Cullen/frost Bankers (CFR)
NYSE:CFR
Want to see CFR full AI Analyst Report?
Top Page
Cullen/Frost Bankers
(NYSE:CFR)
Select Model
Select Model
Rating:73Outperform
Price Target:
$162.00
â–²(13.03% Upside)
Action:Upgraded
Date:05/01/26
CFR’s score is driven primarily by solid profitability and strong cash conversion, supported by favorable price momentum and reasonable valuation. The score is tempered by weaker recent revenue growth and highlighted credit/investment-portfolio risks from the latest earnings call (rising problem loans and higher unrealized losses).
Positive Factors
Profitability & Cash Conversion
Sustained near‑parity of free cash flow and net income demonstrates high earnings quality and durable cash generation. This supports dividend capacity, loan funding and reinvestment without reliance on volatile capital markets, improving long‑term operating flexibility despite year‑to‑year swings.
Negative Factors
Rising Problem Loans Concentration
An increasing stock of problem loans signals credit-quality deterioration and potential concentration risk. If large resolutions don't materialize as expected, provisions and charge-offs could rise, pressuring earnings, credit metrics and capital cushions over the coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability & Cash Conversion
Sustained near‑parity of free cash flow and net income demonstrates high earnings quality and durable cash generation. This supports dividend capacity, loan funding and reinvestment without reliance on volatile capital markets, improving long‑term operating flexibility despite year‑to‑year swings.
Read all positive factors
Cullen/Frost Bankers (CFR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.51B
Dividend Yield3.05%
Average Volume (3M)531.15K
Price to Earnings (P/E)12.9
Beta (1Y)0.92
Revenue Growth2.22%
EPS Growth12.61%
CountryUS
Employees5,854
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)10.33
Shares Outstanding62,797,047
10 Day Avg. Volume458,667
30 Day Avg. Volume531,154
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 Cap1.47
Enterprise Value/Revenue4.49
Enterprise Value/Gross Profit5.61
Enterprise Value/Ebitda14.17
Forecast
1Y Price Target
$150.82Price Target Upside5.22% Upside
Rating ConsensusHold
Number of Analyst Covering12
EPS Forecast (FY)10.55
Revenue Forecast (FY)$2.39B
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:Apr 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Positive
The call presents a generally positive picture: solid earnings and EPS growth, expanding loan pipeline and record new relationships, strong consumer franchise metrics and meaningful contribution from branch expansion. Credit metrics remain acceptable by historical standards and NIM improved. However, there are notable cautions: an increase in total problem loans (OAEM), larger unrealized losses on the investment portfolio, and some seasonal/linked-quarter deposit and expense volatility. On balance, the positive operational momentum and financial results outweigh the risks highlighted.Positive Updates
Earnings and EPS Growth
Net income of $169.3 million, up 13.4% year-over-year; diluted EPS of $2.65, up 15.2% year-over-year.
Negative Updates
Increase in Total Problem Loans (OAEM)
Total problem loans (risk grade 10 or higher) rose to $989 million from $857 million last quarter and $889 million a year ago; management indicated the net increase was in the risk grade 10 category and expects large resolutions in Q2–Q3 (near-term credit risk concentration).
Read all updates
Q1-2026 Updates
Positive
Negative
Earnings and EPS Growth
Net income of $169.3 million, up 13.4% year-over-year; diluted EPS of $2.65, up 15.2% year-over-year.
Read all positive updates
Company Guidance
Management’s guidance assumed a 125-basis-point cut to the fed funds rate in Q4 2026 and reiterated continued branch-driven growth — the company plans to open an additional 10–12 branches in 2026 after adding 2 in Q1, with the expansion footprint now producing $2.9 billion of loans, $3.6 billion of deposits and ~95,000 new households and having contributed $0.14 of EPS accretion (5.6% of EPS) in Q1; other metrics highlighted that expansion-related average loans grew 33% YoY (now 12.7% of loans vs. 10.1% a year ago) and average deposits grew 21% YoY (8.3% of deposits vs. 7% a year ago). They also pointed to a $6.8 billion total loan pipeline (up 55% QoQ) and a nearly $2 billion 90‑day weighted pipeline (up 38% QoQ), Q1 NIM of 3.74% (up 8 bps QoQ), investment portfolio averaging $19.9 billion with a tax‑equivalent yield of 3.85%, nonperforming assets of $73 million (33 bps of period‑end loans, 14 bps of assets), net charge‑offs of $5.8 million (annualized 11 bps of avg loans), and total problem loans of $989 million; the call was cut short before management completed its full commentary on net interest income guidance.Cullen/Frost Bankers Financial Statement Overview
Summary
Income Statement
71
Positive
Balance Sheet
66
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.79B | 2.92B | 2.85B | 2.65B | 1.88B | 1.40B |
| Gross Profit | 2.23B | 2.19B | 2.00B | 1.94B | 1.69B | 1.37B |
| EBITDA | 883.12M | 859.49M | 778.78M | 788.82M | 740.17M | 558.83M |
| Net Income | 668.62M | 648.56M | 582.54M | 597.97M | 579.15M | 443.08M |
Balance Sheet | ||||||
| Total Assets | 52.72B | 53.04B | 52.52B | 50.85B | 52.89B | 50.88B |
| Cash, Cash Equivalents and Short-Term Investments | 638.78M | 9.98B | 25.26B | 25.18B | 30.06B | 30.47B |
| Total Debt | 4.64B | 4.77B | 4.59B | 4.36B | 4.93B | 2.99B |
| Total Liabilities | 48.19B | 48.47B | 48.62B | 47.13B | 49.76B | 46.44B |
| Stockholders Equity | 4.53B | 4.57B | 3.90B | 3.72B | 3.14B | 4.44B |
Cash Flow | ||||||
| Free Cash Flow | 767.24M | 127.33M | 861.76M | 320.21M | 620.08M | 582.44M |
| Operating Cash Flow | 807.41M | 273.98M | 989.53M | 478.85M | 722.58M | 648.29M |
| Investing Cash Flow | -1.11B | -1.60B | -180.88M | -942.75M | -8.28B | -2.53B |
| Financing Cash Flow | -404.23M | -33.09M | 738.33M | -2.88B | 3.00B | 8.17B |
Cullen/Frost Bankers Technical Analysis
Negative
143.33
Price Trends
138.14
Negative
137.71
Negative
130.69
Positive
Market Momentum
-0.70
Positive
43.44
Neutral
26.38
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CFR, the sentiment is Negative. The current price of 143.33 is above the 20-day moving average (MA) of 136.90, above the 50-day MA of 138.14, and above the 200-day MA of 130.69, indicating a neutral trend. The MACD of -0.70 indicates Positive momentum. The RSI at 43.44 is Neutral, neither overbought nor oversold. The STOCH value of 26.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $9.28B | 12.22 | 9.07% | 2.43% | 33.41% | 11.83% | |
74 Outperform | $9.59B | 10.69 | 14.64% | 2.31% | 3.21% | 39.91% | |
73 Outperform | $7.61B | 13.22 | 14.87% | 1.97% | 13.70% | 5.91% | |
73 Outperform | $8.51B | 12.89 | 15.05% | 3.05% | 2.22% | 12.61% | |
72 Outperform | $9.19B | 9.54 | 13.77% | 2.97% | -1.12% | 25.29% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
CFR
Cullen/Frost Bankers
135.52
13.09
10.70%
CBSH
Commerce Bancshares
52.22
-6.08
-10.43%
ONB
Old National Bancorp Capital
24.01
3.79
18.73%
BPOP
Popular
148.53
46.91
46.16%
ZION
Zions Bancorporation National Association
62.45
16.97
37.31%
Cullen/Frost Bankers Corporate Events
Executive/Board ChangesShareholder Meetings
Cullen/Frost Shareholders Back Directors, Pay and Auditors
Positive
Apr 29, 2026
At its April 29, 2026 Annual Meeting of Shareholders, Cullen/Frost Bankers, Inc. shareholders elected fourteen director nominees to one-year terms expiring at the 2027 annual meeting, with each nominee receiving strong majority support despite som...
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...
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.