UMB Financial (UMBF) AI Stock Analysis

• Market Cap: $7.10B
• Dividend Yield: 1.67%
• Average Volume (3M): 701.54K
• Price to Earnings (P/E): 12.3
• Beta (1Y): 1.24
• Revenue Growth: 20.50%
• EPS Growth: 5.69%
• Country: US
• Employees: 3,698
• Sector: Financial
• Sector Strength: 85
• Industry: Banks - Regional
• EPS (TTM): 7.95
• Shares Outstanding: 72,655,210
• 10 Day Avg. Volume: 708,105
• 30 Day Avg. Volume: 701,540
• PEG Ratio: 2.16
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.27
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 4.16
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $123.25
• Price Target Upside: 26.05% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

UMB Financial's overall stock score reflects its solid financial management and strategic growth through acquisitions, evidenced by the successful integration of Heartland. While technical indicators suggest caution due to potential overbought conditions, the company's reasonable valuation and positive earnings outlook provide a balanced investment case. Investors should monitor ongoing integration costs and economic conditions which could impact future performance.

Positive Factors

Interest Margin

UMBF's net interest margin is beginning to inflect positively, driven by a reduction in interest-bearing deposit costs.

Revenue Growth

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

Valuation

UMBF is trading at a 9% discount to its peers, indicating potential for valuation appreciation.

Negative Factors

Acquisition Concerns

Concerns exist that the acquisition of Heartland Financial will be less accretive than originally advertised.

Credit Risk

The balance sheet addition of Heartland Financial is dilutive to the net growth profile and introduces operational and near-term credit risks.

Earnings Outlook

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

UMB Financial Business Overview & Revenue Model

Company Description

UMB Financial Corporation (UMBF) is a diversified financial services holding company headquartered in Kansas City, Missouri. It operates primarily through its subsidiary, UMB Bank, offering a comprehensive suite of banking products and services. These include commercial banking, institutional banking, personal banking, and wealth management services. UMB Financial serves customers across various sectors, focusing on delivering personalized financial solutions to individuals, businesses, and institutions.

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: 97.78
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 97.78 is above the 20-day moving average (MA) of 92.48, below the 50-day MA of 98.71, and below the 200-day MA of 106.65, indicating a neutral trend. The MACD of -0.16 indicates Negative momentum. The RSI at 57.73 is Neutral, neither overbought nor oversold. The STOCH value of 77.97 is Neutral, 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
PNFP	78 Outperform	$6.97B	15.10	7.77%	0.90%	8.09%	-11.31%
WTFC	75 Outperform	$7.54B	11.14	11.58%	1.66%	6.79%	4.65%
CMA	75 Outperform	$7.16B	10.30	11.11%	5.21%	-9.81%	5.22%
UMBF	72 Outperform	$7.10B	12.29	8.33%	1.67%	20.50%	5.69%
PB	70 Outperform	$6.66B	13.35	6.83%	3.35%	9.03%	20.88%
ZION	69 Neutral	$6.69B	8.84	13.10%	3.70%	4.84%	29.25%
Sector *	64 Neutral	$12.65B	9.74	8.04%	17044.64%	12.65%	-5.11%

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.