Commerce Bancshares (CBSH) AI Stock Analysis

• Market Cap: $7.96B
• Dividend Yield: 1.81%
• Average Volume (3M): 770.51K
• Price to Earnings (P/E): 14.4
• Beta (1Y): 0.79
• Revenue Growth: 13.77%
• EPS Growth: 17.71%
• Country: US
• Employees: 4,662
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.14
• Shares Outstanding: 133,438,920
• 10 Day Avg. Volume: 914,514
• 30 Day Avg. Volume: 770,514
• PEG Ratio: 1.35
• Price to Book (P/B): 2.53
• Price to Sales (P/S): 4.00
• P/FCF Ratio: 15.75
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 3.66
• Enterprise Value/Gross Profit: 4.62
• Enterprise Value/Ebitda: 10.21
• 1Y Price Target: $69.60
• Price Target Upside: 17.93% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

• Rating: 69 Neutral
• Price Target: $67.00 ▲(13.52% Upside)

Commerce Bancshares' strong financial performance and strategic merger plans significantly contribute to its overall score. However, technical indicators suggest a bearish trend, and valuation metrics indicate a fair market price. The merger with FineMark Holdings is a positive corporate event that could enhance future growth prospects.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust business expansion and effective market penetration, supporting long-term sustainability and competitiveness.

Merger with FineMark Holdings

The merger with FineMark Holdings is a strategic move to enhance market position and expand operational capabilities, providing long-term growth opportunities.

Profitability

Improved profitability through higher net profit margins reflects efficient cost management and strong operational performance, ensuring sustainable earnings growth.

Negative Factors

Cash Flow Management

Decreasing free cash flow indicates potential challenges in cash flow management, which could impact the company's ability to fund operations and growth initiatives.

Debt Levels

While the debt-to-equity ratio has improved, maintaining a balanced capital structure is crucial to avoid financial strain and ensure long-term stability.

Cash Flow Conversion

Although cash conversion is efficient, any decline in free cash flow could affect liquidity and the ability to invest in future growth, posing a risk to financial health.

Commerce Bancshares Business Overview & Revenue Model

Company Description

Commerce Bancshares, Inc. (CBSH) is a financial holding company based in the United States, primarily engaged in the provision of a wide range of banking and financial services through its subsidiaries. The company operates in various sectors, including commercial banking, investment management, and mortgage banking. CBSH offers core products such as personal and business banking services, loans, credit cards, investment advisory services, and wealth management, catering to both individual and corporate clients.

How the Company Makes Money

Commerce Bancshares generates revenue through several key streams. The primary source of income is net interest income, which is earned from the interest on loans and securities, less the interest paid on deposits and borrowings. The company also earns non-interest income from various services, including fees from deposit accounts, transaction services, wealth management, and investment advisory services. Additionally, Commerce Bancshares benefits from its mortgage banking operations, which contribute to revenue through loan origination and servicing fees. Strategic partnerships with technology providers and financial institutions further enhance its service offerings and contribute to its overall profitability.

Commerce Bancshares Financial Statement Overview

Summary

Commerce Bancshares exhibits strong financial health with impressive revenue growth and profitability metrics. The balance sheet reflects a moderate leverage position, while cash flow ratios demonstrate effective cash management. Overall, the company is well-positioned in the regional banking industry with a solid financial foundation.

Income Statement

Commerce Bancshares demonstrates strong revenue growth, with a 6.72% increase from 2023 to TTM. The gross profit margin is robust at 78.22%, and the net profit margin is healthy at 25.94%. EBIT and EBITDA margins are also strong at 33.31% and 35.91% respectively, indicating efficient cost management and operational excellence.

Balance Sheet

The company's financial stability is highlighted by a solid equity ratio of 10.74% and a moderate debt-to-equity ratio of 0.70, suggesting manageable leverage levels. The return on equity is impressive at 15.67%, reflecting strong profitability. However, the relatively low equity ratio indicates higher reliance on liabilities.

Cash Flow

Commerce Bancshares shows a stable cash flow position, with a free cash flow growth rate of 0.29%. The operating cash flow to net income ratio is favorable at 1.07, and the free cash flow to net income ratio stands at 0.98, indicating efficient cash conversion from earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.11B	2.09B	1.97B	1.57B	1.44B	1.39B
Gross Profit	1.67B	1.63B	1.55B	1.48B	1.49B	1.21B
EBITDA	757.10M	733.57M	669.24M	679.23M	731.17M	484.95M
Net Income	559.47M	526.33M	477.06M	488.40M	530.76M	354.06M
Balance Sheet
Total Assets	32.28B	32.00B	31.70B	31.88B	36.69B	32.92B
Cash, Cash Equivalents and Short-Term Investments	12.06B	12.51B	12.37B	13.08B	18.73B	14.63B
Total Debt	2.61B	2.93B	2.91B	2.85B	3.04B	2.10B
Total Liabilities	28.62B	28.66B	28.74B	29.39B	33.24B	29.52B
Stockholders Equity	3.64B	3.31B	2.94B	2.47B	3.44B	3.40B
Cash Flow
Free Cash Flow	494.92M	531.73M	400.69M	494.19M	541.01M	590.86M
Operating Cash Flow	544.82M	577.86M	488.77M	559.38M	597.72M	623.99M
Investing Cash Flow	-972.59M	483.79M	2.18B	242.27M	-2.08B	-5.39B
Financing Cash Flow	1.03B	-372.94M	-883.12M	-4.20B	3.57B	6.07B

Commerce Bancshares Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 59.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CBSH, the sentiment is Negative. The current price of 59.02 is below the 20-day moving average (MA) of 61.28, below the 50-day MA of 61.98, and below the 200-day MA of 62.61, indicating a bearish trend. The MACD of -0.44 indicates Positive momentum. The RSI at 37.78 is Neutral, neither overbought nor oversold. The STOCH value of 12.24 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CBSH.

Commerce Bancshares Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UMBF	80 Outperform	$9.16B	13.85	10.05%	1.33%	30.40%	12.40%
WTFC	79 Outperform	$9.08B	12.82	11.60%	1.44%	4.74%	10.10%
WBS	78 Outperform	$10.22B	12.49	9.34%	2.60%	4.73%	7.12%
CMA	75 Outperform	$9.06B	13.55	11.07%	4.03%	-8.62%	15.37%
PNFP	73 Outperform	$7.55B	12.90	9.32%	0.97%	10.19%	48.39%
CBSH	69 Neutral	$7.96B	14.40	16.31%	1.81%	13.77%	17.71%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Commerce Bancshares Corporate Events

Commerce Bancshares Announces Merger with FineMark Holdings

On June 16, 2025, Commerce Bancshares, Inc. entered into a Merger Agreement with CBI-Kansas, Inc. and FineMark Holdings, Inc., whereby FineMark will merge into CBI-Kansas, with Commerce Bank becoming the surviving entity. The merger, approved by the boards of all involved parties, includes the conversion of FineMark’s stock into Commerce’s stock and cash, and the vesting and conversion of FineMark’s equity awards. The agreement outlines customary conditions and covenants, with a termination fee applicable under certain circumstances. This strategic move is expected to enhance Commerce’s market position and expand its operational capabilities.

Commerce Bancshares Announces Merger with FineMark Holdings

On June 16, 2025, Commerce Bancshares, Inc. announced a definitive merger agreement to acquire FineMark Holdings, Inc. in an all-stock transaction valued at approximately $585 million. This merger is set to bolster Commerce’s wealth management business by adding FineMark’s assets under administration of $7.7 billion and bank assets of $4.0 billion. The merger will enhance Commerce’s presence in high-growth markets and expand its footprint in Florida, Arizona, and South Carolina. The transaction, pending regulatory and shareholder approval, is anticipated to close on January 1, 2026, and is expected to accelerate growth, expand reach, and deliver greater value to clients, shareholders, and communities.