UMBF Stock Analysis — UMB Financial Corporation
Sector: Financials
AI Verdict
UMBF trades at 10.1x next year's earnings while analysts expect +41.1% EPS growth—this is cheap for the growth on offer, and if its sticky client base keeps delivering, the discount looks hard to justify.
Competitive Moat
UMB Financial operates as a regional bank with a focus on commercial banking and asset management, leveraging long-standing client relationships in the Midwest. Its defensibility comes from a sticky deposit base and diversified fee income streams that buffer against pure lending cycle swings.
Summary
UMBF's 41.1% forward EPS growth expectation is drawing attention given its unusually low 10.1x forward P/E.
Where It Stands
Shares have delivered 72.2% revenue growth year-over-year and trade at 10.1x forward earnings, a steep discount to the 14x sector median for financials.
Key Metrics
- Trailing P/E: 14.2x
- Forward P/E: 10.1x
- PEG Ratio: 0.35
- Earnings Growth: +0.4%
- Revenue Growth: +0.7%
- Dividend Yield: 0.01%
- 52-Week High: $136.11
- 52-Week Low: $98.16
Analyst Consensus
15 Buy · 3 Hold · 0 Sell (18 analysts)
Bull Case
With analysts projecting 41.1% EPS growth and the stock trading at just 10.1x forward earnings, you're getting high growth at a price typically reserved for slow-growing banks.
Bear Case
If UMBF's P/E multiple merely reverts to the sector median of 14x after growth normalizes, upside is capped unless the 41.1% EPS jump actually materializes.
Catalyst to Watch
Watch for the next quarterly earnings report to confirm whether the 41.1% EPS growth is tracking, as any miss could quickly erase the valuation gap.