UMB Financial (UMBF) AI Stock Analysis

• Market Cap: $7.65B
• Dividend Yield: 1.53%
• Average Volume (3M): 632.94K
• Price to Earnings (P/E): 11.4
• Beta (1Y): 1.31
• Revenue Growth: 17.28%
• EPS Growth: 25.42%
• Country: US
• Employees: 3,698
• Sector: Financial
• Sector Strength: 84
• Industry: Banks - Regional
• EPS (TTM): 9.00
• Shares Outstanding: 72,655,210
• 10 Day Avg. Volume: 674,972
• 30 Day Avg. Volume: 632,943
• PEG Ratio: 0.45
• Price to Book (P/B): N/A
• Price to Sales (P/S): 4.74
• Price to Cash Flow (P/CF): -27.80
• P/FCF Ratio: 15.50
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $135.14
• Price Target Upside: 28.37% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

UMB Financial's overall stock score reflects its solid financial performance, attractive valuation, and positive earnings call insights. The company demonstrates strong revenue growth and profitability, though leverage and cash flow variability warrant attention. The stock's technical indicators suggest current bearish trends, but the valuation appears attractive. The successful acquisition of HTLF positions UMB for further growth despite integration challenges.

Positive Factors

Loan Growth

Loan growth continues to outperform peers and expectations, with average loan balances up 3.7%.

Net Interest Margin

Net interest margin is beginning to inflect positively, driven by a reduction in interest bearing deposit costs.

Negative Factors

Credit Risks

Limited confidence in the credit profile being added from HTLF due to increased NCO trend and substantial ramp in NPAs.

Earnings Accretion

There is significantly less earnings accretion at the proforma franchise, with net accretion on presumed independent operational earnings decreasing from over 30% to about 5%.

Heartland Financial Performance

The biggest negative surprise for UMBF this quarter actually came from Heartland Financial, which UMBF is acquiring, with net income tracking well below expectations.

UMB Financial Business Overview & Revenue Model

Company Description

UMB Financial Corporation operates as the bank holding company for the UMB Bank that provides various banking and other financial services. The Commercial Banking segment provides commercial loans and credit card; commercial real estate financing; letters of credit; loan syndication, and consultative service; various business solutions including asset-based lending, accounts receivable financing, mezzanine debt, and minority equity investment; and treasury management service, such as depository service, account reconciliation, cash management tool, accounts payable and receivable solution, electronic fund transfer and automated payment, controlled disbursement, lockbox service, and remote deposit capture service. The Institutional Banking segment offers asset management and healthcare service provided to institutional client; and fund administration and accounting, investor service and transfer agency, marketing and distribution, custody, alternative investment service, fixed income sale, trading and underwriting, and corporate trust and escrow service, as well as institutional custody service. This segment also provides healthcare payment solution includes custodial service for health saving accounts and private label, multipurpose debit cards to insurance carriers, third-party administrator, software companies, employers, and financial institutions. The Personal Banking segment offers deposit account, retail credit card, private banking, installment loan, home equity line of credit, residential mortgage, and small business loan, as well as internet banking, ATM network, private banking, brokerage and insurance service, and advisory and trust service. It operates through a network of branches and offices in the states of Missouri, Kansas, Colorado, Illinois, Oklahoma, Texas, Arizona, Nebraska, Iowa, Pennsylvania, South Dakota, Indiana, Utah, Minnesota, California, and Wisconsin. The company was founded in 1913 and is headquartered in Kansas City, Missouri.

How the Company Makes Money

UMB Financial makes money through multiple revenue streams driven by its diverse range of financial services. Its primary source of income is net interest income, generated from the difference between the interest earned on loans and the interest paid on deposits. Additionally, the company earns non-interest income from service charges on deposit accounts, trust and securities processing fees, and investment management fees. UMB Financial also benefits from its asset management and advisory services, which provide fee-based revenue. It maintains significant partnerships with various business and institutional clients, which contribute to its earnings. The company's strategic focus on cross-selling its diverse products to existing clients and expanding its client base further supports its revenue growth.

UMB Financial Financial Statement Overview

Summary

UMB Financial exhibits strong revenue growth and improved profitability as indicated by the income statement. The balance sheet is stable, though potential leverage concerns due to fluctuating debt levels exist. Cash flow generation is robust, but there is some variability in investing and financing activities.

Income Statement

UMB Financial has shown a strong revenue growth trajectory over the years, with the latest annual revenue increasing substantially compared to previous years. The gross profit margin has remained consistent due to the nature of the banking industry where gross profit equals total revenue. The net profit margin increased year-over-year, indicating improved profitability, although the EBIT and EBITDA margins were not consistently available for calculation. Overall, the income statement reflects a company with growing revenue and improving profitability.

Balance Sheet

The balance sheet shows a healthy equity position with a substantial increase in stockholders' equity over the years, indicating good return on equity. However, the debt-to-equity ratio has fluctuated due to variations in total debt levels, pointing to potential leverage concerns. The equity ratio remains decent, reflecting a stable asset base supported by equity. Overall, the balance sheet is stable, but attention should be paid to the debt levels.

Cash Flow

The cash flow statement indicates robust operating cash flows, with a notable increase in free cash flow in recent years. The free cash flow to net income ratio is favorable, suggesting efficient cash generation relative to net earnings. However, the variability in investing and financing cash flows suggests potential fluctuations in cash management. Overall, the company demonstrates strong cash flow generation, although the volatility in cash flow components warrants monitoring.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.17B	1.42B	221.92M	1.20B	1.22B
	Gross Profit
2.17B	1.33B	221.92M	1.20B	1.22B
	EBIT
2.14B	0.00	750.71M	429.06M	338.89M
	EBITDA
0.00	0.00	586.03M	487.57M	401.69M
	Net Income Common Stockholders
441.24M	350.02M	431.68M	353.02M	286.50M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
573.17M	25.13B	420.00K	21.23B	12.84B
	Total Assets
50.41B	44.01B	38.51B	42.69B	33.13B
	Total Debt
385.29M	1.38B	381.31M	271.54M	269.60M
	Net Debt
-187.88M	-4.22B	-1.30B	-8.98B	-3.27B
	Total Liabilities
46.94B	40.91B	381.31M	271.54M	269.60M
	Stockholders Equity
3.47B	3.10B	2.67B	3.15B	3.02B
Cash Flow		Free Cash Flow
93.05M	445.69M	717.84M	500.39M	313.38M
	Operating Cash Flow
93.05M	472.60M	769.55M	534.08M	373.60M
	Investing Cash Flow
2.29M	-1.27B	-3.85B	-4.24B	-4.49B
	Financing Cash Flow
-81.59M	4.77B	-4.58B	9.42B	5.95B

UMB Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 105.27
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UMBF, the sentiment is Positive. The current price of 105.27 is above the 20-day moving average (MA) of 103.38, below the 50-day MA of 110.56, and above the 200-day MA of 104.88, indicating a neutral trend. The MACD of -2.15 indicates Negative momentum. The RSI at 50.04 is Neutral, neither overbought nor oversold. The STOCH value of 83.71 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UMBF.

UMB Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CBSH	76 Outperform	$8.21B	15.82	16.67%	1.68%	-2.75%	11.75%
PNFP	75 Outperform	$8.50B	17.78	7.62%	0.85%	14.99%	-16.42%
UMBF	74 Outperform	$7.65B	11.38	13.44%	1.53%	17.28%	25.42%
FNB	74 Outperform	$5.00B	10.70	7.53%	3.55%	15.34%	-3.89%
ZION	71 Outperform	$7.32B	10.00	13.15%	3.39%	7.91%	13.79%
Sector *	64 Neutral	$14.46B	10.12	8.75%	4.25%	17.00%	-11.86%
FULT	62 Neutral	$3.28B	11.47	9.69%	3.83%	21.10%	-4.20%

UMB Financial Corporate Events

UMB Financial Announces Dividend on Preferred Stock

On March 12, 2025, UMB Financial Corporation announced that its Board of Directors approved a dividend of $175 per share on its Series A 7.00% Preferred Stock, equating to $0.4375 per depositary share, payable on April 15, 2025, to stockholders of record as of March 31, 2025. Additionally, following UMB Financial’s acquisition of Heartland Financial on January 31, 2025, shares of Heartland’s Series E Preferred Stock were converted to UMB’s Preferred Stock, maintaining the same terms for stockholders.

UMB Financial Expands with Heartland Acquisition

On January 31, 2025, UMB Financial Corporation completed the acquisition of Heartland Financial USA, Inc., marking the largest acquisition in its 111-year history. This merger significantly expands UMB’s asset size by over 30%, increases its geographic footprint, and enhances its private wealth management and retail deposit base. The merger also results in a restructured board of directors and changes to UMB’s performance share unit awards. HTLF will operate as a division of UMB, with banking system conversions expected in late 2025, and its shares will be delisted from Nasdaq.

UMB Financial Announces Dividend and Reports Strong Growth

On January 28, 2025, UMB Financial Corporation announced a quarterly dividend of $0.40 per share, payable on April 1, 2025. Additionally, the company reported robust financial results for the fourth quarter of 2024, with net income reaching $120.0 million and net operating income at $122.6 million. This reflects significant growth compared to the previous year, driven by increases in average loans and deposits, strong credit quality, and effective expense management. UMB Financial also highlighted its upcoming merger with Heartland Financial, set to close on January 31, 2025, which is expected to enhance its market position further.