📊 CBSH Key Takeaways
Is Commerce Bancshares Inc. /Mo/ (CBSH) a Good Investment?
Commerce Bancshares demonstrates strong fundamental health with robust profitability (38.2% net margin, 14.9% ROE) and exceptional cash generation (39.9% FCF margin, $592.4M free cash flow). Revenue growth of 33.4% YoY coupled with stable net income and improving diluted EPS (+9.5%) indicates quality earnings expansion, though the slight net income decline requires monitoring for sustainability.
Commerce Bancshares shows strong core fundamentals, with high profitability, excellent ROA and ROE for a bank, and substantial free cash flow generation supported by a very clean balance sheet. Revenue growth was strong, but the slight decline in net income suggests some margin pressure or higher costs, so the business looks fundamentally strong rather than flawless. Overall, the company appears financially healthy with good earnings quality and resilient operating performance.
Why Buy Commerce Bancshares Inc. /Mo/ Stock? CBSH Key Strengths
- Exceptional net profit margin of 38.2% with strong operating margin of 49.3%, indicating operational efficiency typical of quality financial institutions
- Outstanding free cash flow generation of $592.4M representing 39.9% of revenue, providing substantial capital for dividends, debt reduction, or strategic investments
- Conservative balance sheet with minimal leverage (0.00x debt/equity ratio) and strong liquidity position with $3.5B cash, reducing financial risk
- Solid return metrics with 14.9% ROE and 1.7% ROA demonstrating effective capital deployment
- Strong revenue growth of 33.4% YoY with diluted EPS growth of 9.5%, showing quality earnings expansion
- High profitability with 49.3% operating margin and 38.2% net margin
- Strong balance sheet with minimal long-term debt and solid equity base
- Robust cash generation, with $645.14M in operating cash flow and $592.39M in free cash flow
CBSH Stock Risks: Commerce Bancshares Inc. /Mo/ Investment Risks
- Net income declined 0.8% YoY despite 33.4% revenue growth, suggesting margin compression or increased operating costs requiring investigation
- Interest coverage ratio of 3.4x, while acceptable, is moderate and could be pressured by rising interest rates in banking sector
- High insider activity (47 Form 4 filings in 90 days) warrants monitoring for potential insider selling patterns that could signal concerns
- Banking sector faces structural headwinds from potential interest rate environment changes affecting net interest margin
- Net income declined slightly despite strong revenue growth, which may indicate rising costs or normalization in spreads
- Interest coverage of 3.4x is adequate but not especially strong if earnings soften
- Bank fundamentals remain exposed to credit quality deterioration and deposit/funding pressure
Key Metrics to Watch
- Net income trend and margin sustainability given divergence between revenue and earnings growth
- Net interest margin and deposit dynamics in changing interest rate environment
- Insider trading activity patterns and direction of Form 4 filings
- Free cash flow conversion and dividend sustainability
- Loan loss provisions and credit quality metrics
- Net interest margin and net income growth
- Credit quality trends, including charge-offs and nonperforming loans
Commerce Bancshares Inc. /Mo/ (CBSH) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 39.9% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
CBSH Profit Margin, ROE & Profitability Analysis
CBSH vs Finance Sector: How Commerce Bancshares Inc. /Mo/ Compares
How Commerce Bancshares Inc. /Mo/ compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Commerce Bancshares Inc. /Mo/ Stock Overvalued? CBSH Valuation Analysis 2026
Based on fundamental analysis, Commerce Bancshares Inc. /Mo/ appears fundamentally strong relative to the Finance sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Commerce Bancshares Inc. /Mo/ Balance Sheet: CBSH Debt, Cash & Liquidity
CBSH Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Commerce Bancshares Inc. /Mo/'s revenue has remained relatively flat over the 5-year period, with a 0% decline. The most recent EPS of $3.30 reflects profitable operations.
CBSH Revenue Growth, EPS Growth & YoY Performance
CBSH Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | N/A | $138.0M | $1.01 |
| Q2 2025 | N/A | $139.6M | $1.03 |
| Q1 2025 | N/A | $112.7M | $0.82 |
| Q3 2024 | N/A | $120.6M | $0.92 |
| Q2 2024 | N/A | $127.8M | $0.97 |
| Q1 2024 | N/A | $112.7M | $0.86 |
| Q3 2023 | N/A | $120.6M | $0.96 |
| Q2 2023 | N/A | $115.8M | $0.92 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Commerce Bancshares Inc. /Mo/ Dividends, Buybacks & Capital Allocation
CBSH SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Commerce Bancshares Inc. /Mo/ (CIK: 0000022356)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CBSH
What is the AI rating for CBSH?
Commerce Bancshares Inc. /Mo/ (CBSH) has a Combined AI Rating of BUY from Claude (BUY) and ChatGPT (BUY) with 80% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CBSH's key strengths?
Claude: Exceptional net profit margin of 38.2% with strong operating margin of 49.3%, indicating operational efficiency typical of quality financial institutions. Outstanding free cash flow generation of $592.4M representing 39.9% of revenue, providing substantial capital for dividends, debt reduction, or strategic investments. ChatGPT: High profitability with 49.3% operating margin and 38.2% net margin. Strong balance sheet with minimal long-term debt and solid equity base.
What are the risks of investing in CBSH?
Claude: Net income declined 0.8% YoY despite 33.4% revenue growth, suggesting margin compression or increased operating costs requiring investigation. Interest coverage ratio of 3.4x, while acceptable, is moderate and could be pressured by rising interest rates in banking sector. ChatGPT: Net income declined slightly despite strong revenue growth, which may indicate rising costs or normalization in spreads. Interest coverage of 3.4x is adequate but not especially strong if earnings soften.
What is CBSH's revenue and growth?
Commerce Bancshares Inc. /Mo/ reported revenue of $1.5B.
Does CBSH pay dividends?
Commerce Bancshares Inc. /Mo/ pays dividends, with $150.2M distributed to shareholders in the trailing twelve months.
Where can I find CBSH SEC filings?
Official SEC filings for Commerce Bancshares Inc. /Mo/ (CIK: 0000022356) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CBSH's EPS?
Commerce Bancshares Inc. /Mo/ has a diluted EPS of $4.04.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is CBSH a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Commerce Bancshares Inc. /Mo/ has a BUY rating with 80% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is CBSH stock overvalued or undervalued?
Valuation metrics for CBSH: ROE of 14.9% (sector avg: 12%), net margin of 38.2% (sector avg: 25%). Higher ROE suggests strong returns relative to peers.
Should I buy CBSH stock in 2026?
Our dual AI analysis gives Commerce Bancshares Inc. /Mo/ a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is CBSH's free cash flow?
Commerce Bancshares Inc. /Mo/'s operating cash flow is $645.1M, with capital expenditures of $52.7M. FCF margin is 39.9%.
How does CBSH compare to other Finance stocks?
Vs Finance sector averages: Net margin 38.2% (avg: 25%), ROE 14.9% (avg: 12%), current ratio N/A (avg: 1.2).