Community Bank System, Inc. Fundamental Analysis (NYSE: CBU)
Community Bank System, Inc. Fundamental Analysis (NYSE: CBU)
Community Bank System, Inc. (NYSE: CBU) shows strong financial fundamentals with a PE ratio of 14.59, profit margin of 21.79%, and ROE of 11.34%. The company generates $1.0B in annual revenue with moderate year-over-year growth of 7.47%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 66.7/100 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 CBU's fundamental strength across five key dimensions:
Efficiency Score
WeakCBU struggles to generate sufficient returns from assets.
Valuation Score
ExcellentCBU trades at attractive valuation levels.
Growth Score
ExcellentCBU delivers strong and consistent growth momentum.
Financial Health Score
ExcellentCBU maintains a strong and stable balance sheet.
Profitability Score
ModerateCBU maintains healthy but balanced margins.
Key Financial Metrics
Is CBU Expensive or Cheap?
P/E Ratio
CBU trades at 14.59 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, CBU's PEG of 0.87 indicates potential undervaluation.
Price to Book
The market values Community Bank System, Inc. at 1.60 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.32 times EBITDA. This is generally considered low.
How Well Does CBU Make Money?
Net Profit Margin
For every $100 in sales, Community Bank System, Inc. keeps $21.79 as profit after all expenses.
Operating Margin
Core operations generate 28.71 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.34 in profit for every $100 of shareholder equity.
ROA
Community Bank System, Inc. generates $1.28 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Community Bank System, Inc. generates strong operating cash flow of $306.41M, reflecting robust business health.
Free Cash Flow
Community Bank System, Inc. generates strong free cash flow of $229.87M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.37 in free cash annually.
FCF Yield
CBU converts 6.99% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
14.59
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.87
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.60
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.16
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.37
vs 25 benchmark
Current Ratio
Current assets to current liabilities
14.48
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How CBU Stacks Against Its Sector Peers
| Metric | CBU Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 14.59 | 21.07 | Better (Cheaper) |
| ROE | 11.34% | 647.00% | Weak |
| Net Margin | 21.79% | -1593.00% (disorted) | Strong |
| Debt/Equity | 0.37 | 0.90 | Strong (Low Leverage) |
| Current Ratio | 14.48 | 911.99 | Strong Liquidity |
| ROA | 1.28% | -578.00% (disorted) | Weak |
CBU outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Community Bank System, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
64.62%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
28.45%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
69.04%
Industry Style: Value, Dividend, Cyclical
High Growth