COMMERCE BANCSHARES INC (CBSH) Stock Fundamental Analysis
NASDAQ:CBSH - Nasdaq - US2005251036 - Common Stock - Currency: USD
Taking everything into account, CBSH scores 3 out of 10 in our fundamental rating. CBSH was compared to 398 industry peers in the Banks industry. There are concerns on the financial health of CBSH while its profitability can be described as average. CBSH is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
CBSH had positive earnings in the past year.
CBSH had a positive operating cash flow in the past year.
CBSH had positive earnings in each of the past 5 years.
Each year in the past 5 years CBSH had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.63%, CBSH belongs to the top of the industry, outperforming 93.72% of the companies in the same industry.
CBSH has a Return On Equity of 15.75%. This is amongst the best in the industry. CBSH outperforms 93.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.63% | ||
| ROE | 15.75% | ||
| ROIC | N/A |
ROA(3y)1.55%
ROA(5y)1.42%
ROE(3y)17.15%
ROE(5y)15.34%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of CBSH (31.34%) is better than 85.18% of its industry peers.
CBSH's Profit Margin has been stable in the last couple of years.
CBSH does not have Operating Margin and Gross Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 31.34% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-5.28%
PM growth 5Y0.71%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
CBSH does not have a ROIC to compare to the WACC, probably because it is not profitable.
CBSH has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, CBSH has more shares outstanding
Compared to 1 year ago, CBSH has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of CBSH is 5.50, which is a neutral value as it means it would take CBSH, 5.50 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 5.50, CBSH is not doing good in the industry: 71.86% of the companies in the same industry are doing better.
A Debt/Equity ratio of 0.88 indicates that CBSH is somewhat dependend on debt financing.
CBSH's Debt to Equity ratio of 0.88 is on the low side compared to the rest of the industry. CBSH is outperformed by 83.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 5.5 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC9.79%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.83% over the past year.
The Earnings Per Share has been growing slightly by 7.07% on average over the past years.
CBSH shows a small growth in Revenue. In the last year, the Revenue has grown by 4.88%.
Measured over the past years, CBSH shows a small growth in Revenue. The Revenue has been growing by 4.27% on average per year.
EPS 1Y (TTM)13.83%
EPS 3Y1.26%
EPS 5Y7.07%
EPS Q2Q%19.65%
Revenue 1Y (TTM)4.88%
Revenue growth 3Y5.27%
Revenue growth 5Y4.27%
Sales Q2Q%7.59%
3.2 Future
CBSH is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.11% yearly.
The Revenue is expected to grow by 3.80% on average over the next years.
EPS Next Y6.85%
EPS Next 2Y5.6%
EPS Next 3Y6.11%
EPS Next 5YN/A
Revenue Next Year4.49%
Revenue Next 2Y3.54%
Revenue Next 3Y3.8%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 15.03, which indicates a correct valuation of CBSH.
70.85% of the companies in the same industry are cheaper than CBSH, based on the Price/Earnings ratio.
CBSH is valuated rather cheaply when we compare the Price/Earnings ratio to 28.78, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 14.04, which indicates a correct valuation of CBSH.
Based on the Price/Forward Earnings ratio, CBSH is valued a bit more expensive than the industry average as 70.35% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of CBSH to the average of the S&P500 Index (21.32), we can say CBSH is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.03 | ||
| Fwd PE | 14.04 |
4.2 Price Multiples
CBSH's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. CBSH is more expensive than 65.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.22 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)2.2
PEG (5Y)2.12
EPS Next 2Y5.6%
EPS Next 3Y6.11%
5. Dividend
5.1 Amount
CBSH has a Yearly Dividend Yield of 1.79%.
CBSH's Dividend Yield is slightly below the industry average, which is at 3.52.
Compared to the average S&P500 Dividend Yield of 2.46, CBSH is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.79% |
5.2 History
The dividend of CBSH has a limited annual growth rate of 2.95%.
CBSH has paid a dividend for at least 10 years, which is a reliable track record.
CBSH has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)2.95%
Div Incr Years24
Div Non Decr Years24
5.3 Sustainability
27.83% of the earnings are spent on dividend by CBSH. This is a low number and sustainable payout ratio.
The dividend of CBSH is growing, but earnings are growing more, so the dividend growth is sustainable.
DP27.83%
EPS Next 2Y5.6%
EPS Next 3Y6.11%
60.56
-0.81 (-1.32%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners71.89%
Inst Owner Change-49.38%
Ins Owners1.66%
Ins Owner Change0.18%
Market Cap8.09B
Analysts50
Price Target65.96 (8.92%)
Short Float %2.04%
Short Ratio3.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.79% |
Yearly Dividend1.07
Dividend Growth(5Y)2.95%
DP27.83%
Div Incr Years24
Div Non Decr Years24
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.39%
Min EPS beat(2)4.75%
Max EPS beat(2)6.03%
EPS beat(4)4
Avg EPS beat(4)7.81%
Min EPS beat(4)4.49%
Max EPS beat(4)15.95%
EPS beat(8)8
Avg EPS beat(8)6.49%
EPS beat(12)9
Avg EPS beat(12)4.6%
EPS beat(16)12
Avg EPS beat(16)6.56%
Revenue beat(2)0
Avg Revenue beat(2)-1.1%
Min Revenue beat(2)-1.58%
Max Revenue beat(2)-0.62%
Revenue beat(4)1
Avg Revenue beat(4)-0.54%
Min Revenue beat(4)-1.58%
Max Revenue beat(4)0.14%
Revenue beat(8)1
Avg Revenue beat(8)-0.85%
Revenue beat(12)2
Avg Revenue beat(12)-0.74%
Revenue beat(16)4
Avg Revenue beat(16)-0.61%
PT rev (1m)-9.35%
PT rev (3m)-8.27%
EPS NQ rev (1m)1.01%
EPS NQ rev (3m)9.3%
EPS NY rev (1m)2.66%
EPS NY rev (3m)10.4%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)2.07%
Revenue NY rev (1m)1.32%
Revenue NY rev (3m)2.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.03 | ||
| Fwd PE | 14.04 | ||
| P/S | 4.86 | ||
| P/FCF | 15.22 | ||
| P/OCF | 14 | ||
| P/B | 2.44 | ||
| P/tB | 2.57 | ||
| EV/EBITDA | N/A |
EPS(TTM)4.03
EY6.65%
EPS(NY)4.31
Fwd EY7.12%
FCF(TTM)3.98
FCFY6.57%
OCF(TTM)4.33
OCFY7.14%
SpS12.45
BVpS24.77
TBVpS23.58
PEG (NY)2.2
PEG (5Y)2.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.63% | ||
| ROE | 15.75% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 31.34% | ||
| GM | N/A | ||
| FCFM | 31.96% |
ROA(3y)1.55%
ROA(5y)1.42%
ROE(3y)17.15%
ROE(5y)15.34%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-5.28%
PM growth 5Y0.71%
GM growth 3YN/A
GM growth 5YN/A
F-Score9
Asset Turnover0.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 5.5 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 85.31% | ||
| Cap/Sales | 2.77% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 101.98% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score9
WACC9.79%
ROIC/WACCN/A
Cap/Depr(3y)134.07%
Cap/Depr(5y)120.81%
Cap/Sales(3y)4.22%
Cap/Sales(5y)3.82%
Profit Quality(3y)96.28%
Profit Quality(5y)113.22%
High Growth Momentum
Growth
EPS 1Y (TTM)13.83%
EPS 3Y1.26%
EPS 5Y7.07%
EPS Q2Q%19.65%
EPS Next Y6.85%
EPS Next 2Y5.6%
EPS Next 3Y6.11%
EPS Next 5YN/A
Revenue 1Y (TTM)4.88%
Revenue growth 3Y5.27%
Revenue growth 5Y4.27%
Sales Q2Q%7.59%
Revenue Next Year4.49%
Revenue Next 2Y3.54%
Revenue Next 3Y3.8%
Revenue Next 5YN/A
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y32.7%
FCF growth 3Y-0.57%
FCF growth 5Y2.49%
OCF growth 1Y18.23%
OCF growth 3Y-1.12%
OCF growth 5Y2.42%