# Cullen/Frost Bankers (CFR.US)

Canonical: https://gigainvestors.com/s/CFR

Analysis as of: 2026-10-16T07:27:22.543Z. Financial observations: FY2015–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $154.11 per share; close as of 2026-10-15.

Estimated value: low $117.64 per share, central $147.04 per share, high $196.06 per share. Buy at or below the central value $147.04 per share. Valuation as of 2026-10-16T07:27:22.543Z; scenarios are not confidence intervals.

Expected annual return: 9.8% at the stated quote. About 9.8% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- Financial history: 10 years

- Profitable years in the last ten: 10

- Required profitable years: 9

- Return on common equity variation (informational): 0.25×

Chart: Net income; fiscal year observations.

- FY2016: $296M

- FY2017: $356M

- FY2018: $447M

- FY2019: $436M

- FY2020: $324M

- FY2021: $436M

- FY2022: $572M

- FY2023: $591M

- FY2024: $576M

- FY2025: $642M

### moat: pass

- Tangible common book per share

- Bank / P&C ROTE, median of available years: 14.4%

- Required median return: 12.0%

- Return uses tangible common equity: Yes

- Bank ROTE, second-lowest year: 12.0%

- Cost / income, median: 62.5%

- Years with reported combined ratio: 0

Chart: Return on tangible common equity; fiscal year observations.

- FY2016: 13.5%

- FY2017: 14.3%

- FY2018: 17.4%

- FY2019: 14.0%

- FY2020: 9.3%

- FY2021: 12.0%

- FY2022: 24.5%

- FY2023: 16.6%

- FY2024: 15.3%

- FY2025: 14.5%

### economics: pass

- Tangible common book per share

- Book value per share + reinvested dividends, annualized return: 14.4%

- Book return interval: 10 years

- Starting book value per share: $32.81

- Ending book value per share: $69.07

Chart: Annual book + dividend return; fiscal year observations.

- FY2016: 12.8%

- FY2017: 16.9%

- FY2018: 9.5%

- FY2019: 30.6%

- FY2020: 18.9%

- FY2021: 7.7%

- FY2022: -30.5%

- FY2023: 63.1%

- FY2024: 12.1%

- FY2025: 25.1%

### management: pass

- Tangible common book per share

- Diluted shares, 10-year annual growth: 0.1%

- Diluted shares, 5-year annual growth: 0.3%

- Share growth excluding flagged crisis recapitalisations: 0.1%

- Five-year share growth excluding flagged crisis recapitalisations: 0.3%

- Flagged crisis recapitalisations: 0

- Book created / earnings retained after dividends and buybacks: 1.14×

- Book value created per share: $36.27

- Earnings retained per share after dividends and buybacks: $31.73

Chart: Shares (first year = 100); fiscal year observations.

- FY2015: 100

- FY2016: 99

- FY2017: 102

- FY2018: 102

- FY2019: 100

- FY2020: 99

- FY2021: 101

- FY2022: 102

- FY2023: 101

- FY2024: 101

- FY2025: 101

### accounting: fail

- credit provisions persistently exceed same-year peers

- Financial accounting warning count: 1

- Deposits, annualized growth: 5.8%

- Known restatement years: 0

- Years loan growth exceeded twice deposit growth: 4

- Years credit losses exceeded peer median: 7

## Holders

- [Matthew McLennan](https://gigainvestors.com/FE): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Andrew Adams](https://gigainvestors.com/MPF): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

The price assumes profits grow 6.2% a year forever · "Cullen/Frost signals 6.5%–7.5% noninterest income growth upgrade as expansion branches lift EPS" (seekingalpha.com, Oct 2025) · net income +11.5%

Story as of 2026-10-16T09:58:29.611Z; price observation 2026-10-15.

The price assumes profits grow 6.2% a year forever

- 2025-08-01: Cullen/Frost Q2 Earnings Top Estimates, Stock Slips on Cost Concerns ([finance.yahoo.com](https://finance.yahoo.com/news/cullen-frost-q2-earnings-top-161700242.html))

### Net income · FY2025

net income +11.5%; source https://www.sec.gov/Archives/edgar/data/39263/000003926326000011/cfr-20251231.htm; observed 2026-02-05.

- FY2016: $296M 

- FY2017: $356M 

- FY2018: $447M 

- FY2019: $436M 

- FY2020: $324M 

- FY2021: $436M 

- FY2022: $572M 

- FY2023: $591M 

- FY2024: $576M 

- FY2025: $642M 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in regional banking; annual sales are USD 2.2 billion.

- Source: https://www.sec.gov/Archives/edgar/data/39263/000003926326000011/cfr-20251231.htm#000003926326000011 (filed 2026-02-05); FY2025: revenue 2235244000.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); CFR.US: Cullen/Frost Bankers, Inc. operates as the bank holding company for Frost Bank that provides commercial and consumer banking services in Texas. The company offers commercial banking services to corporations, including financing for industrial and commercial properties, interim construction related to industrial and commercial properties, equipment, inventories and accounts receivables, and acquisitions; and treasury management services. It also provides consumer banking services, such as checking accounts, automated-teller machines (ATMs), overdraft facilities, installment and real estate loans, first mortgage loans, home equity loans and lines of credit, drive-in and night deposit services, safe deposit facilities, and brokerage services. In addition, the company offers international banking services comprising deposits, loans, letters of credit, foreign collections, funds transmitting, and foreign exchange services; correspondent banking activities, including check clearing, transfer of funds, fixed income security services, and securities custody and clearance services. Further, it offers trust, investment, agency, and custodial services for individual and corporate clients; capital market services that include sales and trading, new issue underwriting, money market trading, advisory, and securities safekeeping and clearance; and support for international business activities, including foreign exchange, letters of credit, export-import financing, and other related activities. Additionally, the company offers insurance and securities brokerage services; holding of securities for investment purposes; and investment management services for mutual funds, institutions, and individuals. It serves energy, manufacturing, services, construction, retail, telecommunications, healthcare, military, and transportation industries. Cullen/Frost Bankers, Inc. was founded in 1868 and is headquartered in San Antonio, Texas.

### Why customers stay

It earns 14.4% on shareholders’ money, excluding intangible assets.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-05); 10-year return on tangible equity observations [[2016,0.13486140870567687],[2017,0.14281417144470576],[2018,0.17415612102126798],[2019,0.14005503338050757],[2020,0.09270021704078057],[2021,0.11981524262118004],[2022,0.24502041141258618],[2023,0.16558354184197963],[2024,0.15343621973730767],[2025,0.14497342117055262]]; median 0.1438937963076292. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 157.8 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-05); Dividend observations: [[2016,142965000],[2017,152235000],[2018,173512000],[2019,185069000],[2020,182600000],[2021,195943000],[2022,216455000],[2023,238998000],[2024,249121000],[2025,262031000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/39263/000003926326000011/cfr-20251231.htm (filed 2026-02-05); FY2025: cash repurchases 157832000 USD.

### What the price says

The price assumes profits grow 6.2% a year forever.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-05); Price 154.11; FX 1; original perpetual distributable cash 5.881791866294101; discount 0.1; growth 0.061833807888559474. Same book-value model and 4× ceiling; no ten-year operating fade applies. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $75.99 per share

- 2016-11: $82.31 per share

- 2016-12: $88.23 per share

- 2017-01: $89.40 per share

- 2017-02: $92.47 per share

- 2017-03: $88.97 per share

- 2017-04: $94.39 per share

- 2017-05: $91.66 per share

- 2017-06: $93.91 per share

- 2017-07: $90.78 per share

- 2017-08: $84.20 per share

- 2017-09: $94.92 per share

- 2017-10: $98.50 per share

- 2017-11: $98.41 per share

- 2017-12: $94.65 per share

- 2018-01: $106.41 per share

- 2018-02: $103.99 per share

- 2018-03: $106.07 per share

- 2018-04: $114.45 per share

- 2018-05: $114.23 per share

- 2018-06: $108.24 per share

- 2018-07: $110.49 per share

- 2018-08: $110.89 per share

- 2018-09: $104.44 per share

- 2018-10: $97.92 per share

- 2018-11: $100.32 per share

- 2018-12: $87.94 per share

- 2019-01: $97.28 per share

- 2019-02: $103.68 per share

- 2019-03: $97.07 per share

- 2019-04: $101.69 per share

- 2019-05: $91.27 per share

- 2019-06: $93.66 per share

- 2019-07: $94.94 per share

- 2019-08: $83.01 per share

- 2019-09: $88.55 per share

- 2019-10: $90.08 per share

- 2019-11: $93.56 per share

- 2019-12: $97.78 per share

- 2020-01: $89.16 per share

- 2020-02: $78.39 per share

- 2020-03: $55.79 per share

- 2020-04: $71.86 per share

- 2020-05: $75.97 per share

- 2020-06: $74.71 per share

- 2020-07: $72.06 per share

- 2020-08: $69.46 per share

- 2020-09: $63.95 per share

- 2020-10: $70.27 per share

- 2020-11: $83.91 per share

- 2020-12: $87.23 per share

- 2021-01: $92.24 per share

- 2021-02: $104.40 per share

- 2021-03: $108.76 per share

- 2021-04: $120.06 per share

- 2021-05: $120.71 per share

- 2021-06: $112.00 per share

- 2021-07: $107.32 per share

- 2021-08: $114.22 per share

- 2021-09: $118.62 per share

- 2021-10: $129.50 per share

- 2021-11: $125.89 per share

- 2021-12: $126.07 per share

- 2022-01: $141.01 per share

- 2022-02: $140.73 per share

- 2022-03: $138.41 per share

- 2022-04: $132.29 per share

- 2022-05: $124.98 per share

- 2022-06: $116.45 per share

- 2022-07: $130.40 per share

- 2022-08: $129.96 per share

- 2022-09: $132.22 per share

- 2022-10: $155.05 per share

- 2022-11: $145.07 per share

- 2022-12: $133.70 per share

- 2023-01: $130.28 per share

- 2023-02: $131.82 per share

- 2023-03: $105.34 per share

- 2023-04: $110.25 per share

- 2023-05: $100.20 per share

- 2023-06: $107.53 per share

- 2023-07: $108.58 per share

- 2023-08: $94.53 per share

- 2023-09: $91.21 per share

- 2023-10: $90.99 per share

- 2023-11: $98.29 per share

- 2023-12: $108.49 per share

- 2024-01: $106.12 per share

- 2024-02: $108.51 per share

- 2024-03: $112.57 per share

- 2024-04: $104.34 per share

- 2024-05: $101.58 per share

- 2024-06: $101.63 per share

- 2024-07: $117.06 per share

- 2024-08: $112.23 per share

- 2024-09: $111.86 per share

- 2024-10: $127.35 per share

- 2024-11: $140.62 per share

- 2024-12: $134.25 per share

- 2025-01: $139.40 per share

- 2025-02: $137.03 per share

- 2025-03: $125.20 per share

- 2025-04: $116.47 per share

- 2025-05: $126.98 per share

- 2025-06: $128.54 per share

- 2025-07: $127.41 per share

- 2025-08: $129.03 per share

- 2025-09: $126.77 per share

- 2025-10: $123.14 per share

- 2025-11: $123.72 per share

- 2025-12: $126.63 per share

- 2026-01: $137.82 per share

- 2026-02: $138.22 per share

- 2026-03: $137.08 per share

- 2026-04: $144.93 per share

- 2026-05: $135.52 per share

- 2026-06: $154.52 per share

- 2026-07: $166.34 per share

- 2026-08: $160.87 per share

- 2026-09: $152.67 per share

- 2026-10: $154.11 per share

## Annual estimated value (USD per share)

- FY2016: low $51.01 per share, central $63.76 per share, high $85.02 per share

- FY2017: low $55.98 per share, central $69.97 per share, high $93.30 per share

- FY2018: low $57.50 per share, central $71.87 per share, high $95.83 per share

- FY2019: low $70.39 per share, central $87.99 per share, high $117.32 per share

- FY2020: low $77.48 per share, central $96.85 per share, high $129.13 per share

- FY2021: low $79.23 per share, central $99.04 per share, high $132.05 per share

- FY2022: low $52.79 per share, central $65.98 per share, high $87.98 per share

- FY2023: low $84.42 per share, central $105.52 per share, high $140.70 per share

- FY2024: low $93.65 per share, central $117.06 per share, high $156.08 per share

- FY2025: low $114.06 per share, central $142.57 per share, high $190.09 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/39263/000003926326000011/cfr-20251231.htm); period 2025-12-31, filed 2026-02-05.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.