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Cullen/Frost Bankers NYSE:CFR Stock Report

Last Price


Market Cap







02 Oct, 2022


Company Financials +
CFR fundamental analysis
Snowflake Score
Future Growth2/6
Past Performance3/6
Financial Health6/6

CFR Stock Overview

Cullen/Frost Bankers, Inc. operates as the bank holding company for Frost Bank that offers commercial and consumer banking services in Texas.

Cullen/Frost Bankers Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Cullen/Frost Bankers
Historical stock prices
Current Share PriceUS$132.22
52 Week HighUS$147.39
52 Week LowUS$112.67
1 Month Change0.74%
3 Month Change11.83%
1 Year Change8.24%
3 Year Change56.60%
5 Year Change39.34%
Change since IPO5,249.59%

Recent News & Updates

Sep 06

Cullen/Frost Bankers: A Well-Run But Far From Cheap Bank

Summary Cullen/Frost Bankers is the largest regional bank in Texas. Its customer-focused business model has given the bank some durable advantages versus its peers. Cullen/Frost should continue to enjoy strong long-term returns, but the current share price doesn't represent much immediate value. Cullen/Frost (CFR) is the largest regional bank headquartered in Texas. Operating from San Antonio, Cullen/Frost has been on a major expansion effort in recent years and is opening many branches in both Dallas and Houston to extend its footprint. The bank is also growing in terms of its product offerings; the bank is currently rolling out a mortgage lending division that will extend its range beyond its core commercial lending franchise. While Cullen/Frost may not be widely known nationally, it is a massive player within Texas. The bank's assets recently crossed the $50 billion threshold, and Cullen/Frost has a market cap of greater than $8 billion. This is a key player in one of the country's most economically dynamic states. I've followed CFR stock for quite a while. Unfortunately for value investors, Cullen/Frost tends to be one of those names that seems perpetually expensive, at least compared to other peer banks. That briefly changed in 2020, when the combination of crashing energy prices and fears around credit losses for Texas-specific banks caused a major decline in Cullen/Frost shares. I used that opportunity to establish a small position in CFR stock at a cost basis of $60. I wouldn't have a chance to add to the position at that price, however, as shares came roaring back in 2021. CFR data by YCharts Rather impressively, CFR stock is still down only 10% from its all-time high, and is one of the better-performing large regional banks out there. Over the long-term, I expect Cullen/Frost to continue outperforming its peer banks on whole. However, over the next year or two, I see reasons to think CFR stock will provide more pedestrian returns. Cullen/Frost Focuses On The Long Term Part of what makes Cullen/Frost unique is its focus on long-term management of its brand and franchise. Rather than competing to make every basis point of potential profit each quarter, the bank is willing to sacrifice some profit from time to time to ensure that it retains customers' trust and loyalty. What that means practically, for example, is that Cullen/Frost is willing to pay out more interest on deposits when rates go up, as they are doing now. On the bank's most recent conference call, one analyst asked why Cullen/Frost was taking so many new interest-bearing deposits at a time then interest rates are rising and the bank already has way more deposits on hand than it needs for making loans. Here's CEO Phil Green's response: This is a cultural decision and it's one that's based on experience too. A big part of our value proposition really rests on three things: That everyone's significant at Frost, that we give a square deal that will give you excellence at a fair price and we're a safe sound place to do business for employees and customers. And as corny as it sounds, we're just giving our customers a square deal. As we've seen interest rates move up it just makes sense for us to recognize that we're going to have a value proposition that customers can trust." Green went on to explain how Cullen/Frost raised its deposit interest rates in 2017 during that rate hiking cycle. This was unlike the too-big-to-fail banks, which tried to keep their interest costs at zero as long as possible. Green said, by contrast, that since Cullen/Frost was paying some interest on deposits, it was able to attract additional customers and earn loyalty from people that saw that the bank was giving them a fair deal. From a short-term profit maximization approach, this might not seem ideal. Cullen/Frost has almost always maintained a less than 50% of loan-to-deposit ratio. In 2021, this ratio fell to just 38%. This means Cullen/Frost has far more depositor capital on hand than it needs to support its loan book. The bank can put this excess capital into securities to earn yield, but this doesn't produce the same returns as when the bank originates its own loans. Cullen/Frost's net interest margin "NIM" has slumped from around 3% to the lows 2s recently before picking back up to 2.6% in the latest quarter. Cullen/Frost's investment in its brand and positioning has paid off. It is well-liked by customers, having the highest net promoter score of the banks based in Texas. While Cullen/Frost may have to give up short-term profits in volatile interest rate markets such as we have now to maintain that loyalty, over the long-term, reducing customer churn tends to lead to a more durable business through the full economic cycle. Another factor that is dragging on short-term profitability is that the bank has expanded heavily in Houston and Dallas. When a bank opens new branches, at first, these hit overall profit margins as the new branches will have far less loan production and deposits per employee than the existing branches where the bank is better known. It takes a few years for a new branch to reach the productivity levels you'd expect across the whole system. Valuation: Investors Are Rather Optimistic The big issue with CFR stock today is that it is priced near the top end of its ten-year valuation range. Yet, from a profitability standpoint, as measured by return on equity "ROE", Cullen/Frost is merely around its median historical ROE, as shown below: CFR Return on Equity data by YCharts An 11% ROE isn't bad by any means, especially given with the somewhat conservative nature in which the bank operates its business. However, Cullen/Frost is not at the sort of peak of performance that it saw in 2019 or prior to the 2008 financial crisis. It may get back there in a few years as its geographical expansion and new product offerings start to pay off. For now, however, Cullen/Frost is in the middle of its historical profitability profile. Yet, on a price-to-book value basis, CFR stock is near its highest point in many years: CFR Price to Book Value data by YCharts We can debate just how much of a premium to book value that a high-quality operator with a differentiated business model deserves. However, 2.6x book value is probably too high for a bank that averages an ROE in the 11% range. Even if we assume the ROE can climb toward 15% in coming years, 2.6x book value is still a fairly aggressive valuation for a bank at that ROE level. Perhaps this sort of steep premium is justified due to the booming nature of Texas' economy. That's true to an extent. The state is enjoying a big surge in manufacturing, for example, as American companies relocate supply chains closer to home in the post-2020 economic environment. Cullen/Frost should enjoy above average loan growth prospects going forward due to Texas' economic strength.

Aug 29

Cullen/Frost Bankers goes ex-dividend tomorrow

Cullen/Frost Bankers (CFR) declares $0.87/share quarterly dividend, 16% increase from prior dividend of $0.75. Payable Sept. 15; for shareholders of record Aug. 31; ex-div Aug. 30. See CFR Dividend Scorecard, Yield Chart, & Dividend Growth.

Jul 31
Cullen/Frost Bankers' (NYSE:CFR) Upcoming Dividend Will Be Larger Than Last Year's

Cullen/Frost Bankers' (NYSE:CFR) Upcoming Dividend Will Be Larger Than Last Year's

The board of Cullen/Frost Bankers, Inc. ( NYSE:CFR ) has announced that the dividend on 15th of September will be...

Shareholder Returns

CFRUS BanksUS Market

Return vs Industry: CFR exceeded the US Banks industry which returned -26.1% over the past year.

Return vs Market: CFR exceeded the US Market which returned -23.2% over the past year.

Price Volatility

Is CFR's price volatile compared to industry and market?
CFR volatility
CFR Average Weekly Movement3.1%
Banks Industry Average Movement3.4%
Market Average Movement6.8%
10% most volatile stocks in US Market15.5%
10% least volatile stocks in US Market2.8%

Stable Share Price: CFR is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: CFR's weekly volatility (3%) has been stable over the past year.

About the Company

18684,553Phil Green

Cullen/Frost Bankers, Inc. operates as the bank 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.

Cullen/Frost Bankers Fundamentals Summary

How do Cullen/Frost Bankers's earnings and revenue compare to its market cap?
CFR fundamental statistics
Market CapUS$8.48b
Earnings (TTM)US$416.66m
Revenue (TTM)US$1.43b


P/E Ratio


P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CFR income statement (TTM)
Cost of RevenueUS$0
Gross ProfitUS$1.43b
Other ExpensesUS$1.01b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date


Earnings per share (EPS)6.50
Gross Margin100.00%
Net Profit Margin29.23%
Debt/Equity Ratio71.6%

How did CFR perform over the long term?

See historical performance and comparison



Current Dividend Yield


Payout Ratio
We’ve recently updated our valuation analysis.


Is CFR undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score


Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CFR?

Other financial metrics that can be useful for relative valuation.

CFR key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ratio2x

Price to Earnings Ratio vs Peers

How does CFR's PE Ratio compare to its peers?

CFR PE Ratio vs Peers
The above table shows the PE ratio for CFR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average14.7x
CMA Comerica
WBS Webster Financial
CBSH Commerce Bancshares
ZION Zions Bancorporation National Association
CFR Cullen/Frost Bankers

Price-To-Earnings vs Peers: CFR is expensive based on its Price-To-Earnings Ratio (20.4x) compared to the peer average (14.7x).

Price to Earnings Ratio vs Industry

How does CFR's PE Ratio compare vs other companies in the US Banks Industry?

Price-To-Earnings vs Industry: CFR is expensive based on its Price-To-Earnings Ratio (20.4x) compared to the US Banks industry average (9.4x)

Price to Earnings Ratio vs Fair Ratio

What is CFR's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CFR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio20.4x
Fair PE Ratio14.6x

Price-To-Earnings vs Fair Ratio: CFR is expensive based on its Price-To-Earnings Ratio (20.4x) compared to the estimated Fair Price-To-Earnings Ratio (14.6x).

Share Price vs Fair Value

What is the Fair Price of CFR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CFR ($132.22) is trading below our estimate of fair value ($233.04)

Significantly Below Fair Value: CFR is trading below fair value by more than 20%.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Future Growth

How is Cullen/Frost Bankers forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

Future Growth Score


Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: CFR's forecast earnings growth (10% per year) is above the savings rate (1.9%).

Earnings vs Market: CFR's earnings (10% per year) are forecast to grow slower than the US market (14.8% per year).

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

Revenue vs Market: CFR's revenue (14.3% per year) is forecast to grow faster than the US market (7.7% per year).

High Growth Revenue: CFR's revenue (14.3% 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 (13.3%).

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Past Performance

How has Cullen/Frost Bankers performed over the past 5 years?

Past Performance Score


Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CFR has high quality earnings.

Growing Profit Margin: CFR's current net profit margins (29.2%) are lower than last year (31.3%).

Past Earnings Growth Analysis

Earnings Trend: CFR's earnings have grown by 1.7% per year over the past 5 years.

Accelerating Growth: CFR's earnings growth over the past year (1.8%) exceeds its 5-year average (1.7% per year).

Earnings vs Industry: CFR earnings growth over the past year (1.8%) underperformed the Banks industry 8.4%.

Return on Equity

High ROE: CFR's Return on Equity (11.3%) is considered low.

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Financial Health

How is Cullen/Frost Bankers's financial position? (This company is analysed differently as a bank or financial institution)

Financial Health Score


Financial Health Score 6/6

  • Asset Level

  • Allowance for Bad Loans

  • Low Risk Liabilities

  • Loan Level

  • Low Risk Deposits

  • Level of Bad Loans

Financial Position Analysis

Debt to Equity History and Analysis

Balance Sheet

Financial Institutions Analysis

Asset Level: CFR's Assets to Equity ratio (13.6x) is moderate.

Allowance for Bad Loans: CFR has a sufficient allowance for bad loans (504%).

Low Risk Liabilities: 93% of CFR's liabilities are made up of primarily low risk sources of funding.

Loan Level: CFR has an appropriate level of Loans to Assets ratio (32%).

Low Risk Deposits: CFR's Loans to Deposits ratio (37%) is appropriate.

Level of Bad Loans: CFR has an appropriate level of bad loans (0.3%).

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What is Cullen/Frost Bankers's current dividend yield, its reliability and sustainability?

Dividend Score


Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


Current Dividend Yield

Dividend Yield vs Market

Cullen/Frost Bankers Dividend Yield vs Market
How does Cullen/Frost Bankers dividend yield compare to the market?
SegmentDividend Yield
Company (Cullen/Frost Bankers)2.6%
Market Bottom 25% (US)1.7%
Market Top 25% (US)4.7%
Industry Average (Banks)3.4%
Analyst forecast in 3 Years (Cullen/Frost Bankers)2.6%

Notable Dividend: CFR's dividend (2.63%) is higher than the bottom 25% of dividend payers in the US market (1.67%).

High Dividend: CFR's dividend (2.63%) is low compared to the top 25% of dividend payers in the US market (4.73%).

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

Earnings Coverage: With its reasonably low payout ratio (46%), 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 (37% payout ratio).

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How experienced are the management team and are they aligned to shareholders interests?


Average management tenure


Phil Green (67 yo)





Mr. Phillip D. Green, also known as Phil, has been the Chairman and Chief Executive Officer of Cullen/Frost Bankers, Inc. since April 01, 2016 and served as its President since January 28, 2015 until March...

CEO Compensation Analysis

Phil Green's Compensation vs Cullen/Frost Bankers Earnings
How has Phil Green's remuneration changed compared to Cullen/Frost Bankers's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a


Mar 31 2022n/an/a


Dec 31 2021US$5mUS$927k


Sep 30 2021n/an/a


Jun 30 2021n/an/a


Mar 31 2021n/an/a


Dec 31 2020US$4mUS$1m


Sep 30 2020n/an/a


Jun 30 2020n/an/a


Mar 31 2020n/an/a


Dec 31 2019US$5mUS$1m


Sep 30 2019n/an/a


Jun 30 2019n/an/a


Mar 31 2019n/an/a


Dec 31 2018US$5mUS$990k


Sep 30 2018n/an/a


Jun 30 2018n/an/a


Mar 31 2018n/an/a


Dec 31 2017US$4mUS$975k


Sep 30 2017n/an/a


Jun 30 2017n/an/a


Mar 31 2017n/an/a


Dec 31 2016US$4mUS$950k


Sep 30 2016n/an/a


Jun 30 2016n/an/a


Mar 31 2016n/an/a


Dec 31 2015US$3mUS$565k


Compensation vs Market: Phil's total compensation ($USD5.19M) is below average for companies of similar size in the US market ($USD8.66M).

Compensation vs Earnings: Phil's compensation has increased by more than 20% in the past year.

Leadership Team

Experienced Management: CFR's management team is seasoned and experienced (6.5 years average tenure).

Board Members

Experienced Board: CFR's board of directors are considered experienced (6.7 years average tenure).


Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

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

Recent Insider Transactions

NYSE:CFR Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
04 Aug 22SellUS$14,812,040Patrick FrostIndividual115,544US$130.69
02 May 22BuyUS$657,750Chris AveryIndividual5,000US$131.55
02 Nov 21SellUS$343,808Robert BermanIndividual2,518US$136.54
02 Nov 21SellUS$65Candace WolfshohlIndividual0.5US$129.24
29 Oct 21SellUS$1,007,943Candace WolfshohlIndividual7,799US$129.24

Ownership Breakdown

What is the ownership structure of CFR?
Owner TypeNumber of SharesOwnership Percentage
State or Government24,6750.04%
Individual Insiders1,871,1962.9%
Employee Share Scheme2,624,3904.1%
General Public6,720,57610.5%

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

Top Shareholders

Top 25 shareholders own 68.06% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
Aristotle Capital Management, LLC
The Vanguard Group, Inc.
BlackRock, Inc.
State Street Global Advisors, Inc.
Cullen/Frost Bankers, Inc., ESOP
2,624,390$347.0m0%no data
Capital Research and Management Company
Luther King Capital Management Corporation
Lazard Asset Management LLC
Neuberger Berman Investment Advisers LLC
Invesco Ltd.
Citadel Advisors LLC
Geode Capital Management, LLC
Patrick Frost
700,162$92.6m-36.14%no data
Champlain Investment Partners, LLC
J.P. Morgan Asset Management, Inc.
Principal Global Investors, LLC
BNY Mellon Asset Management
Managed Account Advisors LLC
Northern Trust Global Investments
Dimensional Fund Advisors LP
Norges Bank Investment Management
Montrusco Bolton Investments Inc.
Charles Schwab Investment Management, Inc.
Ardevora Asset Management LLP

Company Information

Cullen/Frost Bankers, Inc.'s 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
  • Implied Market Cap: US$8.479b
  • Shares outstanding: 64.13m
  • Website:

Number of Employees


  • Cullen/Frost Bankers, Inc.
  • 111 West Houston Street
  • San Antonio
  • Texas
  • 78205
  • United States


TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CFRNYSE (New York Stock Exchange)YesCommon StockUSUSDJul 1975
CFZDB (Deutsche Boerse AG)YesCommon StockDEEURJul 1975
CFR.PRBNYSE (New York Stock Exchange)4.450% DEP PFD BUSUSDNov 2020

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/02 00:00
End of Day Share Price2022/09/30 00:00
Annual Earnings2021/12/31

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.