Cullen/Frost Bankers (CFR)
NYSE:CFR
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Cullen/Frost Bankers
(NYSE:CFR)
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Rating:69Neutral
Price Target:
$142.00
â–¼(-0.71% Downside)
Action:DowngradedDate:02/06/26
The score is driven by solid underlying financial strength and a favorable technical uptrend. Constructive guidance and operating momentum are balanced by asset-quality migration, unrealized AFS losses, and expense growth concerns, while valuation and dividend support an above-average but not top-tier rating.
Positive Factors
Stable Deposit & Liquidity Base
A large core deposit base and material customer repo balances provide durable, low-cost funding that supports net interest income and loan growth. This funding mix enhances resilience to wholesale shocks, underpins lending capacity, and reduces reliance on expensive external funding over the medium term.
Negative Factors
Rising Problem Loans Concentration
A growing pool of criticized multifamily and other problem loans signals concentrated asset-quality pressure. If resolutions slip or economic stress persists, provisions and charge-offs could rise, eroding earnings and capital cushions and creating multi-quarter drag on profitability and loan growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Stable Deposit & Liquidity Base
A large core deposit base and material customer repo balances provide durable, low-cost funding that supports net interest income and loan growth. This funding mix enhances resilience to wholesale shocks, underpins lending capacity, and reduces reliance on expensive external funding over the medium term.
Read all positive factors
Cullen/Frost Bankers (CFR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.16B
Dividend Yield3.05%
Average Volume (3M)545.39K
Price to Earnings (P/E)12.5
Beta (1Y)0.90
Revenue Growth2.85%
EPS Growth20.57%
CountryUS
Employees5,854
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)2.56
Shares Outstanding63,201,794
10 Day Avg. Volume367,541
30 Day Avg. Volume545,387
Financial Highlights & Ratios
PEG Ratio0.97
Price to Book (P/B)1.77
Price to Sales (P/S)2.78
P/FCF Ratio63.70
Enterprise Value/Market Cap0.55
Enterprise Value/Revenue1.73
Enterprise Value/Gross Profit2.31
Enterprise Value/Ebitda5.89
Forecast
1Y Price Target
$150.00Price Target Upside4.88% Upside
Rating ConsensusHold
Number of Analyst Covering12
EPS Forecast (FY)10.33
Revenue Forecast (FY)$2.40B
Cullen/Frost Bankers Business Overview & Revenue Model
Company Description
Cullen/Frost Bankers, Inc. operates as the bank holding company for Frost Bank that offers commercial and consumer banking services in Texas. It operates in two segments, Banking and Frost Wealth Advisors. The company offers commercial banking ser...
How the Company Makes Money
Cullen/Frost Bankers generates earnings primarily through (1) net interest income and (2) noninterest income, while incurring operating expenses and provision for credit losses as key offsets.
1) Net interest income (core banking spread)
- The la...
Cullen/Frost Bankers Earnings Call Summary
Earnings Call Date:Jan 29, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call presented multiple clear positives: solid loan and deposit growth, meaningful traction from the organic expansion program (200 locations, $2.0B loans and $2.76B deposits generated), stronger booked commitments and new commercial relationships, improved NIM and upgraded net interest income and noninterest income guidance. Offsetting items include rising problem loans (primarily multifamily criticized), higher quarterly net charge-offs, a large unrealized AFS loss, elevated structuring-related losses due to heightened competition, and continued expense growth that has historically outpaced revenue. Management expects expansion accretion in 2026 and provided constructive guidance, but near-term risks (asset quality migration in specific pockets and investment mark-to-market losses) temper the outlook.Positive Updates
Earnings and EPS Growth
Net income of $155.3 million in Q2 2025, or $2.39 per share, up from $143.8 million or $2.21 per share in Q2 2024 (EPS +8.1%).
Negative Updates
ROE Decline
Return on average common equity declined to 15.64% in Q2 2025 from 17.08% in Q2 2024, indicating pressure on profitability despite higher net income.
Read all updates
Q4-2025 Updates
Positive
Negative
Earnings and EPS Growth
Net income of $155.3 million in Q2 2025, or $2.39 per share, up from $143.8 million or $2.21 per share in Q2 2024 (EPS +8.1%).
Read all positive updates
Company Guidance
Management's 2025 guidance assumes two 25‑bp Fed cuts (September and October) and calls for full‑year net interest income growth of 6%–7% (up from prior 5%–7%) with net interest margin improving ~12–15 bps versus 2024's 3.53% (Q2 NIM was 3.67%, +7 bps QoQ); full‑year average loan growth is expected in the mid‑ to high‑single digits and average deposits to rise 2%–3%; noninterest income is now guided to grow 3.5%–4.5% (vs. prior 2%–3%), noninterest expense to increase in the high single digits, net charge‑offs to be similar to 2024 at ~20–25 bps of average loans, and the effective tax rate to be 16%–17%; management also provided balance‑sheet context including Q2 average deposits of $41.76B, an investment portfolio averaging $20.4B (duration 5.5 years, taxable‑equivalent yield 3.79%), taxable portfolio $13.8B (yield 3.48%), municipal portfolio $6.6B (TEY 4.48%, ~69% pre‑refunded/PSF), and customer repos averaging $4.25B (cost 3.23%).Cullen/Frost Bankers Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
67
Positive
Cash Flow
58
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.92B | 2.85B | 2.65B | 1.88B | 1.40B |
| Gross Profit | 2.19B | 2.00B | 1.94B | 1.69B | 1.37B |
| EBITDA | 859.49M | 778.78M | 788.82M | 740.17M | 558.83M |
| Net Income | 648.56M | 582.54M | 597.97M | 579.15M | 443.08M |
Balance Sheet | |||||
| Total Assets | 53.04B | 52.52B | 50.85B | 52.89B | 50.88B |
| Cash, Cash Equivalents and Short-Term Investments | 9.98B | 25.26B | 25.18B | 30.06B | 30.47B |
| Total Debt | 4.77B | 4.59B | 4.36B | 4.93B | 2.99B |
| Total Liabilities | 48.47B | 48.62B | 47.13B | 49.76B | 46.44B |
| Stockholders Equity | 4.57B | 3.90B | 3.72B | 3.14B | 4.44B |
Cash Flow | |||||
| Free Cash Flow | 127.33M | 861.76M | 320.21M | 620.08M | 582.44M |
| Operating Cash Flow | 273.98M | 989.53M | 478.85M | 722.58M | 648.29M |
| Investing Cash Flow | -1.60B | -180.88M | -942.75M | -8.28B | -2.53B |
| Financing Cash Flow | -33.09M | 738.33M | -2.88B | 3.00B | 8.17B |
Cullen/Frost Bankers Technical Analysis
Positive
143.02
Price Trends
138.32
Positive
133.32
Positive
129.60
Positive
Market Momentum
0.96
Negative
67.87
Neutral
89.33
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CFR, the sentiment is Positive. The current price of 143.02 is above the 20-day moving average (MA) of 135.01, above the 50-day MA of 138.32, and above the 200-day MA of 129.60, indicating a bullish trend. The MACD of 0.96 indicates Negative momentum. The RSI at 67.87 is Neutral, neither overbought nor oversold. The STOCH value of 89.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CFR.
Cullen/Frost Bankers Risk Analysis
Cullen/Frost Bankers disclosed 41 risk factors in its most recent earnings report. Cullen/Frost Bankers reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Cullen/Frost Bankers Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $9.56B | 8.78 | 13.82% | 2.31% | 5.87% | 53.36% | |
73 Outperform | $9.21B | 12.93 | 8.51% | 2.43% | 20.72% | 3.63% | |
72 Outperform | $7.52B | 12.84 | 15.43% | 1.97% | 12.63% | 14.25% | |
69 Neutral | $9.16B | 12.51 | 14.95% | 3.05% | 2.85% | 20.57% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $9.14B | 9.58 | 13.33% | 2.97% | 0.12% | 27.30% |
* Financial Sector Average
CFR
Cullen/Frost Bankers
144.96
41.30
39.84%
CBSH
Commerce Bancshares
51.19
-1.30
-2.48%
ONB
Old National Bancorp Capital
23.64
5.79
32.41%
BPOP
Popular
146.82
66.52
82.84%
ZION
Zions Bancorporation National Association
61.77
20.68
50.31%
Cullen/Frost Bankers Corporate Events
Business Operations and StrategyRegulatory Filings and Compliance
Cullen/Frost Bankers Issues Investor Presentation and Update
Neutral
Feb 11, 2026
On December 31, 2025, Cullen/Frost Bankers posted an investor presentation on its website and furnished a copy as an exhibit to a current report, providing updated information to shareholders and the broader market. The company emphasized that thi...
Business Operations and StrategyExecutive/Board Changes
Cullen/Frost Bankers Expands Board With Two New Directors
Positive
Jan 30, 2026
On January 27, 2026, longtime director Dr. Chris Avery notified Cullen/Frost Bankers that he will retire and not stand for re-election when his term expires at the company’s 2026 annual shareholders’ meeting scheduled for April 29, 202...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.