Community Bank System (CBU) AI Stock Analysis

• Market Cap: $3.22B
• Dividend Yield: 3.02%
• Average Volume (3M): 317.08K
• Price to Earnings (P/E): 16.6
• Beta (1Y): 1.01
• Revenue Growth: 11.95%
• EPS Growth: 14.53%
• Country: US
• Employees: 2,730
• Sector: Financial
• Sector Strength: 72
• Industry: Banks - Regional
• EPS (TTM): 1.04
• Shares Outstanding: 52,857,080
• 10 Day Avg. Volume: 255,034
• 30 Day Avg. Volume: 317,081
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.14
• Enterprise Value/Revenue: 3.81
• Enterprise Value/Gross Profit: 4.94
• Enterprise Value/Ebitda: 13.23
• 1Y Price Target: $68.00
• Price Target Upside: 11.27% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 73 Outperform
• Price Target: $64.00 ▲(4.73% Upside)

Community Bank System's overall stock score of 73 reflects strong financial performance and a positive earnings outlook. The stock shows short-term bullish momentum, though long-term resistance remains. Valuation is fair with an attractive dividend yield. Key risks include rising debt levels and increased provisions for credit losses.

Positive Factors

Earnings Outlook

Analyst upgrades Community Financial System (CBU) to Strong Buy from Market Perform, reflecting an improved earnings outlook and continued strong growth from fee-based businesses.

Revenue Growth

CBU's fee businesses are experiencing revenue growth in the high-single to low-double-digit range, indicating strong performance relative to the community bank sector.

Negative Factors

Credit Quality Risks

Potential risks to CBU's target include rapid deterioration in credit quality, dilutive mergers and acquisitions, slower repricing, or general weakness in bank stocks.

Expense Impact

Third quarter results were modestly below expectations partly due to expenses, which masked positive revenue trends.

Community Bank System Business Overview & Revenue Model

Company Description

Community Bank System, Inc. operates as the bank holding company for Community Bank, N.A. that provides various banking and other financial services to retail, commercial, and municipal customers. It operates through three segments: Banking, Employee Benefit Services, and All Other. The company offers various deposits products, such as checking, savings, and money market deposit accounts, as well as time deposits. It also provides loans, including consumer mortgages; general purpose commercial and industrial loans, and mortgages on commercial properties; paycheck protection program loans; installment loans that are originated through selected dealerships and are secured by automobiles, marine, and other recreational vehicles; personal installment loans and lines of credit for consumers; and home equity products. In addition, the company offers broker-dealer and investment advisory; cash management, investment, and treasury services; asset management; and employee benefit services, as well as operates as a full-service insurance agency that offers personal and commercial lines of insurance, and other risk management products and services. Further, it provides contribution plan administration, employee benefit trust, collective investment fund, retirement plan administration, fund administration, transfer agency, actuarial and benefit consulting, VEBA/HRA, and health and welfare consulting services. Additionally, the company offers wealth management, retirement planning, higher educational planning, fiduciary, risk management, trust, and personal financial planning services; and investment alternatives, including stocks, bonds, mutual funds, and advisory products, as well as master recordkeeping services. As of January 24, 2022, it operated approximately 215 customer facilities across Upstate New York, Northeastern Pennsylvania, Vermont, and Western Massachusetts. Community Bank System, Inc. was founded in 1866 and is headquartered in DeWitt, New York.

How the Company Makes Money

Community Bank System generates revenue primarily through net interest income and non-interest income. Net interest income is derived from the difference between interest earned on loans and interest paid on deposits and borrowings, which constitutes the majority of their total revenue. Key revenue streams include interest from commercial, residential, and consumer loans, as well as service fees from deposit accounts. Additionally, non-interest income is generated from various sources such as wealth management services, insurance sales, and transaction fees. The company has established partnerships with financial technology firms to enhance its service offerings, which also contributes to its earnings by attracting a broader customer base and increasing transaction volumes.

Community Bank System Financial Statement Overview

Summary

Community Bank System demonstrates strong financial health with consistent revenue growth and profitability. The balance sheet is stable, though rising debt levels warrant monitoring. Cash flows are robust, supporting operational and strategic initiatives. Overall, the company is well-positioned within the regional banking sector, though careful management of leverage and equity balance is recommended for sustained growth.

Income Statement

Community Bank System shows strong profitability with a consistent increase in total revenue from $617 million in 2020 to $961 million TTM. The gross profit margin remains high, indicating effective cost management. Net profit margin and EBIT margin have been stable, reflecting solid operational efficiency. Revenue growth is positive, highlighting the company's expansion capabilities.

Balance Sheet

The balance sheet is robust with a healthy stockholders' equity of $1.83 billion TTM, although there is an increasing trend in total debt, which grew from $371 million in 2020 to $862 million TTM. The debt-to-equity ratio remains manageable, allowing for strategic leverage. Return on Equity (ROE) indicates effective utilization of equity, though there is room for improvement in equity ratio stability.

Cash Flow

Cash flow statements show a positive trend in operating cash flow, supporting the company's operational health. Free cash flow has been stable, enabling reinvestment and dividend opportunities. The operating cash flow to net income ratio is strong, reflecting efficient cash conversion. However, fluctuations in investing and financing cash flows suggest ongoing strategic adjustments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	961.45M	940.71M	755.98M	702.45M	633.65M	617.28M
Gross Profit	741.96M	723.53M	640.67M	664.58M	629.49M	582.19M
EBITDA	276.86M	265.36M	196.58M	270.74M	271.51M	236.72M
Net Income	191.22M	182.48M	131.92M	188.08M	189.69M	164.68M
Balance Sheet
Total Assets	16.76B	16.39B	15.56B	15.84B	15.55B	13.93B
Cash, Cash Equivalents and Short-Term Investments	834.27M	508.96M	3.11B	4.36B	6.81B	5.19B
Total Debt	862.04M	998.87M	765.20M	1.14B	329.88M	371.29M
Total Liabilities	14.93B	14.62B	13.86B	14.28B	13.45B	11.83B
Stockholders Equity	1.83B	1.76B	1.70B	1.55B	2.10B	2.10B
Cash Flow
Free Cash Flow	196.19M	221.57M	209.84M	201.68M	189.17M	164.70M
Operating Cash Flow	224.89M	242.28M	228.42M	214.60M	202.55M	179.48M
Investing Cash Flow	-651.25M	-835.62M	335.78M	-2.14B	-1.53B	-398.72M
Financing Cash Flow	606.00M	599.38M	-583.13M	259.22M	1.56B	1.66B

Community Bank System Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 61.11
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 61.11 is above the 20-day moving average (MA) of 56.55, above the 50-day MA of 56.68, and above the 200-day MA of 59.22, indicating a bullish trend. The MACD of 1.26 indicates Negative momentum. The RSI at 69.24 is Neutral, neither overbought nor oversold. The STOCH value of 92.04 is Negative, 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
RNST	78 Outperform	$3.72B	15.39	5.21%	2.23%	21.87%	-3.27%
WSFS	75 Outperform	$3.26B	12.57	10.32%	1.08%	0.30%	1.46%
FULT	74 Outperform	$3.60B	11.50	10.08%	3.58%	17.61%	1.89%
CBU	73 Outperform	$3.22B	16.56	10.91%	3.02%	11.95%	14.53%
FHB	72 Outperform	$3.19B	13.07	9.40%	4.00%	-2.56%	12.05%
CATY	71 Outperform	$3.45B	11.95	10.38%	2.70%	-0.17%	-0.29%
Sector *	68 Neutral	$17.84B	12.03	10.32%	3.73%	9.70%	0.76%

Community Bank System Corporate Events

Community Bank System Announces Leadership Transition

Community Financial System, Inc. announced that Jeffrey M. Levy will retire from his role as Senior Vice President and Chief Banking Officer of Community Bank, N.A., effective December 31, 2025. Levy, who has been instrumental in the bank’s commercial lending growth and regional expansion, will be succeeded by Matthew Durkee, currently the President of Commercial Banking, starting January 1, 2026.

Community Bank System Holds Annual Shareholders Meeting

On May 21, 2025, Community Financial System, Inc. held its Annual Shareholders Meeting virtually, where shareholders elected 12 directors for one-year terms, approved the executive compensation on an advisory basis, and ratified PricewaterhouseCoopers LLP as the independent registered public accounting firm for the year ending December 31, 2025. These decisions reflect the shareholders’ support for the company’s leadership and financial oversight, potentially strengthening its governance and operational strategy moving forward.