UMB Financial (UMBF) AI Stock Analysis

• Market Cap: $8.45B
• Dividend Yield: 1.47%
• Average Volume (3M): 594.00K
• Price to Earnings (P/E): 12.7
• Beta (1Y): 1.15
• Revenue Growth: 30.40%
• EPS Growth: 12.40%
• Country: US
• Employees: 3,698
• Sector: Financial
• Sector Strength: 64
• Industry: Banks - Regional
• EPS (TTM): 2.96
• Shares Outstanding: 75,928,250
• 10 Day Avg. Volume: 688,297
• 30 Day Avg. Volume: 594,001
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.12
• Enterprise Value/Revenue: 0.36
• Enterprise Value/Gross Profit: 0.69
• Enterprise Value/Ebitda: 1.79
• 1Y Price Target: $131.33
• Price Target Upside: 18.04% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10

• Rating: 77 Outperform
• Price Target: $125.00 ▲(12.35% Upside)

The overall score reflects UMB Financial’s strong earnings performance and valuation, supported by positive financial and technical indicators. The company's ability to manage cost and leverage, along with successful integration of acquisitions, contributes positively. However, challenges in revenue consistency and cash flow conversion are areas to watch.

Positive Factors

Revenue Structure

UMBF generates approximately 40% of revenue from fee income, nearly double the peer average, which provides revenue downside support.

Risk Management

Management’s conservative credit culture and robust risk management practices will help mitigate losses.

Valuation

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

Negative Factors

Acquisition Concerns

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

Earnings Outlook

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

Valuation Expansion

Valuation expansion is less likely until trends prove themselves in the coming quarters.

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 range of banking and financial services to individual, business, and institutional clients. The company's core services include commercial banking, personal banking, asset management, and payment solutions. UMB Financial serves clients across various sectors, including healthcare, real estate, agribusiness, and energy.

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	2.85B	2.64B	2.24B	1.58B	1.24B	1.30B
Gross Profit	1.48B	1.41B	1.28B	1.32B	1.18B	1.09B
EBITDA	568.77M	594.04M	480.32M	586.03M	484.81M	401.69M
Net Income	412.32M	441.24M	350.02M	431.68M	353.02M	286.50M
Balance Sheet
Total Assets	69.35B	50.41B	44.01B	38.51B	42.69B	33.13B
Cash, Cash Equivalents and Short-Term Investments	21.62B	16.33B	12.68B	8.69B	21.23B	12.84B
Total Debt	3.21B	3.00B	3.50B	2.60B	3.51B	2.59B
Total Liabilities	62.60B	46.94B	40.91B	35.85B	39.55B	30.11B
Stockholders Equity	6.75B	3.47B	3.10B	2.67B	3.15B	3.02B
Cash Flow
Free Cash Flow	501.51M	201.08M	445.69M	717.84M	500.39M	313.38M
Operating Cash Flow	532.16M	225.29M	472.60M	769.55M	534.08M	373.60M
Investing Cash Flow	-2.76B	-3.26B	-1.27B	-3.85B	-4.24B	-4.49B
Financing Cash Flow	5.89B	5.96B	4.77B	-4.58B	9.42B	5.95B

UMB Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 111.26
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 111.26 is above the 20-day moving average (MA) of 109.48, above the 50-day MA of 106.19, and above the 200-day MA of 108.27, indicating a bullish trend. The MACD of 1.05 indicates Positive momentum. The RSI at 59.30 is Neutral, neither overbought nor oversold. The STOCH value of 51.31 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
WTFC	81 Outperform	$8.42B	11.80	11.60%	1.53%	4.30%	10.10%
ZION	77 Outperform	$7.74B	9.63	13.28%	3.26%	2.64%	32.56%
UMBF	77 Outperform	$8.45B	12.69	10.05%	1.47%	30.40%	12.40%
CMA	76 Outperform	$8.69B	12.96	11.07%	4.26%	-8.62%	15.37%
PB	70 Neutral	$6.32B	12.06	7.02%	3.49%	3.66%	20.33%
PNFP	68 Neutral	$6.95B	11.87	9.32%	1.09%	10.19%	48.39%
Sector *	67 Neutral	$17.01B	11.60	9.79%	3.95%	10.63%	1.62%

UMB Financial Corporate Events

UMB Financial Reports Strong Q2 2025 Earnings Growth

On July 29, 2025, UMB Financial Corporation announced its second quarter 2025 financial results, highlighting a significant increase in net income available to common shareholders to $215.4 million, a 112.5% rise compared to the previous year. This growth was driven by strong balance sheet expansion, improved asset quality, and successful integration of the Heartland Financial acquisition. The company also declared dividends for both common and preferred stock, reflecting its robust financial performance and commitment to shareholder returns.

The most recent analyst rating on (UMBF) stock is a Hold with a $105.00 price target. To see the full list of analyst forecasts on UMB Financial stock, see the UMBF Stock Forecast page.

UMB Financial Redeems Series A Preferred Stock

On July 15, 2025, UMB Financial Corporation filed a Termination of Certificate of Designation to eliminate its 7.00% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series A, from its Restated Articles of Incorporation. On the same date, the company completed the redemption of all outstanding shares of this Series A Preferred Stock, impacting its capital structure and potentially its financial strategy.

The most recent analyst rating on (UMBF) stock is a Hold with a $105.00 price target. To see the full list of analyst forecasts on UMB Financial stock, see the UMBF Stock Forecast page.

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.