Cullen/Frost Bankers, Inc. (CFR) AI Stock Analysis

Founded in 1868 and headquartered in San Antonio, Texas, Cullen/Frost Bankers, Inc. operates as a bank holding company overseeing Frost Bank. The company operates through two primary segments: Banking and Frost Wealth Advisors. The Banking segment delivers commercial financing, equipment leasing, construction loans, treasury management, and consumer services such as checking, savings, mortgages, and brokerage services. Frost Wealth Advisors provides trust, investment, custodial, and capital market solutions including underwriting and advisory services. Cullen/Frost Bankers serves commercial and consumer clients across diverse Texas industries, including energy, manufacturing, retail, healthcare, and telecommunications, alongside international banking solutions.

Cullen/Frost Bankers expanded annual revenue from $1.40B in FY2021 to $1.88B in FY2022, $1.99B in FY2023, $2.85B in FY2024, and $2.92B in FY2025, delivering a 5-year revenue CAGR of 14.5%. Net income rose from $443.1M in FY2021 to $648.6M in FY2025, while diluted EPS increased from $6.76 to $10.16 over the same period. Operating margin shifted from 35.1% in FY2021 to 26.4% in FY2025, with net margin finishing at 22.2% in FY2025. In the trailing twelve months ended June 30, 2026, revenue stood at $2.26B with a profit margin of 30.2% and EPS of $10.58. For the quarter ended June 30, 2026, quarterly revenue grew 6.1% year-over-year while quarterly earnings expanded 12.8%.

As of June 30, 2026, Cullen/Frost Bankers held $697.7M in cash and short-term investments against total debt of $5.42B, resulting in net debt of $4.73B. Total assets reached $53.88B, while shareholders' equity stood at $4.62B, yielding a debt-to-equity ratio of 1.17 and a current ratio of 0.19. In FY2025, the company generated $274.0M in operating cash flow and $127.3M in free cash flow. Capital allocation in FY2025 included $146.7M in capital expenditures, $157.8M for share buybacks, and $262.0M in dividends paid.

Trading at $155.05 as of October 16, 2026, Cullen/Frost Bankers carries a market capitalization of $9.64B and an enterprise value of $8.70B. Its trailing P/E ratio of 14.7x and forward P/E of 14.0x trade at a premium to the median of its US-listed Financial Services peers of 12.1x and 10.8x, respectively. The company also trades at a price-to-sales ratio of 4.3x compared to the peer median of 3.2x. Over the past year, CFR generated a return of 32.2%, exceeding the S&P 500's return of 16.8%, though its 5-year return of 45.4% lagged the index's 83.0% gain.

Cullen/Frost Bankers pays a quarterly dividend with a forward annual payout of $4.12 per share, representing a dividend yield of 2.66% and a payout ratio of 37.5%. The company has paid dividends for 34 consecutive years and delivered a 5-year annualized dividend growth rate of 6.7%. Its most recent ex-dividend date occurred on August 31, 2026.

Wall Street coverage on Cullen/Frost Bankers comprises 3 Strong Buy, 3 Buy, 8 Hold, 0 Sell, and 1 Strong Sell ratings. The mean price target is $172.71, representing an 11.4% upside compared to the last close of $155.05. For FY2026 ending December 31, 2026, analysts estimate EPS of $11.02, reflecting 7.8% growth, on revenue of $2.41B. The company beat EPS consensus estimates in each of the last 4 quarters, with its next earnings date scheduled for October 29, 2026.

This page is an AI-written research summary of Cullen/Frost Bankers, Inc. (CFR). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: CFR income statement, CFR balance sheet, CFR key metrics, CFR analyst forecast, CFR chart. See the CFR stock overview for the latest quote and news.