Community Bank System (CBU) AI Stock Analysis

• Market Cap: $3.20B
• Dividend Yield: 3.06%
• Average Volume (3M): 213.79K
• Price to Earnings (P/E): 15.7
• Beta (1Y): 0.80
• Revenue Growth: 9.41%
• EPS Growth: 20.64%
• Country: US
• Employees: 2,730
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.09
• Shares Outstanding: 52,661,488
• 10 Day Avg. Volume: 226,030
• 30 Day Avg. Volume: 213,794
• PEG Ratio: 0.44
• Price to Book (P/B): 1.85
• Price to Sales (P/S): 3.46
• P/FCF Ratio: 14.69
• Enterprise Value/Market Cap: 1.13
• Enterprise Value/Revenue: 3.70
• Enterprise Value/Gross Profit: 4.78
• Enterprise Value/Ebitda: 12.88
• 1Y Price Target: $67.00
• Price Target Upside: 10.36% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 4.1
• Revenue Forecast (FY): $815.96M

• Rating: 78 Outperform
• Price Target: $68.00 ▲(12.01% Upside)

Community Bank System's strong financial performance and positive earnings call are the most significant factors driving the score. The stock's technical indicators suggest bullish momentum, though caution is advised due to overbought signals. Valuation is fair, and recent corporate events are favorable, enhancing the company's strategic position.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial stability.

Diversified Revenue Streams

Diversification reduces risk and enhances resilience, allowing the company to sustain performance across varying market conditions.

Capital Deployment

Strategic capital deployment supports growth in high-priority markets, enhancing competitive positioning and future revenue potential.

Negative Factors

Provision for Credit Losses

Rising credit provisions suggest increased risk in the loan portfolio, which could impact profitability and financial stability.

Increase in Non-Interest Expenses

Higher non-interest expenses can pressure margins and reduce profitability, potentially affecting long-term financial performance.

Higher Effective Tax Rate

An increased tax rate reduces net earnings, potentially impacting cash flow and limiting reinvestment opportunities.

Community Bank System Business Overview & Revenue Model

Company Description

Community Bank System, Inc. (CBU) is a diversified financial services company based in the United States, primarily engaged in the operation of community banks and providing a wide range of financial services. The company operates through two main segments: Community Banking and Employee Benefit Services. Its core products include commercial and consumer banking services, such as loans, deposits, and treasury management, as well as investment and insurance services through its subsidiaries. CBU aims to deliver personalized banking experiences to its customers, focusing on community engagement and local decision-making.

How the Company Makes Money

Community Bank System generates revenue primarily through interest income and non-interest income. Interest income is derived from the interest earned on loans and investments, which constitute a significant portion of the bank's earnings. The company offers a variety of loans, including commercial, residential, and consumer loans, with interest rates that contribute to its overall revenue. Non-interest income comes from various sources, including fees for services such as account maintenance, ATM usage, and transaction fees, as well as income from its employee benefit services segment. Additionally, CBU may engage in strategic partnerships and acquisitions to expand its service offerings and customer base, further enhancing its revenue potential.

Community Bank System Financial Statement Overview

Summary

Community Bank System exhibits strong financial health with consistent revenue and profit growth, efficient cost management, and a balanced capital structure. The company has shown resilience in cash flow generation, although there are minor concerns regarding cash conversion.

Income Statement

Community Bank System has demonstrated consistent revenue growth with a TTM revenue growth rate of 1.66%. The gross profit margin remains strong at 77.35%, indicating efficient cost management. The net profit margin is healthy at 19.91%, showing profitability. However, there is a slight decline in EBITDA margin from the previous year, which could indicate rising operational costs.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 0.47, reflecting a balanced approach to leveraging. The return on equity is solid at 10.72%, indicating effective use of equity capital. The equity ratio is stable, suggesting a strong capital structure. However, the decrease in total debt over the past year is a positive sign of improving financial health.

Cash Flow

The free cash flow growth rate is impressive at 132.9%, indicating strong cash generation capabilities. The operating cash flow to net income ratio is low, suggesting potential issues with cash conversion. However, the free cash flow to net income ratio is robust at 83.25%, highlighting efficient cash utilization.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	977.41M	940.71M	755.98M	702.45M	633.65M	617.28M
Gross Profit	756.01M	723.53M	640.67M	664.58M	629.49M	582.19M
EBITDA	280.58M	265.36M	196.58M	270.74M	271.51M	236.72M
Net Income	194.64M	182.48M	131.92M	188.08M	189.69M	164.68M
Balance Sheet
Total Assets	16.67B	16.39B	15.56B	15.84B	15.55B	13.93B
Cash, Cash Equivalents and Short-Term Investments	2.69B	508.96M	3.11B	4.36B	6.81B	5.19B
Total Debt	894.46M	998.87M	765.20M	1.14B	329.88M	371.29M
Total Liabilities	14.78B	14.62B	13.86B	14.28B	13.45B	11.83B
Stockholders Equity	1.88B	1.76B	1.70B	1.55B	2.10B	2.10B
Cash Flow
Free Cash Flow	198.80M	221.57M	209.84M	201.68M	189.17M	164.70M
Operating Cash Flow	238.79M	242.28M	228.42M	214.60M	202.55M	179.48M
Investing Cash Flow	-633.67M	-835.62M	335.78M	-2.14B	-1.53B	-398.72M
Financing Cash Flow	430.63M	599.38M	-583.13M	259.22M	1.56B	1.66B

Community Bank System Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 60.71
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CBU, the sentiment is Positive. The current price of 60.71 is above the 20-day moving average (MA) of 58.28, above the 50-day MA of 56.81, and above the 200-day MA of 56.08, indicating a bullish trend. The MACD of 1.13 indicates Negative momentum. The RSI at 65.77 is Neutral, neither overbought nor oversold. The STOCH value of 74.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CBU.

Community Bank System Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WSBC	78 Outperform	$3.36B	17.77	5.25%	4.22%	41.49%	-5.53%
CBU	78 Outperform	$3.20B	15.67	11.01%	3.06%	9.41%	20.64%
WSFS	78 Outperform	$3.17B	11.95	10.27%	1.14%	-3.62%	10.83%
TOWN	70 Outperform	$2.89B	15.87	7.37%	2.92%	9.48%	12.83%
FHB	70 Outperform	$3.25B	12.84	9.62%	4.01%	-4.45%	16.92%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SFNC	61 Neutral	$2.81B	-6.62	-12.42%	4.38%	-55.53%	-387.04%

Community Bank System Corporate Events

Community Bank System Enhances Investor Transparency

On November 12, 2025, Community Financial System, Inc. posted an investor presentation on its website for upcoming meetings with investors and analysts. This move is likely aimed at enhancing transparency and engagement with stakeholders, potentially impacting the company’s investor relations positively.

Community Bank System Appoints New Independent Director

On September 17, 2025, Community Financial System, Inc. announced the appointment of John A. Vaccaro as a new independent director, effective October 1, 2025. Mr. Vaccaro, with a rich background in wealth management and insurance, previously served as Chairman Emeritus of MML Investors Services and Chairman of MassMutual Private Wealth & Trust. His appointment is expected to enhance the board’s expertise, particularly in the growth and oversight of the company’s broker-dealer, RIA, and insurance businesses, aligning with the company’s strategy for diversified financial services growth.