UMB Financial (UMBF) AI Stock Analysis

• Market Cap: $9.32B
• Dividend Yield: 1.3%
• Average Volume (3M): 595.06K
• Price to Earnings (P/E): 13.8
• Beta (1Y): 1.14
• Revenue Growth: 30.40%
• EPS Growth: 12.40%
• Country: US
• Employees: 3,698
• Sector: Financial
• Sector Strength: 74
• Industry: Banks - Regional
• EPS (TTM): 2.96
• Shares Outstanding: 75,928,250
• 10 Day Avg. Volume: 558,412
• 30 Day Avg. Volume: 595,056
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.11
• Enterprise Value/Revenue: 0.36
• Enterprise Value/Gross Profit: 0.69
• Enterprise Value/Ebitda: 1.79
• 1Y Price Target: $132.13
• Price Target Upside: 7.43% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 78 Outperform
• Price Target: $132.00 ▲(7.33% Upside)

UMB Financial's strong earnings call performance and positive technical indicators are the most significant factors driving the score. Financial performance and valuation also contribute positively, though challenges in revenue growth and free cash flow are noted.

Positive Factors

Revenue Structure

UMBF generates about 40% of its revenue from fee income, nearly double the peer average, which offers downside support to revenue if interest rates fall.

Valuation

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

Negative Factors

Acquisition Concerns

Concerns the acquisition of Heartland Financial will be less accretive than originally advertised neglect the earnings strength of legacy UMBF.

Acquisition Impact

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

UMB Financial Business Overview & Revenue Model

Company Description

UMB Financial Corporation (UMBF) is a diversified financial services holding company headquartered in Kansas City, Missouri. The company operates through various segments, including Commercial Banking, Institutional Banking, and Wealth Management. UMB offers a range of core products and services such as commercial loans, treasury management, investment management, and personal banking to individuals, businesses, and governmental entities across the United States.

How the Company Makes Money

UMB Financial generates revenue primarily through interest income from loans and investment securities, as well as non-interest income from service fees and asset management. Key revenue streams include net interest income from the lending operations in commercial and consumer banking, fees from treasury management services, and wealth management services that include trust and investment advisory fees. The company also benefits from its strategic partnerships with businesses and institutions, which enhance its service offerings and client base, contributing to its overall earnings.

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: 122.99
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 122.99 is above the 20-day moving average (MA) of 114.63, above the 50-day MA of 110.26, and above the 200-day MA of 108.88, indicating a bullish trend. The MACD of 3.34 indicates Negative momentum. The RSI at 72.48 is Negative, neither overbought nor oversold. The STOCH value of 88.91 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	80 Outperform	$9.13B	12.67	11.60%	1.46%	4.74%	10.10%
UMBF	78 Outperform	$9.32B	13.84	10.05%	1.30%	30.40%	12.40%
CMA	77 Outperform	$8.96B	13.20	11.07%	4.08%	-8.62%	15.37%
PB	76 Outperform	$6.59B	12.59	7.02%	3.31%	3.65%	20.33%
ZION	74 Outperform	$8.39B	10.20	13.23%	3.06%	2.64%	32.07%
Sector *	68 Neutral	$17.69B	11.82	10.30%	3.73%	9.66%	0.42%
PNFP	68 Neutral	$7.54B	12.74	9.32%	0.97%	10.19%	48.39%

UMB Financial Corporate Events

UMB Financial Announces Redemption of Subordinated Notes

UMB Financial Corporation announced the redemption of its 3.70% Fixed-to-Fixed Rate Subordinated Notes due 2030, effective September 17, 2025. This move involves redeeming all outstanding notes at their principal amount plus accrued interest, impacting the company’s financial obligations and potentially its market positioning.

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.

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.

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.

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.

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.