Cullen/Frost Bankers Inc. Common Stock (CFR)

FairStock Score: 54/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach banks as leveraged businesses whose first duty is credit discipline. Cullen/Frost is a Texas-focused regional bank with 6,008 employees; its local commercial and consumer relationships can create a modest franchise advantage, but I cannot verify deposit costs, underwriting or CET1 from the data. The earnings record is reasonable: in FY2025, the period ended 2025-12-31, net income was $648.6M and diluted EPS was $9.92, up from $582.5M and $8.87 in FY2024. But FY2024 was down from $598.0M and $9.10 in FY2023, so growth has not been perfectly smooth. In fiscal Q2 2026, the quarter ended 2026-06-30, net income was $172.1M and diluted EPS was $2.70, versus $157.0M and $2.39 in fiscal Q2 2025, the quarter ended 2025-06-30. FairStock calculates ROE at 15.50%, P/E at 14.33 and P/B at 2.10 at the 2026-10-13 close of $151.56. A 2.1x book multiple is full for a bank unless that ROE is durable; PEG 1.49 and FairStock Score 54/100 suggest the price already reflects much of the steady growth. The 2.72% dividend yield and 0.55 beta add defensiveness. The Lynch category is Stalwart, with profit compounding 14.4% a year over five years and revenue 8.5% under FairStock's rules. Still, Piotroski 4/9 is mediocre, D/E is unavailable, and bank-specific measures such as CET1, NIM, efficiency ratio, charge-offs and reserves are absent. Filed revenue figures also look odd against net income, limiting top-line confidence. I would call this a fair-quality, fair-priced bank, not a fat bargain.

In plain English: Cullen/Frost is a Texas bank holding company that takes deposits and makes loans to businesses and consumers. It earns solid profits and pays a dividend, and its results have been mostly steady. At the recent price, the shares look fairly valued rather than a bargain.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer