Commerce Story

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CBSH -- USA Stock  

USD 68.05  1.01  1.46%

It looks like Axos Financial will continue to recover much faster as its share price surged up 0.23% today to Commerce Bancshares's 3.9645%. As many rational traders are trying to avoid financial services space, it makes sense to concentrate on Commerce Bancshares a little further and understand how it stands against Axos Financial and other similar entities. We are going to examine some of the competitive aspects of both Commerce and Axos Financial.
Published over a month ago
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Are retail investors locking in Commerce Bancshares (NASDAQ:CBSH) or Axos Financial?
By analyzing existing technical and fundamental indicators between Commerce Bancshares and Axos Financial, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Axos Financial with a short position in Commerce Bancshares. Check out our pair correlation module for more information.

Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Commerce Bancshares has an asset utilization ratio of 4.67 percent. This implies that the company is making $0.0467 for each dollar of assets. An increasing asset utilization means that Commerce Bancshares is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Commerce or Axos Financial is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

UNDERSTANDING Commerce Bancshares dividends

A dividend is the distribution of a portion of Commerce Bancshares earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Commerce Bancshares dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Commerce one year expected dividend income is about $0.7 per share.
The current Dividend Yield is estimated to increase to 0.0151, while Preferred Dividends Income Statement Impact is projected to decrease to roughly 10.2 M.
Last ReportedProjected for 2020
Preferred Dividends Income Statement Impact10.3 M10.2 M
Payment of Dividends and Other Cash Distributions-113.5 M-122.4 M
Dividend Yield 0.015  0.0151 
Dividends per Basic Common Share 1.04  0.95 
Investing in dividend-paying stocks, such as Commerce Bancshares is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Commerce Bancshares must own a stock before its ex-dividend date to receive its next dividend. This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Commerce Bancshares. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is Commerce Bancshares's Liquidity

Commerce Bancshares financial leverage refers to using borrowed capital as a funding source to finance Commerce Bancshares ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Commerce Bancshares financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Commerce Bancshares's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Commerce Bancshares, but it might be worth checking our own buy vs. sell analysis

Correlation Between Commerce and Axos Financial

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Commerce Bancshares together with similar or unrelated positions with a negative correlation. For example, you can also add Axos Financial to your portfolio. If Axos Financial is not perfectly correlated to Commerce Bancshares it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Commerce Bancshares for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down. Please check pair correlation details between CBSH and AX for more information.


Are you currently holding both Commerce Bancshares and Axos Financial in your portfolio? Please note if you are using this as a pair-trade strategy between Commerce Bancshares and Axos Financial, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses.

Exercise or conversion by Daniel Callahan of 1609 shares of Commerce Bancshares subject to Rule 16b-3

Legal trades by Commerce Bancshares insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Commerce insider trading alert for exercise of stock appreciation rights by Daniel Callahan, Exec. Vice President & CCO, on 18th of November 2020. This event was filed by Commerce Bancshares Inc with SEC on 2020-11-18. Statement of changes in beneficial ownership - SEC Form 4. Daniel Callahan currently serves as executive vice president of the company and the bank, chief credit officer of Commerce Bancshares [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

What is driving Commerce Bancshares Investor Appetite?

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Let me now go over Commerce Bancshares revenue. Based on the latest financial disclosure, Commerce Bancshares reported 1.15 B of revenue. This is 89.74% lower than that of the Financial Services sector and significantly higher than that of the Banks?Regional industry. The revenue for all United States stocks is 87.81% higher than that of the entity. As for Axos Financial we see revenue of 538.4 M, which is much higher than that of the Banks?Regional

Commerce1.15 Billion
Axos Financial538.4 Million
1.1 B
538.4 M
Axos Financial

Can Commerce Bancshares build up on the current rise?

Treynor ratio is down to 0.11. It may hint to a possible volatility drop. Commerce Bancshares has relatively low volatility with skewness of -0.11 and kurtosis of 0.6. However, we advise all investors to independently investigate Commerce Bancshares to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

The Current Takeaway on Commerce Bancshares Investment

While some other entities under the banks?regional industry are still a bit expensive, Commerce Bancshares may offer a potential longer-term growth to stockholders. While some stockholders may not share our view we believe that the current risk-reward utility is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Commerce Bancshares.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Commerce Bancshares. Please refer to our Terms of Use for any information regarding our disclosure principles.

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