CFR Stock Analysis — Cullen/Frost Bankers
Sector: Financials
AI Verdict
CFR trades at 13.4x next year's earnings with just 1.2% EPS growth expected—cheap for the sector, but the lack of growth means you're paying for stability, not expansion, and the moat is only as strong as Texas stays resilient.
Competitive Moat
Cullen/Frost Bankers has a defensible position in Texas banking due to its long-standing regional relationships and conservative risk culture, which help retain sticky commercial clients. Its moat is built on local market knowledge and a reputation for stability rather than national scale.
Summary
CFR's 13.4x forward P/E and 1.2% expected EPS growth make it a pure-play on Texas regional banking stability.
Where It Stands
CFR trades at 13.4x forward earnings, just below the financials sector median of 14x, with trailing revenue growth of 75.9% but only 1.2% forward EPS growth expected.
Key Metrics
- Trailing P/E: 13.6x
- Forward P/E: 13.4x
- PEG Ratio: 11.61
- Earnings Growth: +0.0%
- Revenue Growth: +0.8%
- Dividend Yield: 0.03%
- 52-Week High: $148.97
- 52-Week Low: $119.00
Analyst Consensus
9 Buy · 7 Hold · 3 Sell (19 analysts)
Bull Case
The 13.4x forward P/E is a slight discount to sector norms, and the bank's 75.9% revenue growth shows it can capture surges in local lending activity.
Bear Case
With a trailing PEG of 11.61 and only 1.2% forward EPS growth, any P/E compression to the sector median would erase the small valuation advantage.
Catalyst to Watch
Watch for quarterly loan loss provisions and Texas economic data—any sign of credit deterioration or regional slowdown would challenge the bank's premium.