Commerce Bancshares, Inc.
Commerce Bancshares, Inc. Fundamental Analysis
Commerce Bancshares, Inc. (CBSH) shows strong financial fundamentals with a PE ratio of 12.12, profit margin of 26.47%, and ROE of 15.43%. The company generates $2.3B in annual revenue with moderate year-over-year growth of 6.28%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 55.0/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze CBSH's fundamental strength across five key dimensions:
Efficiency Score
WeakCBSH struggles to generate sufficient returns from assets.
Valuation Score
ModerateCBSH shows balanced valuation metrics.
Growth Score
ExcellentCBSH delivers strong and consistent growth momentum.
Financial Health Score
ModerateCBSH shows balanced financial health with some risks.
Profitability Score
ExcellentCBSH achieves industry-leading margins.
Key Financial Metrics
Is CBSH Expensive or Cheap?
P/E Ratio
CBSH trades at 12.12 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, CBSH's PEG of 50.18 indicates potential overvaluation.
Price to Book
The market values Commerce Bancshares, Inc. at 1.81 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.47 times EBITDA. This is generally considered low.
How Well Does CBSH Make Money?
Net Profit Margin
For every $100 in sales, Commerce Bancshares, Inc. keeps $26.47 as profit after all expenses.
Operating Margin
Core operations generate 34.21 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.43 in profit for every $100 of shareholder equity.
ROA
Commerce Bancshares, Inc. generates $1.72 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Commerce Bancshares, Inc. generates strong operating cash flow of $690.89M, reflecting robust business health.
Free Cash Flow
Commerce Bancshares, Inc. generates strong free cash flow of $610.71M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.14 in free cash annually.
FCF Yield
CBSH converts 7.76% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
12.12
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
50.18
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.81
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.44
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.79
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How CBSH Stacks Against Its Sector Peers
| Metric | CBSH Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 12.12 | 18.66 | Better (Cheaper) |
| ROE | 15.43% | 806.00% | Weak |
| Net Margin | 26.47% | -451.00% (disorted) | Strong |
| Debt/Equity | 0.79 | 1.00 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 662.02 | Weak Liquidity |
| ROA | 1.72% | -24409.00% (disorted) | Weak |
CBSH outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Commerce Bancshares, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
57.07%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
36.25%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
22.88%
Industry Style: Value, Dividend, Cyclical
High Growth