Cullen/Frost Bankers
Market Cap
US$5.9b
Last Updated
2020/02/16 23:39 UTC
Data Sources
Company Financials +
Executive Summary
Cullen/Frost Bankers, Inc. operates as the holding company for Frost Bank that offers commercial and consumer banking services in Texas.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -4.9% per year for the next 3 years
Snowflake Analysis
Flawless balance sheet established dividend payer.
Similar Companies
Share Price & News
How has Cullen/Frost Bankers's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: CFR has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
2.0%
CFR
0.5%
US Banks
1.5%
US Market
1 Year Return
-8.9%
CFR
12.1%
US Banks
20.1%
US Market
Return vs Industry: CFR underperformed the US Banks industry which returned 12.1% over the past year.
Return vs Market: CFR underperformed the US Market which returned 20.1% over the past year.
Shareholder returns
| CFR | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.0% | 0.5% | 1.5% |
| 30 Day | -2.6% | -1.3% | 1.4% |
| 90 Day | 0.1% | 1.2% | 8.7% |
| 1 Year | -6.1%-8.9% | 15.4%12.1% | 22.7%20.1% |
| 3 Year | 7.6%-0.6% | 25.2%16.2% | 50.1%40.5% |
| 5 Year | 57.4%36.5% | 75.9%55.9% | 73.1%54.1% |
Price Volatility Vs. Market
How volatile is Cullen/Frost Bankers's share price compared to the market and industry in the last 5 years?
Simply Wall St News
3 days ago | Simply Wall St
Chris Avery Just Bought Shares In Cullen/Frost Bankers, Inc. (NYSE:CFR)2 weeks ago | Simply Wall St
Is There Now An Opportunity In Cullen/Frost Bankers, Inc. (NYSE:CFR)?1 month ago | Simply Wall St
What Does Cullen/Frost Bankers, Inc.'s (NYSE:CFR) P/E Ratio Tell You?Valuation
Is Cullen/Frost Bankers undervalued compared to its fair value and its price relative to the market?
14.0%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: CFR ($93.6) is trading below our estimate of fair value ($108.86)
Significantly Below Fair Value: CFR is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: CFR is poor value based on its PE Ratio (13.6x) compared to the Banks industry average (12.6x).
PE vs Market: CFR is good value based on its PE Ratio (13.6x) compared to the US market (18.4x).
Price to Earnings Growth Ratio
PEG Ratio: CFR's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: CFR is overvalued based on its PB Ratio (1.6x) compared to the US Banks industry average (1.2x).
Next Steps
Future Growth
How is Cullen/Frost Bankers forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
-4.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CFR's earnings are forecast to decline over the next 3 years (-4.9% per year).
Earnings vs Market: CFR's earnings are forecast to decline over the next 3 years (-4.9% per year).
High Growth Earnings: CFR's earnings are forecast to decline over the next 3 years.
Revenue vs Market: CFR's revenue (7.2% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: CFR's revenue (7.2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: CFR's Return on Equity is forecast to be low in 3 years time (10.1%).
Next Steps
Past Performance
How has Cullen/Frost Bankers performed over the past 5 years?
12.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CFR has high quality earnings.
Growing Profit Margin: CFR's current net profit margins (32.4%) are lower than last year (34.5%).
Past Earnings Growth Analysis
Earnings Trend: CFR's earnings have grown by 12.8% per year over the past 5 years.
Accelerating Growth: CFR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: CFR had negative earnings growth (-2.7%) over the past year, making it difficult to compare to the Banks industry average (12.1%).
Return on Equity
High ROE: CFR's Return on Equity (11.3%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Cullen/Frost Bankers'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: CFR has a low level of unsold assets or inventory.
Debt Coverage by Assets: CFR's debt is covered by short term assets (assets are 2.1x debt).
Financial Institutions Analysis
Asset Level: CFR's level of assets compared to its equity is low.
Allowance for Bad Loans: CFR has a sufficient allowance for bad loans.
Low Risk Liabilities: CFR's liabilities are made up of primarily low risk sources of funding.
Loan Level: CFR has an acceptable proportion of non-loan assets held.
Low Risk Deposits: CFR's loans are broadly funded by customer deposits.
Level of Bad Loans: CFR has an appropriate level of bad loans (0.69%)
Next Steps
Dividend
What is Cullen/Frost Bankers's current dividend yield, its reliability and sustainability?
3.03%
Current Dividend Yield
Upcoming Dividend Payment
Purchase Cullen/Frost Bankers before the 'Buy Limit' to receive their next dividend payment.
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: CFR's dividend (3.03%) is higher than the bottom 25% of dividend payers in the US market (1.44%).
High Dividend: CFR's dividend (3.03%) is low compared to the top 25% of dividend payers in the US market (3.69%).
Stability and Growth of Payments
Stable Dividend: CFR's dividends per share have been stable in the past 10 years.
Growing Dividend: CFR's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (40.7%), CFR's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: CFR's dividends in 3 years are forecast to be well covered by earnings (41.7% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.8yrs
Average management tenure
CEO
Phil Green (64yo)
3.8yrs
Tenure
US$4,617,644
Compensation
Mr. Phillip D. Green, also known as Phil, has been the Chairman and Chief Executive Officer of Cullen/Frost Bankers, Inc. since March 31, 2016 and served as its President since January 28, 2015 until March ...
CEO Compensation Analysis
Compensation vs Market: Phil's total compensation ($USD4.62M) is about average for companies of similar size in the US market ($USD6.26M).
Compensation vs Earnings: Phil's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 3.8yrs | US$4.62m | 0.16% $9.3m | |
| President | 3.8yrs | US$1.63m | 0.19% $11.0m | |
| Group Executive VP & CFO | 5.1yrs | US$1.61m | 0.056% $3.3m | |
| Group Executive VP & Chief Credit Officer of Frost Bank | 1.1yrs | US$1.45m | 0.21% $12.2m | |
| Director of Investor Relations | 1.7yrs | no data | no data | |
| Group Executive VP | 1.9yrs | no data | no data | |
| Senior Vice President of Private Client Services for Allen Financial Center | 14.6yrs | no data | no data | |
| Senior Vice President of Management Accounting | 0yrs | no data | no data | |
| Group Executive Vice President | 16.3yrs | no data | no data | |
| Group Executive Vice President & Chief Human Resources Officer of Frost Bank | 3.8yrs | no data | 0.021% $1.2m |
3.8yrs
Average Tenure
61yo
Average Age
Experienced Management: CFR's management team is considered experienced (3.8 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 3.8yrs | US$4.62m | 0.16% $9.3m | |
| Independent Director | 19.1yrs | US$142.72k | 0.0037% $215.3k | |
| Director | 22.8yrs | US$1.46m | 1.73% $101.3m | |
| Independent Director | 23.1yrs | US$161.38k | 0.00064% $37.5k | |
| Independent Director | 28.1yrs | US$151.05k | 0.058% $3.4m | |
| Independent Director | 24.1yrs | US$145.72k | 0.0033% $193.0k | |
| Independent Director | 19.1yrs | US$132.72k | 0.72% $42.5m | |
| Lead Director | 2.8yrs | US$195.38k | 0.0048% $281.0k | |
| Independent Director | 1.6yrs | US$37.50k | 0.0016% $93.9k | |
| Independent Director | 14.3yrs | US$142.05k | 0.41% $24.2m |
19.1yrs
Average Tenure
67yo
Average Age
Experienced Board: CFR's board of directors are seasoned and experienced ( 19.1 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: CFR insiders have bought more shares than they have sold 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
Cullen/Frost Bankers, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Cullen/Frost Bankers, Inc.
- Ticker: CFR
- Exchange: NYSE
- Founded: 1868
- Industry: Regional Banks
- Sector: Banks
- Market Cap: US$5.867b
- Shares outstanding: 62.68m
- Website: https://www.frostbank.com
Number of Employees
Location
- Cullen/Frost Bankers, Inc.
- 100 West Houston Street
- San Antonio
- Texas
- 78205
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| CFR | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Jul 1975 |
| CFZ | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jul 1975 |
| CFR.PRA | NYSE (New York Stock Exchange) | PERP PFD SER A % | US | USD | Feb 2013 |
Biography
Cullen/Frost Bankers, Inc. operates as the holding company for Frost Bank that offers commercial and consumer banking services in Texas. It operates in two segments, Banking and Frost Wealth Advisors. The company offers commercial banking services to corporations and other business clients, including financing for industrial and commercial properties, interim construction related to industrial and commercial properties, equipment, inventories and accounts receivables, and acquisitions; commercial leasing; and treasury management services. It also provides consumer banking services, such as checking accounts, savings programs, automated-teller machines (ATMs), overdraft facilities, installment and real estate loans, home equity loans and lines of credit, drive-in and night deposit services, safe deposit facilities, and brokerage services. In addition, the company offers international banking services comprising deposits, loans, letters of credit, foreign collections, funds, and foreign exchange services. Further, it acts as a correspondent for approximately 194 financial institutions; offers trust, investment, agency, and custodial services for individual and corporate clients; provides capital market services that include sales and trading, new issue underwriting, money market trading, advisory, and securities safekeeping and clearance; and supports international business activities. Additionally, the company offers insurance and securities brokerage services; holds securities for investment purposes; and provides loans to qualified borrowers, as well as investment management services to Frost-managed mutual funds, institutions, and individuals. It operates approximately 131 financial centers and 1,200 ATMs. The company serves the energy, manufacturing, services, construction, retail, telecommunications, healthcare, military, and transportation industries. Cullen/Frost Bankers, Inc. was founded in 1868 and is headquartered in San Antonio, Texas.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/16 23:39 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.