Cullen/Frost Bankers, Inc.
Cullen/Frost Bankers, Inc. Fundamental Analysis
Cullen/Frost Bankers, Inc. (CFR) shows moderate financial fundamentals with a PE ratio of 12.77, profit margin of 24.00%, and ROE of 15.05%. The company generates $2.8B in annual revenue with weak year-over-year growth of 2.46%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 58.3/100 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
ExcellentCFR trades at attractive valuation levels.
Growth Score
ModerateCFR shows steady but slowing expansion.
Financial Health Score
WeakCFR carries high financial risk with limited liquidity.
Profitability Score
ExcellentCFR achieves industry-leading margins.
Key Financial Metrics
Is CFR Expensive or Cheap?
P/E Ratio
CFR trades at 12.77 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, CFR's PEG of 0.99 indicates potential undervaluation.
Price to Book
The market values Cullen/Frost Bankers, Inc. at 1.88 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.01 times EBITDA. This is generally considered low.
How Well Does CFR Make Money?
Net Profit Margin
For every $100 in sales, Cullen/Frost Bankers, Inc. keeps $24.00 as profit after all expenses.
Operating Margin
Core operations generate 28.54 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.05 in profit for every $100 of shareholder equity.
ROA
Cullen/Frost Bankers, Inc. generates $1.27 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 strong operating cash flow of $797.37M, reflecting robust business health.
Free Cash Flow
Cullen/Frost Bankers, Inc. generates strong free cash flow of $757.70M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $12.07 in free cash annually.
FCF Yield
CFR converts 9.07% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
12.77
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.99
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.88
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.03
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.03
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.20
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
0.02
vs 25 benchmark
How CFR Stacks Against Its Sector Peers
| Metric | CFR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 12.77 | 18.83 | Better (Cheaper) |
| ROE | 15.05% | 822.00% | Weak |
| Net Margin | 24.00% | 2005.00% | Weak |
| Debt/Equity | 1.03 | 1.01 | Neutral |
| Current Ratio | 0.20 | 673.11 | Weak Liquidity |
| ROA | 1.27% | -23560.00% (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
92.36%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
91.79%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
-48.82%
Industry Style: Value, Dividend, Cyclical
Declining