CullenFrost Stock Story

CFR

- USA Stock

USD 117.37 0.97 0.82%

Macroaxis Story

CullenFrost Bankers is scheduled to announce its earnings today. The next earnings report is expected on the 5th of May 2022. Because some of us are getting excited about financial services space, it makes sense to sum up CullenFrost Bankers in greater detail. We will discuss the reasons why it is still possible for the company to generate above-average margins given the latest economic outlook.

Published over three months ago

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Do analysts believe CullenFrost Bankers (NYSE:CFR) will continue to spike?

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. CullenFrost Bankers has an asset utilization ratio of 4.69 percent. This connotes that the company is making $0.0469 for each dollar of assets. An increasing asset utilization means that CullenFrost Bankers is more efficient with each dollar of assets it utilizes for everyday operations.

What is the right price you would pay to acquire a share of CullenFrost Bankers? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated.

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What is happening with CullenFrost Bankers this year

Annual and quarterly reports issued by CullenFrost Bankers are formal financial statements that are published yearly and quarterly and sent to CullenFrost stockholders. The reports show and break down the current year's ongoing operations and discuss plans for the upcoming year. Annual reports have been a requirement from the Securities and Exchange Commission (SEC) for businesses owned by the public since 1934.

Companies such as CullenFrost Bankers often view their annual report as an effective marketing tool to disseminate their perspective on company future earnings or innovations. With this in mind, many companies devote large sums of money to making their reports attractive and informative. In such instances, the annual report becomes a forum through which a company can communicate to the general public any number of topics that may or may not be directly related to the actual data published in the reports.

How does CullenFrost utilize its cash?

To perform a cash flow analysis of CullenFrost Bankers, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash CullenFrost Bankers is receiving and how much cash it distributes out in a given period. The CullenFrost Bankers cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

CullenFrost Bankers Net Cash Flow from Operations is relatively stable at the moment as compared to the past year. CullenFrost Bankers reported last year Net Cash Flow from Operations of 648.29 Million

What is driving CullenFrost Bankers Investor Appetite?

Earning per share calculations of CullenFrost Bankers is based on official Zacks consensus of 7 analysts regarding CullenFrost Bankers' future annual earnings. Given the historical accuracy of 88.51%, the future earnings per share of the company is estimated to be 6.58 with the lowest and highest values of 6.5 and 6.68, respectively. Please note that this consensus of annual earnings estimates for the firm is an estimate of EPS before non-recurring items and including employee stock options expenses.

Is CullenFrost a risky opportunity?

Let's check the volatility. CullenFrost is looking slightly risky at this time. Whether you invest your money or manage your clients' funds, remember that it is easy to forget that behind CullenFrost (NYSE:CFR) stock is an actual business venture. So, do not let stock picking become an abstract concept by ignoring the elementary risk calculations. buying a share of a CullenFrost Bankers stock makes you a part-owner of that company.

CullenFrost Bankers Current Consensus

Here is the latest trade recommendation based on an ongoing consensus estimate among financial analysis covering CullenFrost Bankers. The CullenFrost consensus assessment is calculated by taking the average estimates from all of the analysts covering CullenFrost Bankers

Strong Buy

Hold

Sell

Strong Sell

Strong Buy	1	10.0
Buy	0	0.0
Hold	4	40.0
Sell	1	10.0
Strong Sell	4	40.0

Will CullenFrost Bankers latest spike continue?

The kurtosis is down to 0.33 as of today. CullenFrost Bankers has relatively low volatility with skewness of -0.07 and kurtosis of 0.33. However, we advise all investors to independently investigate CullenFrost Bankers to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure CullenFrost Bankers' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact CullenFrost Bankers' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

CullenFrost Bankers Implied Volatility

CullenFrost Bankers' implied volatility exposes the market's sentiment of CullenFrost Bankers stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if CullenFrost Bankers' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that CullenFrost Bankers stock will not fluctuate a lot when CullenFrost Bankers' options are near their expiration.

Our Bottom Line On CullenFrost Bankers

While few other entities within the banks—regional industry are still a little expensive, even after the recent corrections, CullenFrost Bankers may offer a potential longer-term growth to retail investors. All things considered, as of the 27th of January 2022, we believe that at this point, CullenFrost Bankers is fairly valued with below average chance of bankruptcy within the next 2 years. Our overall 'Buy-vs-Sell' recommendation on the enterprise is Buy.

Editorial Staff

Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time base at the beginning of the pandemic and eventually acquired a real test for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI. View Profile

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 CullenFrost Bankers. Please refer to our Terms of Use for any information regarding our disclosure principles.

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