Cullen/Frost Bankers logged a 1.8% change during Friday's session, and is now trading at a price of $96.6 per share.
Cullen/Frost Bankers returned losses of -38.0% last year, with its stock price reaching a high of $160.6 and a low of $82.25. Over the same period, the stock underperformed the S&P 500 index by -54.0%. As of April 2023, the company's 50-day average price was $91.88. Cullen/Frost Bankers, Inc. operates as the bank holding company for Frost Bank that provides commercial and consumer banking services in Texas. Based in San Antonio, TX, the mid-cap Finance company has 4,985 full time employees. Cullen/Frost Bankers has offered a 3.7% dividend yield over the last 12 months.
Growing Revenues With Increasing Reinvestment in the Business:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $1,051 | $1,134 | $1,021 | $1,009 | $1,476 | $1,990 |
| Interest Income (MM) | $958 | $1,004 | $976 | $985 | $1,291 | $1,539 |
| Operating Margins | 48.0% | 44.0% | 34.0% | 49.0% | 45.0% | 41.0% |
| Net Margins | 43.0% | 39.0% | 32.0% | 44.0% | 39.0% | 35.0% |
| Net Income (MM) | $455 | $444 | $331 | $443 | $579 | $701 |
| Depreciation & Amort. (MM) | $50 | $54 | $64 | $69 | $71 | $73 |
| Earnings Per Share | $6.9 | $6.84 | $5.1 | $6.76 | $8.81 | $10.67 |
| Diluted Shares (MM) | 65 | 63 | 63 | 64 | 65 | 65 |
| Free Cash Flow (MM) | $483 | $427 | $429 | $582 | $620 | $591 |
| Capital Expenditures (MM) | $79 | $207 | $95 | $66 | $103 | $160 |
| Net Current Assets (MM) | -$16,975 | -$18,279 | -$27,087 | -$31,925 | -$18,524 | -$19,980 |
| Long Term Debt (MM) | $372 | $724 | $847 | $3,580 | $5,681 | $4,480 |
| Net Debt / EBITDA | n/a | n/a | n/a | n/a | -8.57 | -2.94 |
Cullen/Frost Bankers has growing revenues and increasing reinvestment in the business and low leverage. Additionally, the company's financial statements display decent net margins with a stable trend and positive EPS growth. Furthermore, Cullen/Frost Bankers has irregular cash flows.
Cullen/Frost Bankers Is Reasonably Priced:
Cullen/Frost Bankers has a trailing twelve month P/E ratio of 8.8, compared to an average of 14.34 for the Finance sector. Based on its EPS guidance of $8.23, the company has a forward P/E ratio of 11.2. The company doesn't issue forward earnings guidance, and the compound average growth rate of its last 6 years of reported EPS is 7.5%. On this basis, the company's PEG ratio is 1.17, which shows that it is fairly priced. In contrast, Cullen/Frost Bankers is likely overvalued compared to the book value of its equity, since its P/B ratio of 2.17 is higher than the sector average of 1.57. The company's shares are currently trading -13.9% below their Graham number.
Cullen/Frost Bankers Has an Analyst Consensus of Some Upside Potential:
The 14 analysts following Cullen/Frost Bankers have set target prices ranging from $97.0 to $135.0 per share, for an average of $110.93 with a buy rating. As of April 2023, the company is trading -17.2% away from its average target price, indicating that there is an analyst consensus of some upside potential.
Cullen/Frost Bankers has an average amount of shares sold short because 3.5% of the company's shares are sold short. Institutions own 82.2% of the company's shares, and the insider ownership rate stands at 8.47%, suggesting a decent amount of insider shareholders. The largest shareholder is Aristotle Capital Management, LLC, whose 10% stake in the company is worth $645,048,228.
