Commerce Bancshares, Inc. (Missouri) (CBSH) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

SouthState Corp.

East West Bancorp, Inc.

Ally Financial, Inc.

First Citizens BancShares, Inc. (North Carolina)

Commerce Bancshares, Inc. (Missouri)

Cullen/Frost Bankers, Inc.

Truist Financial Corp.

M&T Bank Corp.

Fifth Third Bancorp

First Horizon Corp. (Tennessee)

Fiserv, Inc.

Why is Commerce Bancshares, Inc. (Missouri) ?

High Management Efficiency with a high ROA of 1.13%

Strong Long Term Fundamental Strength with an average Return on Assets (ROA) of 1.13%

With a growth in Interest of NAN%, the company declared Very Positive results in Mar 26

The company has declared positive results for the last 2 consecutive quarters
OPERATING CASH FLOW(Y) Highest at USD 635.92 MM
DIVIDEND PER SHARE(HY) Highest at USD 0
GROSS NPA (%)(Q) Lowest at 0.05%

With ROA of 1.27%, it has a expensive valuation with a 1.88 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -9.43%, its profits have risen by 7.6%

High Institutional Holdings at 71.31%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Underperformed the market in the last 1 year

Even though the market (S&P 500) has generated returns of 25.41% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -9.43% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Commerce Bancshares, Inc. (Missouri) should be less than 10%
Overall Portfolio exposure to Regional Banks should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Regional Banks)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Commerce Bancshares, Inc. (Missouri) for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Commerce Bancshares, Inc. (Missouri)

-9.43%

0.32

22.26%

S&P 500

25.41%

1.92

13.25%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.20%

EBIT Growth (5y)

7.93%

EBIT to Interest (avg)

Debt to EBITDA (avg)

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

Dividend Payout Ratio

24.71%

Pledged Shares

Institutional Holding

71.31%

ROCE (avg)

ROE (avg)

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.88

EV to EBIT

9.16

EV to EBITDA

8.46

EV to Capital Employed

2.17

EV to Sales

4.17

PEG Ratio

Dividend Yield

1.94%

ROCE (Latest)

23.64%

ROE (Latest)

14.79%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

12What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 635.92 MM

DIVIDEND PER SHARE(HY)

Highest at USD 0

GROSS NPA (%)

NII(Q)

Highest at USD 299.84 MM

CASH AND EQV(HY)

Highest at USD 7,390.41 MM

CREDIT DEPOSIT RATIO(HY)

Highest at 72.09%

NET SALES(Q)

Highest at USD 396.51 MM

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Here's what is working for Commerce Bancshares, Inc. (Missouri)

Operating Cash Flow

Highest at USD 635.92 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Non Performing Loans (%)

Lowest at 0.05%

in the last four Semi-Annual periods

MOJO Watch

Proportion of stressed loans given by the bank are falling

Non Performing Loans (%)

NII

Highest at USD 299.84 MM

in the last five periods

MOJO Watch

The bank's income from core business is increasing

NII (USD MM)

Dividend per share

Highest at USD 0 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Net Sales

Highest at USD 396.51 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Cash and Eqv

Highest at USD 7,390.41 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Credit Deposit Ratio

Highest at 72.09%

in the last four Semi-Annual periods

MOJO Watch

Bank has been creating proportionately higher loans against its deposits, thereby creating higher revenue generating assets

Credit Deposit Ratio (%)

Depreciation

Highest at USD 21.01 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Depreciation

At USD 21.01 MM has Grown at 42.46%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (USD MM)