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


Market Performance


7 Day Return

-3.8%

NYSE:CFR

-2.5%

US Banks

-0.7%

US Market


1 Year Return

-25.6%

NYSE:CFR

-14.2%

US Banks

-0.5%

US Market

CFR underperformed the Banks industry which returned -14.2% over the past year.

CFR underperformed the Market in United States of America which returned -0.4% over the past year.


Share holder returns

CFRIndustryMarket
7 Day-3.8%-2.5%-0.7%
30 Day-8.0%-6.1%-3.0%
90 Day-14.5%-3.8%0.9%
1 Year-23.6%-25.6%-11.8%-14.2%1.7%-0.5%
3 Year28.8%19.3%42.1%32.4%39.5%30.4%
5 Year23.0%7.0%53.3%36.7%54.1%37.0%

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 based on future cash flows and its price relative to the stock market?

25%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Cullen/Frost Bankers's share price is below the future cash flow value, and at a moderate discount (> 20%).

Cullen/Frost Bankers's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Cullen/Frost Bankers is good value based on earnings compared to the US Banks industry average.

Cullen/Frost Bankers is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Cullen/Frost Bankers earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

Cullen/Frost Bankers is overvalued based on assets compared to the US Banks industry average.


Next Steps

Future Growth

How is Cullen/Frost Bankers expected to perform in the next 1 to 3 years based on estimates from 14 analysts?

-2.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Cullen/Frost Bankers's revenue is expected to grow by 3.8% yearly, however this is not considered high growth (20% yearly).

Cullen/Frost Bankers's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Cullen/Frost Bankers's revenue growth is positive but not above the United States of America market average.

Cullen/Frost Bankers's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.

Cullen/Frost Bankers's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Cullen/Frost Bankers is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

12.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Cullen/Frost Bankers's year on year earnings growth rate has been positive over the past 5 years.

Cullen/Frost Bankers's 1-year earnings growth exceeds its 5-year average (13.1% vs 12.9%)

Cullen/Frost Bankers's earnings growth has not exceeded the US Banks industry average in the past year (13.1% vs 33.3%).


Return on Equity

Cullen/Frost Bankers has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Cullen/Frost Bankers used its assets more efficiently than the US Banks industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if Cullen/Frost Bankers improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.


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

Information is not available.

Information is not available.


Financial Institutions Analysis

Cullen/Frost Bankers has an acceptable proportion of non-loan assets held.

Cullen/Frost Bankers has a sufficient allowance for bad loans.

Cullen/Frost Bankers's liabilities are made up of primarily low risk sources of funding.

Cullen/Frost Bankers's level of assets compared to its equity is low (i.e. an appropriate level of borrowing to fund lending).

Loans at Cullen/Frost Bankers are broadly funded by customer deposits.

Cullen/Frost Bankers has an acceptable level of bad loans (less than 2%).


Next Steps

Dividend

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

3.39%

Expected Dividend Yield


Upcoming Dividend Payment

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


Dividend Yield and Payments Analysis

Cullen/Frost Bankers's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Cullen/Frost Bankers's dividend is below the markets top 25% of dividend payers in United States of America (3.84%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.6x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.3x coverage).


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?

4.0yrs

Average management tenure


CEO

Phil Green (64yo)

3.3yrs

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

Phil's remuneration is lower than average for companies of similar size in United States of America.

Phil's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

4.0yrs

Average Tenure

62yo

Average Age

The tenure for the Cullen/Frost Bankers management team is about average.


Board Age and Tenure

16.2yrs

Average Tenure

65yo

Average Age

The average tenure for the Cullen/Frost Bankers board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

More shares have been bought than sold by Cullen/Frost Bankers individual insiders in the past 3 months.


Recent Insider Transactions

BuyUS$2,552,40016 Aug 19
Carlos Alvarez
EntityIndividual
Role
Member of the Board of Directors
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
Director
Shares1,000
Max PriceUS$93.38
SellUS$140,65820 Nov 18
Robert Berman
EntityIndividual
Shares1,391
Max PriceUS$101.12
BuyUS$349,70908 Nov 18
Samuel Dawson
EntityIndividual
Shares3,441
Max PriceUS$101.63
BuyUS$5,060,35530 Oct 18
Carlos Alvarez
EntityIndividual
Role
Member of the Board of Directors
Director
Shares54,000
Max PriceUS$93.86

Ownership Breakdown


Management Team

  • Phil Green (64yo)

    Chairman & CEO

    • Tenure: 3.3yrs
    • Compensation: US$4.62m
  • Carole Kilpatrick

    Senior Vice President of Private Client Services for Allen Financial Center

    • Tenure: 14.1yrs
  • Jerry Salinas (60yo)

    Group Executive VP & CFO

    • Tenure: 4.6yrs
    • Compensation: US$1.61m
  • James Waters (52yo)

    Group Executive VP

    • Tenure: 0.0yrs
  • William DiFilippo

    Senior Vice President of Management Accounting

    • Tenure: 0.0yrs
  • Emily Skillman (74yo)

    Group Executive Vice President

    • Tenure: 15.8yrs
  • Bill Perotti (61yo)

    Group Executive VP & Chief Credit Officer

    • Tenure: 18.3yrs
    • Compensation: US$1.45m
  • Paul Bracher (62yo)

    President

    • Tenure: 3.3yrs
    • Compensation: US$1.63m
  • A. Mendez

    Director of Investor Relations

    • Tenure: 1.2yrs
  • Mike Russell (62yo)

    Group Executive VP & COO

    • Tenure: 1.6yrs

Board Members

  • Phil Green (64yo)

    Chairman & CEO

    • Tenure: 3.3yrs
    • Compensation: US$4.62m
  • Pat Frost (59yo)

    Director

    • Tenure: 22.3yrs
    • Compensation: US$1.46m
  • Horace Wilkins (68yo)

    Director

    • Tenure: 22.6yrs
    • Compensation: US$161.38k
  • Tres Kleberg (76yo)

    Director

    • Tenure: 27.6yrs
    • Compensation: US$151.05k
  • Weisie Steen (66yo)

    Director

    • Tenure: 23.6yrs
    • Compensation: US$145.72k
  • Graham Weston (55yo)

    Director

    • Tenure: 2.3yrs
    • Compensation: US$150.72k
  • Carlos Alvarez (68yo)

    Director

    • Tenure: 18.6yrs
    • Compensation: US$132.72k
  • Charles Matthews (74yo)

    Lead Director

    • Tenure: 2.3yrs
    • Compensation: US$195.38k
  • Cynthia Comparin (60yo)

    Director

    • Tenure: 1.1yrs
    • Compensation: US$37.50k
  • Crawford Edwards (60yo)

    Director

    • Tenure: 13.8yrs
    • 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$5.309b
  • Shares outstanding: 62.66m
  • 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 Analysis2019/08/18 23:37
End of Day Share Price2019/08/16 00:00
Earnings2019/06/30
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.