bonds, mutual funds, and advisory products, as well as transfer agency and master recordkeeping services. As of December 31, 2018, it had 224 branches in Upstate New York, as well as Northeastern Pennsylvania, Vermont, and Western Massachusetts. Community Bank System, Inc. was founded in 1866 and is headquartered in DeWitt, New York. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/22 23:35
      End of Day Share Price2020/01/22 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.