UMB Financial (UMBF) AI Stock Analysis

• Market Cap: $8.36B
• Dividend Yield: 1.45%
• Average Volume (3M): 608.60K
• Price to Earnings (P/E): 13.8
• Beta (1Y): 1.18
• Revenue Growth: 20.70%
• EPS Growth: 5.69%
• Country: US
• Employees: 3,698
• Sector: Financial
• Sector Strength: 78
• Industry: Banks - Regional
• EPS (TTM): 2.58
• Shares Outstanding: 75,918,540
• 10 Day Avg. Volume: 600,810
• 30 Day Avg. Volume: 608,600
• PEG Ratio: 0.42
• Price to Book (P/B): 1.51
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.62
• Enterprise Value/Market Cap: 0.21
• Enterprise Value/Revenue: 0.28
• Enterprise Value/Gross Profit: 1.09
• Enterprise Value/Ebitda: 1.14
• 1Y Price Target: $122.50
• Price Target Upside: 9.90% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12

• Rating: 72 Outperform
• Price Target: $115.00 ▲(3.18%Upside)

UMB Financial's overall stock score of 72 reflects solid financial and operational performance, bolstered by the successful Heartland acquisition. Despite merger-related costs and economic uncertainties, the company's valuation and earnings call guidance provide a positive outlook. Technical indicators suggest moderate momentum.

Positive Factors

Earnings Performance

The combination of top quartile credit performance, interest rate defensibility, and improving liquidity profile suggests UMBF shares should trade at a higher valuation.

Revenue Source

UMBF generates approximately 40% of its revenue from fee income, nearly double the peer average, providing downside support for total revenue.

Risk Management

UMBF's prudent risk management and above average growth position it uniquely, trading at a 9% discount to its peers.

Negative Factors

Acquisition Concerns

The acquisition of Heartland Financial raises concerns due to less earnings accretion than originally advertised, with net accretion decreasing significantly.

Credit Risk

Heartland Financial's update showed an increase in net charge offs, raising concerns about credit risk within the acquisition.

Earnings Outlook

The EPS outlook has been modestly lowered, driven by the waning Heartland Financial balance sheet and an increased proforma expense base.

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, primarily driven by its commercial and personal banking operations. The company generates income from interest on loans and credit products offered to businesses and individuals. Additionally, it earns revenue from fees associated with various banking services, such as account maintenance, transaction processing, and payment solutions. UMB Financial also benefits from its asset management and trust services, which provide investment management and advisory services, generating management fees and commissions. Furthermore, the company's revenue is supplemented by its initiative in treasury and cash management solutions for businesses, contributing to its overall financial performance. UMB Financial's earnings are significantly influenced by its expansive network, client relationships, and ability to cross-sell services across its diverse financial product offerings.

UMB Financial Financial Statement Overview

Summary

UMB Financial demonstrates strengths in cost management and a stable balance sheet with low leverage. However, challenges include inconsistent revenue growth and free cash flow, impacting the company's financial flexibility. Continued focus on improving profitability margins and cash flow conversion will be crucial for future stability and growth.

Income Statement

UMB Financial shows a strong gross profit margin indicating effective cost management, but the net profit margin has been fluctuating due to varying net income. The revenue growth rate is inconsistent, with a recent decline in TTM revenues compared to the previous annual report, which needs monitoring. EBIT and EBITDA margins have been absent or inconsistent, impacting profitability analysis.

Balance Sheet

The company maintains a relatively low debt-to-equity ratio, suggesting prudent financial leverage. Return on equity is satisfactory, but improvement is needed to enhance shareholder value. The equity ratio indicates a stable asset base relative to equity, although there could be potential risks if liabilities increase significantly.

Cash Flow

The cash flow statement reveals inconsistent free cash flow growth, with a recent decrease in free cash flow. The operating cash flow to net income ratio is relatively healthy, but the free cash flow to net income ratio indicates the need for improved cash flow conversion. Attention is needed to ensure healthy cash flow growth and liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	935.20M	2.80B	1.42B	1.36B	1.20B	808.49M
Gross Profit	935.20M	1.57B	1.33B	1.36B	1.20B	808.49M
EBITDA	226.21M	0.00	0.00	0.00	0.00	401.69M
Net Income	259.71M	441.24M	350.02M	431.68M	353.02M	286.50M
Balance Sheet
Total Assets	26.56B	50.41B	44.01B	38.51B	42.69B	33.13B
Cash, Cash Equivalents and Short-Term Investments	9.15B	573.17M	452.25M	420.00K	21.23B	12.84B
Total Debt	70.37M	385.29M	1.38B	381.31M	271.54M	269.60M
Total Liabilities	23.95B	46.94B	40.91B	35.85B	39.55B	30.11B
Stockholders Equity	2.61B	3.47B	3.10B	2.67B	3.15B	3.02B
Cash Flow
Free Cash Flow	289.38M	201.08M	445.69M	717.84M	500.39M	313.38M
Operating Cash Flow	329.48M	225.29M	472.60M	769.55M	534.08M	373.60M
Investing Cash Flow	-329.90M	-3.26B	-1.27B	-3.85B	-4.24B	-4.49B
Financing Cash Flow	233.25M	5.96B	4.77B	-4.58B	9.42B	5.95B

UMB Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 111.46
• 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 UMBF, the sentiment is Positive. The current price of 111.46 is above the 20-day moving average (MA) of 105.14, above the 50-day MA of 103.75, and above the 200-day MA of 107.79, indicating a bullish trend. The MACD of 2.27 indicates Negative momentum. The RSI at 66.80 is Neutral, neither overbought nor oversold. The STOCH value of 88.23 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
WTFC	77 Outperform	$8.88B	13.18	11.58%	1.51%	7.10%	4.65%
ZION	76 Outperform	$8.20B	10.82	13.06%	3.09%	4.84%	28.90%
PNFP	75 Outperform	$9.20B	19.34	7.77%	0.81%	8.08%	-11.31%
PB	74 Outperform	$7.08B	14.27	6.83%	3.12%	9.02%	20.88%
UMBF	72 Outperform	$8.36B	13.84	8.33%	1.45%	20.70%	5.69%
CMA	72 Outperform	$8.25B	12.13	11.11%	4.52%	-9.81%	5.22%
Sector *	63 Neutral	AU$9.98B	8.28	11.67%	5.11%	32.88%	39.55%

UMB Financial Corporate Events

UMB Financial Issues New Preferred Stock Series B

On June 12, 2025, UMB Financial Corporation issued 12,000,000 depositary shares, each representing a 1/400th ownership interest in a share of 7.750% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series B. This issuance was part of a Deposit Agreement with Computershare Trust Company, N.A. and Computershare Inc. The Certificate of Designation, filed on June 11, 2025, and effective June 12, 2025, outlines the rights and restrictions associated with the Series B Preferred Stock, impacting the company’s dividend and stock repurchase policies.

The most recent analyst rating on (UMBF) stock is a Hold with a $90.00 price target. To see the full list of analyst forecasts on UMB Financial stock, see the UMBF Stock Forecast page.

UMB Financial Announces Redemption of Preferred Stock

On June 12, 2025, UMB Financial Corporation announced it will redeem all outstanding shares of its 7.000% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series A, at $10,000 per share. The redemption, set for July 15, 2025, will cease dividend accruals on the shares, impacting stakeholders holding the Series A Preferred Stock.

The most recent analyst rating on (UMBF) stock is a Hold with a $90.00 price target. To see the full list of analyst forecasts on UMB Financial stock, see the UMBF Stock Forecast page.

UMB Financial Announces Public Offering of Depositary Shares

On May 29, 2025, UMB Financial Corporation announced the pricing of an underwritten public offering of 12,000,000 depositary shares, each representing a 1/400th interest in its Series B Preferred Stock. The offering, expected to close on June 12, 2025, aims to raise approximately $294.5 million, which UMB plans to use for general corporate purposes, including potential redemption of its Series A Preferred Stock and other financial instruments. The depositary shares will be listed on the Nasdaq Global Select Market under the symbol ‘UMBFO’, with RBC Capital Markets, LLC and J.P. Morgan Securities LLC acting as joint book-running managers.

The most recent analyst rating on (UMBF) stock is a Hold with a $90.00 price target. To see the full list of analyst forecasts on UMB Financial stock, see the UMBF Stock Forecast page.