Cullen/Frost Bankers, Inc.
Cullen/Frost Bankers, Inc. Fundamental Analysis
Cullen/Frost Bankers, Inc. (CFR) shows strong financial fundamentals with a PE ratio of 14.22, profit margin of 23.54%, and ROE of 14.95%. The company generates $2.7B in annual revenue with moderate year-over-year growth of 7.69%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 53.8/100 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 CFR's fundamental strength across five key dimensions:
Efficiency Score
WeakCFR struggles to generate sufficient returns from assets.
Valuation Score
ModerateCFR shows balanced valuation metrics.
Growth Score
ModerateCFR shows steady but slowing expansion.
Financial Health Score
WeakCFR carries high financial risk with limited liquidity.
Profitability Score
ModerateCFR maintains healthy but balanced margins.
Key Financial Metrics
Is CFR Expensive or Cheap?
P/E Ratio
CFR trades at 14.22 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, CFR's PEG of 6.29 indicates potential overvaluation.
Price to Book
The market values Cullen/Frost Bankers, Inc. at 2.02 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 15.83 times EBITDA. This signals the market has high growth expectations.
How Well Does CFR Make Money?
Net Profit Margin
For every $100 in sales, Cullen/Frost Bankers, Inc. keeps $23.54 as profit after all expenses.
Operating Margin
Core operations generate 28.01 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.95 in profit for every $100 of shareholder equity.
ROA
Cullen/Frost Bankers, Inc. generates $1.22 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Cullen/Frost Bankers, Inc. generates limited operating cash flow of $272.31M, signaling weaker underlying cash strength.
Free Cash Flow
Cullen/Frost Bankers, Inc. produces free cash flow of $231.41M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $3.66 in free cash annually.
FCF Yield
CFR converts 2.53% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
14.22
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
6.29
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.02
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.33
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.04
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.21
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.14
vs 25 benchmark
How CFR Stacks Against Its Sector Peers
| Metric | CFR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 14.22 | 18.86 | Better (Cheaper) |
| ROE | 14.95% | 847.00% | Weak |
| Net Margin | 23.54% | 4202.00% | Weak |
| Debt/Equity | 1.04 | 0.91 | Neutral |
| Current Ratio | 0.21 | 667.17 | Weak Liquidity |
| ROA | 1.22% | -21543.00% (disorted) | Weak |
CFR outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Cullen/Frost Bankers, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
86.00%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
28.37%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
52.54%
Industry Style: Value, Dividend, Cyclical
High Growth