Home Sectors Financial Services Present Valuation: Cullen/Frost Bankers (NYSE: CFR)

Present Valuation: Cullen/Frost Bankers (NYSE: CFR)


Cullen/Frost Bankers trades as part of the financial services sector and is part of the banking industry. The company CEO is Phillip D. Green. Cullen/Frost Bankers Inc is a financial holding company and a bank holding company. It provides a range of products and services throughout Texas markets, with a concentration on the major metropolitan areas.

Previous Intraday Trading Performance:

The CFR stock showed a previous change of 1.18% with an open at 98.77 and a close of 99.66. It reached an intraday high of 99.84 and a low of 98.32.

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The stock has a market cap of $6.3b with 63.0m shares outstanding, of which the float is 61.2m shares. Trading volume reached 220,417 shares compared to its average volume of 365,242 shares. Based on the current average volume and close price, the trading liquidity is good.

Historical Trading Performance:

Over the last five trading days, Cullen/Frost Bankers shares returned -0.14% and in the past 30 trading days it returned 14.25%. Over three months, it changed -1.26%. In one year it has changed -1.78% and within that year its 52-week high was 121.66 and its 52-week low was 81.87. CFR stock is 21.73% above its 52 Week Low.

Our calculations show a 200 day moving average of 105.01 and a 50 day moving average of 95.01. Currently CFR stock is trading -5.09% below its 200 day moving average and may not be a good opportunity to buy as it may continue to trend down.

SeekingAlpha:  Cullen/Frost Bankers, Inc. (CFR) CEO Phil Green on Q4 2018 Results – Earnings Call Transcript


The last annual fiscal EPS for the company was reported at 6.89 that ended on 31st of December 2018, which according to the previous close, that is a PE of 14.46. Based on 9 analyst estimates, the consensus EPS for the next quarter is 1.76. The TTM EPS is 6.89, which comes to a TTM PE of 14.46. Historically, the PE high was 22.10 and the PE low was 9.90. If the stock reached its PE low, that would represent a price of 68.23, which is a decrease of -31.54%.

The following are the last four quarter reported earnings per share:
12-31-2018:  1.82
09-30-2018:  1.78
06-30-2018:  1.68
03-31-2018:  1.61

The dividend per share is currently 2.68, which is a dividend yield of 2.69%. Also, the payout ratio is 38.90%, therefore the dividend is safe according to our calculations.

Base on our calculations, the intrinsic value per share is 69.05, which means it may be overvalued by -44.34%

Indicators to Watch:

Based on the latest filings, there is 2.70% of insider ownership and 125.30% of institutional ownership. Short-interest is 1,883,136, which is 2.99% of shares outstanding. The short-interest ratio or days-to-cover ratio is 3.88. This stock has some short interest, but it may be normal and no cause for concern if long the position.

The current calculated beta is 1.39

SeekingAlpha:  Cullen/Frost Bankers beats by $0.07, revenue in-line

Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 13.91%, return on assets is 1.39%, profit margin is 33.19%, price-to-sales is 4.53 and price-to-book is 1.92.

Company Scores:

All scores are out of six:
 1  :Valuation Score
 3  :Past Performance Score
 6  :Financial Strength Score
 2  :Future Growth Score
 5  :Dividend Score
 3  :Overall Score

John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.