NYSE:CFR

Stock Analysis Report

Cullen/Frost Bankers

Executive Summary

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

Snowflake

Fundamentals

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

-0.3%

CFR

-1.0%

US Banks

0.7%

US Market


1 Year Return

-7.4%

CFR

8.9%

US Banks

12.9%

US Market

Return vs Industry: CFR underperformed the US Banks industry which returned 8.9% over the past year.

Return vs Market: CFR underperformed the US Market which returned 12.9% over the past year.


Shareholder returns

CFRIndustryMarket
7 Day-0.3%-1.0%0.7%
30 Day4.7%6.9%4.4%
90 Day10.8%16.7%7.0%
1 Year-4.6%-7.4%12.2%8.9%15.4%12.9%
3 Year22.0%12.9%39.2%29.5%49.1%39.5%
5 Year38.6%20.4%72.7%53.6%62.7%44.7%

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

Valuation

Is Cullen/Frost Bankers undervalued compared to its fair value and its price relative to the market?

6.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CFR ($93.89) is trading below our estimate of fair value ($100.55)

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 (13.2x) compared to the Banks industry average (12.7x).

PE vs Market: CFR is good value based on its PE Ratio (13.2x) compared to the US market (18.2x).


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 14 analysts?

-5.1%

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 (-5.1% per year).

Earnings vs Market: CFR's earnings are forecast to decline over the next 3 years (-5.1% per year).

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

Revenue vs Market: CFR's revenue (3.4% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: CFR's revenue (3.4% 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 (9.8%).


Next Steps

Past Performance

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

13.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CFR has a high level of non-cash earnings.

Growing Profit Margin: CFR's current net profit margins (33.7%) are lower than last year (33.9%).


Past Earnings Growth Analysis

Earnings Trend: CFR's earnings have grown by 13% per year over the past 5 years.

Accelerating Growth: CFR's earnings growth over the past year (5.2%) is below its 5-year average (13% per year).

Earnings vs Industry: CFR earnings growth over the past year (5.2%) underperformed the Banks industry 27.5%.


Return on Equity

High ROE: CFR's Return on Equity (11.8%) 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 (0.71%)


Next Steps

Dividend

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

3.02%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Cullen/Frost Bankers before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company3.0%marketbottom25%1.4%markettop25%3.6%industryaverage2.8%forecastin3Years3.1%

Current dividend yield vs market & industry

Notable Dividend: CFR's dividend (3.02%) is higher than the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: CFR's dividend (3.02%) is low compared to the top 25% of dividend payers in the US market (3.65%).


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 (38.8%), 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 (47.4% payout ratio).


Next Steps

Management

What is the CEO of Cullen/Frost Bankers's salary, the management and board of directors tenure and is there insider trading?

4.2yrs

Average management tenure


CEO

Phil Green (64yo)

3.6yrs

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 ($USD4.62M) is below average for companies of similar size in the US market ($USD6.73M).

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


Management Age and Tenure

4.2yrs

Average Tenure

62yo

Average Age

Experienced Management: CFR's management team is considered experienced (4.2 years average tenure).


Board Age and Tenure

16.4yrs

Average Tenure

65yo

Average Age

Experienced Board: CFR's board of directors are seasoned and experienced ( 16.4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$2,552,40016 Aug 19
Carlos Alvarez
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares30,000
Max PriceUS$85.08
BuyUS$94,32412 Jun 19
Charles Matthews
EntityIndividual
Role
Lead Director
Lead Director
Shares1,000
Max PriceUS$94.32
BuyUS$93,38017 Dec 18
Cynthia Comparin
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$93.38
SellUS$140,65820 Nov 18
Robert Berman
EntityIndividual
Shares1,391
Max PriceUS$101.12

Ownership Breakdown

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


Management Team

  • Phil Green (64yo)

    Chairman & CEO

    • Tenure: 3.6yrs
    • Compensation: US$4.62m
  • Carole Kilpatrick

    Senior Vice President of Private Client Services for Allen Financial Center

    • Tenure: 14.3yrs
  • Jerry Salinas (60yo)

    Group Executive VP & CFO

    • Tenure: 4.8yrs
    • Compensation: US$1.61m
  • James Waters (52yo)

    Group Executive VP

    • Tenure: 0yrs
  • William DiFilippo

    Senior Vice President of Management Accounting

    • Tenure: 0yrs
  • Emily Skillman (74yo)

    Group Executive Vice President

    • Tenure: 16.1yrs
  • Bill Perotti (61yo)

    Group Executive VP & Chief Credit Officer

    • Tenure: 18.5yrs
    • Compensation: US$1.45m
  • Paul Bracher (62yo)

    President

    • Tenure: 3.6yrs
    • Compensation: US$1.63m
  • A. Mendez

    Director of Investor Relations

    • Tenure: 1.4yrs
  • Mike Russell (62yo)

    Group Executive VP & COO

    • Tenure: 1.8yrs

Board Members

  • Phil Green (64yo)

    Chairman & CEO

    • Tenure: 3.6yrs
    • Compensation: US$4.62m
  • Pat Frost (59yo)

    Director

    • Tenure: 22.5yrs
    • Compensation: US$1.46m
  • Horace Wilkins (68yo)

    Independent Director

    • Tenure: 22.8yrs
    • Compensation: US$161.38k
  • Tres Kleberg (76yo)

    Independent Director

    • Tenure: 27.8yrs
    • Compensation: US$151.05k
  • Weisie Steen (66yo)

    Independent Director

    • Tenure: 23.8yrs
    • Compensation: US$145.72k
  • Graham Weston (55yo)

    Director

    • Tenure: 2.6yrs
    • Compensation: US$150.72k
  • Carlos Alvarez (68yo)

    Independent Director

    • Tenure: 18.8yrs
    • Compensation: US$132.72k
  • Charles Matthews (74yo)

    Lead Director

    • Tenure: 2.6yrs
    • Compensation: US$195.38k
  • Cynthia Comparin (60yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$37.50k
  • Crawford Edwards (60yo)

    Independent Director

    • Tenure: 14yrs
    • Compensation: US$142.05k

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$5.874b
  • Shares outstanding: 62.57m
  • Website: https://www.frostbank.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CFRNYSE (New York Stock Exchange)YesCommon StockUSUSDJul 1975
CFZDB (Deutsche Boerse AG)YesCommon StockDEEURJul 1975
CFR.PRANYSE (New York Stock Exchange)PERP PFD SER A %USUSDFeb 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 Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/16 23:34
End of Day Share Price2019/11/15 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.