Cullen/Frost Bankers, Inc. (CFR)
Valuation Overview•Is Cullen/Frost Bankers, Inc. Overvalued or Undervalued?
Commands a premium valuation multiple over its peers, likely pricing in superior execution.
Moderate quality score of 58/100, reflecting stable operating margins and manageable leverage.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
Verdict: Average quality business weighed down by significant solvency concerns.
Wall Street is broadly bullish, projecting solid upside. This is paired with healthy capital returns, driven by a balanced mix of reliable dividends and share buybacks.
CFR demonstrates strong business quality with robust profitability and healthy margins. This is backed by a fortress balance sheet, holding significant net cash ($4.1B) and minimal debt risk.
The company maintains stable top-line performance paired with stable bottom-line earnings. This growth is supported by elite operational efficiency, sustaining an impressive 28.5% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $578.0M | +2.5% | — | — | +10.5% | |
| EBITDA | $202.4M | — | +5.1% | — | — | |
| Net Income | $171.0M | +11.3% | +3.8% | — | +8.8% | |
| EPS (Diluted) | $2.69 | +11.8% | +4.1% | +14.3% | +8.8% | |
| Free Cash Flow | $237.3M | -85.2% | -41.0% | -21.6% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 59.7% | 72.8% | 81.4% | 85.8% |
| Operating Margin | 28.5% | 25.9% | 29.7% | 30.5% |
| Net Margin | 24.0% | 21.8% | 25.6% | 26.8% |
| FCF Margin | 28.9% | 15.6% | 24.3% | 28.8% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $2.51 | $2.65 | +5.6% | ||
| Q1'26 | $2.47 | $2.57 | +4.0% | ||
| Q4'25 | $2.38 | $2.67 | +12.2% | ||
| Q3'25 | $2.28 | $2.39 | +4.8% | ||
| Q2'25 | $2.16 | $2.30 | +6.5% | ||
| Q1'25 | $2.17 | $2.36 | +8.8% | ||
| Q4'24 | $2.17 | $2.24 | +3.2% | ||
| Q3'24 | $2.07 | $2.21 | +6.8% |
Total return is +21.1% (1Y), lagging the benchmark by -3.8%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +15.2% | +5.9% | — |
| 1Y | +21.1% | -3.8% | +3.3% |
| 3YCAGR | +12.3% | -7.2% | +10.4% |
| 5YCAGR | +8.8% | -4.2% | +16.8% |
| 10YCAGR | +10.7% | -2.8% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Cullen/Frost Bankers, Inc. (CFR) valuation, health, and returns.
Cullen/Frost Bankers, Inc. is estimated to be fair under our discounted cash flow framework. relative multiples indicate the stock is Expensive versus peers compared to industry peers. trading near fair value (DCF: $162.22)
Cullen/Frost Bankers, Inc. has multiple valuation anchors: DCF Intrinsic Value: $162.22 | Peer Relative Fair Value: $115.39 | Wall Street Analyst Target: $154.13 (implying +5.8% upside). A convergence of these signals offers higher conviction.
Cullen/Frost Bankers, Inc. displays fair financial health with a composite quality score of 58/100, supported by a Piotroski F-Score of 6/9, Return on Invested Capital (ROIC) of 6.5%.
Cullen/Frost Bankers, Inc. pays a 2.7% dividend yield, covered by a 39% payout ratio with 31 years of growth, supplemented by a 1.7% buyback yield.
Cullen/Frost Bankers, Inc.'s current growth trajectory is Stable. The company achieved +2.5% 1Y revenue growth and +11.8% 1Y EPS growth, compared to its 3Y revenue CAGR of N/A.
Wall Street consensus is Hold based on 33 analysts, beating EPS expectations in 83% of recent quarters with a 8-quarter streak. The consensus price target represents a +5.8% change from current levels.
Investment risks for Cullen/Frost Bankers, Inc. include: -13.6% 1-year max drawdown. Volatility risk is characterized by a beta of 0.54x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.