Commerce Bancshares Inc (CBSH) stock analysis

P/E against its history

Not enough price and earnings history to compare.

P/E against the industry

Needs positive earnings and enough profitable companies in the industry.

P/S above the industry

Commerce Bancshares's price-to-sales of 17.74 is above the Commercial Banks median of 3.61.

P/B above the industry

Commerce Bancshares's price-to-book of 1.90 is above the Commercial Banks median of 1.28.

Price against fair value

We could not estimate a fair value: it needs at least two valuation methods with positive inputs.

Margin of safety

Depends on the fair value estimate.

Revenue growing under 10% a year

Revenue grew 5.8% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew 4.9% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew 6.3% over the last twelve months, against a 5-year average of 9.8% a year.

Growing slower than the industry

Revenue grew 6.5% over the last twelve months; the Commercial Banks median is 11.3%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin trend

Banks and insurers do not report gross profit.

Return on equity over 15%

Return on equity was 15.0% over the last twelve months and averaged 16.5% over five years.

Return on assets over 1%

Return on assets was 1.8%; for a bank or insurer, 1% or more is considered good.

Return on equity above the industry

Commerce Bancshares's return on equity of 15.0% is above the Commercial Banks median of 11.5%.

Earnings grew over 5 years

Net income grew 9.8% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 133% over the last twelve months, against a 5-year average of 33.0%.

Net margin above the industry

Commerce Bancshares's net margin of 133% is above the Commercial Banks median of 30.3%.

Well capitalized

Equity is 12.0% of total assets; 8% or more is a comfortable cushion.

Loans funded by deposits

Loans equal 77.1% of deposits, so lending is funded by customer deposits.

Thin loan-loss reserve

The allowance for credit losses is 0.9% of loans; we look for at least 1%.

Efficient operations

Non-interest expense takes 58.8% of revenue; under 60% is efficient for a bank.

Deposits growing

Deposits grew 7.0% over the past year.

Borrowings

Needs debt and equity figures.

Pays a dividend

Commerce Bancshares paid dividends worth 2.0% of the share price over the last twelve months.

Yield below Treasuries

The 2.0% yield is below the 4.6% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.9% or more; Commerce Bancshares yields 2.0%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 26.5% of net income.

Covered by free cash flow

Dividends take 12.4% of free cash flow.