UMB Financial (UMBF) AI Stock Analysis

• Market Cap: $7.71B
• Dividend Yield: 1.56%
• Average Volume (3M): 594.76K
• Price to Earnings (P/E): 12.8
• Beta (1Y): 1.19
• Revenue Growth: 20.50%
• EPS Growth: 5.69%
• Country: US
• Employees: 3,698
• Sector: Financial
• Sector Strength: 82
• Industry: Banks - Regional
• EPS (TTM): 2.58
• Shares Outstanding: 75,918,540
• 10 Day Avg. Volume: 444,517
• 30 Day Avg. Volume: 594,759
• PEG Ratio: -1.38
• Price to Book (P/B): 0.98
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 52.23
• 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: $122.00
• Price Target Upside: 20.20% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 72 Outperform
• Price Target: ―

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

Financial Performance

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

Risk Management

UMBF's prudent risk management and high-quality credit culture provide downside support, especially amid recession fears.

Valuation

UMBF is trading at a 9% discount to peers, highlighting a potential undervaluation.

Negative Factors

Acquisition Concerns

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

Credit Risk

Heartland Financial update showed an increase in net charge offs, raising concerns about credit risk.

Earnings Outlook

The EPS outlook has been lowered modestly, driven by the waning HTLF balance sheet and 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 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 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
1.75B	2.80B	1.42B	221.92M	1.20B	1.22B
	Gross Profit
1.61B	1.57B	1.33B	221.92M	1.20B	1.22B
	EBIT
967.15M	2.14B	0.00	750.71M	429.06M	338.89M
	EBITDA
288.81M	0.00	0.00	586.03M	487.57M	401.69M
	Net Income Common Stockholders
412.32M	441.24M	350.02M	431.68M	353.02M	286.50M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
12.68B	573.17M	25.13B	420.00K	21.23B	12.84B
	Total Assets
44.01B	50.41B	44.01B	38.51B	42.69B	33.13B
	Total Debt
4.30B	385.29M	1.38B	381.31M	271.54M	269.60M
	Net Debt
-1.30B	-187.88M	-4.22B	-1.30B	-8.98B	-3.27B
	Total Liabilities
40.91B	46.94B	40.91B	381.31M	271.54M	269.60M
	Stockholders Equity
3.10B	3.47B	3.10B	2.67B	3.15B	3.02B
Cash Flow		Free Cash Flow
147.31M	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
-3.42B	-3.26B	-1.27B	-3.85B	-4.24B	-4.49B
	Financing Cash Flow
4.76B	5.96B	4.77B	-4.58B	9.42B	5.95B

UMB Financial Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 101.50
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UMBF, the sentiment is Negative. The current price of 101.5 is below the 20-day moving average (MA) of 102.50, above the 50-day MA of 98.77, and below the 200-day MA of 107.32, indicating a neutral trend. The MACD of 1.80 indicates Positive momentum. The RSI at 49.69 is Neutral, neither overbought nor oversold. The STOCH value of 10.08 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	$8.19B	17.06	7.77%	0.85%	8.09%	-11.31%
ZION	78 Outperform	$6.87B	9.07	13.06%	3.61%	4.84%	28.90%
PB	76 Outperform	$6.65B	13.33	6.83%	3.27%	9.02%	20.88%
WTFC	75 Outperform	$7.91B	11.69	11.58%	1.57%	6.79%	4.65%
CMA	75 Outperform	$7.38B	10.65	11.11%	5.05%	-9.81%	5.22%
UMBF	72 Outperform	$7.71B	12.76	8.33%	1.56%	20.50%	5.69%
Sector *	64 Neutral	$12.67B	9.74	7.58%	17015.08%	12.21%	-6.96%

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.