NYSE:CFR

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Cullen/Frost Bankers

Executive Summary

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


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-3.0%

CFR

1.1%

US Banks

2.3%

US Market


1 Year Return

-27.1%

CFR

-27.6%

US Banks

6.7%

US Market

Return vs Industry: CFR exceeded the US Banks industry which returned -30.8% over the past year.

Return vs Market: CFR underperformed the US Market which returned 6.1% over the past year.


Shareholder returns

CFRIndustryMarket
7 Day-3.0%1.1%2.3%
30 Day-14.0%-10.1%1.5%
90 Day-3.5%-5.5%17.8%
1 Year-24.6%-27.1%-25.1%-27.6%9.0%6.7%
3 Year-22.3%-28.6%-16.0%-22.7%36.6%27.7%
5 Year8.1%-6.5%6.5%-6.4%64.2%46.2%

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?

11.75x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CFR ($68.47) is trading above our estimate of fair value ($49.14)

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


Price To Earnings Ratio

PE vs Industry: CFR is poor value based on its PE Ratio (11.7x) compared to the US Banks industry average (9.1x).

PE vs Market: CFR is good value based on its PE Ratio (11.7x) compared to the US market (15.8x).


Price to Earnings Growth Ratio

PEG Ratio: CFR is poor value based on its PEG Ratio (3.1x)


Price to Book Ratio

PB vs Industry: CFR is overvalued based on its PB Ratio (1.1x) compared to the US Banks industry average (0.8x).


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?

3.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CFR's forecast earnings growth (3.8% per year) is above the savings rate (2.2%).

Earnings vs Market: CFR's earnings (3.8% per year) are forecast to grow slower than the US market (22.8% per year).

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

Revenue vs Market: CFR's revenue (1% per year) is forecast to grow slower than the US market (9.4% per year).

High Growth Revenue: CFR's revenue (1% 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 (7%).


Next Steps

Past Performance

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

11.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CFR has high quality earnings.

Growing Profit Margin: CFR's current net profit margins (28.3%) are lower than last year (34.8%).


Past Earnings Growth Analysis

Earnings Trend: CFR's earnings have grown by 11.7% 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 (-19.5%) over the past year, making it difficult to compare to the Banks industry average (1.8%).


Return on Equity

High ROE: CFR's Return on Equity (10%) is considered low.


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


Financial Institutions Analysis

Asset Level: CFR's Assets to Equity ratio (8.9x) is low.

Allowance for Bad Loans: CFR has a sufficient allowance for bad loans (395%).

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 (44%).

Low Risk Deposits: CFR's Loans to Deposits ratio (54%) is appropriate.

Level of Bad Loans: CFR has an appropriate level of bad loans (0.4%).


Next Steps

Dividend

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

4.15%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CFR's dividend (4.15%) is higher than the bottom 25% of dividend payers in the US market (1.7%).

High Dividend: CFR's dividend (4.15%) is low compared to the top 25% of dividend payers in the US market (4.69%).


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 (48.7%), 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 covered by earnings (64.2% payout ratio).


Next Steps

Management

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

4.3yrs

Average management tenure


CEO

Phil Green (65yo)

4.25yrs

Tenure

US$4,763,232

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 ($USD4.76M) is about average for companies of similar size in the US market ($USD5.83M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Phillip Green
Chairman & CEO4.25yrsUS$4.76m0.19% $8.2m
Paul Bracher
President4.25yrsUS$1.74m0.19% $8.3m
Jerry Salinas
Group Executive VP & CFO5.5yrsUS$1.65m0.067% $2.9m
Patrick Frost
Director & Group EVP of Frost Wealth Advisors23.17yrsUS$1.63m1.75% $74.8m
William Perotti
Group Executive VP & Chief Credit Officer of Frost Bank1.5yrsUS$1.57m0.21% $9.2m
A. Mendez
Director of Investor Relations2.08yrsno datano data
James Waters
Group Executive VP2.33yrsno datano data
Carole Kilpatrick
Senior Vice President of Private Client Services for Allen Financial Center15yrsno datano data
William DiFilippo
Senior Vice President of Management Accountingno datano datano data
Emily Skillman
Group Executive Vice President16.75yrsno datano data

4.3yrs

Average Tenure

62yo

Average Age

Experienced Management: CFR's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Phillip Green
Chairman & CEO4.25yrsUS$4.76m0.19% $8.2m
Patrick Frost
Director & Group EVP of Frost Wealth Advisors23.17yrsUS$1.63m1.75% $74.8m
Karen Jennings
Independent Director19.5yrsUS$130.98k0.0037% $157.6k
Ida Steen
Independent Director24.5yrsUS$134.98k0.0033% $141.3k
Carlos Alvarez
Independent Director19.5yrsUS$124.98k0.73% $31.1m
Charles Matthews
Independent Lead Director3.25yrsUS$181.98k0.0048% $205.6k
Cynthia Comparin
Independent Director2yrsUS$139.98k0.0016% $68.5k
Crawford Edwards
Independent Director14.67yrsUS$129.98k0.41% $17.7m
Chris Avery
Independent Director4.58yrsUS$135.98k0.034% $1.5m
David Haemisegger
Independent Director11.75yrsUS$134.98k0.000030% $1.3k

13.2yrs

Average Tenure

65.5yo

Average Age

Experienced Board: CFR's board of directors are seasoned and experienced ( 13.2 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$4.283b
  • Shares outstanding: 62.55m
  • Website: https://www.frostbank.com

Number of Employees


Location

  • Cullen/Frost Bankers, Inc.
  • 111 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

Biography

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. 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 184 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 142 financial centers and 1,200 ATMs. The company serves the energy, manufacturing, services, construction, retail, telecommunications, health care, 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/10 23:57
End of Day Share Price2020/07/10 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.